UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934



         Date of Report: (Date of earliest event reported) July 25, 2006



                              CORNING INCORPORATED
             (Exact name of registrant as specified in its charter)



New York                                  1-3247            16-0393470
(State or other jurisdiction              (Commission       (I.R.S. Employer
of incorporation)                         File Number)      Identification No.)


One Riverfront Plaza, Corning, New York                     14831
(Address of principal executive offices)                    (Zip Code)


(607) 974-9000
(Registrant's telephone number, including area code)


N/A
(Former name or former address, if changed since last report)


Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
    230.425)

[ ] Soliciting  material  pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))






Item 2.02.  Results of Operations and Financial Condition

Item 7.01.  Regulation FD Disclosure

The Corning  Incorporated  press  release  dated July 25,  2006,  regarding  its
financial  results  for the second  quarter  ended  June 30,  2006 and its third
quarter 2006 earnings guidance, is attached hereto as Exhibit 99.

The information in this report,  being furnished  pursuant to Item 2.02 and 7.01
of Form 8-K, shall not be deemed to be "filed" for purposes of Section 18 of the
Securities  and  Exchange  Act of 1934,  as amended  (the  "Exchange  Act"),  or
otherwise subject to the liabilities of that Section, and is not incorporated by
reference in any filing under the  Securities  Act of 1933,  as amended,  or the
Exchange  Act,  except as  expressly  set forth by  specific  reference  in such
filing.

Item 9.01.  Financial Statements and Exhibits

(d)   Exhibit

      99    Press Release dated July 25, 2006, issued by Corning Incorporated.







                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                             CORNING INCORPORATED
                                             Registrant



Date: July 25, 2006                          By    /s/  JANE D. POULIN
                                                        ------------------------
                                                        Jane D. Poulin
                                                        Chief Accounting Officer






                                                                      Exhibit 99
                                                                      ----------




FOR RELEASE -- July 25, 2006

Media Relations Contact:                    Investor Relations Contact:
Daniel F. Collins                           Kenneth C. Sofio
(607) 974-4197                              (607) 974-7705
collinsdf@corning.com                       sofiokc@corning.com

                    Corning Announces Second-Quarter Results

                           Company meets EPS guidance

CORNING, N.Y. -- Corning Incorporated (NYSE: GLW) today announced second-quarter
sales of $1.26 billion and net income of $514 million, or $0.32 per share. These
results include net special gains of $93 million, or $0.06 per share.

Excluding  these net special gains,  Corning's  second-quarter  net income would
have been  $421  million,  or $0.26 per  share.  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.

Wendell P. Weeks,  president and chief executive officer, said, "We were pleased
to meet our  earnings-per-share  (EPS) guidance as we overcame the impact of the
second-quarter panel inventory  correction on our Display Technologies  segment.
The  decline  in  Display  Technologies'  quarterly  performance  was  offset by
strength in our Telecommunications segment and lower operating expenses."

Corning's  second-quarter  results  included  the  following  special  gains and
charges:
..    A $61 million 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.
..    A $10 million reduction in income tax expense related to the release of the
     valuation allowance on certain deferred tax assets in Australia.
..    A  gain  of  $33  million  in  equity  earnings   related  to  Dow  Corning
     Corporation's  settlement with the U.S.  Internal Revenue Service regarding
     liabilities for tax years 1992 to 2003. The settlement resolves all federal
     tax issues related to Dow Corning's implant settlement.
..    An $11 million charge related to Corning's ongoing debt-reduction program.

Second-Quarter Operating Results
Corning's  second-quarter  sales of $1.26  billion were even with  first-quarter
sales and  increased 11 percent over last year's  second-quarter  sales of $1.14
billion.  As  expected,  gross margin for the second  quarter was 43 percent,  a
slight decline from the previous quarter's gross margin of 45 percent.


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Corning Announces Second-Quarter Results
Page Two

Equity  earnings for the second  quarter were $256  million,  including  the $33
million tax gain from Dow Corning. First-quarter equity earnings of $200 million
included a $21 million  impairment  charge for  Samsung  Corning  Company,  Ltd.
(Samsung Corning), a producer of glass panels and funnels for cathode ray tubes.
Excluding the special items in both quarters,  Corning's  second-quarter  equity
earnings were even with the first  quarter.  Including the $33 million tax gain,
our second-quarter equity earnings in Dow Corning were $104 million.

Second-quarter  sales  for  Corning's  Display  Technologies  segment  were $461
million, an 11-percent increase over 2005 second-quarter  sales of $415 million.
Year-over-year liquid crystal display (LCD) glass volume increased by 38 percent
in the  second  quarter,  but this was  largely  offset by the change in foreign
exchange rates and price declines.  Sequentially,  second-quarter sales declined
16 percent from  first-quarter  sales of $547  million,  primarily due to volume
declines of 14 percent and lower prices.  As expected,  price declines were less
than those in the first quarter.

Samsung  Corning  Precision  Glass  Co.,  Ltd.'s  (SCP)  second-quarter   volume
increased 52 percent year-over-year and 3 percent sequentially.  Equity earnings
from SCP were $133  million in the second  quarter,  compared to $140 million in
the previous quarter, which included about $7 million in nonrecurring gains.

Total LCD glass volume,  including both Corning's wholly owned business and SCP,
declined  6 percent  sequentially  in the  second  quarter.  Net  income for the
Display Technologies segment was $344 million, down 18 percent from $417 million
last quarter, but up 20 percent versus the second quarter of 2005.

"The quarterly sales decline in Display  Technologies was disappointing,  but as
we have warned in the past,  supply-chain issues can occur in any given quarter.
Our LCD volume  decline of 6 percent  was  consistent  with our May 22  guidance
change," Weeks said.

Second-quarter  Telecommunications  segment  sales  increased 19 percent to $472
million  versus $397  million in the first  quarter.  The increase was driven by
strong demand from U.S. and European  carriers for the company's fiber and cable
and hardware and equipment products.  Fiber-to-the-premises  (FTTP) sales in the
second quarter increased significantly over the previous quarter's performance.

