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<SEC-DOCUMENT>0000950103-06-002546.txt : 20061106
<SEC-HEADER>0000950103-06-002546.hdr.sgml : 20061106
<ACCEPTANCE-DATETIME>20061106163505
ACCESSION NUMBER:		0000950103-06-002546
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20061107
FILED AS OF DATE:		20061106
DATE AS OF CHANGE:		20061106

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Himax Technologies, Inc.
		CENTRAL INDEX KEY:			0001342338
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E9
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51847
		FILM NUMBER:		061190762

	BUSINESS ADDRESS:	
		STREET 1:		10TH FLOOR, NO. 605, CHUNGSHAN ROAD
		STREET 2:		HSINHUA, TAINAN COUNTY 712
		CITY:			TAIWAN
		STATE:			F5
		ZIP:			-
		BUSINESS PHONE:		866 (6) 505-0880

	MAIL ADDRESS:	
		STREET 1:		10TH FLOOR, NO. 605, CHUNGSHAN ROAD
		STREET 2:		HSINHUA, TAINAN COUNTY 712
		CITY:			TAIWAN
		STATE:			F5
		ZIP:			-
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>dp03962_6k.htm
<TEXT>
<HTML>
<HEAD>
   <TITLE></TITLE>
</head>
<BODY bgcolor="#ffffff">
<HR align="center" width="100%" size="4" noshade color="#000000">
<HR align="center" width="100%" size="1" noshade color="#000000">
<P align="center">
  <STRONG><FONT SIZE="3" FACE="Times New Roman, Times, serif">FORM 6-K<br>
</FONT><FONT size=3 face="Times New Roman, Times, serif">SECURITIES
    AND EXCHANGE COMMISSION<BR>
  Washington, D.C. 20549</FONT></STRONG></P>
<P align="center">
  <STRONG><FONT size=3 face="Times New Roman, Times, serif">Report of Foreign Issuer<BR>
  <br>
  </FONT></STRONG>  <STRONG><FONT size=3 face="Times New Roman, Times, serif">Pursuant to Rule
  13a-16 or 15d-16<br>
  of the Securities Exchange Act of 1934<br>
  <br>
  </FONT></STRONG>
  <FONT size=2 face="Times New Roman, Times, serif">For the month of November,
  2006</FONT></P>
<P align="center"><FONT size=2 face="Times New Roman, Times, serif">Commission File Number: 000-51847</FONT></P>
<P align="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><FONT size="4">Himax Technologies, Inc.</FONT></B><BR>
(Translation of registrant&#146;s name into English) </FONT></P>
<P align="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">  <STRONG> No.26, Zih Lian Road, Fonghua Village,
<br>
Sinshih Township, Tainan County 744,<br>
Taiwan, Republic of China
</STRONG><BR>
  (Address of principal executive offices)<BR>
</FONT></P>
<blockquote>
    <blockquote>
      <p><font size="2" face="Times New Roman, Times, serif">Indicate by check
          mark whether the registrant files or will file annual reports under
          cover of Form 20-F or Form 40-F:</font></p>
  </blockquote>
  <div align=center>
    <table width="50%" border=0 cellpadding=0 cellspacing=0>
      <tr align="center">
        <td width="25%" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Form
            20-F <u>&nbsp;&nbsp;X&nbsp;&nbsp;</u> </font></td>
        <td width="50%" align="left" valign="top"></td>
        <td width="25%" align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">Form
            40-F <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td></tr>
    </table>
  </div>
  <blockquote>
    <p><font size="2" face="Times New Roman, Times, serif">
 Indicate by check mark if the registrant is submitting the Form 6-K in paper
 as permitted by Regulation S-T Rule 101(b)(1):

</font></p>
  </blockquote>
  <div align=center>
    <table width="50%" border=0 cellpadding=0 cellspacing=0>
      <tr align="center">
        <td width="25%" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
        <td width="50%" align="left" valign="top"></td>
        <td width="25%" align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">No <u>&nbsp;&nbsp;X&nbsp;&nbsp;</u></font></td></tr>
    </table>
    <blockquote>
      <p align="left"><font size="2" face="Times New Roman, Times, serif">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): </font></p>
      <table width="50%" border=0 cellpadding=0 cellspacing=0>
        <tr align="center">
          <td width="25%" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
          <td width="50%" align="left" valign="top"></td>
          <td width="25%" align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">No <u>&nbsp;&nbsp;X&nbsp;&nbsp;</u></font></td>
        </tr>
      </table>
      <p align="left"><font size="2" face="Times New Roman, Times, serif">Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:</font></p>
      <table width="50%" border=0 cellpadding=0 cellspacing=0>
        <tr align="center">
          <td width="25%" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
          <td width="50%" align="left" valign="top"></td>
          <td width="25%" align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">No <u>&nbsp;&nbsp;X&nbsp;&nbsp;</u></font></td>
        </tr>
      </table>
      <p align="left"><font size="2" face="Times New Roman, Times, serif">If &#147;Yes&#148; is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  <U>&nbsp;N/A&nbsp;</U></font></p>
    </blockquote>
  </div>
</blockquote>
<hr align="center" width="100%" size="1" noshade color="#000000">
<hr align="center" width="100%" size="4" noshade color="#000000">
<br>
<br>
<PAGE>
<br>
<br>
<TABLE WIDTH="95%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width=5%> </TD>
    <TD width=2%> </TD>
    <TD width=79%> </TD>
    <TD width=2%> </TD>
    <TD width=10%> </TD>
  </TR>
  <TR valign="bottom">
    <TD nowrap colspan=1 align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD nowrap colspan=1 align=CENTER> <font size="2">Himax Technologies, Inc.</font></TD>
    <TD>&nbsp; </TD>
    <TD nowrap colspan=1 align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD nowrap colspan=1 align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD nowrap colspan=1 align=CENTER> <FONT SIZE="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif">INDEX
        TO EXHIBITS</FONT></TD>
    <TD>&nbsp; </TD>
    <TD nowrap colspan=1 align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=1 align=CENTER nowrap><B><u><FONT size="2" face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibit</FONT></u></B></TD>
    <TD><FONT SIZE="1">&nbsp;</FONT> <FONT SIZE="1">&nbsp;</FONT> <FONT SIZE="1">&nbsp;</FONT> </TD>
    <TD colspan=1 align=left nowrap><FONT SIZE="1">&nbsp;</FONT> <FONT SIZE="1">&nbsp;</FONT> <FONT SIZE="1">&nbsp;</FONT> </TD>
    <TD><FONT SIZE="1">&nbsp;</FONT> <FONT SIZE="1">&nbsp;</FONT> <FONT SIZE="1">&nbsp;</FONT> </TD>
    <TD colspan=1 align=center nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=1 align=CENTER VALIGN="top"><FONT size="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif">99.1</FONT></TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=3 align=left VALIGN="top"><FONT face="serif" size="2">Press release entitled, &#147;Himax reports third quarter 2006 results&#148; dated  November 7, 2006.</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=1 align=CENTER VALIGN="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD colspan=3 align=left VALIGN="top">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=1 align=CENTER VALIGN="top"><FONT size="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif">99.2</FONT> </TD>
    <TD valign="top">&nbsp;   </TD>
    <TD colspan=3 align=left VALIGN="top"><FONT face="serif" size="2">Himax third quarter 2006 results conference call transcript dated  November 7, 2006.</FONT></TD>
  </TR>
</TABLE>
<div align="center">     <br>
    <BR>
<font size="2">2</font></div>

