CHANDLER, Ariz., Feb. 8 -- Amkor Technology, Inc. (Nasdaq: AMKR) reported fourth quarter sales of $453 million, down 8% from the third quarter of 2004 and down 1% from the fourth quarter of 2003. Amkor's fourth quarter net loss was $36 million, or ($0.21) per share, compared with net income of $23 million, or $0.13 per share, in the fourth quarter of 2003. Amkor's fourth quarter 2003 net income included a $7 million gain on the sale of a marketable security partially offset by $5 million in debt retirement costs associated with the repurchase of convertible notes.

For the full year 2004, Amkor's sales were $1.9 billion, up 19% over the full year 2003. For 2004, Amkor's loss from continuing operations was $38 million or ($.21) per share, compared with a loss from continuing operations for the year 2003 of $52 million or ($.31) per share. In 2003, Amkor recognized a gain from discontinued operations of $55 million or $.32 per share.

"During 2004 we undertook several strategic initiatives designed to extend our technology leadership, augment our product and service offering, improve our competitiveness and strengthen our customer relationships," said James Kim, Amkor's chairman and chief executive officer. "These initiatives included a realignment of our management team; a broad expansion of our operational footprint, including the acquisition of a new factory in Taiwan; an increased focus on flip chip and test; expansion of our design and development activities; creation of a long-term supply agreement with IBM; the acquisition of IBM's Singapore test operation; and the acquisition of Unitive."

"During the course of 2004 we invested more than $600 million to support our existing and future customers through these initiatives," said Kim. "Our goal is to ensure that Amkor is properly positioned to take advantage of growth opportunities arising not only from the pending industry recovery, but over the long term as well. These initiatives constrained cash flow and negatively impacted profitability during 2004, and the short term costs associated with these initiatives have been further impacted by weakening business conditions in the semiconductor industry. Nonetheless, we believe this strategy represents a strong platform for enhancing shareholder value over the long term."

"Our collaboration with IBM and acquisition of Unitive jointly create a foundation for growth," said John Boruch, Amkor's president and chief operating officer. "Under the IBM supply agreement, Amkor should supply a substantial majority of the IC assembly and test outsourced by IBM through 2010. The test portion of this relationship started last year when we acquired IBM's Singapore test operation. We have made excellent progress with this new test center and are in the process of building a critical mass of test assets to support IBM as well as third party customers who recognize the value of a Singapore test location."

"The assembly portion under the IBM agreement is expected to build over the next several quarters as IBM transitions business to Amkor from other outsourced assembly and test companies," said Boruch. "The incremental IBM business in Q1 will not materially offset what will otherwise be a seasonally weak first quarter."

"Unitive's leading technology for electroplated wafer bumping and die level processing will help Amkor address exciting growth opportunities in Flip Chip and Wafer Level Packaging -- two of the fastest growing markets in our industry," said Boruch. "Over the past several months we have seen a significant increase in customer interest for wafer level packaging solutions. As the year progresses we will likely need to expand our WLP capacity, not only at Unitive in North Carolina, but also in one of our Asian factories."

"We are also seeing strong interest in our ability to provide turnkey flip chip solutions -- including bump, probe, assembly and final test -- to IC suppliers for the graphics, chip set and video game console industries," said Boruch. "During 2005 we will expand Unitive's 12 inch wafer bumping line in Taiwan and build operational scale in probe, assembly and final test in our new T3 factory, which is co-located with Unitive in Hsinchu Taiwan."

"Fourth quarter revenue, gross margin and net loss were all within our guidance range," said Ken Joyce, Amkor's chief financial officer. "Gross margin fell to 16% from 18% in the third quarter, reflecting the combined impact of lower quarterly revenue and increased factory operating costs in connection with our expansion initiatives. Near term, we expect continued pressure on gross margin, reflecting the combined impact of lower asset utilization, competitive pricing actions, and absorption of costs associated with our recent acquisitions."

"Fourth quarter SG&A expenses were $55 million. Third quarter SG&A expenses were $53 million and reflected the reversal of $2.4 million in employee bonus compensation that was accrued in the first half of 2004," said Joyce.

Legal expenses (which are included in SG&A Expenses) related to the mold compound litigation and Amkor's patent infringement lawsuit against Carsem declined to $5 million in the fourth quarter from $8 million in the third quarter. The lower level of legal expenses this quarter was offset by higher costs in connection with our factory expansion program and increased corporate overhead.