In the company's Environmental  Technologies segment, sales of $152 million were
slightly lower than sales of $155 million in the first  quarter.  An increase in
diesel retrofit sales was offset by lower automotive sales,  especially in North
America.  Corning's  Life  Sciences  segment  sales  increased $3 million to $75
million in the second quarter.


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Corning Announces Second-Quarter Results
Page Three

Cash Flow/Liquidity Update
Corning  ended the  second  quarter  with $2.48  billion in cash and  short-term
investments,  consistent  with the previous  quarter.  The company's  debt level
declined  to $1.5  billion  compared  to $1.8  billion  at the end of the  first
quarter. James B. Flaws, vice chairman and chief financial officer, said, "As we
continue to focus on improving the company's overall  financial health,  you can
expect  us to  opportunistically  issue  or  refinance  certain  debt  over  the
remainder of the year." In the second  quarter  Corning had  positive  free cash
flow of $299 million and remains on track to be free cash flow  positive for the
year.  Free cash flow is a  non-GAAP  financial  measure.  Flaws also noted that
Moody's Investor  Service recently raised Corning's  overall debt rating to Baa2
with a stable outlook.

Third-Quarter Outlook
Corning expects third-quarter sales to be in the range of $1.26 billion to $1.33
billion,  and EPS in the range of $0.22 to $0.26 before special items.  This EPS
estimate is a non-GAAP financial measure and excludes any special items.

Gross margin for the third  quarter is expected to be in the range of 41 percent
to 43 percent.  The  third-quarter tax rate is expected to be between 15 percent
and 20 percent.

For its Display  Technologies  segment,  Corning  anticipates that third-quarter
sequential volume growth for its wholly owned business will be in the range of 5
percent to 15 percent as the supply-chain  correction begins to ease and the LCD
industry  gears up for the holiday  buying  season.  Samsung  Corning  Precision
should  also see  sequential  volume  increases  in the range of 5 percent to 15
percent.  Corning  expects  third-quarter  price  declines  in its wholly  owned
business to be in line with the previous quarter.

"As we start the third quarter,  we believe there will be inventory  adjustments
by some panel  manufacturers,  while others are beginning to increase production
levels,"  Flaws  said.  "However,  the  long-term  LCD  market  dynamics  remain
positive.  We have not changed our  expectation  that the overall  glass  market
volume growth will be between 40 percent and 50 percent in 2006. We believe that
LCD TV penetration will reach about 20 percent of the global  television  market
this year, nearly doubling that of 2005."

Corning's Telecommunications segment third-quarter sales are expected to be flat
to  down   slightly.   Third-quarter   sales  in  the  company's   Environmental
Technologies segment are also expected to be flat.

Excluding the impact of the $33 million  second-quarter tax gain at Dow Corning,
third-quarter  equity  earnings  are  expected  to be down 5 to 10  percent,  as
stronger  earnings  at Dow  Corning  may be offset by lower  earnings at SCP and
nonrecurring charges at Samsung Corning.


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Corning Announces Second-Quarter Results
Page Four

Weeks said, "While our first-half 2006 performance met our expectations, we need
to be cautious about the potential negative impact that economic  conditions and
political  tensions  could  have on  consumer  sentiment.  The LCD TV  market is
strongly weighted towards the fourth quarter and we need a robust retail holiday
season to achieve  our goals.  The good news is that  retail  prices for LCD TVs
have declined substantially and that should accelerate consumer demand."

Separately,  the company also announced that it will be meeting with Boston-area
investors on Tuesday,  August 1 and will host a luncheon at 12:30 p.m. Investors
interested in attending the luncheon should contact Corning's investor relations
department at (607) 974-8764.

Second-Quarter Conference Call Information
The  company  will host a  second-quarter  conference  call at 8:30 a.m.  EDT on
Wednesday,  July 26. To access the call,  dial (210)  234-0003.  The password is
QUARTER  TWO.  The  leader  is  SOFIO.  A  replay  of the  call  will  begin  at
approximately 10:30 a.m. EDT, and will run through 5 p.m. EDT, Wednesday, August
9. To listen, dial (402) 220-9709. No pass code is required. To listen to a live
audio     webcast    of    the    call,    go    to    Corning's    Web    site:
http://www.corning.com/investor_relations,  and  follow  the  instructions.  The
audio webcast will be archived for one year following the call.

Presentation of Information in this News Release
Non-GAAP  financial  measures are not in accordance  with, or an alternative to,
GAAP.  Corning's  non-GAAP  net income and EPS measure  excludes  restructuring,
impairment  and  other  charges  and  adjustments  to prior  estimates  for such
charges.  Additionally,  the company's non-GAAP measure excludes  adjustments to
asbestos  settlement  reserves  required by movements in Corning's  common stock
price,  gains and losses arising from debt  retirements,  charges resulting from
the impairment of equity or cost method investments,  or adjustments to deferred
tax  assets,   and  gains  or  losses   recognized   in  equity   earnings  from
restructuring,  impairment  or other  charges or credits  taken by equity method
companies.  Corning's  free  cash  flow  financial  measures  are also  non-GAAP
measures.  The company believes  presenting  non-GAAP free cash flow; net income
and EPS measures are helpful to analyze financial performance without the impact
of  unusual  items  that  may  obscure   trends  in  the  company's   underlying
performance. These non-GAAP measures are reconciled on the company's Web site at
www.corning.com/investor_relations and accompany this news release.


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Corning Announces Second-Quarter Results
Page Five

About Corning Incorporated
Corning Incorporated  (www.corning.com) is a diversified technology company that
concentrates its efforts on high-impact growth  opportunities.  Corning combines
its  expertise  in  specialty  glass,   ceramic  materials,   polymers  and  the
manipulation of the properties of light,  with strong process and  manufacturing
capabilities  to develop,  engineer  and  commercialize  significant  innovative
products  for  the  telecommunications,   flat  panel  display,   environmental,
semiconductor, and life sciences industries.

