GLW Corning Inc

Corning Incorporated (NYSE: GLW) will tell investors today that it expects a significant increase in sales of its diesel emissions control products for heavy- and light-duty clean diesel applications in 2006. Thomas R. Hinman, vice president and general manager, Corning Diesel Technologies, will note that 2006 is anticipated to be an important year for the company's diesel business, with production ramps in both heavy-duty and light-duty businesses and continued design-in of Corning's innovative filter and substrate products. He will also note that the longer-term outlook for this business looks strong, with the diesel market expected to grow to approximately $1.2 billion to $1.3 billion by 2010. Hinman will make his comments during the company's annual investors' meeting beginning at 9 a.m. at the Mandarin Oriental Hotel in New York City today. Significant opportunities are expected to develop as regulations tighten globally. "By 2007, emissions from buses and trucks sold in the U.S. must be up to 90 percent cleaner than 2002 models. These reductions are primarily the result of the introduction of improved engine technologies, ultra-low sulfur diesel fuel, and next-generation emissions control systems that rely upon the use of our products," Hinman will tell investors. "On a more global front, regulations impacting both diesel passenger cars and heavy-duty vehicles continue to be enacted, representing a greater than 90-percent reduction in allowable emissions by 2010." Diesel engines represent an important source of economical power throughout the world with approximately 1.9 million heavy-duty vehicles and about 11 million light-duty vehicles produced per year in markets where regulations will be in place. They also provide distinct advantages with up to 35 percent lower fuel consumption, fewer greenhouse gases, long-term durability, and high power and torque. 2005 proved to be a very important foundational year for Corning's diesel business, Hinman will note. "For the heavy-duty market, the past year was critical in terms of technology and vendor selection processes. Corning achieved a very substantial business position as evidenced by the letters of intent signed with the majority of leading heavy-duty engine makers. We also accomplished a very successful entry into the light-duty market in 2005 with the introduction of our new aluminum titanate filter, DuraTrap(R) AT. This robust, high-performance product continues to gain acceptance by key European and Asian passenger vehicle manufacturers." Hinman will provide an assessment of the 2005 to 2010 outlook for the diesel market and how Corning can benefit from successfully addressing this opportunity. "As global heavy-duty emissions control penetration reaches its anticipated 90 percent level by 2010 in regulated markets, the growth of filter and substrate systems will grow accordingly," Hinman will say. "Global light-duty diesel filter penetration is expected to reach approximately 70 percent by 2010, and Corning is targeting a leading position with innovative, high-value products." For Corning, the projected product value opportunity for heavy duty is expected to be in the range of $300 to $1000 per vehicle for filter systems and approximately $50 to $200 per vehicle for substrate systems. In the light-duty market, Corning's product value opportunity is expected to be in the range of $80 to $150 per vehicle. Hinman will outline key steps that Corning is taking in order to effectively leverage the diesel market opportunity, to include: -- Scaling the capacity of the company's $300 million diesel manufacturing facility to meet current and anticipated demand for both heavy-duty and light-duty filter and substrate products. -- Achieving additional light-duty vehicle platform wins with both DuraTrap AT and cordierite filter technologies. -- Substantial ongoing investment in research and development to address critical industry challenges, both near and long term. "We believe that our technology leadership and ability to scale our manufacturing to meet industry needs will enable Corning to capture between $500 million and $600 million of this more than $1 billion market opportunity," Hinman will tell investors. 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.