SUNNYVALE, Calif., January 8, 2001 - UMC (NYSE: UMC), a leading semiconductor foundry, today announced an enhanced CMOS image sensor process, which is based on its generic mixed-mode process. The unique proprietary technology will address the needs of today's most sophisticated camera-on-a-chip designers that produce chips for high-end, still life and video digital cameras and scanners. Because of its lower than average dark current level, UMC's sensor process allows image sensors designed in its process to detect light at lower light conditions. The result is image quality that is superior to any other foundry CMOS technology. CMOS sensors now being fabricated with UMC's sensor process are rapidly becoming a cost-effective replacement for competing charged coupled device (CCD) and other CMOS sensors.

When the sensor is integrated using emerging SOC methodology, the integrated circuit becomes a camera-on-a-chip with the ability to generate high-quality color images with small pixel sizes and high resolutions. In fact, UMC's CMOS process is the first to demonstrate "3-in-1 integration", i.e., integration of an analog to digital converter, digital image processor and a high performance sensor onto a single chip. UMC will be accepting design-ins for its 0.18-micron CMOS sensor, which will enable pixel sizes as low as three microns and resolutions above 5 megapixels in the first quarter of 2001.

"Because our CMOS image sensor solution offers high quality and resolution and is cost effective, it clearly addresses the requirements of chip developers for the digital camera market,"said Jim Ballingall, vice president of worldwide marketing at UMC. "Our solution is clearly unparalleled in the foundry space in its comparability to CCD, the key being exceptionally low dark current levels –as low as 65 pA/cm2 –which allow for high image quality regardless of light conditions. The transition from CCD to UMC's CMOS sensor process is further facilitated by the fact that changes in optics are not necessary due to the small pixel sizes that are enabled by the process. Particularly exciting is the fact that this complements our offerings in advanced logic, mixed-signal, and micro-display technologies so that customers can access UMC for a complete digital camera solution."

Sabrina Kemeny, CEO at Photobit Corporation said, "As a leading supplier of CMOS image sensors, we must keep up with the market's high demand for video imaging products by delivering the most leading-edge camera system on a chip. UMC's CMOS sensor process has by far exceeded our expectations for quantum efficiency and sensitivity. We look forward to continuing our long-term relationship with UMC as they continue to deliver the highly-reliable, excellent quality image sensor process technology we need for development of our camera-on-a-chip."

Dr. Derek Cheung, Rockwell's vice president of research and director of the Rockwell Science Center said, "We committed to UMC's 0.25-micron CMOS image sensor process technology for developing our CMOS imaging system-on-a-chip (i-SoC) for high performance video cameras, because it enables us to offer comparable resolution and image quality to incumbent CCDs with obvious cost advantages and an unprecedented set of embedded features. We look forward to migrating to UMC's 0.18-micron process soon and achieving even greater performance."

Note From UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks.