CHANDLER, Ariz., July 27 -- Amkor Technology, Inc. (Nasdaq: AMKR) reported second quarter sales of $493 million, up 6% sequentially and up 30% over the second quarter of 2003. Amkor's second quarter net income was $10 million, or $0.06 per share, and included after-tax gains of $14 million, or $0.08 per share, from the sale of 10.1 million shares of Anam Semiconductor, Inc. common stock and $2.5 million, or $0.01 per share, on the settlement of litigation with a software provider. In the second quarter of 2003 Amkor reported a net loss of $51 million, or ($0.31) per share, which included a charge, with no tax effect, for debt retirement costs of $31 million, or ($0.19) per share.

"This quarter's profitability was impacted by an unfavorable product mix and factory expenses associated with our capacity expansion initiatives," said James Kim, Amkor's chairman and chief executive officer.

"From a strategic perspective, we are midway through a year in which we have undertaken a series of initiatives designed to position Amkor for long-term growth," said Kim. "In March we acquired a 354,000 square foot assembly and test factory in Hsinchu, Taiwan, which provides needed space to accommodate our growing business in Taiwan. In May we entered into a collaboration with IBM, which includes the acquisition of IBM's Singapore test operations and a 950,000 square foot manufacturing complex in Shanghai, together with a long-term supply agreement.

"Last week we took an important step positioning Amkor in the high growth markets for flip chip and wafer level packaging by announcing agreements to acquire North Carolina-based Unitive, Inc. and a majority interest in Taiwan-based Unitive Semiconductor Technology," said Kim. "These acquisitions will give Amkor the industry's premier electroplated wafer bumping technology, together with the capability to provide complete turn-key solutions for flip chip on 200mm and 300mm wafers that incorporate bump, probe test, assembly and final test.

"With completion of the above initiatives, the facilities and equipment that we have added over the past several quarters should provide Amkor with sufficient production capacity for the foreseeable future. We are currently running at 73% of capacity, and while we will continue to make selected capital investments in flip chip and other strategic growth areas, further increases in assembly capacity will largely depend on customer demand. We acknowledge that costs associated with our growth initiatives will constrain profitability and cash flow in the near-term, however we believe that these strategies will yield the best long-term return for our shareholders," said Kim.

"During the second quarter we experienced softer than expected demand for several of our advanced package families which carry higher-than-average gross margins, said Ken Joyce, Amkor's chief financial officer. "We believe the softness in demand for our advanced packages was due to absorption of semiconductor inventory that was built-up in prior periods. Gross margin was also impacted by continued absorption of higher factory and labor costs related to our capacity expansion initiatives, particularly in Taiwan, where we acquired a new factory in March of this year, and in China, where we are in the process of facilitizing our second 75,000 square foot building.

"Near term, our margins should remain under pressure in connection with absorption of our new acquisitions and continued under-utilization of lines supporting advanced packages as the supply chain burns excess inventory," said Joyce. "We are committed to improving the profitability of our core business while absorbing the costs associated with our growth initiatives. Our model has a high degree of operating leverage, and gross margin will be heavily dependent on business volume and mix. We are working to enhance the product mix and have selectively raised package prices. We are qualifying lower cost material vendors and have negotiated lower prices with our existing laminate substrate vendors."

"Second quarter capital expenditures totaled $124 million, bringing total, first-half capital expenditures to $295 million," said Joyce. "During the first quarter of this year, we embarked on a program to increase our production capacity for several advanced package families that experienced very strong growth in 2003. Our goal was to get off allocation and ahead of projected near-term demand for these packages. Now that we are comfortably ahead of demand, and in light of current business expectations, we are moderating our capital program for the remainder of this year and are currently budgeting capital expenditures of $80 million for the second half of 2004. We are targeting to have positive free cash flow in the fourth quarter."

In April the company sold 10.1 million shares of common stock of Anam Semiconductor, Inc. for cash proceeds of approximately $50 million. For financial accounting purposes, this transaction resulted in an after-tax gain of approximately $14 million, or $0.08 per share. In our first quarter, 2004 earnings release we estimated that this transaction would result in an after-tax gain of $20 million, or $0.11 per share; however, due to an increase in the effective tax rate from 11% to 35% for the year 2004, this after-tax gain has been adjusted as noted above. For income tax purposes, there will be no tax payment required on this gain. Following this sale, our investment in ASI has been reduced to 4.6 million shares, or approximately 4%.

