Yesterday marked a pretty bleak day for the Eugene economy. For the news, please check out the following news release:

Seoul, July 24, 2008 - Because of short- and long-term market conditions, which include a steep reduction in the price of memory chips worldwide and accelerated technological migration towards next-generation production standards, Hynix Semiconductor Inc. has decided to close its Eugene fabrication facility. The production of the fabrication plant will be eventually stopped by end of September.

As part of the deliberations that led to this shutdown, Hynix Semiconductor Inc., the parent company of Hynix Semiconductor Manufacturing America Inc., is seriously considering options to utilize our Eugene facilities after the closure. Options include pursuing a similar business to the current semiconductor operation; selling the equipment, building and land as a package to a third-party semiconductor manufacturer; and selling the building and land separately from the equipment which will be relocated. As soon as decisions are finalized, the company will communicate plans to the Eugene community and Oregon government leaders.

Hynix Semiconductor Inc. has also reviewed various options in order to utilize other 200mm wafer fabrication plants located in Icheon and Cheongju, Korea. Some are planned either to produce consumer DRAM and System IC products or to provide foundry service. The remainder will be seriously considered to sell the equipment.

About Hynix Semiconductor Inc.

Hynix Semiconductor Inc. (HSI) of Icheon, Korea, is the world's top tier memory semiconductor supplier offering Dynamic Random Access Memory chips ("DRAMs") and Flash memory chips to a wide range of established international customers. The Company's shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about Hynix is available at www.hynix.com.

This will mean the loss of 1,100 jobs just at Hynix for the Eugene area. That could also mean loss of up to 2,640 additional jobs figuring that one Hynix job generates an additional 2.4 jobs in the local economy. One of the worst parts of the closure is that Hynix is a "living" wage employer, with many high wage employees. The shake down into the local economy and real estate market could be huge.