<br>
<br>
<hr size=3 color=GRAY noshade>
<PAGE>
<br>
<br>

<div align="center"><FONT FACE="Times New Roman, Times, serif"><br>
</FONT><FONT SIZE="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif"><strong>SIGNATURES</strong></FONT></div>
<P align="left"> <FONT SIZE="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
          to the requirements of the Securities Exchange Act of 1934, the registrant
          has duly caused this report to be signed on its behalf by the undersigned,
          thereunto duly authorized.</FONT></P>
<div align=right>
     <TABLE WIDTH="40%" border=0 cellpadding=0 cellspacing=0>
          <TR>
               <TD width=11%> </TD>
               <TD width=3%> </TD>
               <TD width=86%> </TD>
          </TR>
          <TR ALIGN="LEFT" valign="bottom">
               <TD nowrap colspan=3> <FONT SIZE="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif">HIMAX
                         TECHNOLOGIES, INC.</FONT></TD>
          </TR>
          <TR>
               <TD colspan=3>&nbsp; </TD>
          </TR>
          <TR valign="bottom">
               <TD nowrap align=left> <FONT SIZE="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif">By:</FONT><FONT SIZE="2">&nbsp;</FONT></TD>
               <TD nowrap align=left>&nbsp;</TD>
               <TD nowrap align=left><FONT SIZE="2" face="Times New Roman, Times, serif">/s/
                         Max Chan</FONT></TD>
          </TR>
          <TR valign="bottom">
               <TD nowrap colspan=1 align=left>&nbsp;</TD>
               <TD>&nbsp;</TD>
               <TD nowrap colspan=1 align=left><hr align="left" width="60%" size=1 noshade>
               </TD>
          </TR>
          <TR valign="bottom">
               <TD nowrap colspan=1 align=left> <FONT SIZE="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name:</FONT></TD>
               <TD>&nbsp; </TD>
               <TD nowrap colspan=1 align=left> <FONT SIZE="2" face="Times New Roman, Times, serif">Max
                         Chan</FONT><FONT SIZE="2">&nbsp;</FONT></TD>
          </TR>
          <TR valign="bottom">
               <TD nowrap colspan=1 align=left> <FONT SIZE="2" face="TimesNewRomanPSMT,Times New Roman,Times,serif">Title:</FONT></TD>
               <TD>&nbsp; </TD>
               <TD nowrap colspan=1 align=left> <FONT SIZE="2" face="Times New Roman, Times, serif">Chief
                         Financial Officer</FONT></TD>
          </TR>
     </TABLE>
</DIV>
<BR>
<P align="left"> <FONT SIZE="2" face="Times New Roman, Times, serif">Date: November 6, 2006</FONT></P>
<P align="center">
     <FONT SIZE="2" face="Times New Roman, Times, serif">3</FONT></P>
<br>
<br>
<hr size=3 color=GRAY noshade>
<p style="page-break-before:always"></p>
<PAGE>
<br>
<br>


<P align="right">
<B><FONT size=2 face="sans-serif">Exhibit 99.1 </FONT></B></P>

<P align="center"><img src="himax.jpg" width="248" height="67"></P>
<P align="center"><B><FONT face="sans-serif">HIMAX REPORTS THIRD QUARTER 2006 RESULTS</FONT></B></P>
<P align="center">
<B><I><FONT size=2 face="sans-serif">Board Authorizes US&#36;50 Million Share Buyback Program</FONT></I></B></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Tainan, Taiwan, November 7, 2006 </FONT></B><FONT size=2 face="sans-serif">- Himax Technologies, Inc. (&#147;Himax&#148; or &#148;Company&#148;) (Nasdaq: HIMX) today reported financial results for the third quarter
ended September 30, 2006.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Net revenue for the third quarter of 2006 was &#36;177.1 million, compared to &#36;154.8 million for the third quarter of 2005, and &#36;171.7 million in the second quarter of 2006. Net income for the third quarter of
2006 was &#36;4.6 million, or &#36;0.02 per diluted share, compared to net income of &#36;21.4 million, or &#36;0.12 per diluted share in the third quarter of 2005, and &#36;19.5 million, or &#36;0.10 per diluted share in the second quarter of 2006.
Share-based compensation was &#36;11.5 million, &#36;1.4 million and &#36;1.1 million in the third quarter of 2006, the third quarter of 2005 and the second quarter of 2006, respectively.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Gross margin in the third quarter of 2006 was 17.4%, as compared to 23.5% in the third quarter of 2005, and 19.2% in the second quarter of 2006. Operating margin was 1.6% in the third quarter of 2006, as compared to
15.1% in the third quarter of 2005, and 11.0% in the second quarter of 2006.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Excluding share-based compensation, gross margin was 17.5% in the third quarter of 2006, 23.5% in the third quarter of 2005, and 19.2% in the second quarter of 2006, with an operating margin of 8.0%, 16.1%, and 11.6%,
respectively.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">A reconciliation of our gross margin and operating margin excluding share-based compensation, a non-GAAP financial measure, to GAAP gross margin and GAAP operating margin, our most comparable GAAP figure, is set out in
the attached reconciliation schedule.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Jordan Wu, President and Chief Executive Officer of Himax, commented, &#147;The third quarter proved to be another difficult quarter. We continued to experience pricing pressure. Our third quarter results did not
benefit from the rebound of market momentum in the TFT-LCD industry, as the increase in demand was offset by the reduction of customers&#146; inventory levels. Separately, on August 29</FONT><SUP><FONT size=2 face="sans-serif">th</FONT></SUP><FONT
size=2 face="sans-serif">, we announced the Board&#146;s approval to acquire Wisepal Technologies, Inc. (&#147;Wisepal&#148;) by way of a share exchange at the exchange ratio of five Wisepal shares for one ordinary share of Himax. The transaction is
designed to bolster Himax&#146;s position in the small- and medium-sized display driver market. We expect the transaction to close in January of 2007.&#148;</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Max Chan, Chief Financial Officer of Himax, said, &#147;Our gross margin and operating margin both declined on a sequential basis. In addition to the continued pricing pressure, our gross margin was negatively impacted
by a change of product mix, where small- and medium-sized display drivers, which typically enjoy higher gross margin, accounted for a lower percentage of our total revenue. We continued to add headcount and invest in R&amp;D. Intensive design-in
activities have also contributed to higher R&amp;D expenses in the quarter. Finally, we made our annual restricted share units grant of approximately 3.8 million shares to our employees at the end of September, representing a 1.9% dilution to our
total outstanding shares. Around 47% of the grant vested immediately, with the remainder vesting in three equal installments over three years. The front-end loaded vesting schedule reflected our attempt to attract and retain talent. In the third
quarter, our net cash used in operating activities was &#36;3.1 million, primarily as a result of higher net working capital requirement, partially in anticipation of growing demand in the fourth quarter.&#148;</FONT></P>
<P align="center">
<FONT size=2 face="sans-serif">1</FONT></P>

<br>
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<br>
<br>


<P align="left">
<FONT size=2 face="sans-serif">Looking forward, Mr. Wu added, &#147;We expect the business environment in the fourth quarter of 2006 will be much improved compared to the third quarter. Overall, we expect net revenue in the fourth quarter of 2006 to
grow more than 20% sequentially, and gross margin to maintain flat or increase slightly. We expect diluted GAAP EPS to return to the level in the first half of 2006. Reflecting our confidence in the Company&#146;s near and long-term prospects, on
November 2</FONT><SUP><FONT size=2 face="sans-serif">nd</FONT></SUP><FONT size=2 face="sans-serif">, our Board of Directors authorized a share buyback program. The program allows Himax to repurchase up to &#36;50 million of the Company's American
Depositary Receipts in the open market or through privately negotiated transactions depending on prevailing market conditions and other factors.&#148;</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">A reconciliation of our diluted EPS excluding share-based compensation, a non-GAAP financial measure, to diluted GAAP EPS, our most comparable GAAP figure, is set out in the attached reconciliation schedule.</FONT></P>
<P align="left">
<B><FONT face="sans-serif">Investor Conference Call / Webcast Details<br>
</FONT></B><FONT size=2 face="sans-serif">The Company&#146;s management will review detailed third quarter 2006 results on Monday, November 6, 2006 at 6:00 PM EST (7:00 AM, November 7, Taiwan time). The conference call-in number is +1-201-689-8560
(international) and +1-877-407-0784 (U.S. domestic). A live webcast of the conference call will be available on the Company&#146;s website at </FONT><U><FONT size=2 face="sans-serif">www.himax.com.tw</FONT></U><FONT size=2 face="sans-serif">. The
playback will be available beginning two hours after the conclusion of the conference call and will be accessible by dialing +1-201-612-7415 (international) and 1-877-660-6853 (U.S. domestic). The account number to access the replay is 3055 and the
confirmation ID number is 217204.</FONT></P>
<P align="left">
<B><FONT size=2 face="sans-serif">About Himax Technologies, Inc. <br>
</FONT></B><FONT size=2 face="sans-serif">Himax Technologies, Inc. designs, develops and markets semiconductors that are critical components of flat panel displays. The Company&#146;s principal products are display drivers for large-sized TFT-LCD panels, which
are used in desktop monitors, notebook computers and televisions, and display drivers for small- and medium-sized TFT-LCD panels, which are used in mobile handsets and consumer electronics products such as digital cameras, mobile gaming devices and
car navigation displays.  In addition, the Company is expanding its product offering to include LCD TV chipset solutions and LCOS microdisplays.  Based in Tainan, Taiwan, the Company has regional offices in Hsinchu and Taipei, Taiwan; Suzhou and
Shenzhen, China; Yokohama, Japan and Anyangsi Kyungkido, South Korea.</FONT></P>
<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=left width=31% nowrap>
<B><FONT size=2 face="sans-serif">Contacts:</FONT></B>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=32% nowrap>&nbsp;	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=31% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">Max Chan</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=32% nowrap>
<FONT size=2 face="sans-serif">Jackson Ko</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=31% nowrap>
<U><FONT size=2 face="sans-serif">In the U.S.</FONT></U>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">Chief Financial Officer</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=32% nowrap>
<FONT size=2 face="sans-serif">Investor Relations</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">David Pasquale</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=32% nowrap>
<FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">The Ruth Group</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">+886-2-3393-0877 Ext. 22300</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=32% nowrap> <FONT size=2 face="sans-serif">+ 886-2-3393-0877 Ext. 22240</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">646-536-7006</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">max_chan@himax.com.tw</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=32% nowrap>
<FONT size=2 face="sans-serif">jackson_ko@himax.com.tw</FONT>	</TD>
	<TD align=left width=2% nowrap>&nbsp;</TD>
	<TD align=left width=31% nowrap>
<FONT size=2 face="sans-serif">dpasquale@theruthgroup.com</FONT>	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<B><FONT size=2 face="sans-serif">Forward-Looking Statements:<br>
</FONT></B><FONT size=2 face="sans-serif">Certain statements in this press release, including statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risks and uncertainties that could
cause actual events or results to differ materially from those described in this press release. Factors that could cause actual results to differ include general business and economic conditions and the state of the semiconductor industry; level of
competition; demand for end-use applications products; reliance on a small group of principal customers; continued success in technological innovations; development of alternative flat panel display technologies; ability to develop and protect our
intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; shortages in supply of key components; changes in environmental laws and regulations; exchange rate fluctuations; regulatory
approvals for further investments in our subsidiaries; and other risks described from time to time in the Company&#146;s SEC filings, including its Form F-1 dated March 13, 2006, as amended.  We undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future events, or otherwise.</FONT></P>
<P align="center">
<B><FONT size=2 face="sans-serif">&#150; Tables Attached &#150;</FONT></B></P>
<P align="center">
<FONT face="serif">2</FONT></P>

