Returns to Profitability Following Extended Industry Downturn
Expecting Continued Growth in Fourth Quarter and 2004

CHANDLER, AZ. -October 27, 2003 -- Amkor Technology, Inc. (Nasdaq: AMKR) reported third quarter sales of $424 million, up 12% sequentially and up 8% over the third quarter of 2002. Amkor returned to profitability in the third quarter, with net income of $16 million, or $0.09 per share, compared with a loss of $59 million, or ($0.36) per share, in the third quarter of 2002.

Amkor's third quarter net income includes a non-cash gain of $10 million, or $0.06 per share, in connection with the reversal of a tax accrual related to tax periods that have closed. Third quarter results also include a charge, with no tax effect, of $2 million, or $0.01 per share, for debt retirement costs in connection with open market purchases of $28 million in 9¼% Senior Notes due 2008. Amkor's results for the third quarter of 2002 included $11 million in after-tax charges associated with factory consolidation and operating efficiency initiatives.

"This was a landmark quarter, in which we achieved record unit shipments in most of our ten factories and returned the corporation to positive net income after an unprecedented industry downturn," said James Kim, Amkor's chairman and chief executive officer.

"We believe the outsourced semiconductor assembly and test industry is poised for a period of sustainable growth, at a rate that will outpace the semiconductor industry. We are encouraged that strengthening customer forecasts may partially offset the seasonal weakness typical of our first calendar quarter. Looking broadly at 2004, we are positioning our organization to achieve annual revenues in the neighborhood of $2 billion, and to reach a peak quarterly gross margin of 27% to 30% during the second half of 2004. We remain committed to improve productivity and profitability, maintain strong liquidity, reduce debt and enhance shareholder value," said Kim.

"During the third quarter we saw accelerating demand, particularly from customers supplying the cell phone industry, for a wide range of advanced packages, including stacked CSP, ChipArray BGA, MicroLeadFrame and camera modules," said John Boruch, Amkor's president and chief operating officer. "Business strengthened as the quarter progressed, with a large number of customers over-supporting their forecasts as demand materialized faster than initially projected. As customer forecasts continued to strengthen, we accelerated our investment in leading-edge assembly and test equipment, and now expect total 2003 capital expenditures to exceed $200 million. As previously announced, Amkor's bank credit facility has been modified to accommodate this increased capital budget."

"Third quarter gross margin rose to 23.9% from 19.6% in the second quarter. Third quarter operating margin rose to 11.2% from 6.0% in the second quarter reflecting the positive operating leverage in our business and the continued high utilization of assets supporting our high growth package families," said Ken Joyce, Amkor's chief financial officer. "Over the past two years we have made substantial progress enhancing the profitability of our business by improving operating efficiencies, increasing manufacturing capacity in strategic growth areas and managing costs."

"Our liquidity remained solid, with cash and equivalents of $341 million at September 30," said Joyce. "During the quarter we received $19 million as the first scheduled payment of a $38 million receivable from Dongbu relating to the sale in 2002 of 20 million shares of Anam Semiconductor Inc. common stock. The remaining $19 million payment is scheduled for February 2004. In the third quarter we also sold an additional five million shares of ASI for net cash proceeds of $12 million. At September 30, short-term debt totaled $54 million, principally relating to working capital lines of credit supporting our operations in Japan and Taiwan. As noted earlier, during the third quarter we purchased and retired $28 million of our 9 ¼% Senior Notes due 2008."

"We are approaching the third anniversary of our successful joint venture with Toshiba, and in January 2004 we will purchase the remaining 40% of the JV with cash payments ranging from $10 million to $15 million. This amount includes a payment of $2 million to terminate our commitment to purchase a tract of land adjacent to the Amkor Iwate facility," said Joyce.

Selected operating data for the third quarter of 2003 is included on a separate page of this release.

Business outlook

Our customers' forecasts have continued to build through most of the third quarter. On the basis of these forecasts, we have the following expectations for the fourth quarter:

  • Sequential revenue increase in the range of 5% to 8%.
  • Gross margin around 25%.
  • Net income in the range of 7 to 10 cents per diluted share.

The provision for U.S. taxes related to our positive earnings is offset by the use of net operating loss carryforwards. We anticipate recognizing approximately $3 million per quarter in foreign tax expense. At September 30, 2003 our company had U.S. net operating losses totaling $400 million expiring between 2021 and 2022. Additionally, at September 30, 2003 we had $53 million of non-U.S. net operating losses available for carryforward, expiring between 2003 and 2012.

