Corning Plans to Cease Production of CRT Television Glass In North America.

Business Editors

CORNING, N.Y.--(BUSINESS WIRE)--April 15, 2003

Company Will Take First Quarter Pretax Charge for Assets of Corning

Asahi Video

Corning Expects to Meet or Better First Quarter Guidance Ranges

Corning Incorporated (NYSE:GLW) today announced that Corning Asahi Video Products Company (CAV) intends to cease production of cathode ray tube (CRT) television glass typically used in conventional television sets sold into the NAFTA market.

As a result, Corning will record pretax charges in the range of $140 million to $170 million in the first half of 2003, of which $62 million ($20 million after-tax and minority interest) will be recorded in Corning's first quarter results.

CAV is a partnership between Corning and Asahi Glass America (a wholly owned subsidiary of Asahi Glass Co., Ltd. of Tokyo, Japan). In the first quarter, CAV continued to experience a further weakening of NAFTA CRT glass sales, due in part to increased competitive pressure from imports.

These actions come after the Executive Committee of Corning Asahi Video approved the cessation of production by the end of the second quarter of this year, pending approval by the companies' respective boards. Corning's board has approved this action and Asahi management will also be addressing approval of the closure by board action. The decision will result in the shutdown of CAV's State College, Pa. manufacturing operations and the elimination of approximately 1,000 positions.

"The decision to close CAV is a very difficult one for Corning and for the wonderful community of State College, Pennsylvania. It brings us to the end of an era in the United States color television business for Corning. This is unfortunate, but necessary. Color television was one of the many life-changing inventions Corning helped bring to society. It was a business that sustained our company for many, many years," James R. Houghton, chairman and chief executive officer, said.

He added, "This business has been facing a declining customer base and significantly increased imports for several years and it is now losing money. In our relentless drive to restore profitability to Corning, we can not carry money losing mature businesses."

Corning said that approximately half of the charges resulting from the shutdown will be cash and will be shared between the partners. Corning anticipates approximately one-third of the cash will be spent in each of 2003 and 2004, with the remainder spread over many years. In the fourth quarter of last year, Corning took a pretax charge of $140 million ($44 million after-tax and minority interest) to impair tangible assets in this business.

First-Quarter Outlook

Corning reaffirmed that it expects to be within or better than its first-quarter guidance ranges for revenues of $700 to $730 million and for a net loss of $10 million to $50 million, or $0.01 to $0.04 per share, excluding the previously announced asbestos litigation settlement, gains from debt repurchases and charges from restructuring and impairment actions.

James B. Flaws, vice chairman and chief financial officer, said, "For several years now CAV has been a mature business and its results have been declining due to the rapidly changing market dynamics of the television business. Although CAV's fourth quarter results were disappointing, we expected some improvement in sales and profitability as we moved through 2003. However, the business has continued to deteriorate through the first quarter, and we now believe there are no prospects for a sustainable recovery."

In addition to the $62 million pretax charge noted above, Corning's first quarter results will also include a previously announced $20 million charge related to the exit of the optical switching business and a previously announced pretax charge of $300 million related to asbestos litigation and Pittsburgh Corning Corporation. Corning also said that it used $189 million in cash and six million shares of stock to retire a total of $273 million in debt, resulting in a net pretax gain of approximately $5 million to be reported in Corning's first quarter results.

Flaws said that Corning continues on track to return to profitability before restructuring and other one-time gains and losses by the third quarter of this year, and the closure of CAV will improve the company's cash flow prospects longer term, and "assist us in achieving our profitability goal for the full year."

First-Quarter Conference Call Information

The company will host a first quarter conference call at 8:30 a.m. ET on Wednesday, April 23, 2003. To access the call, dial [phone]. The password is Corning. The Leader is Sofio. A replay of the call will begin at approximately 10:30 a.m. ET and will run through 5 p.m. ET, Wednesday, May 7, 2003. To listen, dial [phone], no passcode required. To listen to a live audio webcast of the call at 8:30 a.m. on Wednesday, April 23, please go to our website and follow the instructions: http://www.corning.com/investor_relations. The webcast will be archived for 14 days following the call.

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.

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.