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<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">Unaudited Condensed Consolidated Statements of Income</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100% nowrap>
<B><FONT size=2 face="sans-serif">(These interim financials do not fully comply with US GAAP because they omit all interim</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">disclosure required by US GAAP.)</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">(Figures in Thousands of U.S. Dollars, Except Per Share Data)</FONT></B>
	</TD>
</TR>
</TABLE><BR>
<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;<B><FONT size=2 face="sans-serif">Three</FONT></B></TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap><B><FONT size=2 face="sans-serif">Months</FONT></B></TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=24% nowrap colspan=5><B><FONT size=2 face="sans-serif">Three Months</FONT></B></TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap><B><FONT size=2 face="sans-serif">Ended</FONT></B></TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=24% nowrap colspan=5><B><FONT size=2 face="sans-serif">Ended September 30,</FONT></B></TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap><B><FONT size=2 face="sans-serif">June 30,</FONT></B></TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap><B><FONT size=2 face="sans-serif">2005</FONT></B></TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Revenues</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Revenues from third parties, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">89,044</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">65,683</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">84,634</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Revenues from related parties, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">88,061</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">89,137</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">87,041</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">177,105</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">154,820</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">171,675</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Costs and expenses:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Cost of revenues</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">146,287</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">118,475</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">138,766</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Research and development</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">22,685</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">10,234</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">11,603</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">General and administrative</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">3,027</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,649</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,334</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Sales and marketing</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">2,364</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,053</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,097</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Total costs and expenses</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">174,363</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">131,411</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">152,800</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Operating income</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">2,742</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">23,409</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">18,875</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Non operating income (loss):</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><FONT size=2 face="sans-serif">Interest income</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">2,000</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">207</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,843</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><FONT size=2 face="sans-serif">Impairment loss on an investment</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">(1,500</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><FONT size=2 face="sans-serif">Foreign exchange gains (losses), net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">(1,298</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,189</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,398</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><FONT size=2 face="sans-serif">Interest expense</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">(4</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">(27</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><FONT size=2 face="sans-serif">Other income, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">59</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">85</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">58</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">761</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,477</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,772</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Income before income taxes and minority interest</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">3,503</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">24,886</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">20,647</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Income tax (benefit) expense</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">(1,246</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">3,602</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,246</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Income before minority interest</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">4,749</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">21,284</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">19,401</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Minority interest, net of tax</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">(157</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">92</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">124</FONT> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Net income</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">4,592</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">21,376</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">19,525</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Basic earnings per ordinary share and ADS</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">0.02</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">0.12</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">0.10</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="58%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Diluted earnings per ordinary share and ADS</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">0.02</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">0.12</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">0.10</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD align="left" GUTTER><HR noshade size=2>
    </TD>
    <TD width="8%"><HR noshade size=2>
    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>
    </TD>
    <TD width="8%"><HR noshade size=2>
    </TD>
    <TD GUTTER><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD align="left" GUTTER><HR noshade size=2>
    </TD>
    <TD width="8%"><HR noshade size=2>
    </TD>
    <TD GUTTER><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Basic Weighted Average Outstanding Shares</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">197,110</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">176,231</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">195,535</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=58% nowrap><B><FONT size=2 face="sans-serif">Diluted Weighted Average Outstanding Shares</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">199,729</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">180,606</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">198,512</FONT></B> </TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">3</FONT></P>

<br>
<br>
<hr size=3 color=GRAY noshade>
<p style="page-break-before:always"></p>
<PAGE>
<br>
<br>


<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100% nowrap>
<B><FONT size=2 face="sans-serif">Unaudited Supplemental Financial Information</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100% nowrap>
<B><FONT size=2 face="sans-serif">(Figures in Thousands of U.S. Dollars)</FONT></B>
	</TD>
</TR>
</TABLE><BR>
<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">Three</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">Months</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=23% nowrap colspan=4><B><FONT size=2 face="sans-serif">Three Months</FONT></B></TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">Ended</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=23% nowrap colspan=4><B><FONT size=2 face="sans-serif">Ended September 30,</FONT></B></TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">June 30,</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">The amount of share-based compensation</FONT></B> </TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">included in applicable costs and expenses</FONT></B> </TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=center width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">categories is summarized as follows:</FONT></B> </TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=center width=8% nowrap><B><FONT size=2 face="sans-serif">2006</FONT></B> </TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">2005</FONT></B></TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
  </TR>
  <TR>
    <TD width="64%"><HR noshade size=1>    </TD>
    <TD width="2%"><hr noshade size=1></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Share-based compensation</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Cost of revenues</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">208</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">29</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">18</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Research and development</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">8,963</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,060</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">818</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">General and administrative</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,090</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">138</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">98</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Sales and marketing</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,195</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">205</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">129</FONT> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Total</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">11,456</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,432</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,063</FONT> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">4</FONT></P>

<br>
<br>
<hr size=3 color=GRAY noshade>
<p style="page-break-before:always"></p>
<PAGE>
<br>
<br>


<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=center width=99%>
<B><FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=99% nowrap>
<B><FONT size=2 face="sans-serif">Unaudited Condensed Consolidated Statements of Income</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=99% nowrap>
<B><FONT size=2 face="sans-serif">(Figures in Thousands of U.S. Dollars, Except Per Share Data)</FONT></B>
	</TD>
</TR>
</TABLE><BR>
<TABLE width=95% border=0 cellpadding=0 cellspacing=0>

  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD colspan="7" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">Nine Months Ended</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD colspan="7" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">September 30,</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD colspan="3" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="3" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">2005</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Revenues</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Revenues from third parties, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">239,105</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">138,724</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Revenues from related parties, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">284,534</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">224,146</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">523,639</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">362,870</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Costs and expenses:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Cost of revenues</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">422,351</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">279,716</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Research and development</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">45,190</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">27,321</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">General and administrative</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">6,419</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">4,228</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Sales and marketing</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">4,468</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">2,744</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Total costs and expenses</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">478,428</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">314,009</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Operating income</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">45,211</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">48,861</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Non operating income (loss):</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><FONT size=2 face="sans-serif">Interest income</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">4,048</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">257</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><FONT size=2 face="sans-serif">Impairment loss on an investment</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(1,500</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><FONT size=2 face="sans-serif">Foreign exchange gains (losses), net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(132</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">1,673</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><FONT size=2 face="sans-serif">Interest expense</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(311</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(11</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><FONT size=2 face="sans-serif">Other income, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">172</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">216</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">2,277</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">2,135</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Income before income taxes and</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap>&nbsp; &nbsp;<B><FONT size=2 face="sans-serif">minority interest</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">47,488</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">50,996</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Income tax expense</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">1,491</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">6,610</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Income before minority interest</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">45,997</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">44,386</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Minority interest, net of tax</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">59</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">192</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Net income</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">46,056</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">44,578</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Basic earnings per ordinary share and ADS</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">0.24</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">0.25</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=72% align=left nowrap><B><FONT size=2 face="sans-serif">Diluted earnings per ordinary share and ADS</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">0.24</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">0.25</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="72%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">5</FONT></P>

<br>
<br>
<hr size=3 color=GRAY noshade>
<p style="page-break-before:always"></p>
<PAGE>
<br>
<br>


<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100% nowrap>
<B><FONT size=2 face="sans-serif">Unaudited Condensed Consolidated Balance Sheets</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">(Figures in Thousands of U.S. Dollars)</FONT></B>
	</TD>
</TR>
</TABLE><BR>
<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">Sep 30,</FONT></B></TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">Jun 30,</FONT></B></TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">Dec 31,</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD colspan="2" align=center nowrap GUTTER><B><FONT size=2 face="sans-serif">2005</FONT></B></TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Assets</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Current assets:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Cash and cash equivalents</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">155,594</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">166,884</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">7,086</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Marketable securities available-for-sale</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">4,072</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,930</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">3,989</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Restricted cash equivalents and marketable</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">securities</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">31</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>

