CHANDLER, Ariz., April 27 -- Amkor Technology, Inc. (Nasdaq: AMKR) reported first quarter sales of $465 million, up 1% sequentially and up 36% over the first quarter of 2003. Amkor's first quarter net income was $12 million, or $0.07 per share, compared with $15 million, or $0.09 per share, in the first quarter of 2003.

Amkor's first quarter 2004 net income includes a pre-tax charge of $2.7 million, in connection with the prepayment of Amkor's term loan under its senior secured credit facility. In the first quarter 2003 Amkor's net income included a loss from continuing operations of $40 million, or ($0.24) per share, which was offset by income of $55 million, or $0.33 per share, in connection with its divested wafer fabrication services business.

"While first quarter revenue came in slightly below our forecasted range, we nonetheless were pleased to achieve sequential revenue growth, in contrast to what is normally a seasonally down first quarter," said James Kim, Amkor's chairman and chief executive officer. "The increase in Q1 revenue and continued growth in our customers' long range forecasts suggest that we are in the midst of a broad-based industry recovery, and we remain confident of exceeding $2 billion revenue in 2004. This recovery, combined with what we believe is an acceleration in the outsourcing of semiconductor assembly and test, presents compelling opportunities for Amkor to strengthen our operational capabilities and expand our customer penetration."

"Due to relative weakness in our cell phone products and production constraints at foundries, first quarter demand for some advanced package products did not materialize as forecast," said Bruce Freyman, Amkor's president and chief operating officer. "During the first quarter we increased capacity in several package products which were on allocation for much of 2003 in order to get ahead of demand, and we are now in a more favorable position to support expected growth of these package products through 2004. We also experienced strong growth in our legacy package products during the quarter, which further suggests that integrated device manufacturers (IDMs) have generally not invested in additional assembly capacity."

"First quarter gross margin of 24% was down 1% sequentially due principally to higher material costs," said Ken Joyce, Amkor's chief financial officer. "We anticipate that second quarter gross margin will remain at 24%, despite higher sales volume, due to higher depreciation and labor costs as we continue to expand production space, add equipment and increase factory workforce in advance of what we expect will be a strong second half. These costs include expenses associated with equipping lines and qualifying new business in our newly acquired facility in Taiwan. We currently expect gross margin to improve in the second half of 2004.

"First quarter SG&A expenses included $5 million in legal costs in connection with the epoxy mold compound litigation. As previously disclosed, this litigation relates to a certain mold compound used in the assembly of various IC packages which is claimed to have caused a number of package failures on the part of our customers. We expect the current level of legal costs will continue through 2004. We believe we have very good defenses to these claims and have asserted our own claims against the supplier of the compound," said Joyce.

"First quarter capital expenditures totaled $171 million, including $41 million associated with our previously announced purchase of a 354,000 square foot assembly and test facility in Taiwan. We continue to invest in key package and test areas where we see long-term growth and are currently budgeting second quarter capital expenditures of $125 - 150 million," said Joyce.

"In March we enhanced the company's liquidity by issuing $250 million in 7 1/8% senior notes due 2011 and using the net proceeds to repay amounts outstanding under our senior secured credit facility and for general corporate purposes," said Joyce. "This provides us with the additional financial flexibility to pursue our growth initiatives.

"In April we sold 10.1 million shares of common stock of Anam Semiconductor, Inc. for cash proceeds of approximately $50 million," said Joyce. "This transaction will result in an after-tax gain of approximately $20 million, or $0.11 per share, which will be included in our second quarter results. The incremental cash will be used to fund ongoing capital investments. Following this sale, our investment in ASI has been reduced to 4.6 million shares, or approximately 4% of the company."

Selected operating data for the first quarter of 2004 is included on a separate page of this release.

Business outlook

Our customer forecasts continue to rise for both advanced and legacy package products, however, it is possible that some customers will experience capacity constraints at their wafer foundries. On the basis of current forecasts, we have the following expectations for the second quarter of 2004:

     --  Sequential revenue increase in the range of 5% to 8%.