In December 2004 we reported a favorable verdict in the mold compound litigation when the jury in the Philips trial determined that Amkor had no liability under Philips' earlier settlement with Maxtor. Following this favorable verdict, in the fourth quarter we reversed a reserve of $1.5 million that was provided in the first quarter related to a proposed settlement of this lawsuit. In the Carsem case, following an unfavorable Initial Determination by the International Trade Commission Administrative Law Judge in November 2004 we filed petition for a full ITC review. On February 3 we announced that the ITC has ordered a full review of the Initial Determination, and we expect the Commission to complete its investigation by March 31, 2005.

"Fourth quarter capital expenditures totaled $38 million and were focused on test and flip chip," said Joyce. "We are currently budgeting capital expenditures of $50 million for the first quarter of 2005 as we continue to expand our capabilities in flip chip, wafer level packaging and test."

"Our liquidity improved during the fourth quarter, as we entered into a $300 million second lien term loan to provide Amkor with additional liquidity during the current semiconductor industry downturn. This loan has a single bullet payment due October 27, 2010," said Joyce.

In connection with recent tax law changes, during the fourth quarter we realigned our corporate tax structure and repatriated approximately $172 million in earnings of foreign operations, which were offset by utilization of $172 million of our U.S. net operating loss carryforwards. At December 31, 2004 Amkor had U.S. net operating losses available for carryforward totaling $271 million expiring through 2024. Additionally, at December 31, 2004, we had $71 million of non-U.S. operating losses available for carryforward, expiring through 2013.

Selected operating data for the fourth quarter of 2004 is included in a section before the financial tables.

Business outlook

Our customers remain cautious about end-market demand and are exercising tight control over inventory. The high degree of uncertainty in the semiconductor sector is reflected by continued weakness in our customers' forecasts going into what is typically a seasonally down first quarter.

On the basis of current customer forecasts, we have the following expectations for the first quarter of 2005:

     *  Revenue in the range of 8% to 12% below the fourth quarter of 2004.
     *  Gross margin in the range of 10% to 12%.
     *  Net loss in the range of $0.34 to $0.40 per share.

Amkor will conduct a conference call on February 8, 2005 at 5:00 p.m. eastern time. The call can be accessed by dialing 303-205-2130 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 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: 11015635#.

About Amkor

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 pending industry recovery, Amkor's platform for enhancing shareholder value; Amkor's level of supply of IC assembly and test outsourced by IBM in the near term and through 2010; the building of a critical mass of test assets; Amkor's need to expand WLP capacity; planned expansion of Unitive's 12 inch wafer bumping line and operational scale in probe, assembly, final test and other capabilities in flip chip, wafer level packaging and test; Amkor's financial performance, including expected revenue, gross margin, and net loss; expected asset utilization, competitive pricing actions, and absorption of costs associated with recent acquisitions; Amkor's positioning for the long term; the trend in declining customer forecasts; review of the Carsem litigation; budgeted capital expenditure; and the statements contained under Business Outlook. 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; weakness in the forecasts of Amkor's customers; customer modification of and follow through with respect to forecasts provided to Amkor; deterioration of the U.S. or other economies; the highly unpredictable nature of litigation; our relationship with IBM; the satisfaction of conditions in the agreements entered into in connection with the IBM transaction; the incurrence of significant additional cost and expense necessary for the increase in Amkor's capacity; worldwide economic effects of terrorist attacks and military conflict; competitive pricing and declines in average selling prices; 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; exchange rate fluctuations; dependence on key personnel; 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 September 30, 2004.

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



    Selected operating data for the fourth quarter and full year of 2004

                                              4th Quarter     Full Year
    * Capital expenditures:                   $38 million   $406 million

    * Depreciation and amortization:          $61 million   $230 million

    * Free cash flow *                       ($15 million)  ($189 million)

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

      Net cash provided by continuing
       operating activities                   $23 million   $217 million
      Less purchases of property, plant
       and equipment                         ($38 million)  ($406 million)
      Free cash flow from continuing
       operations                            ($15 million)  ($189 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 70%.  We calculate capacity
      utilization as revenue divided by revenue generating capacity (RGC) at
      quarter-end.  We define RGC as 100% of installed capacity (based on the
      bottleneck limitations for each production line), using quarterly
      average selling price.

    * Assembly unit shipments were 1.6 billion, down 15% from Q3 2004.

    * Assembly unit shipments for 2004 were 7.2 billion, up 30% from 2003.

