Corning: Record Results for 2006

Company achieves record results in 2006 Highlights LCD and diesel products growth for 2007

Corning Incorporated today announced fourth-quarter sales of $1.37 billion and net income of $646 million, or $0.41 per share. The net income includes net after-tax special gains of $158 million, or $0.10 per share.

Excluding these special gains, Corning's fourth-quarter net income would have been $488 million, or $0.31 per share, which exceeded the company's guidance for the quarter and also the consensus of Wall Street estimates as compiled by Thomson/First Call. These are non-GAAP financial measures. These and all non-GAAP financial measures are reconciled on the company's investor relations Web site and in attachments to this news release.

"Our excellent fourth-quarter results capped an outstanding full-year performance for Corning," Wendell P. Weeks, president and chief executive officer, said. "This was the fourth consecutive year that we recorded significant improvement in the company's profitability and we reached a new all-time record for net income and earnings per share. We are extremely pleased with our 2006 performance and we believe we are well positioned for continued growth and success in 2007." These are non-GAAP financial measures.

Corning's fourth-quarter results included the following non-cash special gains and charges:

- A $139 million pretax and after-tax gain primarily to reflect the decrease in the market value of Corning common stock to be contributed to settle the asbestos litigation related to Pittsburgh Corning Corporation.
- Restructuring and impairment pretax and after-tax charges of $44 million related to the company's Telecommunications segment.
- A $35 million reduction in income tax expense related to the release of the valuation allowance on certain deferred tax assets in Germany.
- A $28 million increase in equity earnings resulting from net nonrecurring gains at Samsung Corning Co., Ltd., a Korean manufacturer of glass panels and funnels for cathode ray tube (CRT) television and computer monitors - Corning.