    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">395</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">14,053</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Accounts receivable, less allowance for sales</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">returns and discounts</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">101,660</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">86,907</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">80,158</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Accounts receivable from related parties</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">71,530</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">66,434</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">69,688</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Inventories</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">106,977</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">99,605</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">105,004</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Deferred income taxes</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">11,202</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">11,331</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">8,965</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Prepaid expenses and other current assets</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">20,622</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">16,142</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">11,113</FONT> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Total current assets</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">471,688</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">449,628</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">300,056</FONT></B> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Property and equipment, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">34,946</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">29,128</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">24,426</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Deferred income taxes</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">134</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">135</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">151</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Intangible assets, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">61</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">68</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">81</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Investments in non-marketable securities</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,723</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">313</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">1,813</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Refundable deposits</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">603</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">511</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">712</FONT> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=10>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">37,467</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">30,155</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">27,183</FONT> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Total assets</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">509,155</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">479,783</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">327,239</FONT></B> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
  </TR>
  <TR>
    <TD colspan=10>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Liabilities, minority interest and</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">stockholders&#146; equity</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Current liabilities:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Short-term debt</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT></TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT></TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">27,274</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Current portion of long-term debt</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">89</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Accounts payable</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">106,829</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">98,015</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">105,801</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Income tax payable</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">11,783</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">12,858</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">13,625</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Other accrued expenses and other current</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">liabilities</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">16,029</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">11,985</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">13,995</FONT> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Total current liabilities</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">134,641</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">122,858</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">160,784</FONT></B> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Minority interest</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">1,054</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">449</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">624</FONT></B> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Stockholders&#146; equity:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Ordinary share, US&#36;0.0001 par value,</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">500,000,000 shares authorized</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">19</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">19</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">18</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Additional paid-in capital</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">260,031</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">247,653</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">98,450</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Accumulated other comprehensive income</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">27</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">13</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">36</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><FONT size=2 face="sans-serif">Unappropriated earnings</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">113,383</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">108,791</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=right width=8% nowrap><FONT size=2 face="sans-serif">67,327</FONT> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Total stockholders&#146; equity</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">373,460</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">356,476</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">165,831</FONT></B> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">Total liabilities, minority interest and</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap>&nbsp;</TD>
    <TD align=left width=8% nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=64% nowrap><B><FONT size=2 face="sans-serif">stockholders&#146; equity</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">509,155</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">479,783</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD GUTTER align=left width=2% nowrap><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD align=right width=8% nowrap><B><FONT size=2 face="sans-serif">327,239</FONT></B> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">6</FONT></P>

<br>
<br>
<hr size=3 color=GRAY noshade>
<p style="page-break-before:always"></p>
<PAGE>
<br>
<br>


<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100% nowrap>
<B><FONT size=2 face="sans-serif">Unaudited Condensed Consolidated Statements of Cash Flows</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">(Figures in Thousands of U.S. Dollars)</FONT></B>
	</TD>
</TR>
</TABLE><BR>
<TABLE width=95% border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">Three</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">Months</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD align=center nowrap colspan=5><B><FONT size=2 face="sans-serif">Three Months</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">Ended</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD align=center nowrap colspan=5><B><FONT size=2 face="sans-serif">Ended September 30,</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">June 30,</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">2005</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap><B><FONT size=2 face="sans-serif">Cash flows from operating activities:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap><FONT size=2 face="sans-serif">Net income</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=right nowrap GUTTER><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">4,592</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=right nowrap GUTTER><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">21,376</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=right nowrap GUTTER><FONT size=2 face="sans-serif">&#36;</FONT> </TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">19,525</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap><FONT size=2 face="sans-serif">Adjustments to reconcile net income to net cash provided</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap><FONT size=2 face="sans-serif">(used in) by operating activities:</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Depreciation and amortization</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">1,119</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">921</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">1,204</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Share-based compensation expenses</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">11,456</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">1,432</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">1,063</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Minority interest, net of tax</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">157</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(92</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(124</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Loss on disposal of property and equipment</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">5</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Gain on sale of marketable securities, net</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(23</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(90</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(55</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Impairment loss on an investment</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">1,500</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Deferred income taxes</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">132</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(276</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(1,677</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap><FONT size=2 face="sans-serif">Changes in operating assets and liabilities:</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Accounts receivable</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(14,772</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(15,942</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(13,672</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Accounts receivable from related parties</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(5,096</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(13,704</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">5,076</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Inventories</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(7,369</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(32,135</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(4,009</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Prepaid expenses and other current assets</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(4,497</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">1,482</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(2,838</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Accounts payable</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">8,815</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">54,467</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">12,525</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Income tax payable</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(1,075</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">3,445</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(3,056</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Other accrued expenses and other current liabilities</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">3,477</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">295</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(195</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="sans-serif">Net cash provided by (used in) operating activities</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(3,084</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">21,179</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">15,272</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap><B><FONT size=2 face="sans-serif">Cash flows from investing activities:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Purchase of land, property and equipment</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(5,691</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(11,182</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(4,065</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Purchase of available-for-sales marketable securities</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(10,608</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(3,859</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(8,625</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Sales and maturities of available-for-sale marketable</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">securities</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">8,480</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">9,912</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">9,830</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Proceeds from sale of subsidiary shares by Himax</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Technologies Limited</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">27</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">55</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Purchase of investments in non-marketable securities</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(1,410</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Purchase of subsidiary shares from minority interest</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(64</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(5</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(84</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Return of (increase in) refundable deposits</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(92</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">310</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(23</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">Release of restricted cash equivalents and marketable</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp;<FONT size=2 face="sans-serif">securities</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">424</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">52</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">14,101</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD width=64% align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="sans-serif">Net cash provided by (used in) investing activities</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(8,934</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(4,772</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">11,189</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="64%"></TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">7</FONT></P>

<br>
<br>
<hr size=3 color=GRAY noshade>
<p style="page-break-before:always"></p>
<PAGE>
<br>
<br>


