Corning Expects Continued Growth in LCD; LCD Television a Driver of a

    Business Editors/High-Tech Writers

    CORNING, N.Y.--(BUSINESS WIRE)--Feb. 4, 2005--Corning Incorporated (NYSE: GLW) will tell investors today that it expects the liquid crystal display (LCD) glass market to grow between 40 percent and 60 percent this year and continue to grow at a compound annual rate of 40 percent through 2007. Peter F. Volanakis, president of Corning Technologies, will note that while the majority of the recent growth in LCD glass has been in the areas of desktop monitors and notebook computers, LCD television is expected to be a key driver of a "third wave" of glass demand, hitting with more impact this year. Volanakis will make the comments during the company's annual investors' meeting in New York City today.
    LCD TV's comprised 5 percent of all televisions sold in 2004 and the company expects they will reach 10 percent market penetration in 2005. Corning believes that LCD TV's may account for around 21 percent of the world's television sales in 2007, but the rate of LCD TV adoption will vary by region of the world and may vary from quarter to quarter depending on buying patterns, inventories or other market factors." Volanakis will caution investors not to strictly focus on U.S. television sales, but rather to examine global market demand and trends, as more than 75 percent of the world's televisions are sold outside of North America.
    "The future growth rate for LCD will be greatly influenced by the pacing of LCD TV penetration in consumer markets worldwide," Volanakis will say. "As CRT TV's continue to decline in market penetration, we believe LCD TV will emerge as the primary alternative technology in the below 40-inch market, as they provide the best balance of form, function and cost."
    Televisions with screen sizes below 40" (measured diagonally) are expected to represent more than 90 percent of all units that will be sold through 2007. While this segment is currently dominated by CRT's, it is the prime target for LCD TV penetration.
    Volanakis will also tell investors that LCD TV's required only about 15 percent of total glass demand in 2004, as the remaining 85 percent was used in desktop monitor and portable applications. Compounded annual growth for glass used in LCD TV's is expected to be almost 100 percent from 2004 to 2007.
    "With Corning's proprietary fusion draw process bringing larger generation sized panels to market, we are confident that Corning will continue to play an important role in helping LCD TV panel manufacturers enjoy greater economies-of-scale, thereby helping to reduce retail prices for consumers," Volanakis will tell investors.
    Corning's fusion technology has enabled the company to continually be first to market with next-generation substrate sizes, including the recent commercial availability of Generation (Gen) 7 substrates introduced on Jan. 16, 2005 by Samsung Corning Precision Glass Co., Ltd., Corning's 50 percent owned equity company. Gen 7 substrates are nearly three times the surface area of Gen 5 substrates. All of the new large Generation glass sizes introduced in recent years by Corning, including Gen 8 size which is currently in development, are designed to help panel manufacturers reduce production costs and increase efficiency.
    "We continue to expand at a rate that will keep pace with the growth in this industry, both in the glass demand of our customers and the growing popularity of LCD products with consumers," Volanakis will tell investors. "We are committed to balancing growth with stability."
    The bulk of Corning's capital expenditures in 2005 will fund LCD facility expansions. The company's proprietary fusion technology is modular in nature, providing Corning with the ability to adjust its capacity builds to match market changes that may alter actual customer demand.
    Corning Display Technologies is a worldwide leading supplier of large generation glass substrates for the active matrix liquid crystal display (LCD) industry. LCDs are used in desktop monitors, LCD TV's, notebook computers, and electronics products such as video and digital cameras, cell phones, and personal digital assistants (PDAs). Corning's substrates, manufactured through a proprietary fusion-forming process, help companies meet ongoing demand for devices that are larger, sharper, brighter and more durable than ever before. For more information about Corning and the benefits of LCD TV, visit the company's website.

    About Corning Incorporated

    Corning Incorporated (www.corning.com) is a diversified technology company that concentrates its efforts on high-impact growth opportunities. Corning combines its expertise in specialty glass, ceramic materials, polymers and the manipulation of the properties of light, with strong process and manufacturing capabilities to develop, engineer and commercialize significant innovative products for the telecommunications, flat panel display, environmental, semiconductor, and life sciences industries.

    Forward-Looking and Cautionary Statements

    This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes or fluctuations in global economic and political conditions; tariffs, import duties and currency fluctuations; product demand and industry capacity; competitive products and pricing; manufacturing efficiencies; cost reductions; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; capital spending by larger customers in the liquid crystal display industry and other businesses; changes in the mix of sales between premium and non-premium products; facility expansions and new plant start-up costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability or major health concerns; ability to obtain financing and capital on commercially reasonable terms; adequacy and availability of insurance; capital resource and cash flow activities; capital spending; equity company activities; interest costs; acquisition and divestiture activities; the level of excess or obsolete inventory; the rate of technology change; the ability to enforce patents; product and components performance issues; changes in key personnel; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are identified in Corning's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.

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CONTACT: Corning Incorporated M. Elizabeth Dann, 607-974-4989 dannme@corning.com or James E. Terry, 607-974-7343 terryje@corning.com

KEYWORD: NEW YORK INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS PRODUCT SOURCE: Corning Incorporated

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