In the press release above we provide adjusted gross margin, adjusted net income and adjusted earnings per diluted share for the second quarter 2012. We present these non-GAAP amounts to demonstrate the impact of the loss contingency we recognized related to our pending patent license arbitration. These measures have limitations, including that they exclude the charges for the arbitration panel award, which is an amount that the company may ultimately have to pay in cash. Furthermore, the factors affecting the calculation of the arbitration award are complex and subject to determination by the arbitration panel. Therefore, the final amount of the loss may be more than the amount we have recognized. Accordingly, these measures that exclude the loss contingency accrual should be considered in addition to, and not as a substitute for, or superior to, gross margin, net income and earnings per diluted share prepared in accordance with U.S. GAAP. Below is the reconciliation of adjusted gross margin, adjusted net income and adjusted earnings per diluted share to U.S. GAAP gross margin, net income and earnings per diluted share.

Non-GAAP Financial Measures Reconciliation:
							Q2 2012
Gross margin							13			%
Plus: Loss contingency divided by net sales							4			%
Adjusted gross margin							17			%
							(In millions)
Net income							$	1
Plus: Loss contingency, net of tax							32
Adjusted net income							$	33
Earnings per diluted share							$	—
Plus: Loss contingency per diluted share							0.13
Plus: Adjustment for dilutive effect of interest on 6.0% convertible notes due 2014, net of tax							0.02
Adjusted earnings per diluted share							$	0.15

AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
				For the Three Months Ended June 30,											For the Six Months Ended June 30,
				2013					2012						2013					2012
				(In thousands, except per share data)
Net sales				$	746,059				$	686,527					$	1,433,588				$	1,341,537
Cost of sales				607,680					597,207						1,180,256					1,147,236
Gross profit				138,379					89,320						253,332					194,301
Operating expenses:
Selling, general and administrative				65,618					53,489						125,177					110,744
Research and development				14,308					13,867						28,614					27,292
Total operating expenses				79,926					67,356						153,791					138,036
Operating income				58,453					21,964						99,541					56,265
Other expense (income):
Interest expense				23,739					22,452						45,817					41,038
Interest expense, related party				3,192					3,492						6,684					6,984
Interest income				(676		)			(828		)				(1,503		)			(1,717		)
Foreign currency loss, net				2,041					1,277						875					2,067
Loss on debt retirement, net				11,619					—						11,619					—
Equity in earnings of unconsolidated affiliate				(1,445		)			(892		)				(1,500		)			(2,880		)
Other income, net				(108		)			(518		)				(337		)			(1,152		)
Total other expense, net				38,362					24,983						61,655					44,340
Income (loss) before income taxes				20,091					(3,019		)				37,886					11,925
Income tax benefit				(10,238		)			(3,891		)				(6,209		)			(529		)
Net income				30,329					872						44,095					12,454
Net income attributable to noncontrolling interests				(602		)			(291		)				(986		)			(99		)
Net income attributable to Amkor				$	29,727				$	581					$	43,109				$	12,355
Net income attributable to Amkor per common share:
Basic				$	0.18				$	—					$	0.27				$	0.07
Diluted				$	0.14				$	—					$	0.21				$	0.07
Shares used in computing per common share amounts:
Basic				160,886					165,956						156,672					166,911
Diluted				235,111					166,009						235,099					167,012

AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)
				June 30, 2013						December 31, 2012
				(In thousands)
ASSETS
Current assets:
Cash and cash equivalents				$	636,007					$	413,048
Restricted cash				2,681						2,680
Accounts receivable:
Trade, net of allowances				411,699						389,699
Other				4,463						13,098
Inventories				231,974						227,439
Other current assets				50,331						45,444
Total current assets				1,337,155						1,091,408
Property, plant and equipment, net				1,885,203						1,819,969
Intangibles, net				5,009						4,766
Investments				103,308						38,690
Restricted cash				2,209						2,308
Other assets				83,449						68,074
Total assets				$	3,416,333					$	3,025,215
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt				$	56,350					$	—
Trade accounts payable				499,508						439,663
Accrued expenses				217,845						212,964
Total current liabilities				773,703						652,627
Long-term debt				1,519,661						1,320,000
Long-term debt, related party				75,000						225,000
Pension and severance obligations				137,115						139,379
Other non-current liabilities				10,855						21,415
Total liabilities				2,516,334						2,358,421
Equity:
Amkor stockholders' equity:
Preferred stock				—						—
Common stock				262						198
Additional paid-in capital				1,810,295						1,614,143
Accumulated deficit				(713,535		)				(756,644		)
Accumulated other comprehensive income				4,307						11,241
Treasury stock				(211,155		)				(210,983		)
Total Amkor stockholders' equity				890,174						657,955
Noncontrolling interests in subsidiaries				9,825						8,839
Total equity				899,999						666,794
Total liabilities and equity				$	3,416,333					$	3,025,215

AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
				For the Six Months Ended June 30,
				2013					2012
				(In thousands)
Cash flows from operating activities:
Net income				$	44,095				$	12,454
Depreciation and amortization				195,785					179,182
Loss on debt retirement, net				11,619					—
Other operating activities and non-cash items				(13,947		)			(1,881		)
Changes in assets and liabilities				(36,702		)			(47,292		)
Net cash provided by operating activities				200,850					142,463
Cash flows from investing activities:
Purchases of property, plant and equipment				(222,674		)			(232,682		)
Proceeds from the sale of property, plant and equipment				25,093					998
Payments from unconsolidated affiliate				8,843					9,688
Investment in unconsolidated affiliate				(67,372		)			—
Other investing activities				(2,032		)			1,533
Net cash used in investing activities				(258,142		)			(220,463		)
Cash flows from financing activities:
Borrowings under revolving credit facilities				5,000					—
Payments under revolving credit facilities				(5,000		)			—
Borrowings under short-term debt				—					30,000
Payments of short-term debt				—					(20,000		)
Proceeds from issuance of long-term debt				293,000					187,528
Payments of long-term debt, net				—					(165,165		)
Payments for debt issuance costs				(3,357		)			(823		)
Payments for the retirement of debt				(11,619		)			—
Payments for repurchase of common stock				—					(35,652		)
Proceeds from the issuance of stock through share-based compensation plans				—					162
Payments of tax withholding for restricted shares				(172		)			(446		)
Net cash provided by (used in) financing activities				277,852					(4,396		)
Effect of exchange rate fluctuations on cash and cash equivalents				2,399					(1,052		)
Net increase (decrease) in cash and cash equivalents				222,959					(83,448		)
Cash and cash equivalents, beginning of period				413,048					434,631
Cash and cash equivalents, end of period				$	636,007				$	351,183