Forward-Looking and Cautionary Statements
This press release contains forward-looking statements that involve a variety of
business risks and other uncertainties that could cause actual results to differ
materially.  These risks and uncertainties include the possibility of changes in
global economic and political  conditions;  tariffs,  import duties and currency
fluctuations;  product demand and industry capacity; competition;  manufacturing
efficiencies; cost reductions; availability and costs of critical components and
materials;  new product  development and  commercialization;  order activity and
demand from major  customers;  changes in the mix of sales  between  premium and
non-premium products; facility expansions and new plant start-up costs; possible
disruption in commercial  activities due to terrorist activity,  armed conflict,
political  instability or major health  concerns;  adequacy and  availability of
insurance;   capital  spending;  equity  company  activities;   acquisition  and
divestiture activities;  the level of excess or obsolete inventory;  the rate of
technology  change;  the  ability to enforce  patents;  product  and  components
performance  issues;  stock  price  fluctuations;   and  adverse  litigation  or
regulatory  developments.  Additional  risk factors are  identified in Corning's
filings with the Securities and Exchange Commission.  Forward-looking statements
speak  only  as of the day  that  they  are  made,  and  Corning  undertakes  no
obligation to update them in light of new information or future events.

                                       ###






                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
               (Unaudited; in millions, except per share amounts)



                                                                  Three months                    Six months
                                                                 ended June 30,                 ended June 30,
                                                            ------------------------      -------------------------
                                                              2006            2005           2006           2005
                                                            ---------      ---------      ---------       ---------
                                                                                              
Net sales                                                   $   1,261      $   1,141      $   2,523       $   2,191
Cost of sales                                                     720            658          1,409           1,279
                                                            ---------      ---------      ---------       ---------

Gross margin                                                      541            483          1,114             912

Operating expenses:
   Selling, general and administrative expenses                   194            191            417             375
   Research, development and engineering expenses                 128            104            252             202
   Amortization of purchased intangibles                            3              3              6               8
   Restructuring, impairment and other charges
     and (credits)                                                  5             (1)            11              18
   Asbestos settlement (Note 1)                                   (61)           143            124             131
                                                            ---------      ---------      ---------       ---------

Operating income                                                  272             43            304             178

Interest income                                                    26             13             50              23
Interest expense                                                  (18)           (26)           (38)            (61)
Loss on repurchases and retirement of debt, net (Note 2)          (11)           (12)           (11)            (12)
Other income, net                                                  14             20             34              11
                                                            ---------      ---------      ---------       ---------

Income before income taxes                                        283             38            339             139
Provision for income taxes (Note 3)                               (24)           (44)           (22)            (63)
                                                            ---------      ---------      ---------       ---------

Income (loss) before minority interests and equity earnings       259             (6)           317              76
Minority interests                                                 (1)            (5)            (2)             (6)
Equity in earnings of associated companies, net
  of impairments (Note 4)                                         256            176            456             345
                                                            ---------      ---------      ---------       ---------

Net income                                                  $     514      $     165      $     771       $     415
                                                            =========      =========      =========       =========

Basic earnings per common share (Note 5)                    $    0.33      $    0.11      $    0.50       $    0.29
                                                            =========      =========      =========       =========
Diluted earnings per common share (Note 5)                  $    0.32      $    0.11      $    0.48       $    0.28
                                                            =========      =========      =========       =========

See accompanying notes to these financial statements.





                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
                           CONSOLIDATED BALANCE SHEETS
               (Unaudited; in millions, except per share amounts)



                                                                                           June 30,          December 31,
                                                                                             2006                2005
                                                                                          ---------         -------------
                                                                                                        
Assets

Current assets:
   Cash and cash equivalents                                                              $   1,098           $   1,342
   Short-term investments, at fair value                                                      1,377               1,092
                                                                                          ---------           ---------
     Total cash, cash equivalents and short-term investments                                  2,475               2,434
   Trade accounts receivable, net                                                               633                 629
   Inventories                                                                                  664                 570
   Deferred income taxes                                                                         65                  44
   Other current assets                                                                         198                 183
                                                                                          ---------           ---------
       Total current assets                                                                   4,035               3,860

Investments                                                                                   2,150               1,729
Property, net                                                                                 5,032               4,675
Goodwill and other intangible assets, net                                                       333                 338
Deferred income taxes                                                                            51                  10
Other assets                                                                                    598                 595
                                                                                          ---------           ---------

Total Assets                                                                              $  12,199           $  11,207
                                                                                          =========           =========

Liabilities and Shareholders' Equity

Current liabilities:
   Current portion of long-term debt                                                      $      22           $      18
   Accounts payable                                                                             705                 690
   Other accrued liabilities                                                                  1,645               1,662
                                                                                          ---------           ---------
       Total current liabilities                                                              2,372               2,370

Long-term debt                                                                                1,475               1,789
Postretirement benefits other than pensions                                                     596                 593
Other liabilities                                                                             1,032                 925
                                                                                          ---------           ---------
       Total liabilities                                                                      5,475               5,677
                                                                                          ---------           ---------

Commitments and contingencies
Minority interests                                                                               40                  43
Shareholders' equity:
   Preferred stock - Par value $100.00 per share; Shares authorized: 10 million
   Common stock - Par value $0.50 per share; Shares authorized: 3.8 billion;
     Shares issued: 1,569 million and 1,552 million                                             787                 776
   Additional paid-in capital                                                                11,872              11,548
   Accumulated deficit                                                                       (6,076)             (6,847)
   Treasury stock, at cost; Shares held: 17 million                                            (191)               (168)
   Accumulated other comprehensive income                                                       292                 178
                                                                                          ---------           ---------
       Total shareholders' equity                                                             6,684               5,487
                                                                                          ---------           ---------

Total Liabilities and Shareholders' Equity                                                $  12,199           $  11,207
                                                                                          =========           =========

See accompanying notes to these financial statements.





