Other income (expenses):

     Interest expenses, net                           (15,695)       (14,416)
     Foreign currency loss, net                       (42,864)        (7,391)

    Loss before income taxes                          (65,389)       (64,731)
    Income tax expenses                                 2,508          2,251
    Net loss                                         $(67,897)      $(66,982)

    Dividends accrued on preferred units                3,118          2,870
    Net loss attributable to common units            $(71,015)      $(69,852)

Net loss per common unit

    Basic and Diluted                                  $(1.35)        $(1.32)

Common units used in per common unit

calculation: Basic and Diluted

     (in thousands)                                    52,580         52,721

Key Ratios & Information:

    Gross Margin                                         23.6%           9.8%
    Operating Expenses as a % of Revenue                 26.9%          38.1%
    Operating Margin                                     (3.4)%        (28.3)%

    Depreciation & Amortization Expense                21,277         43,942

    Capital Expenditures                               10,070          8,348

MagnaChip Semiconductor

   Reconciliation of US GAAP Gross Profit, Operating Income (Loss) and Net
                               Income (Loss) to

   Non-US GAAP Gross Profit, Operating Income (Loss) and Net Income (Loss)
                         (In thousands of US Dollars)
                                 (Unaudited)

Use of Non-US GAAP Financial Information

To supplement our condensed consolidated financial statements presented on a US GAAP basis, MagnaChip Semiconductor uses non-US GAAP measures of gross profit, operating income (loss) and net income (loss), that are US GAAP gross profit, operating income (loss) and net income (loss) adjusted to exclude certain costs, expenses or gains, referred to as special items. Non-US GAAP adjusted gross profit; operating income (loss) and net income (loss) measure give an indication of our baseline performance before other charges that are considered by management to be outside of our core operating results. In addition, our non-US GAAP adjusted measure of gross profit, operating income (loss) and net income (loss) are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information should not be considered in isolation or as a substitute for gross profit, operating income (loss) and net income (loss) prepared in accordance with generally accepted accounting principles in the United States of America.

                           Three Months Ended         Three Months Ended
                             March 30, 2008              April 1, 2007

                                Operat-                     Operat-
                        Gross    ing       Net      Gross     ing      Net
                       Profit   Income    Income   Profit   Income    Income
                                (Loss)    (Loss)            (Loss)    (Loss)

    US GAAP Amounts  $47,866  $(6,830)  $(67,897) $14,923 $(42,924) $(66,982)

    Special items
     (1) Restructuring
      and impairment
      charges              -     (875)      (875)       -         -        -


    Non-US GAAP
     Profit          $47,866  $(7,705)  $(68,772) $14,923 $(42,924) $(66,982)

    Adjusted Gross
     Margin                                 23.6%                                      9.8%
        Adjusted  Operating
          Expense  -  %  of
          Revenue                                                                27.4%                                              38.1%
        Adjusted  Operating
          Margin                                                                  (3.8%)                                          (28.3%)