CHANDLER, Ariz., July 27 / -- Amkor Technology, Inc. (Nasdaq: AMKR) reported second quarter 2005 sales of $489 million, up 17% sequentially and down 1% from the second quarter of 2004. Amkor's second quarter net loss was $52 million, or ($0.30) per share. For the second quarter of 2004, Amkor's net income was $10 million, or $0.06 per share, and included after-tax gains of $16.5 million, or $0.09 per share, from the sale of an equity investment and the settlement of litigation with a software provider.

"I am pleased with our revenue growth this quarter, which reflects implementation of the strategic business initiatives we put in place last year, together with a modest recovery in overall industry conditions," said James Kim, Amkor's chairman and chief executive officer. "We expect to achieve continued business momentum from these initiatives, and we are deploying what we believe are the appropriate resources to support this planned growth. We are building a critical mass of revenue in our newer factories, which have thus far hampered our performance. For the second half of this year we are focused on improving our profitability by increasing revenue, enriching our product mix and driving greater operational efficiencies throughout the organization."

"During the second quarter we executed on key programs, continued to ramp IBM-related business and leveraged our strong technology and operational capabilities in several areas, including 3D and chip-scale packaging, system-in-package, flip chip and test," said John Boruch, Amkor's president and chief operating officer.

"We expect to see continued growth in the second half as we support a seasonal build in consumer electronics and ramp newer turnkey programs involving a range of flip chip applications," said Boruch. "We expect that supply will continue to tighten over the next several quarters, which should lead to firmer pricing and an opportunity to improve product and customer mix."

"We shipped over 1.8 billion packages in Q2, an increase of 19% over Q1," said Ken Joyce, Amkor's chief financial officer. "Gross margin increased to 13.6%. Our second quarter profitability improvement was constrained by product mix and higher manufacturing costs, as well as lower pricing in our Japan factory."

"Second quarter SG&A expenses rose approximately $6 million over Q1, and included higher-than-anticipated legal billings in connection with the ongoing mold compound litigation, exit costs in connection with vacating our West Chester, PA administrative offices, and a loss accrual for potential foreign business taxes," said Joyce. "We expect legal expenses to moderate in the second half of the year."

During the second quarter we recorded in "Other expense" a non-cash impairment of $2.3 million on our equity investment in DongbuAnam Semiconductor.

Second quarter capital additions totaled $115 million. "Our capital investments are focused on customer opportunities driven by our strength in advanced assembly and test technologies, our Unitive acquisition and IBM collaboration," said Joyce. "We are currently budgeting third quarter capital additions of $90 million."

During the second quarter we paid a total of $45 million in connection with previously announced settlement agreements pertaining to the mold compound litigation.

Selected operating data for the second quarter of 2005 is included in a separate section of this release before the financial tables.

Business Outlook

The third quarter is typically characterized by a seasonal build in consumer electronics. Our aggregate customer forecasts have increased, particularly for turnkey flip chip programs driven by our Unitive acquisition and IBM collaboration. On the basis of current forecasts, we have the following expectations for the third quarter of 2005:

     --  Sequential revenue increase in the range of 8% to 10%.
     --  Gross margin in the range of 15% to 16%.
     --  Net loss in the range of 18 cents to 22 cents per diluted share.

We anticipate recognizing approximately $2 million per quarter in foreign tax expense during 2005. At June 30, 2005 our company had U.S. net operating loss carryforwards totaling $411 million expiring through 2025. Additionally, at June 30, 2005 we had $90 million of non-U.S. net operating loss carryforwards expiring through 2010.

Amkor will conduct a conference call on July 27, 2005 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 303-262-2050 or by visiting the investor relations page of our website: www.amkor.com or Thompson 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: 11033022.

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 website: www.amkor.com.

Forward Looking Statement Disclaimer

This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the following: planned growth and continued business momentum; building a critical mass of revenue; achieving greater operating efficiencies; expectations of a seasonal build in consumer electronics; the ramp of turnkey programs involving flip chip applications; expectations of supply tightening, firmer pricing, improving product and customer mix, expanding margins and moderating legal expenses; Amkor's financial performance, including expected revenue, gross margin, and net loss; budgeted capital expenditures; customer forecasts; anticipated foreign tax expense; and the forward-looking 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; fluctuations in operating results; 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 an increase in Amkor's capacity, and Amkor's ability to finance capital expenditures and increase its 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 reports on Form 10-K/A for the year ended December 31, 2004 and Form 10-Q/A for the quarter ended March 31, 2005. Amkor undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this document.