                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (Unaudited; in millions)



                                                                Three months ended           Six months ended
                                                              ----------------------             June 30,
                                                               June 30,    March 31,     -------------------------
                                                                 2006        2006           2006            2005
                                                              ---------    ---------     ---------       ---------
                                                                                             
Cash Flows from Operating Activities:
   Net income                                                 $    514     $    257      $    771        $   415
   Adjustments to reconcile net income to net cash
    provided by operating activities:
     Depreciation                                                  149          141           290            246
     Amortization of purchased intangibles                           3            3             6              8
     Restructuring, impairment and other charges and (credits)       5            6            11             18
     Asbestos settlement                                           (61)         185           124            131
     Stock compensation charges                                     30           32            62             13
     Loss on repurchases and retirement of debt, net                11                         11             12
     Undistributed earnings of affiliated companies               (169)         (70)         (239)          (133)
     Deferred taxes                                                 (5)         (62)          (67)             7
     Restructuring payments                                         (2)          (4)           (6)           (16)
     Customer deposits, net                                         82           (8)           74            232
     Employee benefit payments less than expense                     8           15            23             29
     Changes in certain working capital items:
        Trade accounts receivable                                   68          (65)            3            (89)
        Inventories                                                (47)         (46)          (93)           (39)
        Other current assets                                         3           (8)           (5)           (40)
        Accounts payable and other current liabilities,
          net of restructuring payments                              1         (196)         (195)          (129)
     Other, net                                                     (9)           1            (8)            20
                                                              --------     --------      --------        -------
Net cash provided by operating activities                          581          181           762            685
                                                              --------     --------      --------        -------

Cash Flows from Investing Activities:
   Capital expenditures                                           (274)        (280)         (554)          (698)
   Acquisitions of businesses, net of cash acquired                (16)                       (16)
   Net proceeds from sale or disposal of assets                      8                          8             17
   Net increase in long-term investments and other
     long-term assets                                                           (77)          (77)
   Short-term investments - acquisitions                          (647)        (858)       (1,505)          (703)
   Short-term investments - liquidations                           485          735         1,220            762
   Other, net                                                                                                 10
                                                              --------     --------      --------        -------
Net cash used in investing activities                             (444)        (480)         (924)          (612)
                                                              --------     --------      --------        -------

Cash Flows from Financing Activities:
   Repayments of short-term borrowings and current
     portion of long-term debt                                      (3)          (4)           (7)          (195)
   Proceeds from issuance of long-term debt, net                                                             147
   Retirements of long-term debt                                  (334)                      (334)          (102)
   Proceeds from issuance of common stock, net                       9            6            15            344
   Proceeds from the exercise of stock options                      32          219           251             59
   Other, net                                                       (6)          (2)           (8)            (6)
                                                              --------     --------      --------        -------
Net cash provided by (used in) financing activities               (302)         219           (83)           247
                                                              --------     --------      --------        -------
Effect of exchange rates on cash                                     1                          1            (28)
                                                              --------     --------      --------        -------
Net increase (decrease) in cash and cash equivalents              (164)         (80)         (244)           292
Cash and cash equivalents at beginning of period                 1,262        1,342         1,342          1,009
                                                              --------     --------      --------        -------

Cash and cash equivalents at end of period                    $  1,098     $  1,262      $  1,098        $ 1,301
                                                              ========     ========      ========        =======

Certain amounts for 2005 were reclassified to conform to 2006 classifications.






                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
                                 SEGMENT RESULTS
                            (Unaudited; in millions)

Our   reportable    operating    segments    include    Display    Technologies,
Telecommunications, Environmental Technologies and Life Sciences.



                                                Display     Telecom-    Environmental   Life         All
                                             Technologies  munications  Technologies  Sciences       Other       Total
                                             ------------  -----------  ------------- --------    --------    ---------
                                                                                            
Three months ended June 30, 2006
Net sales                                      $   461      $   472       $    152    $     75    $    101    $  1,261
Depreciation (1)                               $    68      $    43       $     20    $      5    $     10    $    146
Amortization of purchased intangibles                       $     3                                           $      3
Research, development and engineering
  expenses (2)                                 $    36      $    18       $     31    $     12    $      8    $    105
Restructuring, impairment and other charges
  and (credits) (before-tax and minority
  interest)                                                 $    (1)                  $      2    $      4    $      5
Income tax provision                           $   (21)     $   (13)      $     (3)               $     (1)   $    (38)
Earnings (loss) before minority interest
  and equity earnings (loss) (3)               $   209      $    40       $      9    $     (2)   $      1    $    257
Minority interests                                               (1)                                                (1)
Equity in earnings (loss) of affiliated
  companies (4)                                    135            1                                     12         148
                                               -------      -------       --------    --------    --------    --------
Net income (loss)                              $   344      $    40       $      9    $     (2)   $     13    $    404
                                               =======      =======       ========    ========    ========    ========

Three months ended June 30, 2005
Net sales                                      $   415      $   415       $    146    $     75    $     90    $  1,141
Depreciation (1)                               $    44      $    46       $     18    $      5    $      9    $    122
Amortization of purchased intangibles                       $     2                                           $      2
Research, development and engineering
  expenses (2)                                 $    24      $    19       $     26    $      9    $      6    $     84
Restructuring, impairment and other charges
  and (credits) (before-tax and minority
  interest)                                                 $     8                               $    (15)   $     (7)
Income tax provision                           $   (33)     $    (7)      $     (3)   $     (1)   $     (2)   $    (46)
Earnings (loss) before minority interest
  and equity earnings (loss) (3)               $   199      $   (10)      $      4    $      1    $     17    $    211
Minority interests                                                                                      (5)         (5)
Equity in earnings (loss) of affiliated
  companies                                         87            1                                      8          96
                                               -------      -------       --------    --------    --------    --------
Net income (loss)                              $   286      $    (8)      $      4    $      1    $     20    $    303
                                               =======      =======       ========    ========    ========    ========

