Amkor Reports Record Revenue for Fourth Quarter and Full Year.

Business Editors

WEST CHESTER, Pa.--(BUSINESS WIRE)--Jan. 31, 2001

Amkor Technology, Inc. announced revenue for 2000 rose 25% to $2.39 billion, marking Amkor's fifteenth consecutive year of revenue growth. Fourth quarter revenue was $637 million, an increase of 18% from $538 million in the fourth quarter of 1999. Assembly & test revenue rose 16% to $529 million from $457 million in the fourth quarter of last year. Wafer fab revenue was $108 million compared with $81 million in the fourth quarter of 1999.

For 2000, net income before amortization of goodwill and acquired intangibles more than doubled, to $242 million, or $1.60 per share, compared to $96 million, or $0.77 per share, for 1999. Including amortization of goodwill and acquired intangibles, 2000 net income was $154 million, or $1.02 per share, compared with $77 million, or $0.63 per share, for 1999.

Fourth quarter net income before amortization of goodwill and acquired intangibles was $71 million, or $0.45 per share, compared with $27 million, or $0.21 per share, for the fourth quarter of 1999. Including amortization of goodwill and acquired intangibles, net income was $41 million, or $0.26 per share, compared with $20 million, or $0.16 per share, for the fourth quarter of 1999.

There were 158 million weighted average shares outstanding on a fully diluted basis for the fourth quarter of 2000 compared with 137 million in the year-ago period.

"Given the unexpectedly severe and broad-based weakness in economic activity that developed toward the end of the year, we are satisfied with our fourth quarter and full year operating results," said John Boruch, Amkor's President. "While we experienced a general pullback in die shipments during the fourth quarter, combined revenues from four of our five largest customers actually increased by 10% in Q4."

"During January however, industry conditions continued to deteriorate, and customer forecasts have weakened across the board. We expect the first quarter of 2001 to be very challenging, and we will be implementing measures to manage our operating costs in line with expected levels of business activity," said Mr. Boruch. "Our current view is that second quarter revenues will be higher than in Q1 2000."

"Fourth quarter gross margin rose to 26.9% from 20.4% in Q4 '99," said Ken Joyce, Amkor's Chief Financial Officer. Effective with the fourth quarter of 2000, the amortization of goodwill and acquired intangibles previously included in "Cost of Revenues" is now reported as a separate line item below the gross profit line. Prior periods have been restated to reflect this treatment.

Overall assembly ASP's were flat for the fourth quarter, compared with a 2.1% decline in the third quarter, due principally to improved product mix.

Depreciation and amortization expenses were $101 million compared with $54 million in the fourth quarter of 1999.

Fourth quarter EBITDA was $187 million compared to $114 million in Q4 `99. We have calculated EBITDA as earnings before income taxes; equity in income (loss) of affiliates; foreign currency gain or loss; interest expense, net; depreciation and amortization. EBITDA is a common measure used by investors to evaluate a company's ability to service debt. EBITDA is not defined by generally accepted accounting principles.

"During the fourth quarter, the company recorded a net tax benefit of $2.1 million, resulting in an effective tax rate of 11% for the entire year, compared with a tax rate of 25% for the year 1999," continued Mr.Joyce. "The reduced income taxes in 2000 are principally attributable to tax holidays in connection with the acquisition of the K1, 2 and 3 assembly and test facilities in Korea, and additional tax holidays granted to our Philippines operations during the fourth quarter of 2000."

Fourth Quarter 2000 Operating Highlights

-- High end (advanced leadframe and laminate) products were 68% of packaging
revenue, compared to 63% in the fourth quarter of 1999.

-- Overall assembly capacity utilization was 75% compared with 85% in the third
quarter of 2000.

-- Anam's wafer foundry averaged approximately 24,000 monthly wafer starts.

-- Test revenue was $31 million, up from $22 million in Q4 of 1999.

Business Outlook

At the present time there is uncertainty as to when excess inventory throughout the supply chain will be absorbed, and when end market demand will rebound. The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially. These statements do not reflect the impact of any mergers, acquisitions or other business combinations that may take place during the year.

-- The dramatic slowdown in economic conditions is affecting

customer forecasts and impairing our visibility into 2001. The

first calendar quarter is typically seasonally weak compared

to the preceding quarter. Our best estimate is that first

quarter assembly and test revenue, including revenue from the

joint venture with Toshiba, which commenced January 1, will be

10% below the fourth quarter, plus or minus several percentage

points, due to reduced customer demand and seasonal factors.

