CMO, Innolux, and TPO's Boards of Directors approve 3-in-1 merger, expected closing date on April 30, 2010

Chi Mei Optoelectronics Corp. (“CMO”)(TAIEX: 3009), Innolux Display Corp. (“Innolux”)(TAIEX: 3481), and TPO Displays Corp. (“TPO”)(Emerging Market Code: 3195) today announced that their respective Board of Directors have unanimously approved the merger of the three companies in an all-stock transaction.  Pending shareholder and standard regulatory approvals, the transaction is expected to close on April 30, 2010. All three companies will convene their respective Extraordinary General Shareholders’ Meeting on January 6, 2010.

Under the terms of the agreement, CMO and TPO will exchange their common shares for the common shares of Innolux. CMO will exchange 2.05 common shares for each Innolux common share, while TPO will exchange 8 common shares for each Innolux common share (after capital reduction conducted by TPO later this year, the exchange ratio of TPO to Innolux will be approximately 3.83: 1).  Innolux will be the surviving entity, and will be re-named Chimei Innolux Corporation (“Chimei Innolux”).  After the completion of the merger, the capital of Chimei Innolux will amount to NT$72.9 billion.

This transaction will be the largest merger within the TFT LCD industry globally.  The combination creates a vertically integrated leader that will drive the evolution of the TFT LCD value chain.