Stronger-than-expected demand for LCD glass has caused Corning Incorporated (NYSE:GLW) to raise its expectation for second-quarter sequential volume growth. Wendell P. Weeks, chairman and chief executive officer, will provide details in support of this improved view at the Sanford Bernstein Strategic Decisions Conference in New York today.

�Our recent checks indicate the LCD supply chain is in full recovery mode,� Weeks will say. �The LCD supply chain continues to replenish; glass supply and demand is very tight right now, much stronger than we anticipated. This has led to an imbalance in glass supply and demand that will likely last through the end of the third quarter. As a result, we are raising our second-quarter glass volume expectations.�

The company now expects glass volume at its wholly owned business to grow by more than 75% sequentially in the second quarter, compared to its original guidance of more than 50%. At Samsung Corning Precision Glass Co., Ltd. (SCP), the company�s equity venture, second-quarter volume is now expected to be up more than 40% sequentially, versus previous expectations of 25%. However, the company is taking a conservative approach to relighting idled glass capacity.

Weeks will also speak to the health of the overall supply chain and significant increases seen in panel maker utilization rates, especially at non-Korean makers. �They need to replenish very lean inventory levels and meet demand from set assemblers,� Weeks will say. �As a result, we have been working down our glass inventory much faster than anticipated, began relighting tanks earlier than planned, and are taking additional steps to shorten delivery lead times.�

On the retail front, independent consumer market research firm NPD group reports that U.S. LCD TV sales in April increased 9% over 2008. Similarly, unit sales increased 77% in China and 18% in Japan, as indicated by independent research firms CMM and BCN, respectively. As a reminder, the company is forecasting worldwide LCD TV unit sales to increase by 18% for the full year.

The company expects second-quarter glass price declines to be in line with its previous guidance. Given current market conditions, the company now believes that its sequential price declines in the third quarter will be very minor and consistent with customer agreements.

In addressing Corning�s telecommunications businesses, Weeks will speak to robust optical fiber and cable demand from China as it builds its 3G network and a new supply agreement with Portugal Telecom utilizing the ClearCurve� solution. However, private network demand in the U.S. continues to be weak. The company�s environmental business was hard-hit by the recession, but may see a slight upturn in the second quarter, driven primarily by auto sales growth in Europe and China. Worldwide production levels may have bottomed, but the company remains cautious and will be taking additional restructuring actions to resize its environmental business for a smaller auto market as needed.

Weeks will close with remarks on the company�s newest revenue opportunities:

  • Gorilla� glass � this thin, tough cover glass for portable displays and touch screen applications has become widely utilized by eight major brands in 10 different models with at least 10 more models in development. To date, the company has delivered about 10 million square feet of Gorilla glass.
  • Green Lasers � Corning has established collaborations with several industry leaders, including Microvision, to provide modules for micro laser-based projectors for handheld devices. The company anticipates production later this year.
  • Thin-film Photovoltaic glass � while this is an early-stage program, it is moving quickly. The company anticipates recording its first revenues next year with the potential of total glass demand reaching one billion square feet by 2020.

Corning's comments to investors at the Sanford Bernstein Strategic Decisions Conference will be available�by accessing the IR events calendar on Corning's Web site at www.corning.com/investor_relations.

Forward-Looking and Cautionary Statements

This press release contains �forward-looking statements� (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning�s financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions;�conditions in the�financial and credit markets;�currency fluctuations;�tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuations�and�changes in the mix of sales between premium and non-premium products; new plant start-up�or restructuring�costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability or major health concerns; adequacy of insurance; equity company activities; 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; stock price fluctuations; and adverse litigation or regulatory developments.�These and other�risk factors are�detailed�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.

About Corning Incorporated

Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.

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