-- We expect first quarter wafer fab revenue to be approximately

$55 million compared with $108 million in the fourth quarter

of 2000, principally due to lower levels of demand for digital

signal processors from the foundry's largest customer. We

expect wafer fab sales to strengthen during the course of

2001, although it is premature to estimate full year revenues.

-- Current market weakness and excess industry capacity increases

the likelihood of heightened price competition. We believe

assembly quarterly ASP declines will approximate 4% - 6% for

the first two quarters of 2001.

-- Our gross margin for the first quarter of 2001 is expected to

be in the range of 22%, plus or minus a couple of points,

primarily due to lower revenue. For the full year, our gross

margin will depend on the timing and magnitude of business

recovery.

-- For the first quarter of 2001, operating expenses should

increase modestly, however as a percentage of revenue,

operating expenses are expected to increase to approximately

12%. For the full year, the operating expense percentage

should decline to the 9% to 10% range, based on expected

levels of business activity.

-- As a result of the above, we presently expect that for the

first quarter of 2001, our core assembly and test business

will reflect a modest pre-tax profit.

-- The tax rate for the first quarter and full year 2001 is

expected to be in the range of 11%.

-- Depreciation is expected to be approximately $75 to $80

million in the first quarter, and approximately $300 million

for the full year 2001. Amortization of goodwill and acquired

intangibles is expected to be approximately $30 million in the

first quarter of 2001, and $120 million for the full year.

-- For the first quarter of 2001, we expect capital expenditures

of approximately $85 million, supporting the development of

our flip chip, system-in-package and high-end BGA

capabilities, and to build out additional manufacturing

capacity at our K4 complex in Korea. Capital spending is

presently expected to be in the range of $250 million for all

of 2001. We will monitor industry conditions closely and will

revise these plans as conditions warrant.

"Our historic annual revenue and earnings growth has been in the range of 20% to 25%, and our goal has always been to maintain this rate of growth. I believe this remains a realistic goal for our core assembly and test business in 2001, despite the present economic conditions," said James Kim, Amkor's Chairman and Chief Executive Officer. "We believe that the current market weakness will be relatively short-lived, and that normal semiconductor industry growth will resume in the second half of the year, preceding a broader economic rebound in late 2001 or early 2002. More important, we intend to capitalize on our strong customer relationships, technology leadership and pro-active strategy of expanding our presence into China, Japan, and Taiwan. Together, these actions will help ensure that we take an active part in achieving our growth objectives."

"We continue to invest in those strategic elements of our business, such as System-in-Package, Flip Chip, Stacked CSP, Strip Test and High-End BGA, that are expected to provide a strong platform for future growth," said Mr. Boruch.

"Our System-in-Package business is developing very well, and we believe our sizable investment in this new business venture is beginning to pay off," continued Mr. Boruch. "We have reached volume production in flash storage cards for Sandisk and power amplifier modules for RF Micro Devices, and will be increasing production of TouchChip sensors for ST Microelectronics. We are in development or qualification stages on a number of other SiP applications. Our SiP business should realize significant revenue growth in 2001 and beyond."

"Our landmark joint venture with Toshiba commenced operations on January 1. This is the first large-scale outsourcing of assembly and test for a major Japanese semiconductor company and positions Amkor for further penetration of what we believe is a multi-billion dollar market in Japan for assembly and test," continued Mr. Boruch.

"Earlier this month we fulfilled another key strategic goal when we announced that we would open our first assembly and test operation in China. This facility, which will initially package and test IC components for the local cell phone market, is the first step of what we expect will be a major market presence for Amkor over the coming years," said Mr. Boruch.

"We continue to have discussions with leading optical device companies in North America and Europe, as well emerging companies in this rapidly developing industry," said Mr. Boruch. "We have recently commenced business relationships with several of these companies and will update the market as business levels and customer sensitivities permit."

Amkor will be holding a conference call on January 31 at 5:00 p.m. eastern time to discuss the results of the fourth quarter in more detail. Participants can access the call at 712-271-3964. The call will also be webcast through our web site, http://www.amkor.com.

Amkor is the world's largest provider of contract microelectronics manufacturing services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services, including deep sub-micron wafer fabrication; wafer probe, wafer mapping, characterization and reliability testing; IC packaging design and assembly; multi-chip module design and assembly; and final testing. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com.

The statements by James Kim and John Boruch and the above statements contained in our Business Outlook are forward-looking statements that involve a number of risks and uncertainties. Factors that could affect future operating results and cause actual results to vary materially from historical results include, but are not limited to: dependence on the highly cyclical nature the semiconductor industry; competitive pricing and declines in average selling prices; dependence on our relationship with ASI for all of our wafer fabrication output; reliance on a small group of principal customers; timing and volume of orders relative to the production capacity; availability of manufacturing capacity and fluctuations in manufacturing yields; availability of financing; competition; dependence on international operations and sales; dependence on raw material and equipment suppliers; exchange rate fluctuations; dependence on key personnel; difficulties in managing growth; enforcement of intellectual property rights; environmental regulations; and the results of ASI through the equity method of accounting.