Six months ended June 30, 2006
Net sales                                      $ 1,008      $   869       $    307    $    147    $    192    $  2,523
Depreciation (1)                               $   130      $    85       $     40    $     10    $     20    $    285
Amortization of purchased intangibles                       $     6                                           $      6
Research, development and engineering
  expenses (2)                                 $    66      $    38       $     61    $     25    $     16    $    206
Restructuring, impairment and other charges
  and (credits) (before-tax and minority
  interest)                                                 $     6                   $      2    $      3    $     11
Income tax provision                           $   (50)     $   (19)      $     (3)               $     (4)   $    (76)
Earnings (loss) before minority interest
  and equity earnings (loss) (3)               $   484      $    38       $      9    $     (7)   $      3    $    527
Minority interests                                                                                      (2)         (2)
Equity in earnings (loss) of affiliated
  companies (4)                                    277            3             (1)                     (1)        278
                                               -------      -------       --------    --------    --------    --------
Net income (loss)                              $   761      $    41       $      8    $     (7)   $           $    803
                                               =======      =======       ========    ========    ========    ========

Six months ended June 30, 2005
Net sales                                      $   735      $   842       $    294    $    149    $    171    $  2,191
Depreciation (1)                               $    85      $    92       $     35    $     10    $     18    $    240
Amortization of purchased intangibles                       $     7                                           $      7
Research, development and engineering
  expenses (2)                                 $    45      $    36       $     49    $     17    $     13    $    160
Restructuring, impairment and other charges
  and (credits) (before-tax and minority
  interest)                                                 $     8                               $    (15)   $     (7)
Income tax provision                           $   (41)     $   (15)      $     (6)   $     (2)   $     (4)   $    (68)
Earnings (loss) before minority interest
  and equity earnings (loss) (3)               $   318      $     8       $     13    $      5    $     20    $    364
Minority interests                                                                                      (7)         (7)
Equity in earnings (loss) of affiliated
  companies                                        168            1                                     25         194
                                               -------      -------       --------    --------    --------    --------
Net income (loss)                              $   486      $     9       $     13    $      5    $     38    $    551
                                               =======      =======       ========    ========    ========    ========

(1)  Depreciation expense for Corning's reportable segments is recorded based on
     the assets of each segment and also includes an allocation of  depreciation
     of corporate property not specifically identifiable to a segment.
(2)  Research,  development,  and engineering  expenses  includes direct project
     spending which is identifiable to a segment.
(3)  Many of Corning's  administrative  and staff  functions  are performed on a
     centralized  basis.  Where  practicable,  Corning charges these expenses to
     segments  based upon the extent to which each  business  uses a centralized
     function. Other staff functions, such as corporate finance, human resources
     and legal are allocated to segments, primarily as a percentage of sales.
(4)  In the three and six months ended June 30, 2006,  equity in earnings (loss)
     of  affiliated  companies  includes  charges of $3 million and $24 million,
     respectively, in All Other related to impairments for Samsung Corning.





                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
                                 SEGMENT RESULTS
                            (Unaudited; in millions)


A  reconciliation  of reportable  segment net income (loss) to consolidated  net
income (loss) follows (in millions):



                                                                  Three months                        Six months
                                                                 ended June 30,                     ended June 30,
                                                            ------------------------           ------------------------
                                                              2006            2005               2006            2005
                                                            ---------      ---------           ---------      ---------
                                                                                                  
Net income of reportable segments                           $     404      $     303           $     803      $     551
Unallocated amounts:
    Net financing costs (1)                                        (2)           (24)                (10)           (61)
    Stock-based compensation expense                              (30)            (9)                (62)           (15)
    Exploratory research                                          (19)           (17)                (40)           (36)
    Corporate contributions                                        (9)            (7)                (17)           (12)
    Equity in earnings of affiliated companies,
       net of impairments (2)                                      70             81                 140            152
    Asbestos settlement (3)                                        61           (143)               (124)          (131)
    Other corporate items (4)                                      39            (19)                 81            (33)
                                                            ---------      ---------           ---------      ---------
Net income                                                  $     514      $     165           $     771      $     415
                                                            =========      =========           =========      =========

(1)  Net financing costs include interest expense, interest income, and interest
     costs and investment gains associated with benefit plans.
(2)  Equity in earnings of affiliated  companies,  net of impairments,  includes
     the following items:
     .    In the three and six months  ended June 30,  2006,  a $33 million gain
          representing  our  share  of a  tax  settlement  relating  to  an  IRS
          examination at Dow Corning.
     .    In the three and six months ended June 30, 2005, a gain of $11 million
          for our share of a gain on the  issuance  of  subsidiary  stock at Dow
          Corning.
(3)  The asbestos settlement  arrangement to be incorporated into the Pittsburgh
     Corning Corporation (PCC) reorganization plan, when the reorganization plan
     becomes  effective,  will require Corning to relinquish its equity interest
     in PCC,  contribute its equity interest in Pittsburgh Corning Europe (PCE),
     and 25 million  shares of Corning  common  stock to a trust.  Corning  also
     agreed to make cash payments over the six years from the effective  date of
     the  settlement and to assign certain  insurance  policy  proceeds from its
     primary  insurance and a portion of its excess insurance at the time of the
     settlement.  The asbestos liability requires adjustment to fair value based
     upon movements in Corning's common stock price prior to contribution of the
     shares to the trust as well as changes in the  estimated  fair value of the
     other components of the settlement offer. In the second quarter of 2006 and
     2005,  Corning  recorded  a credit  of $68  million  and a  charge  of $137
     million,  respectively,  to reflect the movement in Corning's  common stock
     price in each year and charges of $7 million and $6 million,  respectively,
     to reflect  changes in the estimated fair value of other  components of the
     settlement  offer. In the six months ended June 30, 2006 and 2005,  Corning
     recorded charges of $114 million and $121 million, respectively, to reflect
     the  movement in  Corning's  common stock price in each year and charges of
     $10 million in each year to reflect  changes in the estimated fair value of
     other components of the settlement offer.
(4)  Other  corporate  items include the tax impact of the  unallocated  amounts
     plus the following items:
     .    In the three and six months ended June 30,  2006,  tax benefits of $10
          million and $48 million,  respectively,  from the release of valuation
          allowances for certain foreign locations.
     .    In the three and six months ended June 30, 2005, impairment charges of
          $6 million and $25 million,  respectively, for an other-than-temporary
          decline in our investment in Avanex below its cost basis.
     .    In the three and six months ended June 30, 2005, restructuring credits
          of $7 million for adjustments to prior years' reserves.