<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100% nowrap>
<B><FONT size=2 face="sans-serif">Unaudited Condensed Consolidated Statements of Cash Flows</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=100%>
<B><FONT size=2 face="sans-serif">(Figures in Thousands of U.S. Dollars)</FONT></B>
	</TD>
</TR>
</TABLE><BR>
<TABLE width=95% border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">Three</FONT></B></TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap>&nbsp;</TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">Months</FONT></B></TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD align=center nowrap colspan=5><B><FONT size=2 face="sans-serif">Three Months</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">Ended</FONT></B></TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD align=center nowrap colspan=5><B><FONT size=2 face="sans-serif">Ended September 30,</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">June 30,</FONT></B></TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">2005</FONT></B></TD>
    <TD width=2% align=center nowrap GUTTER>&nbsp;</TD>
    <TD  width=2% align="center">&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=center nowrap><B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="sans-serif">Cash flows from financing activities:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Proceeds from issuance of ordinary shares</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">929</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">147,813</FONT> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Proceeds from issuance of new shares by subsidiaries</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">655</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Repayment of short-term debt</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(38,577</FONT> </TD>
    <TD GUTTER align=left nowrap><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Repayment of long-term debt</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(47</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="sans-serif">Net cash provided by financing activities</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">655</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">882</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">109,236</FONT> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="sans-serif">Effect of exchange rate changes on cash and cash</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="sans-serif">equivalents</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">73</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">---</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(60</FONT> </TD>
    <TD GUTTER align=left nowrap><FONT size=2 face="sans-serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="sans-serif">Net increase (decrease) in cash and cash equivalents</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">(11,290</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER><FONT size=2 face="sans-serif">)</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">17,289</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">135,637</FONT> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="sans-serif">Cash and cash equivalents at beginning of period</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">166,884</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">28,162</FONT> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=right nowrap><FONT size=2 face="sans-serif">31,247</FONT> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD width="2%" GUTTER><HR noshade size=1>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=1>    </TD>
    <TD width="8%"><HR noshade size=1>    </TD>
    <TD GUTTER><HR noshade size=1>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="sans-serif">Cash and cash equivalents at end of period</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">155,594</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">45,451</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">166,884</FONT></B> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD GUTTER><HR noshade size=2>    </TD>
  </TR>
  <TR>
    <TD colspan=13>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="sans-serif">Supplemental disclosures of cash flow information:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Cash paid during the period for:</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Interest</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B></TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">---</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">11</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">28</FONT></B> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD GUTTER><HR noshade size=2>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Income taxes</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">21</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">27</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">5,549</FONT></B> </TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>    </TD>
    <TD width="8%"><HR noshade size=2>    </TD>
    <TD GUTTER><HR noshade size=2>    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="sans-serif">Supplemental disclosures of non-cash investing</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><B><FONT size=2 face="sans-serif">and financing activities:</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">Decrease in payable for purchase of equipment and</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER>&nbsp;</TD>
    <TD width=8% align=left nowrap>&nbsp;</TD>
    <TD GUTTER align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp; &nbsp;<FONT size=2 face="sans-serif">construction in progress</FONT> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">(1,750</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">)</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">(1,366</FONT></B> </TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">)</FONT></B> </TD>
    <TD  width=2%>&nbsp;</TD>
    <TD width=2% align=left nowrap GUTTER><B><FONT size=2 face="sans-serif">&#36;</FONT></B> </TD>
    <TD width=8% align=right nowrap><B><FONT size=2 face="sans-serif">(18</FONT></B> </TD>
    <TD GUTTER align=left nowrap><B><FONT size=2 face="sans-serif">)</FONT></B> </TD>
  </TR>
  <TR>
    <TD></TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>
    </TD>
    <TD width="8%"><HR noshade size=2>
    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>
    </TD>
    <TD width="8%"><HR noshade size=2>
    </TD>
    <TD width="2%" GUTTER><HR noshade size=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="2%" align="left" GUTTER><HR noshade size=2>
    </TD>
    <TD width="8%"><HR noshade size=2>
    </TD>
    <TD GUTTER><HR noshade size=2>
    </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">8</FONT></P>

<br>
<br>
<hr size=3 color=GRAY noshade>
<p style="page-break-before:always"></p>
<PAGE>
<br>
<br>


<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=center width=99%>
<B><FONT size=2 face="sans-serif">Himax Technologies, Inc.</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=99% nowrap>
<B><FONT size=2 face="sans-serif">Unaudited Supplemental Data &#150; Reconciliation Schedule</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=99% nowrap>
<B><FONT size=2 face="sans-serif">(Figures in Thousands of U.S. Dollars, Except Per Share Data)</FONT></B>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<B><FONT size=2 face="sans-serif">Gross Margin and Operating Margin Excluding Share-based Compensation:</FONT></B></P>
<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=left width=58% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD  width=2% align="center">&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD  width=2% align="center">&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">Three</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD  width=2% align="center">&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD  width=2% align="center">&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">Months</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=29% nowrap colspan=5>
<B><FONT size=2 face="sans-serif">Three Months</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD  width=2% align="center">&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">Ended</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=29% nowrap colspan=5>
<B><FONT size=2 face="sans-serif">Ended September 30,</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD  width=2% align="center">&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">June 30,</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD  width=2% align="center">&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">2005</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD  width=2% align="center">&nbsp;	</TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">2006</FONT></B></TD>
	<TD GUTTER align=center width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Revenues</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">177,105</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">154,820</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">171,675</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=13>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Gross profit</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">30,818</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">36,345</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">32,909</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Add: Share-based compensation &#150; Cost of revenues</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">208</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">29</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">18</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Gross profit excluding share-based compensation</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">31,026</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">36,374</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">32,927</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Gross margin excluding share-based compensation</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">17.5</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">%</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">23.5</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">%</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">19.2</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">%</FONT>	</TD>
</TR>
<TR>
	<TD colspan=13>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Operating income</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">2,742</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">23,409</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">18,875</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Add: Share-based compensation</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">11,456</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">1,432</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">1,063</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Operating income excluding share-based compensation</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">14,198</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">24,841</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">19,938</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=58% nowrap>
<FONT size=2 face="sans-serif">Operating margin excluding share-based compensation</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">8.0</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">%</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">16.1</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">%</FONT>	</TD>
	<TD  width=2%>&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=right width=8% nowrap>
<FONT size=2 face="sans-serif">11.6</FONT>	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">%</FONT>	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="sans-serif">*Gross margin excluding share-based compensation equals gross profit excluding share-based compensation divided by revenues<br>
</FONT><FONT size=2 face="sans-serif">*Operating margin excluding share-based compensation equals operating income excluding
share-based compensation divided by revenues</FONT></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Diluted Earnings Per Share Excluding Share-based Compensation:</FONT></B></P>
<TABLE border=0 width=95% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD align=left width=88% nowrap>&nbsp;	</TD>
	<TD  width=2% align="left">&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">Three Months</FONT></B>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=88% nowrap>&nbsp;	</TD>
	<TD  width=2% align="left">&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">Ended September 30,</FONT></B>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=88% nowrap>&nbsp;	</TD>
	<TD  width=2% align="left">&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=center width=8% nowrap>
<B><FONT size=2 face="sans-serif">2006</FONT></B>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=88% nowrap>
<FONT size=2 face="sans-serif">Diluted GAAP EPS</FONT>	</TD>
	<TD  width=2% align="left">&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=center width=8% nowrap>
<FONT size=2 face="sans-serif">0.02</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=88% nowrap>
<FONT size=2 face="sans-serif">Add: Estimated share-based compensation per diluted share</FONT>	</TD>
	<TD  width=2% align="left">&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=center width=8% nowrap>
<FONT size=2 face="sans-serif">0.06</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=88% nowrap>
<FONT size=2 face="sans-serif">Diluted non GAAP EPS excluding share-based compensation</FONT>	</TD>
	<TD  width=2% align="left">&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>
<FONT size=2 face="sans-serif">&#36;</FONT>	</TD>
	<TD align=center width=8% nowrap>
<FONT size=2 face="sans-serif">0.08</FONT>	</TD>
</TR>
<TR>
	<TD colspan=4>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=88% nowrap>
<FONT size=2 face="sans-serif">Numbers do not add up due to rounding</FONT>	</TD>
	<TD  width=2% align="left">&nbsp;	</TD>
	<TD GUTTER align=left width=2% nowrap>&nbsp;	</TD>
	<TD align=left width=8% nowrap>&nbsp;	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">9</FONT></P>