Amkor will conduct a conference call on October 27, 2003 at 5:00 p.m. eastern time to discuss the results of the third quarter in more detail. The call can be accessed by dialing 303-262-2130 or by visiting the investor relations page of our web site: www.amkor.com or CCBN's website, www.companyboardroom.com. An archive of the webcast can be accessed through the same links and will be available until the company's next quarterly earnings conference call. An audio replay of the call will be available for 48 hours following the conference call by dialing 303-590-3000 passcode: 550705#.

Amkor is the world's largest provider of contract semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com.

The statements by James Kim, John Boruch and Ken Joyce, and the above statements contained in our Business Outlook, are forward-looking statements that involve a number of risks and uncertainties. Factors that could affect future operating results and cause actual results to vary materially from historical and expected results include, but are not limited to: the highly unpredictable nature of the semiconductor industry; volatility of consumer demand for products incorporating our semiconductor packages; worldwide economic effects of terrorist attacks, military conflict in the Middle East and potential military conflict in Asia and Africa; potential effects of business disruption caused by SARS; competitive pricing and declines in average selling prices; timing and volume of orders relative to the production capacity; availability of manufacturing capacity and fluctuations in manufacturing yields; availability of financing; competition; dependence on international operations and sales; dependence on raw material and equipment suppliers; exchange rate fluctuations; dependence on key personnel; difficulties in managing growth; enforcement of intellectual property rights; and environmental regulations.

Further information on risk factors that could affect the outcome of the events set forth in these statements and that could affect the company's operating results and financial condition is detailed in the company's filings with the Securities and Exchange Commission, including the Report on Form 10-K for the year ended December 31, 2002 and the Report on Form 10-Q for the quarter ended June 30, 2003.

     Selected operating data for the third quarter of 2003

                                               3rd Quarter    Year-to-date

     -- Capital expenditures:                  $64 million    $148 million
     -- Depreciation and amortization:         $53 million    $165 million
     -- Free cash flow *                      ($19 million)   ($49 million)

      * Reconciliation of free cash flow to the most directly comparable GAAP
        measure:

      Net cash provided by continuing
       operating activities                    $45 million     $99 million
      Less purchases of property, plant
       and equipment                          ($64 million)  ($148 million)
      Free cash flow from continuing
       operations                             ($19 million)   ($49 million)

       We define free cash flow from continuing operations as net cash
       provided by continuing operating activities less purchases of
       property, plant and equipment.Free cash flow is not defined by
       generally accepted accounting principles, and our definition of free
       cash flow may not be comparable to similar companies.

     -- End market distribution (an approximation based on a sampling of
         programs with our largest customers)
           -- Communications:           41%
           -- Computing                 24%
           -- Consumer                  23%
           -- Other                     12%

    -- Combined assembly & test capacity utilization (based on front-of-line
         capacity) was approximately 80%.

    -- Assembly average selling price (calculated on a per pin basis) declined
        approximately 1% from Q2 2003.(Excludes results of Amkor Iwate
        joint venture)

    -- Assembly unit shipments were 1.45 billion, up 10% from Q2 2003.

    -- Percentage of assembly revenue:
           -- Advanced packages         77%
           -- Traditional packages      23%

    -- Test revenue as a proportion of total revenue was approximately 9%.

                              (tables to follow)


                              AMKOR TECHNOLOGY, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share data)

                                                 For the Three Months Ended
                                                         September 30,
                                                     2003           2002
                                                 (unaudited)    (unaudited)

    Net revenues                                  $423,784      $393,563
    Cost of revenues                               322,369       346,053
    Gross profit                                   101,415        47,510
    Operating expenses:
      Selling, general and administrative           45,023        45,118
      Research and development                       6,836         7,622
      Gain on disposal of assets                      (148)         (200)
      Amortization of acquired intangibles           2,035         2,000
      Special charges (1)                               --        13,819
        Total operating expenses                    53,746        68,359
    Operating income (loss)                         47,669       (20,849)

    Other (income) expense:
      Interest expense, net                         35,151        37,391
      Foreign currency gain                           (895)         (821)
      Other expense, net                               671           996
      Debt retirement costs (2)                      2,071            --
        Total other expense                         36,998        37,566

    Income (loss) before income taxes,
      equity investment losses, minority
      interest and discontinued operations          10,671       (58,415)
    Equity investment losses                            --       (14,299)
    Minority interest income (expense)              (1,809)          423
    Income (loss) from continuing
      operations before income taxes                 8,862       (72,291)