                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


1.   Asbestos Settlement

On March 28, 2003,  Corning  announced  that it had reached  agreement  with the
representatives  of asbestos  claimants  for the  settlement  of all current and
future asbestos claims against Corning and Pittsburgh Corning Corporation (PCC),
which might arise from PCC products or operations. The proposed settlement, when
the plan  becomes  effective,  will  require  Corning to  relinquish  its equity
interest in PCC,  contribute  its equity  interest in Pittsburgh  Corning Europe
N.V. (PCE), a Belgian  corporation,  and contribute 25 million shares of Corning
common  stock.  Corning also agreed to make cash  payments  with a value of $131
million, in March 2003, over six years from the effective date of the settlement
and to assign insurance policy proceeds from its primary insurance and a portion
of its excess insurance at the time of the settlement.

As a result of the proposed  asbestos  settlement,  any changes in the estimated
fair  value of the  components  of the  proposed  settlement  agreement  will be
recognized in Corning's  quarterly results until the date of the contribution to
the settlement  trust. In the second quarter of 2006,  Corning recorded a credit
of $61 million (pretax and after-tax)  including a mark-to-market  credit of $68
million reflecting the decrease in Corning's common stock from March 31, 2006 to
June 30,  2006 and a $7  million  charge to adjust the  estimated  fair value of
certain other components of the proposed asbestos settlement.

Beginning  with the first quarter of 2003, we have recorded total net charges of
$942 million to reflect the estimated fair value of our asbestos liability.

2.   Debt

In the second quarter of 2006, we redeemed $315 million  principal amount of our
outstanding  notes in three  separate  transactions  resulting  in losses of $11
million.

3.   Provision for Income Taxes

In the second quarter of 2006,  Corning  recorded a $10 million tax benefit from
the release of a valuation allowance on Australian tax benefits due to sustained
profitability  of Corning's  Australian  entities and positive  future  earnings
projections for the Australian consolidated group.

4.   Equity in Earnings of Associated Companies

In the second  quarter  of 2006,  equity in  earnings  of  associated  companies
includes a gain of $33 million related to Dow Corning's  settlement with the IRS
regarding  liabilities for tax years 1992 to 2003. This settlement  resolves all
Federal tax issues related to Dow Corning's implant settlement.

5.   Weighted Average Shares Outstanding

Our weighted average shares outstanding are as follows (in millions):

                                       Three months ended
                                            June 30,
                                       ------------------     Three months ended
                                       2006         2005        March 31, 2006
                                       ----         ----      -----------------

Basic                                  1,549        1,438           1,541
Diluted                                1,597        1,517           1,592
Diluted used for non-GAAP measures     1,597        1,523           1,592





                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
                           QUARTERLY SALES INFORMATION
                            (Unaudited; in millions)




                                                                     2006
                                                     ------------------------------------
                                                             Three
                                                          Months Ended         Six Months
                                                      ---------------------       Ended
                                                      March 31      June 30      June 30
                                                      --------      -------      -------
                                                                       
Display Technologies                                 $    547     $    461      $ 1,008

Telecommunications
   Fiber and cable                                        205          234          439
   Hardware and equipment                                 192          238          430
                                                     --------     --------      -------
                                                          397          472          869

Environmental Technologies
   Automotive                                             121          113          234
   Diesel                                                  34           39           73
                                                     --------     --------      -------
                                                          155          152          307

Life Sciences                                              72           75          147

Other                                                      91          101          192
                                                     --------     --------      -------

Total                                                $  1,262     $  1,261      $ 2,523
                                                     ========     ========      =======




                                                                                  2005
                                                     --------------------------------------------------------------
                                                         Q1           Q2           Q3           Q4          Total
                                                     --------    ---------      -------      -------      --------
                                                                                           
Display Technologies                                 $    320    $     415      $   489      $   518      $  1,742

Telecommunications
   Fiber and cable                                        212          213          216          193           834
   Hardware and equipment                                 215          202          182          190           789
                                                     --------     --------      -------      -------      --------
                                                          427          415          398          383         1,623

Environmental Technologies
   Automotive                                             127          125          121          109           482
   Diesel                                                  21           21           23           33            98
                                                     --------     --------      -------      -------      --------
                                                          148          146          144          142           580

Life Sciences                                              74           75           70           63           282

Other                                                      81           90           87           94           352
                                                     --------     --------      -------      -------      --------

Total                                                $  1,050     $  1,141      $ 1,188      $ 1,200      $  4,579
                                                     ========     ========      =======      =======      ========


The above  supplemental  information  is  intended  to  facilitate  analysis  of
Corning's businesses.