Further information on risk factors that could affect the outcome of the events set forth in these statements and that would affect the company's operating results and financial condition is detailed in the company's filings with the Securities and Exchange Commission, including the Report on Form 10-Q for the fiscal quarter ended September 30, 2000.

                        AMKOR TECHNOLOGY, INC.
                   CONSOLIDATED STATEMENTS OF INCOME
                 (in thousands, except per share data)

                  For the Three Months       For the Twelve Months
                    Ended December 30,         Ended December 30,
                       (unaudited)                (unaudited)

                      2000        1999         2000         1999
                  -----------  -----------  -----------  -----------
Net revenues      $   636,871  $   538,274  $ 2,387,294  $ 1,909,972

Cost of
 revenues
 including
 purchases from
 ASI                  465,419      428,366    1,782,158    1,560,816
                  -----------  -----------  -----------  -----------
Gross profit          171,452      109,908      605,136      349,156
                  -----------  -----------  -----------  -----------
Operating
 expenses:
Selling,
 general and
 administrative        53,759       39,560      192,623      144,538
Amortization of
 goodwill & other
 acquired
 intangibles           20,925        4,163       63,080       17,105
Research and
 development            8,976        3,352       26,057       11,436
                  -----------  -----------  -----------  -----------
Total operating
 expenses              83,660       47,075      281,760      173,079
                  -----------  -----------  -----------  -----------
Operating income       87,792       62,833      323,376      176,077
                  -----------  -----------  -----------  -----------

Other (income)
 expense:
Interest expense,
 net                   38,196       15,935      119,840       45,364
Foreign currency
 loss                     205          157        4,812          308
Other expense
 (income), net           (130)      18,892        1,295       25,117
                  -----------  -----------  -----------  -----------
Total other
 expense               38,271       34,984      125,947       70,789
                  -----------  -----------  -----------  -----------
Income before
 income taxes
 and equity in
 income of
 investees             49,521       27,849      197,429      105,288
Provision for
 income taxes           2,140       (5,694)     (22,285)     (26,600)
Equity in loss
 of investees         (10,771)      (1,969)     (20,991)      (1,969)
                  -----------  -----------  -----------  -----------
Net income        $    40,890  $    20,186  $   154,153  $    76,719
                  ===========  ===========  ===========  ===========
Per Share Data:
Basic net income
 per common share $      0.27  $      0.16  $      1.06  $      0.64
                  ===========  ===========  ===========  ===========
Diluted net
 income
 per common share $      0.26  $      0.16  $      1.02  $      0.63
                  ===========  ===========  ===========  ===========
Shares used in
 computing basic
 net income per
 common share         151,992      123,090      145,806      119,341
                  ===========  ===========  ===========  ===========
Shares used in
 computing
 diluted net
 income per
 common share         157,905      136,856      153,223      135,067
                  ===========  ===========  ===========  ===========


                        AMKOR TECHNOLOGY, INC.
       SUPPLEMENTAL CONSOLIDATED STATEMENTS OF INCOME EXCLUDING
  AMORTIZATION OF GOODWILL AND OTHER ACQUISITION-RELATED INTANGIBLES
                 (in thousands, except per share data)


                    For the Three Months      For the Twelve Months
                      Ended December 30,        Ended December 30,
                        (unaudited)               (unaudited)

                     2000         1999         2000          1999
                  -----------  -----------  -----------  -----------