     --  Gross margin around 24%.

     --  Net income in the range of 17 to 22 cents per diluted share, which
         includes an after-tax gain of $20 million, or $0.11 per share, from
         the sale of 10.1 million shares of ASI common stock.

The tax rate for the second quarter and full year 2004 is expected to be around 11%. At March 31, 2004 our company had U.S. net operating losses totaling $418 million expiring between 2021 and 2024. Additionally, at March 31, 2004 we had $45 million of non-U.S. net operating losses available for carryforward, expiring between 2004 and 2012.

Amkor will conduct a conference call on April 27, 2004 at 10:30 a.m. eastern time to discuss the results of the first quarter in more detail. The call can be accessed by dialing 303-205-0044 or by visiting the investor relations page of our web site: or CCBN's website, 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: 574793#.

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:

This press release contains forward-looking statements within the meaning of federal securities laws, including, without limitation, statements regarding anticipated growth opportunities, expansion of the semiconductor industry, revenue and revenue growth, capacity expansion, capital expenditures, gross margin, legal costs, net income, tax rates, use of proceeds and the statements contained under Business Outlook. These forward-looking statements are subject to a number of risks and uncertainties that could affect future operating 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; deterioration of the U.S. or other economies; 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; timing and volume of orders relative to the production capacity; incurrence of significant additional costs and expense necessary for the increase in our 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; changes in tax laws; 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, 2003.

     Jeffrey Luth
     VP Corporate Communications
     480-821-5000, ext. 5130

    Selected operating data for the first quarter of 2004
                                                           1st Quarter

     --  Capital expenditures:                             $171 million

     --  Depreciation and amortization:                    $52 million

     --  Free cash flow *                                 ($47 million)

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

         Net cash provided by continuing
          operating activities                             $124 million

         Less purchases of property, plant and equipment  ($171 million)

         Free cash flow from continuing operations        ($47 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                      37%
             Computing                           24%
             Consumer                            30%
             Other                               9%

     --  Capacity utilization, calculated as quarterly revenue divided by
         revenue generating capacity (RGC) at quarter-end, was approximately
         71%.  We define RGC as 100% utilization of installed capacity (based
         on the limiting equipment set on each production line), using
         quarterly average selling price.

     --  Assembly average selling price (calculated on a per pin basis)
         declined approximately 3% from Q4 2003.

     --  Assembly unit shipments were 1.8 billion, up 9% from Q4 2003.

     --  Percentage of assembly revenue:

             Advanced packages                   79%
             Traditional packages                21%

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

                            AMKOR TECHNOLOGY, INC.
                    (In thousands, except per share data)

                                                  For the Three Months Ended
                                                           March 31,
                                                      2004           2003

    Net revenues                                    $464,646       $343,131
    Cost of revenues                                 352,798        296,562
    Gross profit                                     111,848         46,569
    Operating expenses:                                   (1)
      Selling, general and administrative             52,178         41,423
      Research and development                         8,977          7,609
      Loss on disposal of fixed assets, net                8             69
      Amortization of acquired intangibles             1,328          2,030
        Total operating expenses                      62,491         51,131
    Operating income (loss)                           49,357         (4,562)
    Other (income) expense:
      Interest expense, net                           33,290         35,862
      Foreign currency loss (gain)                        75           (925)
      Other (income) expense, net                       (931)         1,229
      Debt retirement costs (2)                        2,720             --
        Total other expense                           35,154         36,166
    Income (loss) before income taxes,
     equity investment loss,
     minority interest and
     discontinued operations                          14,203        (40,728)
    Equity investment loss                                --         (3,628)
    Minority interest                                   (358)           149
    Income (loss) from continuing operations
     before income taxes                              13,845        (44,207)
    Provision for income taxes (benefit)               1,604         (4,177)
    Income (loss) from continuing operations          12,241        (40,030)
    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
    Net income                                       $12,241        $14,536

