Taipei, Taiwan, R.O.C. — March 27, 2001, - United Microelectronics Corporation (TAIEX: 2303, NYSE: UMC), (UMC) today held a meeting of the Board of Directors and Supervisors, at which the Board adopted a proposal recommending distribution of dividend of NT$ 1.5 per common share.

At the meeting, the Board of Directors and Supervisors also:

1. Approved UMC sponsorship of the issuance of American Depository Receipts (ADRs) by certain shareholders to dispose a portion of their common shares in the form of ADRs. Further, all UMC employee and management are prohibited from participating in any form of arbitrage associated with this issuance.
2. Reduced compensation for all Board Directors and Supervisors from 1% to 0.1% of earnings.
3. Appointed Mr. I.D. Liu as Vice-Chairman.
   
   

Chairman John Hsuan comments: "UMC's management is fully committed to shareholder value and has exercised the strictest disciplines with regards to upholding corporate principles. These policies set forth are a reflection of our Company culture and will clearly set us apart from the industry through our focus on long-term prosperity vs. short-term gains." He also notes the reasons behind the Board's decision for retaining majority of earnings:

1. The semiconductor industry has taken a dramatic turn beginning 4Q00 and so far shows no sign of recovery; it is quite certain that this year's earning will be much less than year 2000's. Therefore, it would be unwise to seriously dilute earnings per share this year with higher stock dividend distribution. It is also against corporate ethics to heavily dilute earning per share with employee stock bonus, especially when EPS is on the decline.
2. Stock dilution effects from employee stock bonuses can be brought to comparable levels in the past (see comparison tables below).
   * Calculation assuming closing price of March 26, 2001

3. A sensible and consistent stock bonus program protects the interest of shareholders while rewarding employees who stay with the company on a long-term basis.