hynix Says US decides to Lift Countervailing Duty Order on DRAM

Seoul, August 21st, 2008

hynix Semiconductor Inc. has said on Thursday the U.S. Department of Commerce (“DOC”) has released an official letter notifying the U.S. International Trade Commission that no U.S. domestic interested party has requested for the maintenance of the countervailing duty (“CVD”) measure on hynix DRAM. In particular, on the official letter, DOC states, “[W]e intend to issue a final determination revoking this CVD order not later than 90 days after the July 1st, 2008”.

While it is expected that the final ruling on the revocation of CVD will be published in the U.S. Federal Register next month, the actual effect of the revocation will come into force retroactively from August 11th, 2008 when the 5 years have passed since the first imposition of CVD in 2003.

U.S., EU and Japan have imposed high rate of CVD on hynix after their finding of hynix allegedly being conferred with unfair subsidies by the Government through having, the creditor financial institutions like the Korea Development Bank, convert debts into equities.

hynix says that, the DOC ruling today will provide the ground for hynix to gain a positive turnaround in the second half of this year because, once again, hynix can freely sell its Korea-originated DRAM and actively apply its marketing strategy in the U.S., the top DRAM market in the world.

More importantly, today’s U.S. ruling, along with EU ruling in last April to revoke CVD, will definitely have a considerable effect on Japan, who is currently facing a deadline of September 1st, 2008 to make its final decision to revoke CVD on hynix. hynix strongly hopes that Japan decides to take the WTO’s recommendation and revokes the CVD measure on hynix when the publishing of Japan’s final decision releases on September 1st, 2008.

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”) and Flash memory chips to a wide range of established international customers. The Company’s shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about hynix is available at www.hynix.com.