GLW Corning Inc

Corning Incorporated (NYSE: GLW) will tell investors today that it expects the liquid crystal display (LCD) glass market, measured in square feet of glass, to grow more than 40 percent in 2006. Peter F. Volanakis, Corning's chief operating officer, will tell investors that Corning's LCD glass volume is expected to grow at a faster pace than the market in 2006, given the higher growth rates of larger sized glass substrates. He will note that the market for Generation 5.5 and higher-glass substrates is expected to grow 150 percent in 2006. Volanakis will make the comments during the company's annual investors' meeting beginning at 9 a.m. at the Mandarin Oriental Hotel in New York City today. While desktop monitors will continue to account for the majority of demand in 2006, LCD TV is expected to be a key driver in building upon the momentum gained in 2005. LCD TVs comprised approximately 11 percent of all televisions sold in 2005 and the company expects this market penetration rate to be approximately 25 percent in 2007. Additionally, average LCD TV screen size is expected to grow from about 23 inches to over 27 inches during the same time period, accelerating the growth of the glass market. "By 2007, LCD TV glass demand is expected to account for over 40 percent of the total LCD glass market," Volanakis will say. "TV market dynamics vary across geographic regions and in order for these anticipated penetration rates to materialize, LCD TV retail prices will need to continue to decline." Increased growth of other display applications continues to contribute to total glass demand, nearly doubling from slightly over 800 million square feet in 2005 to over 1.4 billion square feet in 2007. Growth of color mobile phones in the small applications market, continued notebook penetration into the personal computer market, and displacement of CRTs (cathode ray tubes) by LCD monitors are all key contributing factors, in addition to LCD TVs, to glass substrate volume growth. The growing demand for increasingly larger LCD TVs continues to drive the industry's demand for larger-generation substrates. In 2005, Generation 5.5 and larger substrates accounted for slightly more than 20 percent of the market and in 2007 they are expected to account for nearly 50 percent of the total LCD glass market. "Corning's fusion draw process and ongoing product innovations continue to bring better properties for larger-generation size panels. We are confident that Corning will continue to play a leading role in helping LCD panel manufacturers enjoy greater economies-of-scale, thereby helping to reduce retail prices for consumers," Volanakis will tell investors. All of the new larger-generation glass substrates introduced in recent years by Corning, including Generation 8, which is expected to begin shipments by the third quarter, are designed to help panel manufacturers reduce production costs and increase the range of panel sizes for LCD TV. "We continue to expand capacity at a rate that is paced to the growth in this industry, both in the glass demand of our customers and the growing popularity of LCD products with consumers," Volanakis will say. "Additionally, we are improving our capital efficiency at a very brisk rate. Over the past five years, Corning has improved its capital efficiency in LCD glass manufacturing by more than 50 percent, with manufacturing cost-reduction programs continually being developed." 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.