1047127--2/25/2008--AMKOR_TECHNOLOGY

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The matters relating to the Special Committee s 2006 review of our historical stock option granting practices and the resultant restatement of our consolidated financial statements has resulted in expanded litigation and regulatory proceedings against us and may result in future litigation, which could have a material adverse effect on us. Pending SEC Investigation The Pending SEC Investigation Could Adversely Affect Our Business and the Trading Price of Our Securities. Fluctuations in Operating Results and Cash Flows Our Operating Results and Cash Flows Have Varied and May Vary Significantly as a Result of Factors That We Cannot Control. Dependence on the Highly Cyclical Semiconductor and Electronic Products Industries We Operate in Volatile Industries, and Industry Downturns Harm Our Performance. High Fixed Costs Due to Our High Percentage of Fixed Costs, We Will Be Unable to Maintain Our Gross Margin at Past Levels if We Are Unable to Achieve Relatively High Capacity Utilization Rates. Guidance Our Failure to Meet Our Guidance or Analyst Projections Could Adversely Impact the Trading Prices of Our Securities. Declining Average Selling Prices The Semiconductor Industry Places Downward Pressure on the Prices of Our Products. Decisions by Our IDM Customers to Curtail Outsourcing May Adversely Affect Our Business. Our Substantial Indebtedness Could Adversely Affect Our Financial Condition and Prevent Us from Fulfilling Our Obligations. Restrictive covenants in the indentures and agreements governing our current and future indebtedness could restrict our operating flexibility. We have significant severance plan obligations associated with our manufacturing operations in Korea which could reduce our cash flow and negatively impact our financial condition. If we fail to maintain an effective system of internal controls, we may not be able to accurately report financial results or prevent fraud. We face product return and liability risks and the risk of negative publicity if our products fail. Absence of Backlog The Lack of Contractually Committed Customer Demand May Adversely Affect Our Sales. Risks Associated With International Operations We Depend on Our Factories and Operations in China, Japan, Korea, the Philippines, Singapore and Taiwan. Many of Our Customers and Vendors Operations Are Also Located Outside of the U.S. Our Management Information Systems May Prove Inadequate We Face Risks in Connection With Our Current Project to Install a New Enterprise Resource Planning System For Our Business. Difficulties Expanding and Evolving Our Operational Capabilities We Face Challenges as We Integrate New and Diverse Operations and Try to Attract Qualified Employees to Support Our Operations. Dependence on Materials and Equipment Suppliers Our Business May Suffer If The Cost, Quality or Supply of Materials or Equipment Changes Adversely. Loss of Customers The Loss of Certain Customers May Have a Significant Adverse Effect on the Operations and Financial Results. Capital Additions We Believe We Need To Make Substantial Capital Additions, Which May Adversely Affect Our Business If Our Business Does Not Develop As We Expect. Impairment Charges Any Impairment Charges Required Under GAAP May Have a Material Adverse Effect on Our Net Income. Increased Litigation Incident to Our Business Our Business May Suffer as a Result of Our Involvement in Various Lawsuits. We Could Suffer Adverse Tax and Other Financial Consequences if Taxing Authorities Do Not Agree with Our Interpretation of Applicable Tax Laws. Rapid Technological Change Our Business Will Suffer If We Cannot Keep Up With Technological Advances in Our Industry. Packaging and Test The Packaging and Test Process Is Complex and Our Production Yields and Customer Relationships May Suffer from Defects in the Services We Provide. Competition We Compete Against Established Competitors in the Packaging and Test Business as Well as Internal Customer Capabilities. Environmental Regulations Future Environmental Regulations Could Place Additional Burdens on Our Manufacturing Operations. Intellectual Property We May Become Involved in Intellectual Property Litigation. Fire, Flood or Other Calamity With Our Operations Conducted in a Limited Number of Facilities, a Fire, Flood or Other Calamity at one of Our Facilities Could Adversely Affect Us.

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1047127--2/25/2008--AMKOR_TECHNOLOGY_INC