hynix Semiconductor Inc. Reports Second Quarter 2010 Results

Seoul, July 22nd, 2010

hynix Semiconductor Inc. (‘hynix’, www.hynix.com) today announced the earnings results for its second quarter 2010, ended June 30, 2010.

Consolidated revenues of the second quarter of fiscal year 2010 totaled 3.28 trillion won increased from 2.82 trillion won of the previous quarter. This strong performance is the best sales record ever on a quarterly basis. The increase was mainly driven by strong market demand as well as the average selling price improvement of DRAM.

Quarter-over-quarter, DRAM average selling price and bit shipment climbed by 6% and 7% respectively. NAND Flash average selling price declined by 6% while bit shipment increased by 22% quarter-over-quarter.

Consolidated operating profit reached 1.05 trillion won with operating margin of 32%, improved from the previous quarter’s 799 billion won with operating margin of 28%. This is also the highest operating profit for the quarter basis mainly due to increased sales, significant technology improvement and customized product mix.

Consolidated net income for the quarter was 665 billion won decreased by 19% compared with 822 billion won of the previous quarter. The primary reasons for the difference between the operating profit and net profit were net foreign currency transaction and translation loss and net interest expense and loss arose from early redemption of convertible bonds which was issued in December, 2007.

hynix will focus on accelerating migration to 40nm class process in DRAM business and plan to complete the development of 30nm class process technology within this year. In order to establish more stable and profitable product portfolio, it aims to further expand sales portion of DDR3 and specialty products. For the NAND Flash business, it will expand the portion of 30nm class products and the mass production of the next generation technology 20nm class process will be started in the second half of this year.

Please note that the financial results discussed herein are preliminary and speak only as of June 30, 2010. 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.