Corning Chairman tells Shareholders: 'We are Succeeding'; After challenging time, sees a bright future for Corning.

Business Editors/High-Tech Writers

CORNING, N.Y.--(BUSINESS WIRE)--April 24, 2003

A year after returning to the helm, Corning Incorporated's (NYSE:GLW) Chairman and CEO, James R. Houghton, today told shareholders that the company is succeeding with its plan to return to profitability.

"Last year, I told you that we, as a company, were up to the challenge before us. I told you that we would focus our priorities in three very distinct areas; that we would dedicate all our energies toward preserving our financial health, toward returning to profitability, and toward investing in our future...I told you that in all these areas we would succeed. My friends, one year later, we are succeeding," Houghton said.

Houghton's remarks were part of his annual address to more than 500 shareholders assembled for the company's annual meeting in Corning, N.Y. He thanked the audience for their confidence and support in the company and presaged Corning's promising future, "As the economy recovers and the business world begins to look around to see who's still standing, they'll see Corning because we have continued to believe we had a future and we have taken steps so it will be a bright one."

Financial health and profitability

Houghton pointed out that the company's first-quarter results were break even, excluding one-time charges, "and our first quarter operating cash flow was positive." He praised management's efforts at reducing costs and eliminating slightly more than $1 billion in debt over the past 15 months.

The chairman also outlined the company's progress toward its goal of returning to operating profitability, highlighting its broad and diverse business portfolio as a source of strength. "The two keys to our return to profitability will be the cost reduction from last year's restructuring and the momentum from businesses in what we call our Corning Technologies segment," he said. In particular, Houghton noted that the liquid-crystal display business, which creates the glass used in flat panel desktop computers, notebook computers and the new LCD televisions are beginning to revolutionize the communications industry. Houghton also said Corning's environmental products business is well positioned for continued global growth in both the automotive and diesel markets.

Houghton reaffirmed Corning's commitment to optical communications and said that the company expects growth of its telecommunications business to return over time.

He also told shareholders that the company is monitoring external trends across all of its markets, "...the timing of our recovery is affected, in great measure, by how the economy recovers in the wake of the war in Iraq. If world events continue to put a drain on consumer confidence, on our business expansions and on the general economy, both here and around the world, we will be affected too."

Investing in the future

Houghton reminded shareholders of the company's continued commitment to innovation, "And while we have dealt with our current day business challenges, we have continued to keep a steady eye on our future...today we are broadening our presence in exciting industries where we are already leaders." Among the areas he highlighted were new ways of making flat panel glass, new technologies in the diesel emission control market, new properties for producing optical fiber and improved processes to enable new generations of drug discovery.

Looking ahead Houghton said that while the company may continue to face challenging times, it will not change its three focus areas. "We firmly believe in the plan we have charted for ourselves and we will pursue it relentlessly, because it will pay off."

In other business, shareholders re-elected the following directors: James B. Flaws, vice chairman and chief financial officer, Corning Incorporated; James R. Houghton, chairman and chief executive officer, Corning Incorporated; Jeremy R. Knowles, Amory Houghton professor of chemistry and biochemistry, Harvard University; James J. O'Connor, retired chairman of the board and chief executive officer, Unicom Corporation; Deborah D. Rieman, retired president and chief executive officer, Check Point Software Technologies, Incorporated; and Peter F. Volanakis, president of Corning Technologies, Corning Incorporated.

Shareholders also approved the 2003 variable compensation plan, which is designed to provide a competitive incentive opportunity to attract and retain key executives; the 2003 equity plan for non-employee directors, which is designed to assist Corning in attracting and retaining highly qualified board members; and the amendment of the 2000 employee equity participation program, which permits employees to obtain equity ownership in Corning.

About Corning Incorporated

Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies that offer growth opportunities in markets that fuel the world's economy. Corning manufactures optical fiber, cable and photonic products in its Telecommunications segment. Corning's Technologies segment manufactures high-performance display glass, and products for the environmental, life sciences, and semiconductor markets.

Webcast Information

The company will host a live audio webcast of the 2003 annual meeting of shareholders in Corning, N.Y., available from 11 a.m. to 12:15 p.m. ET, April 24, 2003. To access the webcast, go to http://www.corning.com and click on the webcast icon. No password or registration is required. The webcast will be archived on the Web site for 14 days after the broadcast.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes or fluctuations in global economic conditions; currency exchange rates; product demand and industry capacity; competitive products and pricing; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; capital spending by larger customers in the telecommunications industry and other business segments; the mix of sales between premium and non-premium products; possible disruption in commercial activities due to terrorist activity and armed conflict; ability to obtain financing and capital on commercially reasonable terms; acquisition and divestiture activities; the level of excess or obsolete inventory; the ability to enforce patents; product and components performance issues; and litigation. These and other risk factors are identified in Corning's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.