Net revenue on a US GAAP basis for the fourth quarter of 2008 was TWD3,052.6 million or $93.2 million, a decrease of 50.0% from TWD6,101.6 million or $186.3 million for the same period in 2007 and a decrease of 30.0% from TWD4,361.5 million or $133.1 million in the third quarter of 2008. Under US GAAP, the gross margin for the fourth quarter of 2008 was -28.0%, compared to 24.6% for the same period in 2007 and 0.3% for the third quarter of 2008.

Net loss on a US GAAP basis for the fourth quarter of 2008 was TWD5,838.6 million or $178.2 million, and TWD69.54 or $2.12 per basic common share, compared to net loss of TWD873.6 million or $26.7 million, and TWD10.41 or $0.32 per basic common share, for the third quarter of 2008. Net loss under US GAAP includes non-cash gains for changes in the fair value of the embedded derivative liabilities of TWD8.6 million or $0.3 million and amortization of discount on convertible notes of TWD27.9 million or $0.9 million for the fourth quarter of 2008 and non-cash gains for changes in the fair value of the embedded derivative liabilities of TWD21.9 million or $0.7 million and amortization of discount on convertible notes of TWD77.0 million or $2.4 million for the third quarter of 2008. Excluding the above special items regarding the convertible notes, non-GAAP adjusted net loss for the fourth quarter of 2008 was TWD5,819.3 million or $177.6 million, and TWD69.31 or $2.12 per basic common share, compared to non-GAAP adjusted net loss of TWD818.5 million or $25.0 million, and TWD9.75 or $0.30 per basic common share in the third quarter of 2008.

Net loss for the fiscal year ended December 31, 2008 under US GAAP includes non- cash gains for changes in the fair value of the embedded derivative liabilities of TWD191.4 million or $5.8 million and amortization of discount on convertible notes of TWD277.1 million or $8.4 million. Excluding the above special items regarding the convertible notes, non-GAAP adjusted net loss for the fiscal year ended December 31, 2008 was TWD7,092.0 million or $216.5 million, and TWD84.54 or $2.58 per basic common share.

The unaudited consolidated financial results of ChipMOS for the fourth quarter ended December 31, 2008 included the financial results of ChipMOS TECHNOLOGIES INC., ChipMOS Japan Inc., ChipMOS U.S.A., Inc., ChipMOS TECHNOLOGIES (H.K.) Limited, MODERN MIND TECHNOLOGY LIMITED and its wholly- owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD., and ThaiLin Semiconductor Corp.

S.J. Cheng, chairman and chief executive officer of ChipMOS, stated, Despite continued market weakness, we achieved revenue of $93.2 million in the fourth quarter. In light of the global financial climate, we faced similar challenges that every player in the semiconductor supply chain faced in the fourth quarter. The difficulties were not simply a temporary irregular market condition nor seasonality issue as we encounter on an annual basis in the past, but an economic downturn that may last for years under the current market outlook consensus.

The challenging global economic environment, credit crisis and slowing of consumer spending, significantly reduced DRAM demand in fourth quarter, worsening the financial situation of DRAM makers across the space. As a result of this harsh financial climate, our DRAM revenue experienced a 38.5% sequential decline in fourth quarter resulting from a significant reduction in demand coming from our Taiwan customers. Given the current weakness in the macroeconomic environment, our LCD business dropped significantly with deterioration in consumer demand. Even after quarters of inventory correction in the LCD panel industry, panel makers continued their efforts to aggressively reduce their outputs to counter slowing orders. Rather than implementing continuous capacity services, our LCD driver customers placed rush orders to avoid inventory accumulations. This trend, coupled with weak momentum in the LCD industry, depressed the overall business activity in the supply chain resulting in our LCD driver revenue decline of 50.6% in the fourth quarter on a quarter-over-quarter basis. Additionally, we experienced significant revenue declines in both Flash and mixed-signal segments in fourth quarter as compared to Q3.

S.K. Chen, chief financial officer of ChipMOS, stated, The Company started to take action to deal with the business down cycle at a very early stage. We launched our cost saving programs in early 2008, which was a couple of quarters ahead of the global recession. During past two years, we also managed to reduce CapEx and took other measures for improving of our financial condition. These activities helped us maintain our cash position at a level, which allowed us to sustain our operations in this unpredictable environment. To face this down cycle, we continue to work to readjust our financial resources and minimize cash outflow. The future business will be maintained based on the payment policy of cash-on-delivery for customers with financial problems. Management is confident that through its solid operation and diligent cost planning will ensure its continuous operation and improve performance even at down times like now. We are well prepared for the next dawn of the semiconductor industry.

First Quarter 2009 Outlook:

Cheng added, Looking into the first quarter of 2009, the overall DRAM backend market continues to experience weak demand. This is primarily the result of substantial cut backs in output from Taiwan DRAM makers for cash outflow considerations. The LCD driver business seems to be in the best shape in the short-term among all our business sectors attributable to Chinese stimulus programs and US LCD TV demand. The flash and Mask ROM business from our Taiwan customers also picked up very well beginning in March. Following the LCD market trend, our mixed-signal business has some growth potential after mid-Q1. Most orders are coming from the urgent demands in the supply chain. In our view, January is confirmed to be the bottom of this down cycle for all of our business sectors. Currently, we expect month over month growth until May. However, the market visibility is still limited after May.

Considering the overall market weakness and the financial difficulty of our major customers, we currently expect that first quarter revenue will be in the range of approximately $67 million to $72 million, which is a decrease of 23% to 28% as compared to the fourth quarter 2008. The revenue forecast is based on the exchange rate of TWD32.76 to the USD as of December 31, 2008. The reported Q1 revenue in US dollars may vary from our guidance due to a different exchange rate at the end of the first quarter. Finally, we currently expect gross margin on a consolidated basis for the first quarter of 2009 to be in the range of approximately -55% to -60% due to low utilization rate.