The 11% increase in sales revenues quarter-on-quarter was due mainly to a 28% sequential growth of bit shipments but partially offset by a 12% sequential decrease in DRAM average selling prices for the third quarter of 2008. As a result of cost-per-bit improvements of 22% compared to previous quarter, the gross loss and operating loss have narrowed to 23% and 24%, respectively, of total sales revenues in third quarter of 2008. The Company has been executing production cuts in view of the currently prevailing bad market conditions. However, due to cycles times in production, these cuts are expected to have only limited impact on bit shipments in the fourth quarter, which are expected to increase by 10% quarter-on-quarter. Annual shipment growth is expected to be around 60% for the year 2008 compared to last year.

As the most investment in 75/70nm technology conversion has been spent in the first half of 2008, capital expenditures were NTD 0.5 billion in the third quarter of 2008, which leads to capital expenditures of NTD 19.5 billion for the first nine months of 2008. The expected capital expenditures for year 2008 are reduced from the previous guidance of NTD 23 billion to NTD 21 billion due to the new technology roadmap with the transfer of stack DRAM technology from Micron Technology expected to start from late 2008 onwards.

On October 11th, Micron Technology, Inc. has signed an agreement with Qimonda AG to acquire 35.6% stake in Inotera for US$ 400 million and the closing of the share transitions is expected in late November of 2008. The Company will work closely with new partners on the operation details and the best solution for the previously announced MeiYa Joint Venture between Nanya Technology and Micron Technology.

About Inotera
Inotera Memories, Inc. was incorporated on January 23rd, 2003. Inotera's production facilities are designed to manufacture high-density and high-performance commodity DRAM（Dynamic Random Access Memory）products using state-of-the-art technology. The combination of world-leading technology transferred from its technology partners and local cost-efficiency in mass production has resulted in an innovative company that is highly productive, highly competitive and at the leading edge in the DRAM industry. For more information please visit Inotera's IR Website：htpp://ir.inotera.com

Press Release Download  (including 3Q08 unaudited financial summary)

Spokesperson

Charles Kau, President     

Press Contact
Dora Tou, IR / PR Department
Tel. 03-327-2988 Ext. 3935
E-mail：doratou@inotera.com

Disclaimer
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