    Income tax benefit                              (6,908)      (11,078)
    Income (loss) from continuing
      operations                                    15,770       (61,213)

    Discontinued operations:
      Income from wafer fabrication
        services business, net of tax of
        $969 for 2002                                   --         1,906
    Net income (loss)                              $15,770      $(59,307)

    Per Share Data:
      Basic and diluted income (loss) per
        common share from continuing
        operations                                   $0.09        $(0.37)
      Basic and diluted income per common
        share from discontinued operations              --          0.01
      Basic and diluted income (loss) per
        common share                                 $0.09        $(0.36)

    Shares used in computing basic income
      (loss) per common share                      166,628       164,489

    Shares used in computing diluted
      income (loss) per common share               171,440       164,489

     (1) Special charges include the
           following:
            Loss on facility shutdowns                 $--       $13,819
                                                        --        13,819
     (2) Debt retirement costs include the
           following:
            Call premium related
              to redemption of
              senior notes due
              February 2008                         $1,648           $--
            Write-off of unamortized
              deferred debt
              acquisition costs                        423            --
                                                     2,071            --



                              AMKOR TECHNOLOGY, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share data)

                                                 For the Nine Months Ended
                                                        September 30,
                                                     2003          2002
                                                 (unaudited)    (unaudited)

    Net revenues                                $1,144,862     $1,032,989
    Cost of revenues                               922,617        998,557
    Gross profit                                   222,245         34,432

    Operating expenses:
      Selling, general and administrative          131,828        137,639
      Research and development                      19,454         24,535
      Loss (gain) on disposal of assets               (870)         2,912
      Amortization of acquired intangibles           6,103          4,995
      Special charges (1)                               --        281,985
         Total operating expenses                  156,515        452,066
    Operating income (loss)                         65,730       (417,634)

    Other (income) expense:
      Interest expense, net                        107,494        111,010
      Foreign currency (gain) loss                  (1,083)         1,881
      Other (income) expense, net                    2,076           (11)
      Debt retirement costs (2)                     32,632             --
         Total other expense                       141,119        112,880

    Loss before income taxes, equity
      investment losses, minority interest
      and discontinued operations                  (75,389)      (530,514)
    Equity investment losses                        (3,555)      (166,040)
    Minority interest expense                       (2,135)        (2,238)
    Loss from continuing operations
      before income taxes                          (81,079)      (698,792)

    Income tax benefit                              (6,072)       (61,891)
    Loss from continuing operations                (75,007)      (636,901)

    Discontinued operations:
      Income from wafer fabrication
        services business, net of tax of
        $419 and $3,791                              3,047          6,258
      Gain on sale of wafer fabrication
        services business, net of tax of
        $7,081 in 2003                              51,519             --
      Income from discontinued operations           54,566          6,258
    Net loss                                      $(20,441)     $(630,643)

    Per Share Data:
      Basic and diluted loss per common
        share from continuing operations            $(0.45)        $(3.89)
      Basic and diluted income per common
        share from discontinued operations            0.33           0.04
      Basic and diluted net loss per common
        share                                       $(0.12)        $(3.85)

    Shares used in computing basic and
      diluted income (loss) per common
      share                                        165,883        163,854

    (1) Special charges include the
          following:
            Loss on FAS 142 impairment                 $--        $73,080
            Loss on FAS 144 impairment                  --        190,266
            Loss on facility shutdowns                  --         18,639
                                                        --        281,985

    (2) Debt retirement costs include the
          following:
            Call premium related to redemption
              of senior notes due May 2006
              and February 2008                    $21,304            $--
            Write-off of unamortized deferred
              debt acquisition costs                 8,787             --
            Other debt retirement costs              2,541             --
                                                    32,632             --



                           AMKOR TECHNOLOGY, INC.
                        CONSOLIDATED BALANCE SHEETS
                               (in thousands)

                                               September 30,     December 31,
                                                   2003               2002
                                                (unaudited)
                                     Assets
    Current assets:
       Cash and cash equivalents                  $340,503          $311,249
       Accounts receivable
          Trade, net of allowance for
            doubtful accounts of $6,862
            and $7,122                             280,959           234,056
          Other                                      6,452             8,532
       Inventories                                  88,280            72,121
       Other current assets                         48,071            48,661
               Total current assets                764,265           674,619
    Property, plant and equipment, net             978,409           966,338
    Investments                                     47,281            83,235
    Other assets:
       Goodwill                                    629,502           628,099
       Acquired intangibles                         39,504            45,033
       Due from affiliates                              --            20,852
       Other                                        76,711           114,178
       Assets of discontinued operations               247            25,630
               Total other assets                  745,964           833,792
               Total assets                     $2,535,919        $2,557,984


