Hsinchu, Taiwan, November 13, 2007 - ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (NASDAQ: IMOS) today reported unaudited consolidated financial results for the third quarter ended September 30, 2007. All U.S. dollar figures in this release are based on the exchange rate of NT$32.62 against US$1.00 as of September 28, 2007.

Net revenue for the third quarter of 2007 was NT$5,939.4 million or US$182.1 million, an increase of 11.8% from NT$5,312.5 million or US$162.8 million for the same period in 2006 and an increase of 1.8% from NT$5,833.5 million or US$178.8 million in the second quarter of 2007. Under US GAAP, the gross margin for the third quarter of 2007 was 24.2%, compared to 28.2% for the same period of 2006 and 27.6% for the second quarter of 2007.

Net income on a US GAAP basis for the third quarter of 2007 was NT$1,268.8 million or US$38.9 million, and NT$15.24 or US$0.47 per basic common share, compared to NT$135.4 million or US$4.2 million, and NT$1.63 or US$0.05 per basic common share, for the second quarter of 2007. Net income under US GAAP includes non-cash gains for changes in the fair value of the embedded derivative liabilities of NT$759.6 million or US$23.3 million and amortization of discount on convertible notes of NT$91.1 million or US$2.8 million for the third quarter of 2007 and non-cash charges for changes in the fair value of the embedded derivative liabilities of NT$145.4 million or US$4.5 million and amortization of discount on convertible notes of NT$91.1 million or US$2.8 million for the second quarter of 2007. Excluding the above special items regarding the convertible notes, non-GAAP adjusted net income for the third quarter of 2007 was NT$600.3 million or US$18.4 million, and NT$7.21 or US$0.22 per basic common share, compared to non-GAAP adjusted net income of NT$371.9 million or US$11.5 million, and NT$4.49 or US$0.14 per basic common share in the second quarter of 2007.

The unaudited consolidated financial results of ChipMOS for the third quarter ended September 30, 2007 included the financial results of ChipMOS TECHNOLOGIES INC., ChipMOS Japan Inc., ChipMOS U.S.A., Inc., ChipMOS TECHNOLOGIES (H.K.) Limited, MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD., and ThaiLin Semiconductor Corp.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "Revenue in the third quarter was within our prior guidance, with growth over the prior quarter and the third quarter of 2006. Revenue derived from flash increased by approximately 26.2% in the third quarter of 2007 from the second quarter of 2007, as we ramped up business with a strategic NOR flash customer combined with other new business from Taiwan and oversea customers. Our growth was even more impressive given the fact that new business more than offset the decline to zero of a Korean customer that had decided to stop all further outsourcing to Taiwan-based companies. The freed up capacity has been taken-up gradually by our Taiwan DRAM customers."

S.K. Chen, Chief Financial Officer of ChipMOS, said, "Our CapEx this quarter was US$39.6 million, which was down from US$51.4 million in the second quarter. We intend to keep conservative control of our capital expenditures going forward to generate more free cash flow from our operation, and we intend to use the cash to reduce our debt."

Fourth Quarter 2007 Outlook

Mr. Cheng continued, "We currently expect that Q4 will be stronger than Q3, led by growth in our flash revenue, DDR II assembly, and mixed-signal testing for LCD peripheral chips. We currently expect the DRAM backend environment to remain healthy due to conservative capacity investment in the market combined with a growing DRAM backend manufacturing market. We also expect our growing DRAM business with a US-based customer will help our revenue growth and further diversify our DRAM customer base. However, as DRAM end market pricing remains weak, we expect to face price pressure in Q4. Our flash revenue is expected to grow quarter-over-quarter because of the scheduled capacity ramp till end of Q4 with our major NOR flash customer and the new NAND flash assembly business. We currently expect our flash business will be the major contributor to our revenue growth in the second half of 2007 and the full year of 2008. Finally, while we currently expect the driver IC business to remain flat in Q4 compared to Q3, we currently expect demand from the TV segment will maintain strength through 2008."

Based on current customer forecasts and market conditions, ChipMOS currently expects that revenue for the fourth quarter of 2007 will be in the range of approximately US$191 million to US$198 million, which would represent approximately 5% to 9% sequential growth compared to the third quarter of 2007. The Company currently expects US GAAP gross margin on a consolidated basis for the fourth quarter of 2007 to be in the range of approximately 23% to 27%, which approximately at the same level as in the third quarter of 2007. Management will focus our best effort to increase utilization level, enhance equipment efficiency and execute cost-saving program to compensate the impact of price erosion from DRAM business.

Investor Conference Call / Webcast Details

ChipMOS will review detailed third quarter 2007 results on Tuesday, November 13, 2007 at 7:00PM ET (8:00AM, November 14, Taiwan time). The conference call-in number is 1-201-689-8562. A live webcast of the conference call will be available at ChipMOS' website at http://www.chipmos.com/. The playback will be available in 2 hours after the conclusion of the conference call and will be accessible by dialing 1-201-612-7415. The account number to access the replay is 3055 and the confirmation ID number is 258586.

About ChipMOS TECHNOLOGIES (Bermuda) LTD.:

ChipMOS (http://www.chipmos.com/) is a leading independent provider of semiconductor testing and assembly services to customers in Taiwan, Japan, and the U.S. With advanced facilities in Hsinchu and Southern Taiwan Science Parks in Taiwan and Shanghai, ChipMOS and its subsidiaries provide testing and assembly services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries.

Forward-Looking Statements

Certain statements contained in this announcement may be viewed as "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC.

Use of Non-GAAP Information

Readers are reminded that non-GAAP numbers contained in this announcement are merely a supplement to, and not a replacement for, the GAAP financial measures. These non-GAAP numbers should be read in conjunction with the US GAAP financial measures. It should be noted as well that the non-GAAP information provided in this announcement may be different from the non-GAAP information provided by other companies.

 

Contacts:
In Taiwan
Dr. S.K. Chen
ChipMOS TECHNOLOGIES (Bermuda) LTD.
+886-6-507-7712
s.k._chen@chipmos.com

In the U.S.
David Pasquale
The Ruth Group
646-536-7006
dpasquale@theruthgroup.com