Taoyuan, Taiwan, R.O.C., April 20th, 2007 － Inotera Memories, Inc.（TAIEX：3474）today announced sales revenues of NTD 12,270 million, net income of NTD 3,875 million and earnings per share of NTD 1.25 based on weighted average outstanding shares of 3,111 million for the first quarter ended March 31st, 2007. All numbers are unaudited.

Year-on-year, sales revenues increased 44%, while net income and EPS increased 45% and 32% respectively. Quarter-on-quarter, sales revenues represented a 5 % increase, while net income and EPS decreased 21% and 21% respectively. First quarter results were significantly affected by a decline in DRAM average selling prices of 24% quarter-on-quarter partially offset by a 32 % increase in megabit shipments. As a result, gross margin and operating margin in the first quarter were 37 % and 35 %, respectively, compared to 45% and 44%, respectively in the fourth quarter of 2006.

Inotera's sequential wafer shipment growth reached 18% and bit shipments increased 32% in the first quarter. The company expects its bit shipments to increase by more than 20% for the second quarter sequentially and more than 80% for the year 2007 compared to last year, revised from the previous guidance of 70% due to a faster-than-expected ramp-up of Fab-2 manufacturing capacity.

On April 12th, the Company's Board of Directors approved the introduction of the 80nm trench technology in the second half of year 2007 in order to fulfill Qimonda's product requirements. This technology is a cost-efficient shrink of the mature 90nm technology currently employed by Inotera, and the introduction of 80nm is not expected to require any significant additional capital expenditures. At the same time, the conversion to 70/75nm technology remains on schedule to start mass production in the fourth quarter of 2007.

About Inotera

Inotera Memories, Inc. was incorporated on January 23rd, 2003. Inotera was founded as a joint venture by Infineon Technologies AG and Nanya Technology Corporation. Inotera's production facility has been designed to manufacture high-density and high-performance commodity DRAM（Dynamic Random Access Memory）products using state of the art trench technology. The collaboration of Qimonda's (the former Memory Products Group of Infineon Technologies) world leading technology and Nanya's cost efficiency in mass production have developed an innovative facility which are highly productive, highly competitive and leading edge in the DRAM industry.
For more information please visit： http://www.inotera.com

Spokesperson
Charles Kau, President     

Press Contact
Jennifer Chien                   
Tel. 03-327-2988 Ext. 3938
E-mail：jenniferchien@inotera.com

Disclaimer

This press release contains some forward-looking statements that are subject to substantial risks and uncertainties. Typically, these statements contain words such as “anticipate," “believe,” “could,” “estimate,” “expect,” “intend,” “plan,” forecast,” “project,” “predict,” “potential,” “continue,” “may,” “should,” “will” and “would” or similar words. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events, and actual results may differ materially from those expressed or implied by such statements. The forward-looking statements in this press release include, but not limited to, growth rates for various markets estimated by a third party source, future products and technology development, widespread market acceptance of the hosted delivery model, future revenue growth and profitability. You should be cautioned that the forward-looking statements are not the guarantees of our future performance. The forward-looking statements contained in this press release are made only as of the date of this press release and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law.

This press release and the information contained herein is the property of Inotera, Memories Inc.

Unaudited Financial Summary

For the First Quarter of Year 2007