<br>
<br>
<hr size=3 color=GRAY noshade>
<p style="page-break-before:always"></p>
<PAGE>
<br>
<br>



<P align="right">
<B><FONT size=2 face="sans-serif">Exhibit 99.2 </FONT></B></P>

<TABLE width=100% border=1 cellpadding=2 cellspacing=0 bordercolor="#000000">
<TR valign="bottom">
	<TD width=50% align=left nowrap bgcolor="#0000FF">
<B><FONT color="#ffffff" size=2 face="sans-serif">LIVE CALL INFORMATION</FONT></B>	</TD>
	<TD width=50% align=left nowrap bgcolor="#0000FF">
<B><FONT color="#ffffff" size=2 face="sans-serif">REPLAY INFORMATION</FONT></B>	</TD>
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<B><FONT size=2 face="sans-serif">Tuesday, November 7, 7AM Taiwan</FONT></B><br>
<FONT size=2 face="sans-serif">Monday, November 6, 6PM NYC</FONT>
<br>
<B><U><FONT size=2 face="sans-serif">Listener Call Number: 1-201-689-8560</FONT></U></B>			</TD>
	<TD width=50% align=left valign="top">
<FONT size=2 face="sans-serif">Accessible 2 hours after the call through</FONT>
<FONT size=2 face="sans-serif">noon on Tuesday, November 7, 2006 Taiwan</FONT>
<FONT size=2 face="sans-serif">Replay Number: 1-201-612-7415</FONT>
<FONT size=2 face="sans-serif">Account number: 3055</FONT>
<FONT size=2 face="sans-serif">Conference ID number: 217204</FONT>	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<B><U><FONT size=2 face="sans-serif">Operator Intro:</FONT></U></B><FONT size=2 face="sans-serif"> Welcome to Himax Technologies third quarter 2006 results Conference Call. At this time, all participants are in a listen-only mode. Later we will
conduct a question and answer session. At that time, if you have a question, you will need to press the star 1 on your push button phone. The call is scheduled for one hour.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">As a reminder, this conference is being recorded today. A replay will be available 2 hours after the call today, through noon on Tuesday, November 7, 2006 in Taiwan.  The replay dial-in number is 1-201-612-7415 with
account number 3055 and conference ID number 217204. The replay will also be accessible at www.himax.com.tw.</FONT></P>
<TABLE width=100% border=1 cellpadding=2 cellspacing=0 bordercolor="#000000">
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<FONT size=2 face="sans-serif"><strong>David</strong></FONT>	</TD>
</TR>
</TABLE>
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<P align="left">
<FONT size=2 face="sans-serif">Thank you operator. Welcome everyone to Himax&#146;s third quarter 2006 earnings call. Joining us from the company are Mr. Jordan Wu, President and Chief Executive Officer, and Mr. Max Chan, Chief Financial Officer.
After the company&#146;s prepared comments we will have time for any questions.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">If you have not yet received a copy of today&#146;s results release, please call The Ruth Group at 646-536-7003. Or you can get a copy off of Himax&#146;s website. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Before we begin the formal remarks, the Company&#146;s attorneys advise that certain statements in this conference call, including statements regarding expected future financial results and industry growth, are
forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this conference call. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Factors that could cause actual results to differ include general business and economic conditions and the state of the semiconductor industry; level of competition; demand for end-use applications products; reliance
on a small group of principal customers; continued success in technological innovations; ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns;
shortages in supply of key components; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; and other risks described from time to time in the Company&#146;s SEC
filings, including its Form F-1 dated March 13, 2006, as amended.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">At this time, I would now like to turn the call over to Mr. Jordan Wu. Please go ahead, sir.</FONT></P>
<P align="center">
<FONT face="sans-serif">1</FONT></P>

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<TABLE width=100% border=1 cellpadding=2 cellspacing=0 bordercolor="#000000">
  <TR valign="bottom">
    <TD align=left width=100% nowrap><FONT size=2 face="sans-serif"><strong>Mr. Jordan Woo</strong> </FONT> </TD>
  </TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="sans-serif">Thank you David and thank you everyone for joining us on today&#146;s call.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">I will now review Himax&#146;s performance during the third quarter of 2006 and discuss the outlook for the fourth quarter. Max, our CFO, will then provide further details on our financial performance.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Our third quarter net revenue was up 14.4% year over year to &#36;177.1 million, and up 3.2% compared to the second quarter of 2006. We continued to experience pricing pressure. Our third quarter results did not
benefit from the rebound of market momentum in the TFT-LCD industry, as the increase in demand was offset by the reduction of customers&#146; inventory levels.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Towards the end of the third quarter, we saw a strong pick up in driver IC demand across the board, covering all applications from many of our customers. However, some of those orders were given to us in short notice.
With limited inventories on hand, we were unable to fulfill some of those orders by the end of the third quarter. Our products require, on average, manufacturing lead time of two to three months. Most of such unfulfilled orders are expected to be
carried forward into the fourth quarter. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">In terms of customer mix, revenues from related parties were &#36;88.1 million in the third quarter, an increase of 1.2% quarter over quarter and a decline of 1.2% year over year. Revenues from unrelated parties were
&#36;89.0 million, an increase of 5.2% quarter over quarter and an increase of 35.6% year over year. Revenue mix from unrelated parties was 50.3%, a record high and the first time since our inception for this to have exceeded 50%. We believe our
continuous efforts to diversify our customer base is putting us in a stronger position in the long run. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">In terms of product mix, revenues from large panel display drivers increased sequentially and accounted for approximately 88% of our total revenues in the third quarter, primarily driven by the increase of PC-related
demands. We are expecting driver IC demand for all large panel applications, including monitor, notebook, and LCD TV, to continue to pick up in the upcoming holiday seasons. </FONT></P>
<P align="center">
<FONT face="sans-serif">2</FONT></P>

