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MagnaChip Semiconductor Files Registration Statement for Proposed Initial Public Offering

Goldman, Sachs & Co., Barclays Capital Inc. and Deutsche Bank Securities Inc. will serve as joint-bookrunners and Citigroup Global Markets Inc. and UBS Securities LLC will serve as co-managers in the proposed offering. The number of shares to be sold and the price range for the proposed offering have not yet been determined.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering will be made only by means of a prospectus. Copies of the preliminary prospectus related to the offering may be obtained, when available, from the prospectus departments of:

    --  Goldman, Sachs & Co., Attention: Prospectus Department, 85 Broad Street,
        New York, New York 10004, by fax at 212-902-9316 or by e-mail at
        prospectus-ny@ny.email.gs.com;

    --  Barclays Capital Inc. c/o Broadridge, Attention: Integrated Distribution
        Services, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at
        888-603-5847 or by e-mail at Barclaysprospectus@broadridge.com; or

    --  Deutsche Bank Securities Inc., Attention: Prospectus Department, 100
        Plaza One, Jersey City, New Jersey 07311, or by telephone at
        800-503-4611.

About MagnaChip Semiconductor

Headquartered in South Korea, MagnaChip Semiconductor is a leading Asia-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications. The Company has a broad range of analog and mixed-signal semiconductor technology and intellectual property, supported by its 30-year operating history, large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, please visit www.magnachip.com.

Forward-Looking Statements

Statements in this press release relating to the Company's intention to effect an initial public offering of its common stock and the expectation that the Company and certain of its stockholders intend to sell shares of common stock in the proposed offering are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. Factors that could cause the Company to choose not to effect an initial public offering or its stockholders not to sell shares of common stock in the proposed offering include changes in general business and economic conditions and the state of the semiconductor industry; changes in demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in customer order patterns; changes in product mix, capacity utilization, level of competition and pricing pressure and declines in average selling price; delays in new product introduction; failure to develop or enhance products and process technologies in response to technological change and market demands; shortage in supply of materials or capacity requirements; availability of financing; exchange rate fluctuations; litigation and other risks as described in the Company's SEC filings, including the Company's registration statement on Form S-1 filed in connection with the proposed initial public offering.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that we will effect an initial public offering. Thus, you should not place undue reliance on these forward-looking statements.

    CONTACTS:
    ---------
    In the United States:                     In Korea:
    Robert Pursel                             Chankeun Park
    Director of Investor Relations            Senior Manager, Public Relations
    Tel. 408-625-1262                         Tel: +82-3-6903-3195
    robert.pursel@magnachip.com               chankeun.park@magnachip.com

SOURCE MagnaChip Semiconductor