     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 2005
                                                2nd Quarter      Six Months
     --  Capital additions                      $115 million    $161 million

         Net change in related accounts
          payable                               ($57 million)   ($37 million)

         Payments for property, plant &
          equipment                              $58 million    $124 million

     --  Depreciation and amortization           $61 million    $122 million

     --  Free cash flow *                       ($69 million)  ($142 million)

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

         Net cash used in operating activities  ($11 million)   ($18 million)

         Payments for property, plant &
          equipment                             ($58 million)  ($124 million)

         Free cash flow                         ($69 million)  ($142 million)

         We define free cash flow as net cash (used in) provided by operating
         activities less payments for property, plant and equipment.  Free
         cash flow is not defined by generally accepted accounting principles.
         However, we believe free cash flow to be relevant and useful
         information to our investors in assessing our liquidity, capital
         resources and financial operating results.  Our management uses free
         cash flow in evaluating our liquidity, our ability to service debt
         and our ability to fund capital expenditures.  However, this measure
         should be considered in addition to, and not as a substitute, or
         superior to, cash flows or other measures of financial performance
         prepared in accordance with generally accepted accounting principles,
         and our definition of free cash flow may not be comparable to
         similarly titled measures reported by other companies.

     --  Capacity utilization, calculated as quarterly revenue divided by
         revenue generating capacity (RGC) at quarter-end, was approximately
         85%.  We define RGC as 90% utilization of installed capacity (based
         on the limiting equipment set on each production line), using
         quarterly average selling price.

     --  Assembly unit shipments were 1.8 billion, up 19% from Q1 2005.

     --  Percentage of revenue (rounded to nearest whole percent):

           Leadframe packages  40%

           Laminate packages   46%

           Other                4%

           Test                 9%



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

                                                  For the Three Months Ended
                                                            June 30,
                                                      2005           2004

     Net sales                                      $489,335       $492,536
     Cost of sales                                   422,837        397,761
     Gross profit                                     66,498         94,775
     Operating expenses:
       Selling, general and administrative            66,865         55,916
       Research and development                        9,924          9,900
         Total operating expenses                     76,789         65,816
     Operating income (loss)                         (10,291)        28,959
     Other expense (income):
       Interest expense, net                          41,395         36,360
       Foreign currency loss (gain)                   (1,773)         2,635
       Other expense (income), net                     2,063        (25,541)
         Total other expense                          41,685         13,454
     Income (loss) before income taxes and
      minority interest                              (51,976)        15,505
     Minority interest                                   926              3
     Income (loss) before income taxes               (51,050)        15,508
     Provision for income taxes                        1,353          5,528
     Net income (loss)                              $(52,403)        $9,980

     Per Share Data:
       Basic and diluted net income (loss)
        per common share                              $(0.30)         $0.06

       Shares used in computing basic net income
        (loss) per common share                      176,371        175,304

       Shares used in computing diluted net
        income (loss) per common share               176,371        175,872



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

                                                   For the Six Months Ended
                                                            June 30,
                                                      2005           2004

     Net sales                                      $906,816       $957,182
     Cost of sales                                   796,923        750,559
     Gross profit                                    109,893        206,623
     Operating expenses:
       Selling, general and administrative           127,331        109,422
       Research and development                       18,824         18,877
       Provision for legal settlement and
        contingencies                                 50,000          1,500
         Total operating expenses                    196,155        129,799
     Operating income (loss)                         (86,262)        76,824
     Other expense (income):
       Interest expense, net                          81,908         69,650
       Foreign currency loss                             459          2,710
       Other expense (income), net                     2,241        (23,744)
         Total other expense                          84,608         48,616
     Income (loss) before income taxes and
      minority interest                             (170,870)        28,208
     Minority interest                                 1,937           (355)
     Income (loss) before income taxes              (168,933)        27,853
     Provision for income taxes                        2,540          6,963
     Net income (loss)                             $(171,473)       $20,890

