DisplaySearch Raises 2004 TFT LCD Equipment Spending Forecast: Latest Report Anticipates Record Capital Outlay.

Business Editors/High-Tech Writers

DisplaySearch US FPD Conference 2004: "Navigating the Future"

AUSTIN, Texas--(BUSINESS WIRE)--Jan. 26, 2004

DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting, has increased its already record-breaking forecast of 2004 TFT LCD equipment spending. According to DisplaySearch's latest Quarterly TFT LCD Supply/Demand and Capital Spending Report, 2004 is now expected to be by far the biggest year ever in TFT LCD equipment spending, with equipment expenditures projected to reach $9.42 billion, 41% higher than the previous annual record achieved in 2000. In response to strong demand for more and larger-screen notebook PCs, LCD monitors and LCD TVs, panel suppliers are rapidly accelerating fab spending plans, benefiting from larger, more productive tools that significantly reduce panel costs.

DisplaySearch reports that the record 2004 spending will be up 43%, compared to 2003 when spending rose 26% to $6.59 billion. The projected increase in 2004 spending is integral to the elevated long-term growth in TFT LCD revenues, particularly the increased penetration of LCD TVs into the television market, which DisplaySearch now expects will exceed 50 million units in 2008. DisplaySearch anticipates that during this forecast period, 2004 will represent the highest concentration of investment, as manufacturers accelerate new fab investments in response to overwhelming demand. The report includes the following highlights:

-- Taiwan producers are expected to lead the spending charge, as

they capture an estimated 49% capex share in 2003 and a

forecasted 50% share in 2004. Taiwan is also expected to lead

in capex in 2005.

-- Chinese manufacturers are building 5th gen fabs in 2004, and

are expected to account for 11% of 2004 spending. Although

Japan is estimated to account for a 26% share in 2003, their

share is expected to drop to 10% in 2004.

-- Korea will also play a significant role, as their share of the

total spending rises from an estimated 24% in 2003 to a

forecasted 28% in 2004.

-- Investment in 5th generation equipment is estimated to

represent over 60% of the total array equipment spending in

2003, and is predicted to account for more than 50% in 2004.

6th generation equipment will dominate in 2005.

-- Among the principal suppliers, Samsung is expected to lead in

spending in 2004, as they capture a 17% share with the

expansion of their second 5th generation line, as well as the

world's first 7th generation fab. AUO is projected to be a

close second, followed by LG.Philips LCD, with newcomer

Innolux fourth at 10.5%

The DisplaySearch report also presents a rolling eight-quarter outlook for TFT LCD supply and demand for all TFT LCDs, large-area TFT LCDs, and small/medium TFT LCDs. It also indicates when TFT LCD prices will begin to fall and at what rate.

DisplaySearch's Quarterly TFT LCD Supply/Demand and Capital Spending Report analyzes current and future supply/demand dynamics, and utilizes DisplaySearch's proprietary Realistic Capacity(C) calculation methodology. The report is priced from $3,495 to $4,495, and can be purchased by contacting DisplaySearch at www.displaysearch.com, 512-459-3126 or [e-mail].

DisplaySearch is also holding its very popular DisplaySearch US FPD Conference 2004: "Navigating the Future," at the Sheraton San Diego Hotel & Marina on March 30 - April 1, 2004. Sponsors include CEA, Genesis Microchip, LG.Philips LCD, Samsung Electronics, Unaxis Displays, Lumileds, Microsemi, AU Optronics, Cleverdis, and Toshiba America Electronic Components Inc. Save $100 by registering before February 14th for only $1,495. For more information about the event and the opportunities available, please contact Kendra Smith by phone at 512-459-3126 or by e-mail at [e-mail], or visit www.DisplaySearch.com/USFPD2004.

About DisplaySearch

DisplaySearch is the worldwide leader in market research and consulting for the flat panel display (FPD) industry. Founded in 1996, DisplaySearch serves a growing multinational client base, with an extensive array of market intelligence reports, advisory services, and global business conferences. The firm surveys the entire display industry food chain, including component and equipment manufacturers, display producers, OEMs, distributors and retailers. From this comprehensive vantage point, DisplaySearch prepares a valued suite of market forecasts, technology assessments, studies and analyses, and produces influential industry events worldwide. The firm serves more than 500 clients in over 20 countries, and is made up of a core team of 16 analysts, located in Japan, Korea, North America and Taiwan, who possess language skills that include English, Japanese, Korean, Mandarin and Taiwanese. DisplaySearch is headquartered in Austin, Texas, with regional offices in Houston, Richmond, Seoul, Taipei and Tokyo, and the company is on the Web at www.displaysearch.com.