Selected operating data for the second quarter of 2004 is included at the end of this release.

Business outlook

"Looking ahead, there is an increased level of uncertainty in the semiconductor sector. Our customers have become more cautious about end-market demand and are exercising tighter control over inventory," said Bruce Freyman, Amkor's president and chief operating officer. "We have seen a drop off in our customers' forecasts, and this is impairing our visibility into the second half of 2004. While the third quarter is typically a seasonal growth quarter for Amkor, we anticipate that the current inventory correction will impact this seasonality."

On the basis of current customer forecasts, we have the following expectations for the third quarter of 2004:

     *  Sequential revenue flat with the second quarter.

     *  Gross margin of around 19%.

     *  Net loss in the range of $0.07 to $0.09 per share.

The tax rate for the full year 2004 is expected to be around 35%. At June 30, 2004 our company had U.S. net operating losses totaling $420 million expiring through 2024. Additionally, at June 30, 2004 we had $43 million of non-U.S. net operating losses available for carryforward, expiring through 2013.

Amkor will conduct a conference call on July 27, 2004 at 5:00 p.m. eastern time to discuss the results of the second quarter in more detail. The call can be accessed by dialing 303-205-0033 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 our 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: 11000487#.

Amkor is a leading 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.

Forward Looking Statement Disclaimer

This press release contains forward-looking statements within the meaning of federal securities laws, including, without limitation, statements regarding the following: the level of assembly and test outsourced by IBM to Amkor; Amkor's position in the market for flip chip and wafer level packaging; initiatives designed to position Amkor for long-term growth; the anticipated acquisitions of Unitive, Inc. and Unitive Semiconductor Technology, including capabilities for providing complete turn-key solutions for flip chip on 200mm and 300mm wafers that incorporate bump, probe test, assembly and final test; expected profitability, revenues, gross margins, net loss and cash flow (including, without limitation, the statements contained under Business Outlook); long-term returns for shareholders; facilitizing the 75,000 square foot building in China; budgeted capital expenditures; optimism of Amkor customers; and expected tax rates. These forward-looking statements are subject to a number of risks and uncertainties that could affect future results and cause actual results and events to differ materially from historical and expected results, including, but not limited to, the following: the highly unpredictable nature of the semiconductor industry; volatility of consumer demand for products incorporating our semiconductor packages; customer modification of and follow through with respect to forecasts provided to Amkor; deterioration of the U.S. or other economies; our relationship with IBM; risks associated with the acquisitions of Unitive, Inc. and Unitive Semiconductor Technology, including satisfaction of closing conditions and difficulties with centralizing and integrating the operations of these entities; worldwide economic effects of terrorist attacks; military conflict in the Middle East and potential military conflict in Asia, Africa and elsewhere; competitive pricing and declines in average selling prices; ability to transition to lower cost vendors; timing and volume of orders relative to the production capacity; fluctuations in manufacturing yields; competition; the risk of adverse results of litigation against us; dependence on international operations and sales; dependence on raw material and equipment suppliers; changes in tax laws; exchange rate fluctuations; dependence on key personnel, including employees of Unitive, Inc. and Unitive Semiconductor Technology; difficulties in managing growth; enforcement of intellectual property rights; environmental regulations and technological challenges.

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, 2003 and Form 10-Q for the quarter ended March 31, 2004.

     Contact:
     Jeffrey Luth
     VP Corporate Communications
     480-821-5000 ext. 5130
     jluth@amkor.com


     Selected operating data for the second quarter and six months of 2004

                                                 2nd Quarter     Six Months

    *  Capital expenditures:                    $124 million    $295 million

    *  Depreciation and amortization:            $58 million    $111 million

    *  Free cash flow*                          ($88 million)  ($135 million)

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

       Net cash provided by continuing
        operating activities                     $36 million    $160 million
       Less purchases of property, plant
        and equipment                          ($124 million)  ($295 million)
       Free cash flow from continuing
        operations                              ($88 million)  ($135 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.

      *  Capacity utilization was approximately 73%.  We calculate capacity
         utilization as quarterly revenue divided by revenue generating
         capacity (RGC) at quarter-end.  We define RGC as 100% of installed
         production capacity (based on the bottleneck limitations for each
         production line), using quarterly average selling price.

      *  Assembly unit shipments were 2.0 billion, up 14% from Q1 2004.