    * Percentage of revenue -- Fourth Quarter:
         Leadframe packages        41%
         Laminate packages         45%
         Other packages             4%
         Test                      10%



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

                                                 For the Three Months Ended
                                                        December 31,
                                                    2004           2003
                                                         (unaudited)

    Net revenues                                 $453,254       $458,906
    Cost of revenues                              379,812        344,685
    Gross profit                                   73,442        114,221
    Operating expenses: (1)
      Selling, general and administrative          54,845         46,962
      Research and development                      9,166          7,492
      Loss on disposal of fixed assets, net           168            284
      Amortization of acquired intangibles          1,947          2,080
      Special charges, net (2)                       (580)           125
        Total operating expenses                   65,546         56,943
    Operating income                                7,896         57,278
    Other expense (income):
      Interest expense, net                        41,177         32,787
      Foreign currency loss (gain)                  1,977         (1,939)
      Other income, net                              (354)        (8,824)
      Debt retirement costs (3)                        --          5,168
        Total other expense                        42,800         27,192
    Income (loss) before income taxes,
     equity investment gain (loss),
     and minority interest                        (34,904)        30,086
    Equity investment gain (loss)                      (4)           265
    Minority interest                                 717         (1,873)
    Income (loss) before income taxes             (34,191)        28,478
    Provision for income taxes                      1,901          5,839
    Net income (loss)                            $(36,092)       $22,639

    Per Share Data:
      Basic and diluted net income (loss)
       per common share                            $(0.21)         $0.13

      Shares used in computing basic net
       income (loss) per common share             175,718        170,910

      Shares used in computing diluted
       net income (loss) per common share         175,718        177,197


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

    (2) Special charges include the following:
        Contract termination fee                      $--         $2,011
        Gain on facility shutdown accruals             --         (1,886)
        Reversal of accrual on legal settlement    (1,500)            --
        Corporate relocation expenses                 920             --
                                                    $(580)          $125

    (3) Debt retirement costs include
        the following:
        Call premium                                  $--         $2,844
        Unamortized deferred debt acquisition
        costs                                          --          2,324
                                                      $--         $5,168



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

                                                For the Twelve Months Ended
                                                       December 31,
                                                   2004            2003
                                                        (unaudited)

    Net revenues                               $1,901,279     $1,603,768
    Cost of revenues                            1,533,447      1,267,302
    Gross profit                                  367,832        336,466
    Operating expenses: (1)
      Selling, general and administrative         214,338        175,569
      Research and development                     36,707         30,167
      Gain on disposal of fixed assets, net          (322)          (586)
      Amortization of acquired intangibles          6,979          8,183
      Special charges, net (2)                        920            125
        Total operating expenses                  258,622        213,458
    Operating income                              109,210        123,008
    Other expense (income):
      Interest expense, net                       148,902        140,281
      Foreign currency loss (gain)                  6,190         (3,022)
      Other income, net                           (27,307)        (6,748)
      Debt retirement costs (3)                     2,863         37,800
        Total other expense                       130,648        168,311
    Loss before income taxes, equity
     investment loss, minority interest and
     discontinued operations                      (21,438)       (45,303)
    Equity investment loss                             (2)        (3,290)
    Minority interest                                (904)        (4,008)
    Loss from continuing operations
     before income taxes                          (22,344)       (52,601)
    Provision for income taxes (benefit)           15,192           (233)
    Loss from continuing operations               (37,536)       (52,368)
    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)                            $(37,536)        $2,198

    Per Share Data:
      Basic and diluted loss per common
       share from continuing operations            $(0.21)        $(0.31)
      Basic and diluted income per common
       share from discontinued operations              --           0.32
      Basic and diluted net income (loss)
       per common share                            $(0.21)         $0.01

    Shares used in computing basic and
     diluted net income (loss)
     per common share                             175,342        167,142

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

    (2) Special charges include the following:
        Contract termination fee                      $--         $2,011
        Gain on facility shutdown accruals             --         (1,886)
        Corporate relocation expenses                 920             --
                                                     $920           $125
    (3) Debt retirement costs include the
        following:
        Call premium                               $1,687        $24,148
        Unamortized deferred debt acquisition
        costs                                       1,176         11,111
        Other debt retirement costs                    --          2,541
                                                   $2,863        $37,800



