Non-US GAAP adjusted condensed consolidated statements of operations are intended to present the Company's operating results, excluding special items. The special items excluded for the three months ended March 30, 2008 are as follows:

     (1) Unused restructuring charges recorded in the second quarter 2007
         under SFAS 144



                           MagnaChip Semiconductor
                    Condensed Consolidated Balance Sheets
                         (In thousands of US Dollars)
                                 (Unaudited)
                                                  March 30,    December 31,
                                                    2008          2007
    Assets
    Current assets
      Cash and cash equivalents                    $53,476       $64,345
      Accounts receivable, net                     147,275       123,789
      Inventories, net                              64,925        75,867
      Other current assets                          24,796        16,722
                   Total current assets            290,472       280,723

    Property, plant and equipment, net             260,978       279,669
    Goodwill and intangible assets, net             92,522       104,725
    Other non-current assets                        49,971        42,766
                   Total assets                   $693,943      $707,883

    Liabilities & Unitholders' Equity
    Current liabilities
      Accounts and other payable                  $143,392      $120,638
      Short-term borrowings                         80,000        80,000
      Other current liabilities                     28,924        24,477
                  Total current liabilities        252,316       225,115

    Long-term borrowings                           750,000       750,000
    Other non-current liabilities                   86,994        80,842
                  Total liabilities              1,089,310     1,055,957

    Redeemable convertible preferred units         132,523       129,405

    Unitholders' equity                           (527,890)     (477,479)

    Total liabilities, redeemable convertible
     preferred units and unitholders' equity      $693,943      $707,883



                              MagnaChip Semiconductor
                  Condensed Consolidated Statements of Cash Flows
                           (In thousands of US Dollars)
                                   (Unaudited)
                                                    Three Months Ended
                                                 March 30,       April 1,
                                                    2008           2007
      Cash flows from operating activities
      Net loss                                   $(67,897)      $(66,982)
      Adjustments to reconcile net loss
       to net cash provided by (used in)
       operating activities
        Depreciation and amortization              21,277         43,942
        Provision for severance benefits            3,734          4,182
        Gain(loss) on foreign currency             43,276          7,849
         translation, net
             Changes  in  accounts  and  other
                  receivable                                                              (24,708)                (4,667)
                Changes  in  inventories                                            7,072                (12,183)
                Changes  in  accounts  and  other
                  payable                                                                      16,089                  (2,996)
                Changes  in  accrued  expenses                                  6,563                  11,410
                Other                                                                            (8,912)                    (753)
                      Net  cash  used  in  operating
                        activities                                                          (3,506)              (20,198)

            Cash  flows  from  investing  activities
                Capital  expenditures                                            (10,070)                (8,348)
                Other                                                                              3,373                      (538)
                      Net  cash  used  in  investing
                        activities                                                          (6,697)                (8,886)

            Cash  flows  from  financing  activities
                Exercise  of  unit  options                                              28                            -

                Repurchase  of  common  units                                        (68)                          -
                Proceeds  from  short-term
                  borrowings                                                                90,000                            -
                Repayment  of  short-term  borrowings                (90,000)                          -
                    Net  cash  used  in  financing
                      activities                                                                  (40)                          -
                    Effect  of  exchange  rates  on  cash
                      and  cash  equivalents                                            (626)                    (825)
                    Net  increase  decrease  in  cash  and
                      cash  equivalents                                              (10,869)              (29,909)

            Cash  and  cash  equivalents
            Beginning  of  the  period                                            64,345                  89,173
            End  of  the  period                                                      $53,476                $59,264
 

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