Taipei, Taiwan, R.O.C. - March 15, 2007 - United Microelectronics Corporation (TAIEX: 2303, NYSE: UMC), at a meeting of the Board of Directors and Supervisors held today, approved the 2006 Business Report and Financial Statements, submitted proposals to be resolved at the Annual General Meeting, and set the agenda for the Annual General Meeting. A brief summary of the proposals is as follows:

• Cash dividend of NT$12,461,529,283, estimated at NT$0.7 per share
• Employee cash bonus of NT$2,324,119,405, 7.1% of net income after tax
• Proposal for the Company's capital reduction
• Amendment of the Company's Articles of Incorporation, "Acquisition or Disposal of Assets Procedure", and "Directors and Supervisors Election Procedure".

UMC's Board of Directors approved the 2006 Business Report and Financial Statements. The Company's revenue for 2006 was NT$104,099 million and net income after tax was NT$32,619 million, with EPS of NT$1.80. The distributable earnings for 2006 were NT$15,494 million. Under ROC GAAP, the cancellation of 1 billion shares that the Company bought back in the first half of 2006 resulted in an NT$6,371 million adjustment. Another NT$9,198 million of retained earnings was debited due to the transaction from the disposal of shares of Hsun Chieh Investments Co., Ltd., resulting in the book values of treasury stock and unrealized loss on long-term investments exceeding the total long-term investment fair value.

UMC's Board of Directors will propose to issue a cash dividend of NT$0.7 per share and distribute an employee cash bonus of NT$2,324 million, which is 7% of the net income after tax. To comply with future regulation changes for employee bonus issuance, UMC's Board of Directors has carefully evaluated, while taking into consideration industry trends, the percentage of employee bonus to distributable retained earnings. The figure will increase from the current 8% to 15% and will mostly be in the form of cash, supplemented with compensation programs such as employee stock options and share buyback programs for employees. The Company's competitive compensation program with help attract and retain the industry's most talented employees. As a whole, the 2006 earnings payout ratio will be 95%.

On January 23, 2007, UMC's Board of Directors proposed a capital reduction of NT$57,394 million with the cancellation of 5,739 million of its outstanding shares. Shareholders will receive approximately NT$3 for each of their shares held. Related procedures and timetable will be further announced after the approval from the 2007 Annual General Meeting and then the Financial Supervisory Commission.

The 2007 Annual General Meeting will be held at 9:00 AM, on Monday, June 11, 2007 at the UMC Recreation Center in Hsinchu Science Park.