UMC Declares the Board of Directors' Proposals to the AGM

Taipei, Taiwan, R.O.C. - March 25, 2003, - United Microelectronics Corporation (TAIEX: 2303, NYSE: UMC), today held a meeting of the Board of Directors and Supervisors, at which the Board scheduled the Annual General Meeting (AGM), submitted proposals to be resolved at the AGM, and approved the 2002 Business Report and Financial Statements. A brief summary is as follows:

- Proposal to pay a stock dividend of NT$0.4 per common share
- Proposal to pay employee bonus of 57,972,672 common shares

Proposal to pay a stock dividend:
UMC's Board of Directors will propose at the Annual General Meeting to issue a stock dividend of 40 common shares for every 1000 common shares held by shareholders.

Proposal to pay employee bonus:
UMC competes for talented people on a global basis, and thus requires competitive incentive programs. The Board of Directors has carefully considered this need as well as the needs of the Company's shareholders. Thus, UMC's Board of Directors will propose at the Annual General Meeting that the Company issues 57,972,672 new shares to distribute as employee bonuses. The estimated stock dilution effect of the employee bonus shares is about 0.36%, compared with an average dilution of roughly 0.91% from 1998 to 2002.

2002 Business Report and Financial Statements approval:
UMC's Board of Directors approved the 2002 Business Report and Financial Statements. The Company's revenue for 2002 was NT$67,426 million, with an after tax income of NT$7,072 million, or NT$0.48 per share.

2003 Annual General Meeting:
The 2003 Annual General Meeting will be held on Monday, June 9, 2003 at 9:30AM.

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