     Per Share Data:
       Basic and diluted net income (loss)
        per common share                              $(0.97)         $0.12

       Shares used in computing basic net income
        (loss) per common share                      176,045        174,961

       Shares used in computing diluted net income
        (loss) per common share                      176,045        178,028



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

                                                    June 30,     December 31,
                                                      2005           2004
                       Assets
     Current assets:
       Cash and cash equivalents                    $228,204       $372,284
       Accounts receivable:
         Trade, net of allowance of $5,164 in
          2005 and $5,074 in 2004                    294,918        265,547
         Other                                         5,304          3,948
       Inventories, net                              116,719        111,616
       Other current assets                           30,276         32,591
           Total current assets                      675,421        785,986

     Property, plant and equipment, net            1,427,915      1,380,396
     Goodwill                                        655,940        656,052
     Intangibles, net                                 42,863         47,302
     Investments                                      11,101         13,762
     Other assets                                     75,441         81,870
           Total assets                           $2,888,681     $2,965,368

         Liabilities and Stockholders' Equity
     Current liabilities:
       Bank overdraft                                    $--           $102
       Short-term borrowings and current
        portion of long-term debt                    281,639         52,147
       Trade accounts payable                        307,344        211,706
       Accrued expenses                              159,857        175,075
           Total current liabilities                 748,840        439,030

     Long-term debt                                1,810,377      2,040,813
     Other non-current liabilities                   125,462        109,317
           Total liabilities                       2,684,679      2,589,160

     Minority interest                                 4,937          6,679

     Stockholders' equity:
       Common stock                                      178            176
       Additional paid-in capital                  1,326,310      1,323,579
       Accumulated deficit                        (1,140,545)      (969,072)
       Accumulated other comprehensive income         13,122         14,846
           Total stockholders' equity                199,065        369,529
           Total liabilities and stockholders'
            equity                                $2,888,681     $2,965,368



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

                                                  For the Three Months Ended
                                                            June 30,
                                                      2005           2004

     Cash flows from operating activities:
       Net income (loss)                            $(52,403)        $9,980
       Depreciation and amortization                  61,186         58,264
       Other non-cash items                            5,016        (20,364)
       Changes in assets and liabilities
        excluding effects of acquisition             (25,070)         4,575
         Net cash provided by (used in)
          operating activities                       (11,271)        52,455

     Cash flows from investing activities:
       Payments for property, plant and equipment    (57,685)      (140,331)
       Other investing activities                        287         32,614
         Net cash used in investing activities       (57,398)      (107,717)

     Cash flows provided by financing activities       9,822          5,393

     Effect of exchange rate fluctuations on
      cash and cash equivalents                          291         (1,032)

     Net decrease in cash and cash equivalents       (58,556)       (50,901)
     Cash and cash equivalents, beginning of
      period                                         286,760        345,496
     Cash and cash equivalents, end of period       $228,204       $294,595

     Supplemental disclosures of
      cash flow information:
       Cash paid (refunded) during the period for:
         Interest                                    $42,787        $34,083
         Income taxes                                  $(817)        $2,670



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

                                                   For the Six Months Ended
                                                            June 30,
                                                      2005           2004

     Cash flows from operating activities:
       Net income (loss)                           $(171,473)       $20,890
       Depreciation and amortization                 122,044        110,661
       Other non-cash items                            6,398        (15,102)
       Changes in assets and liabilities
        excluding effects of acquisitions             25,318         33,344
         Net cash provided by (used in)
          operating activities                       (17,713)       149,793

     Cash flows from investing activities:
       Payments for property, plant and equipment   (124,397)      (284,182)
       Other investing activities                        443         39,068
         Net cash used in investing activities      (123,954)      (245,114)

     Cash flows provided by (used in)
      financing activities                            (1,994)        77,145

     Effect of exchange rate fluctuations on
      cash and cash equivalents                         (419)          (488)

     Net decrease in cash and cash equivalents      (144,080)       (18,664)
     Cash and cash equivalents, beginning of
      period                                         372,284        313,259
     Cash and cash equivalents, end of period       $228,204       $294,595

     Supplemental disclosures of
      cash flow information:
       Cash paid during the period for:
         Interest                                    $82,957        $61,602
         Income taxes                                 $1,916        $14,451