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

                                               December 31,    December 31,
                                                   2004            2003
                                                        (unaudited)
                         Assets
    Current assets:
      Cash and cash equivalents                  $372,284       $313,259
      Accounts receivable:
        Trade, net of allowance of $5,074
         in 2004 and $6,514 in 2003               265,547        310,096
        Other                                       3,948          4,413
      Inventories                                 111,616         92,439
      Other current assets                         32,591         49,606
          Total current assets                    785,986        769,813
    Property, plant and equipment, net          1,380,396      1,007,648
    Investments                                    13,762         51,181
    Other assets:
      Goodwill                                    656,052        629,850
      Acquired intangibles                         44,548         37,730
      Other                                        84,624         67,697
                                                  785,224        735,277
          Total assets                         $2,965,368     $2,563,919

         Liabilities and Stockholders' Equity
    Current liabilities:
      Bank overdraft                                 $102         $2,690
      Short-term borrowings and current
       portion of long-term debt                   52,147         28,665
      Trade accounts payable                      211,706        230,396
      Accrued expenses                            175,075        170,145
          Total current liabilities               439,030        431,896
    Long-term debt                              2,040,813      1,650,707
    Other noncurrent liabilities                  109,317         78,974
          Total liabilities                     2,589,160      2,161,577

    Minority interest                               6,679          1,338

    Stockholders' equity:
      Common stock                                    176            175
      Additional paid-in capital                1,323,579      1,317,164
      Accumulated deficit                        (969,072)      (931,536)
      Accumulated other comprehensive gains        14,846         15,201
          Total stockholders' equity              369,529        401,004
          Total liabilities and stockholders'
           equity                              $2,965,368     $2,563,919



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

                                                 For the Three Months Ended
                                                        December 31,
                                                    2004           2003
                                                         (unaudited)

    Cash flows from continuing operating
     activities:
      (Loss) income from continuing operations   $(36,092)       $22,639
      Depreciation and amortization                61,180         54,375
      Equity investment (income) loss                   4           (265)
      Other adjustments to reconcile (loss)
       income to net cash provided by
       operating activities                         6,638         (1,417)
      Changes in assets and liabilities
       excluding effects of acquisition            (9,061)         1,005
        Net cash provided by operating
         activities                                22,669         76,337

    Cash flows from continuing investing
     activities:
      Purchases of property, plant and
       equipment                                  (37,648)       (82,274)
      Other investing activities                      511         10,543
        Net cash used in investing activities     (37,137)       (71,731)

    Cash flows provided by (used in)
     continuing financing activities              153,660        (30,467)

    Effect of exchange rate fluctuations
     on cash and cash equivalents related
     to continuing operations                       1,781         (1,034)

    Cash flows used in discontinued operations         --           (349)

    Net increase (decrease) in cash and
     cash equivalents                             140,973        (27,244)
    Cash and cash equivalents, beginning
     of period                                    231,311        340,503
    Cash and cash equivalents, end of period     $372,284       $313,259

    Supplemental disclosures of cash flow
     information:
      Cash paid during the period for:
        Interest                                  $35,847        $39,319
        Income taxes                               $1,686           $286



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

                                                     For the Year Ended
                                                        December 31,
                                                    2004           2003
                                                        (unaudited)

    Cash flows from continuing operating
     activities:
      Loss from continuing operations            $(37,536)      $(52,368)
      Depreciation and amortization               230,344        219,735
      Equity investment loss                            2          3,290
      Other adjustments to reconcile loss
       to net cash provided by operating
       activities                                     442         52,563
      Changes in assets and liabilities
       excluding effects of acquisitions           23,362        (46,874)
        Net cash provided by operating
         activities                               216,614        176,346

    Cash flows from continuing investing
     activities:
      Purchases of property, plant and
       equipment                                 (405,726)      (230,504)
      Other investing activities                   12,032         63,408
        Net cash used in investing activities    (393,694)      (167,096)

    Cash flows provided by (used in)
     continuing financing activities              235,175        (22,012)

    Effect of exchange rate fluctuations
     on cash and cash equivalents related
     to continuing operations                         819          1,488

    Cash flows provided by discontinued
     operations                                       111         13,284

    Net increase in cash and cash equivalents      59,025          2,010
    Cash and cash equivalents, beginning
     of period                                    313,259        311,249
    Cash and cash equivalents, end of period     $372,284       $313,259

    Supplemental disclosures of cash flow
     information:
      Cash paid during the period for:
        Interest                                 $132,057       $147,188
        Income taxes                              $23,800         $7,839