                      Liabilities and Stockholders' Equity
    Current liabilities:
       Bank overdraft                               $5,130            $4,633
       Short-term borrowings and current
        portion of long-term debt                   54,240            71,023
       Trade accounts payable                      195,882           180,999
       Due to affiliates                             3,109            70,243
       Accrued expenses                            166,109           184,223
               Total current liabilities           424,470           511,121
    Long-term debt                               1,785,765         1,737,690
    Other noncurrent liabilities                    79,418            67,661
               Total liabilities                 2,289,653         2,316,472

    Minority Interest                               11,224            10,145

    Stockholders' equity:
       Common stock                                    167               166
       Additional paid-in capital                1,179,904         1,170,227
       Accumulated deficit                        (954,175)         (933,734)
       Receivable from stockholder                      --            (2,887)
       Accumulated other comprehensive
        gains (losses)                               9,146            (2,405)
               Total stockholders' equity          235,042           231,367
               Total liabilities and
                stockholders' equity            $2,535,919        $2,557,984



                              AMKOR TECHNOLOGY, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (in thousands)

                                               For the Three Months Ended
                                                       September 30,
                                                 2003                  2002
                                             (unaudited)           (unaudited)
    Cash flows from continuing operating
     activities:
      Income (loss) from continuing
       operations                              $15,770              $(61,213)
      Depreciation and amortization             52,660                76,048
      Equity investment losses                      --              (127,004)
      Other adjustments to reconcile loss
       to net cash provided by operating
       activities                               16,297               141,216
      Changes in assets and liabilities
       excluding effects of acquisitions       (39,739)               19,003
         Net cash provided by operating
          activities                            44,988                48,050

    Cash flows from investing activities:
      Purchases of property, plant and
       equipment                               (63,649)              (20,202)
      Other investing activities                14,600                46,420
         Net cash provided by (used in)
          investing activities                 (49,049)               26,218

    Cash flows used in financing
     activities                                 (3,841)              (16,977)

    Effect of exchange rate fluctuations
     on cash and cash equivalents related
     to continuing operations                    2,041                (1,554)

    Cash flows provided by discontinued
     operations                                     60                17,363

    Net increase (decrease) in cash and
     cash equivalents                           (5,801)               73,100
    Cash and cash equivalents, beginning
     of period                                 346,304               161,938
    Cash and cash equivalents, end of
     period                                   $340,503              $235,038

    Supplemental disclosures of cash flow
     information:
      Cash paid during the period for:
        Interest                               $32,105               $31,658
        Income taxes                            $3,030                $3,054



                                 AMKOR TECHNOLOGY, INC.
                    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (in thousands)

                                                  For the Nine Months Ended
                                                       September 30,
                                                  2003                2002
                                               (unaudited)        (unaudited)
    Cash flows from continuing operating
     activities:
      Loss from continuing operations           $(75,007)          $(636,901)
      Depreciation and amortization              165,360             264,108
      Equity investment losses                     3,555              24,737
      Other adjustments to reconcile loss
       to net cash provided by operating
       activities                                 53,980             374,330
      Changes in assets and liabilities
       excluding effects of acquisitions         (48,792)             23,148
         Net cash provided by operating
          activities                              99,096              49,422

    Cash flows from investing activities:
      Purchases of property, plant and
       equipment                                (148,230)            (82,298)
      Other investing activities                  34,612              47,531
         Net cash used in investing
          activities                            (113,618)            (34,767)

    Cash flows provided by (used in)
     financing activities                         27,621             (13,798)

    Effect of exchange rate fluctuations
     on cash and cash equivalents related
     to continuing operations                      2,522                 905

    Cash flows provided by discontinued
     operations                                   13,633              33,219

    Net increase in cash and cash
     equivalents                                  29,254              34,981
    Cash and cash equivalents, beginning
     of period                                   311,249             200,057
    Cash and cash equivalents, end of
     period                                     $340,503            $235,038

    Supplemental disclosures of cash flow
     information:
      Cash paid during the period for:
        Interest                                $107,869            $103,174
        Income taxes                              $7,553              $5,754

Contact:
Jeffrey Luth
VP Corporate Communications
480-821-2408 ext. 5130
jluth@amkor.com