Corning To Invest Additional $250 Million to Expand Production of LCD Glass; Continuing Expansion Triples Company's Worldwide Capacity.

Business Editors

CORNING, N.Y.--(BUSINESS WIRE)--Aug. 3, 2000

Corning Incorporated (NYSE:GLW) today announced that it will invest an additional $250 million to increase production of its active matrix liquid crystal display (AMLCD) glass. The capital expenditure will be used to expand capacity at the company's facility in Harrodsburg, Kentucky, at Corning Japan K.K.'s facility in Shizuoka, Japan, and Corning Taiwan Glass Co.'s facility in Tainan, Taiwan. Corning's latest investment, in addition to previously announced investments dating from late 1999 totaling more than $500 million, will allow the company to triple its worldwide capacity by the end of 2001.

Corning's latest expansion is in response to rapidly increasing demand for its AMLCD glass, as well as the strong response to its new EAGLE2000 glass, introduced only one month ago. "Corning is committed to serving our customers with the highest quality products and most reliable supply in the industry," said Donald B. McNaughton, general manager, Display Technologies, Corning Incorporated. "Over 85% of our capacity for AMLCD glass has been committed to customers under long term supply agreements," noted McNaughton. "Today's expansion announcement is the latest in our continuing plan to satisfy our customers' and the industry's surging demand for Corning precision flat glass."

Corning is a leading supplier of AMLCD glass substrates used in advanced information display applications such as notebook computers, flat panel desktop computer monitors, Internet and communications appliances, and LCD televisions. Market demand for Corning's precision flat glass is growing rapidly, as evidenced by a year-over-year increase in second quarter sales of AMLCD glass of approximately 60%. The global market for AMLCD glass is currently estimated at $1 billion and is expected to grow over 40% each year through 2002.

Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's revenues in 1999 were $4.7 billion.

Forward-Looking Cautionary Statements

Except for historical information and discussions contained herein, statements included in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause results to differ materially, as discussed in the company's filing with the Securities and Exchange Commission.