hynix Semiconductor Inc. Reports Third Quarter 2011 Results

The financial information of the earnings in this press release is written based on K-IFRS.

Seoul – October 27, 2011

hynix Semiconductor Inc. (‘hynix’ or ‘the Company’, www.hynix.com), the world’s second largest memory chips maker, today announced financial results for its third quarter 2011 ended September 30, 2011.

The Company posted the consolidated third quarter revenue of 2.29 trillion won, a 17% decline from 2.76 trillion won of the previous quarter due to weakness in IT demand from uncertainty of the global macroeconomic recovery. Operating loss was 277 billion won with operating margin of negative 12% reflecting inventory write down of 132 billion won due to the steep DRAM average selling price drop. Net loss for the quarter was 563 billion won. It was negatively impacted by net foreign currency related loss of 250 billion won.

During the quarter, DRAM bit shipments increased 9% sequentially while the average selling price declined 29%. For NAND Flash, the bit shipments increased 16% while the average selling price declined 14% sequentially.

Overall, the demand is weak due to the growing uncertainty of the global economy derived from the financial crisis in Europe in the third quarter. Specifically, the average selling price of DRAM dropped significantly due to slow demand from PCs. In terms of the demand growth, the NAND Flash market was more favorable.

In DRAM business, the company will increase the portion of 30nm class process products to around 40% by the end of this year from over 20% at the end of the third quarter. hynix aims to complete the development of 20nm class process in the fourth quarter. The sales portion of non-PC DRAMs was 70% in the third quarter and the Company plans to maintain the current level through year-end. For the NAND Flash business, the 2Xnm class process portion was over 70% at the end of the third quarter and we plan to expand this portion to high 70% by the end of this year. The development of the next generation 2Ynm class process will be completed in the fourth quarter of this year.

FY2011 Q3 Earnings

Consolidated BasisUnit : Billion KRW

	2011 Q3	2011 Q2	QoQ	2010 Q3	YoY
Revenue	2,291	2,758	-17%	3,252	-30%
Operating Profit	-277	447	N/A	924	N/A
Operating Profit Margint	-12%	16%	-28%p	28%	-40%p
Net Income	-563	473	N/A	1,041	N/A

※ The financial information of the earnings is written based on K-IFRS.

Please note that the financial results discussed herein are preliminary and speak only as of September 30, 2011. Readers should not assume that this information remains operative at a later time. In addition, this information may include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. For further discussion of these risks and uncertainties, readers should refer to hynix Semiconductor Inc.’s filings with the Korea Exchange. This document is neither an offer to sell nor a solicitation of an offer to sell any security of hynix.

About Hynix Semiconductor Inc.

hynix Semiconductor Inc. (HSI) of Icheon, Korea, is the world’s top tier memory semiconductor supplier offering Dynamic Random Access Memory chips (“DRAMs”) , Flash memory chips (“NAND Flash”) and CMOS Image Sensor (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about hynix is available at www.hynix.com.