AUO Corporation ("AUO") (TAIEX: 2409; NYSE: AUO) and Japan's Sharp Corporation ("Sharp") signed a patent cross license agreement today. Both parties have agreed to license to the other specified patents owned by each party.

Both AUO and Sharp have made significant investments in the research and development of advanced display technologies and each has built a strong and extensive patent portfolio in the field of TFT-LCD. Both parties have agreed to license certain of their patents to the other on the basis of mutual respect for each other's intellectual property rights. The cross license will allow each company to innovate using the other company's specified patented technologies for the further advancement of TFT-LCD technologies.

Upon signing of the patent cross license agreement, AUO and Sharp will dismiss all pending legal actions that have been filed against each other.