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


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

                                                   For the Three Months Ended
                                                           June 30,
                                                      2004           2003
                                                          (unaudited)

     Net revenues                                   $492,536       $377,947
     Cost of revenues                                397,761        303,686
     Gross profit                                     94,775         74,261
     Operating expenses:(1)
       Selling, general and administrative            54,079         43,206
       Research and development                        9,900          7,185
       Gain on disposal of fixed assets, net            (206)          (791)
       Amortization of acquired intangibles            1,837          2,038
         Total operating expenses                     65,610         51,638
     Operating income                                 29,165         22,623
     Other (income) expense:
       Interest expense, net                          36,360         36,481
       Foreign currency loss                           2,635            737
       Other (income) expense, net                   (25,488)           176
       Debt retirement costs(2)                          143         30,561
         Total other expense                          13,650         67,955
     Income (loss) before income taxes,
      equity investment gain (loss), minority
      interest and discontinued operations            15,515        (45,332)
     Equity investment (loss) gain                       (10)            73
     Minority interest                                     3           (475)
     Income (loss) from continuing operations
      before income taxes                             15,508        (45,734)
     Provision for income taxes                        5,528          5,013
     Net income (loss)                                $9,980       $(50,747)

     Per Share Data:
       Basic and diluted net income (loss)
        per common share                               $0.06        $(0.31)

       Shares used in computing basic net
        income (loss) per common share               175,304        165,852

       Shares used in computing diluted net
        income (loss) per common share               175,872        165,852

     (1)Certain previously reported amounts have been reclassified to conform
        with the current presentation.

     (2)Debt retirement costs include the following:
          Call premium                                   $--        $19,656
          Unamortized deferred debt acquisition costs    143          8,364
          Other debt retirement costs                     --          2,541
                                                        $143        $30,561


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

                                                    For the Six Months Ended
                                                            June 30,
                                                      2004           2003
                                                          (unaudited)

     Net revenues                                   $957,182       $721,078
     Cost of revenues                                750,559        600,248
     Gross profit                                    206,623        120,830
     Operating expenses:(1)
       Selling, general and administrative           106,257         84,630
       Research and development                       18,877         14,793
       Legal dispute                                   1,500             --
       Gain on disposal of fixed assets, net            (198)          (722)
       Amortization of acquired intangibles            3,165          4,068
         Total operating expenses                    129,601        102,769
     Operating income                                 77,022         18,061
     Other (income) expense:
       Interest expense, net                          69,650         72,343
       Foreign currency loss (gain)                    2,710           (188)
       Other (income) expense, net                   (26,419)         1,405
       Debt retirement costs(2)                        2,863         30,561
         Total other expense                          48,804        104,121
     Income (loss) before income taxes,
      equity investment losses, minority
      interest and discontinued operations            28,218        (86,060)
     Equity investment losses                            (10)        (3,555)
     Minority interest                                  (355)          (326)
     Income (loss) from continuing operations
      before income taxes                             27,853        (89,941)
     Provision for income taxes                        6,963            836
     Income (loss) from continuing operations         20,890        (90,777)
     Discontinued operations:
       Income from wafer fabrication services
        business, net of tax of $419 in 2003              --          3,047
       Gain on sale of wafer fabrication
        services business, net of tax
        of $7,081 in 2003                                 --         51,519
       Income from discontinued operations                --         54,566
     Net income (loss)                               $20,890       $(36,211)

     Per Share Data:
       Basic and diluted income (loss) per
        common share from continuing operations        $0.12         $(0.55)
       Basic and diluted income per common
        share from discontinued operations                --           0.33
       Basic and diluted net income (loss)
        per common share                               $0.12         $(0.22)

       Shares used in computing basic net
        income (loss) per common share               174,961        165,504

       Shares used in computing diluted net
        income (loss) per common share               178,028        165,504

     (1)Certain previously reported amounts have been reclassified to conform
        with the current presentation.