                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
     RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
                        Three Months Ended June 30, 2006
           (Unaudited; amounts in millions, except per share amounts)

- --------------------------------------------------------------------------------
Corning's  net income and earnings per share (EPS)  excluding  special items for
the second quarter of 2006 are non-GAAP financial measures within the meaning of
Regulation G of the  Securities  and  Exchange  Commission.  Non-GAAP  financial
measures are not in accordance  with, or an alternative to,  generally  accepted
accounting  principles  (GAAP).  The company  believes  presenting  non-GAAP net
income and EPS is helpful to analyze financial performance without the impact of
unusual items that may obscure trends in the company's underlying performance. A
detailed  reconciliation  is provided below  outlining the  differences  between
these non-GAAP measures and the directly related GAAP measures.
- --------------------------------------------------------------------------------



                                                                         Per           Income Before           Net
                                                                        Share          Income Taxes          Income
                                                                       -------         -------------        --------
                                                                                                   
Earnings per share (EPS) and net income,
  excluding special items                                              $  0.26           $    233           $    421

Special items:
     Asbestos settlement (a)                                              0.04                 61                 61

     Loss on repurchases of debt, net                                    (0.01)               (11)               (11)

     Provision for income taxes (b)                                       0.01                                    10

     Equity in earnings of associated companies (c)                       0.02                                    33
                                                                       -------           --------           --------

Total EPS and net income                                               $  0.32           $    283           $    514
                                                                       =======           ========           ========

(a)  As a result of Corning's proposed asbestos  settlement,  any changes in the
     estimated fair value of the components of the proposed settlement agreement
     will be  recognized  in Corning's  quarterly  results until the date of the
     contribution  to the  settlement  trust.  In the  second  quarter  of 2006,
     Corning  recorded a gain of $61 million  (before- and after-tax)  including
     $68 million  for the change in  Corning's  common  stock price of $24.19 at
     June 30, 2006, compared to $26.92 at March 31, 2006 and a $7 million charge
     for the change in estimated  fair value of certain other  components of the
     proposed asbestos settlement liability.

(b)  Amount  reflects a $10 million tax  benefit  from the release of  Corning's
     valuation allowance on Australian tax benefits.

(c)  Amount  reflects a $33  million  increase in equity  earnings  representing
     Corning's share of a favorable tax settlement from the completion of an IRS
     examination at Dow Corning.






                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
     RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
                        Three Months Ended March 31, 2006
           (Unaudited; amounts in millions, except per share amounts)

- --------------------------------------------------------------------------------
Corning's  net income and earnings per share (EPS)  excluding  special items for
the first quarter of 2006 are non-GAAP  financial measures within the meaning of
Regulation G of the  Securities  and  Exchange  Commission.  Non-GAAP  financial
measures are not in accordance  with, or an alternative to,  generally  accepted
accounting  principles  (GAAP).  The company  believes  presenting  non-GAAP net
income and EPS is helpful to analyze financial performance without the impact of
unusual items that may obscure trends in the company's underlying performance. A
detailed  reconciliation  is provided below  outlining the  differences  between
these non-GAAP measures and the directly related GAAP measures.
- --------------------------------------------------------------------------------



                                                                         Per           Income Before           Net
                                                                        Share          Income Taxes          Income
                                                                       -------         -------------        ---------
                                                                                                   
Earnings per share (EPS) and net income,
  excluding special items                                              $  0.27           $    241           $    425

Special items:
     Asbestos settlement (a)                                             (0.12)              (185)              (185)

     Provision for income taxes (b)                                       0.02                                    38

     Equity in earnings of associated companies (c)                      (0.01)                                  (21)
                                                                       -------           --------           --------

Total EPS and net income                                               $  0.16           $     56           $    257
                                                                       =======           ========           ========

(a)  As a result of Corning's proposed asbestos  settlement,  any changes in the
     estimated fair value of the components of the proposed settlement agreement
     will  be  recognized  in  our  quarterly  results  until  the  date  of the
     contribution to the settlement trust. In the first quarter of 2006, Corning
     recorded a charge of $185 million  (before- and  after-tax)  including $182
     million  for the  change in its common  stock  price of $26.92 at March 31,
     2006, compared to $19.66 at December 31, 2005 and $3 million for the change
     in  estimated  fair  value of  certain  other  components  of the  proposed
     asbestos settlement liability.

(b)  Amount reflects a $38 million tax benefit from the release of our valuation
     allowance on certain deferred tax assets in Germany.

(c)  Amount  reflects a charge of $21 million to reflect  Corning's  share of an
     impairment  charge  at  Samsung  Corning  Co.,  Ltd.,  a South  Korea-based
     manufacturer  of glass  panels and funnels for cathode ray tube  television
     and display monitors.






                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
     RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
                        Three Months Ended June 30, 2005
           (Unaudited; amounts in millions, except per share amounts)

- --------------------------------------------------------------------------------
Corning's  net income and earnings per share (EPS)  excluding  special items for
the second quarter of 2005 are non-GAAP financial measures within the meaning of
Regulation G of the  Securities  and  Exchange  Commission.  Non-GAAP  financial
measures are not in accordance  with, or an alternative to,  generally  accepted
accounting  principles  (GAAP).  The company  believes  presenting  non-GAAP net
income and EPS is helpful to analyze financial performance without the impact of
unusual items that may obscure trends in the company's underlying performance. A
detailed  reconciliation  is provided below  outlining the  differences  between
these non-GAAP measures and the directly related GAAP measure.
- --------------------------------------------------------------------------------



                                                                           Per          Income Before          Net
                                                                          Share         Income Taxes         Income
                                                                         -------        -------------       --------
                                                                                                   
EPS and net income, excluding special items                              $  0.20          $   192           $   312

Special items:
     Restructuring, impairment and other (charges) and credits (a)                              1                (3)

     Asbestos settlement (b)                                               (0.09)            (143)             (143)

     Loss on repurchases and retirement of debt, net (c)                   (0.01)             (12)              (12)

     Equity in earnings of associated companies (d)                         0.01                                 11
                                                                         -------          -------           -------

Total EPS and net income                                                 $  0.11          $    38           $   165
                                                                         =======          =======           =======


(a)  In the second quarter of 2005,  Corning  recorded net credits of $1 million
     (net charge of $3 million  after-tax  and  minority  interest)  included in
     restructuring,  impairment  and other charges and  (credits).  A summary of
     these credits and charges follows:

