hynix Semiconductor Inc. Reports the Results for the Second Quarter of FY2009

Seoul, July 24th, 2009

hynix Semiconductor Inc. (‘hynix’, www.hynix.com) today announced the earnings results for its second quarter 2009, ended June 30, 2009.

Consolidated Sales of the second quarter of FY2009 totaled 1.68 trillion won, increased by 28% compared to previous quarter’s 1.31 trillion won with shipment and ASP of both DRAM and NAND Flash sequentially increased. The improved Sales are due to higher-than-expected price rise of both DRAM and NAND Flash, shipment increase through utilization rate recovery and continued productivity improvement.

Actual results of our bit growth were mostly in line with our previous guidance, while ASPs climbed higher than expected. DRAM bit shipment growth rose by 10% and DRAM ASP climbed by 20% quarter-over-quarter. NAND Flash bit shipment growth and ASP also increased by 40% and 23% respectively quarter-over-quarter.

Operating loss in the quarter has been significantly decreased sequentially to 211 billion won from 515 billion won, thus narrowing operating margin to negative 13% from last quarter’s negative 39%. Along with the improved sales performance, reversal of loss from inventory valuation and manufacturing cost reduction realized by yield improvement and migration to finer process technology contributed to reducing operating loss.

Net loss for the quarter amounted to 58 billion won with negative 3% net income margin. The difference between the operating loss and the net loss was largely due to the net interest expense of 100 billion won, and net F/X transaction and translation gain of 322 billion won.

Please note that the financial results discussed herein are preliminary and speak only as of June 30, 2009. 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 Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about hynix is available at www.hynix.com.