hynix Semiconductor Inc. Reports the Results for the Fourth Quarter of FY2008

Seoul, February 5, 2009

hynix Semiconductor Inc. (‘hynix’, ‘the Company’, www.hynix.com) today announced the earnings results for its fourth quarter 2008, ended December 31, 2008.

Fourth quarter consolidated sales decreased by 18% sequentially from 1.84 trillion won to 1.51 trillion won. DRAM price dropped by 43% and NAND flash price dropped by 18% sequentially with flat DRAM bit growth and 37% decline of NAND flash bit growth. Sequential deterioration in sales was mainly due to the sharp erosion in DRAM and NAND flash ASPs amid weakening demand environment and decline in sales volume of NAND flash products.

Operating loss for the fourth quarter has expanded to 782 billion won from the loss of 465 billion won in the previous quarter, recording negative 52% of operating margin.

Net loss for the quarter amounted to 1.33 trillion won with negative 88% of net income margin. The primary factor for the difference between the operating loss and net loss was due to the net foreign currency transaction and translation losses that occurred as a result of the weak Korean won and high level of dollar-denominated outstanding debt.

Sales in fiscal year 2008 have decreased to 6.82 trillion won from 8.61 trillion won, down 21% from a year ago. It is a result of rapid decline in prices which has not been offset by bit growth and weak Korean won. Operating loss amounted to 1.9 trillion won compared to 491 billion won of operating profit at the same time last year. Net loss for the year amounted to 4.38 trillion won.

Please note that the financial results discussed herein are preliminary and speak only as of December 31, 2008. 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. hynix securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.

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.