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<P align="left">
<FONT size=2 face="sans-serif">Revenues from small- and medium-sized display drivers accounted for approximately 9% of our total revenues, declining sequentially from approximately 12% in the previous quarter. However, we are seeing a strong demand
increase for small- and medium-sized applications starting from the end of the third quarter.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Our gross margin declined to 17.4% in the third quarter from 19.2% of previous quarter as we continued to experience pricing pressure. Furthermore, our gross margin was negatively impacted by a change of product mix,
where small- and medium-sized display drivers, which typically enjoy higher gross margins, accounted for a lower percentage of our total revenues. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">In the third quarter, we continued to diversify our wafer sources. Currently, not a single foundry accounts for more than 50% of our total wafer supply. Our long term goal is to be able to have major products covered
by multiple foundries to achieve manufacturing flexibility and maintain our cost competitiveness.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The operating margin before share-based compensations declined sequentially from 11.6% to 8.0% as we continued to add significant headcounts and invest in R&amp;Ds in the past few quarters. Intensive design-in
activities have also contributed to higher R&amp;D expenses in the quarter. We made a 2006 RSU grant of approximately 3.8 million shares, or 1.9% dilution to our total shares outstanding at the end of September. Approximately 47% of the grant was
vested immediately, with the remainder vesting in three equal installments over the next three years. Max, our CFO will comment more on the expenses and 2006 share-based compensation.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Our GAAP diluted EPS was &#36;0.02, which included share-based compensation of approximately &#36;11.5 million, or &#36;0.06 per diluted share, based on 199.7 million diluted weighted average shares, compared to
&#36;0.10 in the previous quarter.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">On August 29</FONT><SUP><FONT size=2 face="sans-serif">th</FONT></SUP><FONT size=2 face="sans-serif">, we announced the Board&#146;s approval to acquire Wisepal Technologies, Inc. by way of a share exchange at the
exchange ratio of five Wisepal shares for one ordinary share of Himax, resulting in a total share dilution of approximately 3.4% . Based on closing price of Himax shares on August 28</FONT><SUP><FONT size=2 face="sans-serif">th</FONT></SUP><FONT
size=2 face="sans-serif">, 2006, the purchase price is valued at approximately US&#36;50 million.  Wisepal is a display driver IC company focused on small- and medium-sized applications. Wisepal primarily supplies to TPO Displays, whose customers
supply to global tier-one handset manufacturers. We expect that acquiring Wisepal will allow us to diversify</FONT></P>
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<FONT face="sans-serif">3</FONT></P>

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<FONT size=2 face="sans-serif">Himax&#146;s product portfolio with more exposure towards small- and medium-size products. The acquisition will further strengthen our competitiveness in the display driver market. Pending closing conditions and
regulatory approvals, we expect the transaction to close in January of 2007.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Separately, at the end of October, we relocated our corporate headquarters to a 22 thousand square meter facility within the Tree Valley Industrial Park.  The Tree Valley Industrial Park, located right next to the
Tainan Science Park, is a compound housing manufacturers in the LCD TV industry. The new building will enable better communication and more efficient operation among Himax&#146;s various functional units. In addition, this move to a permanent office
space has positioned Himax for continued growth in years to come.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">As further evidence of our confidence in the company&#146;s near and long term prospects, on Nov 2</FONT><SUP><FONT size=2 face="sans-serif">nd</FONT></SUP><FONT size=2 face="sans-serif">, our Board of Directors
authorized a share buyback program which allows us to repurchase up to &#36;50 million of the Company's American Depositary Shares in open market or privately negotiated transactions, depending on prevailing market conditions and other factors.
</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Let me now turn to the outlook for the fourth quarter.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">We believe the fourth quarter will be a much improved one. We are seeing a much more positive sentiment in this quarter as compared to the previous quarter. In terms of product mix, we expect to see increases in TV and
small- and medium-sized products in the fourth quarter. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">We expect revenues in the fourth quarter of '06 to grow more than 20% sequentially. Gross margin is to remain flat or increase slightly. Our diluted GAAP EPS is expected to return to the level in the first half of
2006. The charge of share-based compensation will be around &#36;1.5 million.</FONT></P>
<P align="left">
<B><U><FONT size=2 face="sans-serif">Now let me turn over to Max Chan, our CFO, for some financial details.</FONT></U></B></P>
<P align="center">
<FONT face="sans-serif">4</FONT></P>

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<TABLE width=100% border=1 cellpadding=2 cellspacing=0 bordercolor="#000000">
  <TR valign="bottom">
    <TD align=left width=100% nowrap><FONT size=2 face="sans-serif"><strong>Mr. Max Chan</strong> </FONT> </TD>
  </TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="sans-serif">Thank you, Jordan.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Net revenues in the third quarter were &#36;177.1 million, representing year-on-year growth of 14.4% and a sequential growth of 3.2%.  Large panel display driver revenues increased by 6.1%, while small- and
medium-sized display driver revenues declined by 22.7% sequentially.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The gross margin had declined to 17.4% from 19.2% a quarter ago. This was primarily due to a significant ASP erosion. We continued to target unit cost reductions from our vendors to offset ASP declines. Also, we are
making good progress in qualifying new foundries to further diversify our supplier base. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Our operating expense, excluding share-based compensation, was &#36;16.8 million in the third quarter, up approximately &#36;3.8 million from previous quarter as we continued to recruit talents and make investments in
resources required to support our long-term growth.  Our total headcount increased to 903 at the end of September, a 10% growth from a quarter ago. During the quarter, there was a one-time R&amp;D expense of approximately &#36;1 million for certain
licensing charges. In addition, we incurred higher R&amp;D expenses resulting from more intensive design-in activities. These factors have contributed to the increase of operating expenses in the quarter.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Upon reviewing our 2006 performance with our external auditors, we have updated our effective tax rate to approximately 3% for the whole of 2006. This resulted in a tax benefit of approximately &#36;1.2 million in the
third quarter. We expect the effective tax rate to be around 3% in the fourth quarter. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">We made our annual grant of restricted share units of approximately 3.8 million shares to our employees at the end of September, representing about 1.9% dilution to our total outstanding shares. The fair value of our
2006 RSU grant was around &#36;21.7 million, of which approximately 47% or &#36;10.3 million was vested immediately on the day of grant, with the remainder vesting in three equal installments over the next three years. This accelerated vesting
schedule reflected our attempt to attract and retain talents while balancing shareholders&#146; interests. Total share-</FONT></P>
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<FONT face="sans-serif">5</FONT></P>

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<P align="left">
<FONT size=2 face="sans-serif">based compensation accrued in the third quarter, including expenses from legacy grants, was approximately &#36;11.5 million, or &#36;0.06 per diluted share. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">In the third quarter, our net cash used in operating activities was &#36;3.1 million, primarily as a result of higher net working capital, partially in anticipation of growing demand in the fourth quarter. Our ending
cash balance stands at &#36;155.6 million, with no debt. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Capital expenditures for the third quarter were &#36;5.7 million.</FONT></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Operator, that concludes our prepared remarks. We can now take any questions.</FONT></B></P>
<P align="center">
<FONT face="sans-serif">6</FONT></P>


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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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