     (2)Debt retirement costs include the following:
          Call premium                                $1,687        $19,656
          Unamortized deferred debt acquisition
           costs                                       1,176          8,364
          Other debt retirement costs                     --          2,541
                                                      $2,863        $30,561


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

                                                    June 30,    December 31,
                                                      2004           2003
                                                         (unaudited)
                                    Assets
     Current assets:
       Cash and cash equivalents                    $294,595       $313,259
       Accounts receivable:
         Trade, net of allowance of
          $5,299 in 2004 and $6,514 in 2003          270,769        310,096
         Other                                         5,992          4,413
       Inventories                                   120,061         92,439
       Other current assets                           37,027         49,606
              Total current assets                   728,444        769,813
     Property, plant and equipment, net            1,329,112      1,007,648
     Investments                                      13,919         51,181
     Other assets:
       Goodwill                                      626,017        629,850
       Acquired intangibles                           43,369         37,730
       Other                                          76,665         67,697
                                                     746,051        735,277
              Total assets                        $2,817,526     $2,563,919

                      Liabilities and Stockholders' Equity
     Current liabilities:
       Bank overdraft                                    $--         $2,690
       Short-term borrowings and current
        portion of long-term debt                    143,693         28,665
       Trade accounts payable                        264,019        230,396
       Accrued expenses                              164,674        170,145
              Total current liabilities              572,386        431,896
     Long-term debt                                1,733,114      1,650,707
     Other noncurrent liabilities                     91,168         78,974
              Total liabilities                    2,396,668      2,161,577

     Minority interest                                 1,561          1,338

     Stockholders' equity:
       Common stock                                      176            175
       Additional paid-in capital                  1,322,889      1,317,164
       Accumulated deficit                          (910,646)      (931,536)
       Accumulated other comprehensive gains           6,878         15,201
              Total stockholders' equity             419,297        401,004
              Total liabilities and
               stockholders' equity               $2,817,526     $2,563,919


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

                                                   For the Three Months Ended
                                                            June 30,
                                                      2004           2003
                                                          (unaudited)

     Cash flows from continuing operating
      activities:

       Income (loss) from continuing operations       $9,980       $(50,747)
       Depreciation and amortization                  58,264         54,907
       Equity investment loss                             --            (73)
       Other adjustments to reconcile (loss)
        income to net cash provided
        by operating activities                      (20,364)        33,497
       Changes in assets and liabilities
        excluding effects of acquisition             (11,952)       (12,940)
         Net cash provided by operating activities    35,928         24,644

     Cash flows from continuing investing
      activities:
       Purchases of property, plant and equipment   (123,819)       (68,010)
       Other investing activities                     32,614          6,734
         Net cash used in investing activities       (91,205)       (61,276)

     Cash flows provided from continuing
      financing activities                             5,393         39,329

     Effect of exchange rate fluctuations on
      cash and cash equivalents related to
      continuing operations                           (1,032)           688

     Cash flows provided by (used in)
      discontinued operations                             15         (8,566)

     Net decrease in cash and cash equivalents       (50,901)        (5,181)
     Cash and cash equivalents, beginning
      of period                                      345,496        351,485
     Cash and cash equivalents, end of period       $294,595       $346,304

     Supplemental disclosures of cash flow
      information:
       Cash paid during the period for:
        Interest                                     $34,083        $44,374
        Income taxes                                  $2,670           $495


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

                                                   For the Six Months Ended
                                                           June 30,
                                                      2004          2003
                                                          (unaudited)

     Cash flows from continuing operating
      activities:

       Income (loss) from continuing operations      $20,890       $(90,777)
       Depreciation and amortization                 110,661        112,700
       Equity investment loss                             --          3,555
       Other adjustments to reconcile (loss)
        income to net cash provided by
        operating activities                         (15,102)        37,683
       Changes in assets and liabilities
        excluding effects of acquisitions             43,708         (9,053)
         Net cash provided by operating activities   160,157         54,108

     Cash flows from continuing investing
      activities:
       Purchases of property, plant and equipment   (294,657)       (84,581)
       Other investing activities                     39,068         20,012
        Net cash used in investing activities       (255,589)       (64,569)

     Cash flows provided from continuing
      financing activities                            77,145         31,462

     Effect of exchange rate fluctuations
      on cash and cash equivalents related to
      continuing operations                             (488)           481

     Cash flows provided by discontinued operations      111         13,573

     Net (decrease) increase in cash and
      cash equivalents                               (18,664)        35,055
     Cash and cash equivalents, beginning
      of period                                      313,259        311,249
     Cash and cash equivalents, end of period       $294,595       $346,304

     Supplemental disclosures of cash flow
      information:
       Cash paid during the period for:
        Interest                                     $61,602        $75,764
        Income taxes                                 $14,451         $4,523