    Per Share Data:
      Basic and diluted income (loss)
       per common share from
       continuing operations                           $0.07         $(0.24)
      Basic and diluted income
       per common share from
       discontinued operations                            --           0.33
      Basic and diluted income
       per common share                                $0.07          $0.09

      Shares used in computing
       basic income (loss)
       per common share                              174,622        165,156

      Shares used in computing
       diluted income (loss)
       per common share                              180,202        165,156

     (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           $ --
           Unamortized deferred debt
            acquisition costs                          1,033             --
                                                      $2,720           $ --

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

                                                    March 31,    December 31,
                                                      2004           2003
    Current assets:
      Cash and cash equivalents                     $345,496       $313,259
      Accounts receivable:
        Trade, net of allowance of $5,298 in 2004
         and $6,514 in 2003                          284,825        310,096
        Other                                          5,636          4,413
      Inventories                                    112,406         92,439
      Other current assets                            38,445         49,606
          Total current assets                       786,808        769,813

    Property, plant and equipment, net             1,131,503      1,007,648
    Investments                                       55,860         51,181
    Other assets:
      Goodwill                                       626,596        629,850
      Acquired intangibles                            39,877         37,730
      Other                                           74,357         67,601
      Assets of discontinued operations                   --             96
                                                     740,830        735,277
          Total assets                            $2,715,001     $2,563,919

              Liabilities and Stockholders' Equity
    Current liabilities:
      Bank overdraft                                    $535         $2,690
      Short-term borrowings and
       current portion of long-term debt              22,488         28,665
      Trade accounts payable                         280,401        230,396
      Accrued expenses                               165,479        170,145
          Total current liabilities                  468,903        431,896
      Long-term debt                               1,734,407      1,650,707
      Other noncurrent liabilities                    87,296         78,974
          Total liabilities                        2,290,606      2,161,577

    Minority interest                                  1,564          1,338

    Stockholders' equity:
      Common stock                                       175            175
      Additional paid-in capital                   1,319,010      1,317,164
      Accumulated deficit                           (919,295)      (931,536)
      Accumulated other comprehensive gains           22,941         15,201
        Total stockholders' equity                   422,831        401,004
        Total liabilities and
         stockholders' equity                     $2,715,001     $2,563,919

                            AMKOR TECHNOLOGY, INC.
                                (In thousands)

                                                  For the Three Months Ended
                                                           March 31,
                                                      2004           2003

    Cash flows from continuing operating activities:
      Income (loss) from continuing operations       $12,241       $(40,030)
      Depreciation and amortization                   52,397         57,793
      Equity investment loss                              --          3,628
      Other adjustments to reconcile income (loss)
       to net cash provided by operating activities    5,262          4,186
      Changes in assets and liabilities
       excluding effects of acquisition               54,329          3,887
        Net cash provided by operating activities    124,229         29,464

    Cash flows from continuing investing activities:
      Purchases of property, plant and equipment    (170,838)       (16,571)
      Other investing activities                       6,454         13,278
        Net cash used in investing activities       (164,384)        (3,293)

    Cash flows from continuing financing activities
      Net proceeds from issuance of long-term debt   249,007             --
      Payments of long-term debt                    (171,551)        (5,899)
      Other financing activity                        (5,704)        (1,968)
        Net cash provided by (used in)
         financing activities                         71,752         (7,867)

    Effect of exchange rate fluctuations on
     cash and cash equivalents related to
     continuing operations                               544           (207)

    Cash flows provided by discontinued operations        96         22,139

    Net increase in cash and cash equivalents         32,237         40,236
    Cash and cash equivalents, beginning of period   313,259        311,249
    Cash and cash equivalents, end of period        $345,496       $351,485

    Supplemental disclosures of cash flow information:
      Cash paid during the period for:
        Interest                                     $27,519        $31,390
        Income taxes                                 $11,781         $4,028