Future Prospects

OSRAM sets course for expansion in opto-semiconductors with the expansion of its production capacity in its factory in Penang and the simultaneous expansion of the LED chip fabrication plant in Germany. OSRAM is building on its position as the number two on the world LED market.

OSRAM will be significantly expanding production capacity at its plant in Penang, Malaysia. At the same time, a further construction phase will be completed by the end of 2007 at its plant in Regensburg. OSRAM, Europe's leading manufacturer of light emitting diodes (LEDs) and number two in the world LED market, will then be in an even better position to meet growing demand for LEDs far into the future. In Malaysia, in addition to the existing facilities for assembling Regensburg chips, a wafer production line will be put into operation in 2008 for the upcoming volume applications for lighting and consumer products.

The construction of a chip factory in Penang will mean that OSRAM will have a second production site for chips in addition to the plant in Regensburg. From 2008, the Penang site will manufacture LED chips. Total investment in the new plant will ultimately be in high double figures of millions of euros. The lighting manufacturer is also starting to expand the existing LED assembly facilities in Penang. When work is completed, capacity will be 50 percent higher.

Regensburg will continue to manufacture semiconductor materials and produce wafers for highly innovative semiconductors for lighting, display and sensing applications. The new construction phase in Regensburg is approaching completion, with investment in high double figures of millions of euros. In addition to production, Regensburg also accommodates the central research and development department of OSRAM Opto Semiconductors.

OSRAM CEO Martin Goetzeler said "OSRAM's innovations are its life-blood - and opto-semiconductor products are central to our growth strategy. LEDs are the light sources of the future as they offer so many benefits including compact dimensions and enormous potential for energy savings. The expansion of our production capacity in Penang and Regensburg is a clear sign that we are on course for sustained growth."

Ruediger Müller, CEO at OSRAM Opto Semiconductors, commented: "The expansion of our production sites is our response to increased demand for LEDs throughout the world. At OSRAM Opto Semiconductors we now have the broadest portfolio of patents on the market. Our successful bases in Regensburg and Penang will enable us to strengthen our market position still further with technologically and economically impressive products."

OSRAM is one of the world's two leading lighting manufacturers. Sales in the year ending September 30, 2006 totalled 4.6 billion Euros, 88 percent of which came from outside Germany. OSRAM is a high-tech company in the lighting sector. Around 40 percent of sales come from innovative products. This global player employs around 40,000 people worldwide, supplies customers in some 150 countries and has 49 production facilities in 18 countries.

ABOUT OSRAM OPTO SEMICONDUCTORS

OSRAM, Munich, Germany is one of the two leading light manufacturers in the world. Its subsidiary, OSRAM Opto Semiconductors GmbH in Regensburg (Germany), offers its customers solutions based on semiconductor technology for lighting, sensor and visualization applications. Osram Opto Semiconductors has production sites in Regensburg (Germany), Penang (Malaysia) and Wuxi (China). Its headquarters for North America is in Sunnyvale (USA), and for Asia in Hong Kong. Osram Opto Semiconductors also has sales offices throughout the world. For more information go to www.osram-os.com.

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