Net revenues      $   636,871  $   538,274  $ 2,387,294  $ 1,909,972

Cost of
 revenues-
 including
 purchases from
 ASI                  465,419      428,366    1,782,158    1,560,816
                  -----------  -----------  -----------  -----------
Gross profit          171,452      109,908      605,136      349,156
                  -----------  -----------  -----------  -----------
Operating
 expenses:
 Selling,
  general and
  administrative       53,759       39,560      192,623      144,538
 Research and
  development           8,976        3,352       26,057       11,436
                  -----------  -----------  -----------  -----------
    Total
     operating
     expenses          62,735       42,912      218,680      155,974
                  -----------  -----------  -----------  -----------
Operating income      108,717       66,996      386,456      193,182
                  -----------  -----------  -----------  -----------
Other (income)
 expense:
 Interest
  expense,net          38,196       15,935      119,840       45,364
 Foreign currency
  loss                    205          157        4,812          308
 Other expense
  (income), net          (130)      18,892        1,295       25,117
                  -----------  -----------  -----------  -----------
    Total other
     expense           38,271       34,984      125,947       70,789
                  -----------  -----------  -----------  -----------
Income before
 income taxes and
 equity in income
 of investees          70,446       32,012      260,509      122,393
Provision for
 income taxes           2,140       (5,694)     (22,285)     (26,600)
Equity in income
  of investees         (1,920)         238        3,919          238
                  -----------  -----------  -----------  -----------
Net income        $    70,666  $    26,556  $   242,143  $    96,031
                  ===========  ===========  ===========  ===========
Per Share Data:
Basic net income
 per common share $      0.46  $      0.22  $      1.66  $      0.80
                  ===========  ===========  ===========  ===========
Diluted net
 income per
 common share     $      0.45  $      0.21  $      1.60  $      0.77
                  ===========  ===========  ===========  ===========
Shares used in
 computing basic
 net income per
 common share         151,992      123,090      145,806      119,341
                  ===========  ===========  ===========  ===========
Shares used in
 computing
 diluted net
 income per
 common share         157,905      136,856      153,223      135,067
                  ===========  ===========  ===========  ===========

      The above supplemental consolidated statements of income exclude
the effects of the following:

      During the three months and twelve months ended December 31, 2000,
    the amortization of goodwill and other acquired intangibles
    excluded from SGA was $20.9 million and $63.1 million,
    respectively.

      During the three months and twelve months ended December 31, 1999,
    the amortization of goodwill excluded from SGA was $4.2 million
    and $17.1 million, respectively.

      During the three months and twelve months ended December 31, 2000,
    the amortization of the difference between the cost of our equity
    investments and our share of the underlying net assets of ASI
    excluded from equity in income (loss) of investees was $8.9
    million and $24.9 million, respectively.


                        AMKOR TECHNOLOGY, INC.
                      CONSOLIDATED BALANCE SHEETS
                            (in thousands)


                                        December 31,   December 31,
                                            2000           1999
                                        (unaudited)
Assets
Current assets:
  Cash and cash equivalents             $    93,517    $    98,045
  Short-term investments                          0        136,595
  Accounts receivable
     Trade, net of allowance
      for doubtful accounts
      of $2,426 and $2,443                  301,915        157,281(a)
     Due from affiliates                      1,634          6,278
     Other                                    6,465          6,469
  Inventories                               108,613         91,465
  Other current assets                       36,873         11,117
                                        -----------    -----------
      Total current assets                  549,017        507,250
                                        -----------    -----------
Property, plant and equipment, net        1,478,510(b)     859,768
Investments                                 501,254(b)      63,672
Other assets:
  Due from affiliates                        25,013         27,858
  Goodwill and acquired intangibles         737,593(b)     233,532
  Other                                     101,897         63,009
                                        -----------    -----------
      Total other assets                    864,503        324,399
                                        -----------    -----------
      Total assets                      $ 3,393,284    $ 1,755,089
                                        ===========    ===========

Liabilities and Stockholders' Equity
Current liabilities:
   Bank overdraft                       $    25,731    $    16,209
   Short-term borrowings and current
    portion of long-term debt                73,586(b)       6,465
   Trade accounts payable                   133,047        122,147
   Due to affiliates                         32,534         37,913
   Accrued expenses                         129,301         88,577
   Accrued income taxes                      52,232         41,587
                                        -----------    -----------
      Total current liabilities             446,431        312,898
                                        -----------    -----------
Long-term debt                            1,585,536(b)     687,456
Other noncurrent liabilities                 46,483         16,994
                                        -----------    -----------
      Total liabilities                   2,078,450      1,017,348
                                        -----------    -----------

Commitments and contingencies

Stockholders' equity:
   Common stock                                 152            131
   Additional paid-in capital               975,026(b)     551,964
   Retained earnings                        343,886        189,733
   Receivable from stockholder               (3,276)        (3,276)
   Accumulated other
    comprehensive income                       (954)          (811)
                                        -----------    -----------
       Total stockholders' equity         1,314,834        737,741
                                        -----------    -----------
       Total liabilities and
        stockholders' equity            $ 3,393,284    $ 1,755,089
                                        ===========    ===========

(a) Excludes approximately $71.5 million in accounts receivable sold
    under an accounts receivable sale agreement which was terminated
    in May 2000 in connection with the acquisition of the K1, K2 & K3
    packaging operations from Anam Semiconductor.

(b) Increases are primarily attributable to the acquisition of K1, K2
    & K3, the equity investment in ASI, and related debt and equity
    financing.