     .    We  recorded  net  credits of $7 million  ($3  million  after-tax  and
          minority   interest),   primarily  for  adjustments  to  prior  years'
          restructuring and impairment reserves.
     .    We recorded an additional  impairment charge of $6 million (pretax and
          after-tax)  for an other than  temporary  decline in the fair value of
          our investment in Avanex Corporation  (Avanex) below its adjusted cost
          basis.   Our   investment   in   Avanex   is   accounted   for  as  an
          available-for-sale  security  under  SFAS  No.  115,  "Accounting  for
          Certain  Investments in Debt and Equity Securities." At June 30, 2005,
          shares of Avanex stock were trading at $0.90 per share compared to our
          adjusted cost basis of $1.30 per share (after  adjusting for the first
          quarter of 2005  impairment  charge).  We intend to sell our shares of
          Avanex and,  subject to restrictions  and the trading volume in Avanex
          stock, we expect to complete this activity in early 2006. As we do not
          expect  the  market  value of the  Avanex  shares to  recover  in this
          timeframe,  the  additional  impairment  in  the  second  quarter  was
          required.

(b)  As a result of Corning's proposed asbestos  settlement,  any changes in the
     estimated fair value of the components of the proposed settlement agreement
     will be  recognized  in Corning's  quarterly  results until the date of the
     contribution  to the  settlement  trust.  In the  second  quarter  of 2005,
     Corning recorded a charge of $143 million (before- and after-tax) including
     $137  million for the change in  Corning's  common stock price of $16.62 at
     June 30, 2005, compared to $11.13 at March 31, 2005 and a $6 million charge
     for the change in estimated  fair value of certain other  components of the
     proposed asbestos settlement liability.

(c)  In the  second  quarter  of 2005,  we  redeemed  for cash the $100  million
     principal  amount of our 7% debentures  due March 15, 2007. We recognized a
     $12 million loss upon the early redemption of these debentures.

(d)  In the second quarter of 2005, Dow Corning  Corporation  recorded a gain on
     the issuance of subsidiary  stock. Our equity earnings included $11 million
     related to this gain.







                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
     RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
                        Three Months Ended June 30, 2006
                        (Unaudited; amounts in millions)

- --------------------------------------------------------------------------------
Corning's free cash flow  financial  measure for the three months ended June 30,
2006 is a non-GAAP  financial  measure within the meaning of Regulation G of the
Securities  and  Exchange  Commission.  Non-GAAP  financial  measures are not in
accordance with, or an alternative to, generally accepted accounting  principles
(GAAP). The company believes  presenting non-GAAP financial measures are helpful
to analyze  financial  performance  without the impact of unusual items that may
obscure   trends  in  the   company's   underlying   performance.   A   detailed
reconciliation is provided below outlining the differences between this non-GAAP
measure and the directly related GAAP measure.
- --------------------------------------------------------------------------------


                                                                    Three
                                                                 months ended
                                                                 June 30, 2006
                                                                 -------------

Cash flows from operating activities                                $  581

Less:  Cash flows from investing activities                           (444)

Plus:  Short-term investments - acquisitions                           647

Less:  Short-term investments - liquidations                          (485)
                                                                    ------

Free cash flow                                                      $  299
                                                                    ======









                  CORNING INCORPORATED AND SUBSIDIARY COMPANIES
     RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
                      Three Months Ended September 30, 2006
           (Unaudited; amounts in millions, except per share amounts)

- --------------------------------------------------------------------------------
Corning's earnings per share (EPS) excluding special items for the third quarter
of 2006 is a non-GAAP  financial  measure  within the meaning of Regulation G of
the Securities and Exchange  Commission.  Non-GAAP financial measures are not in
accordance with, or an alternative to, generally accepted accounting  principles
(GAAP).  The  company  believes  presenting  non-GAAP  EPS is helpful to analyze
financial  performance  without  the  impact of unusual  items that may  obscure
trends in the company's  underlying  performance.  A detailed  reconciliation is
provided below outlining the differences  between this non-GAAP  measure and the
directly related GAAP measure.
- --------------------------------------------------------------------------------

                                                            Range
                                                   ----------------------
Guidance: EPS excluding special items              $0.22            $0.26

Special items:
     Restructuring, impairment and other
       (charges) and credits (a)

     Asbestos settlement (b)
                                                   -----            -----

Earnings per share

        ----------------------------------------------------------------
        This schedule will be updated as additional announcements occur.
        ----------------------------------------------------------------


(a)  From time to time,  Corning may need to make  adjustments to estimates used
     in the determination of prior year  restructuring  and impairment  charges,
     which could result in a gain or loss during the quarter.

(b)  As part of Corning's  asbestos  settlement  arrangement to be  incorporated
     into the Pittsburgh Corning Corporation  reorganization  plan, Corning will
     contribute,  when the  reorganization  plan becomes  effective,  25 million
     shares  of  Corning  common  stock to a trust.  The  common  stock  will be
     contributed to the trust,  after the plan has been approved by the asbestos
     claimants and bankruptcy court. The portion of the asbestos liability to be
     settled  in common  stock  requires  adjustment  each  quarter  based  upon
     movements in  Corning's  common  stock price prior to  contribution  of the
     shares to the trust.  In the third  quarter of 2006,  Corning will record a
     charge or credit for the change in its common  stock price as of  September
     30, 2006  compared to $24.19,  the common stock price at June 30, 2006.  In
     addition,  Corning will record an adjustment  to the asbestos  liability to
     reflect  the  change in fair  value of any of the other  components  of the
     proposed asbestos settlement.



Please note that the  company  may pursue  other  financing,  restructuring  and
divestiture  activities at any time in the future, and that the potential impact
of these events is not included within Corning's third quarter 2006 guidance.

This schedule  contains  forward  looking  statements  within the meaning of the
Private  Securities   Litigation  Reform  Act  of  1995.  Such  forward  looking
statements  are based on current  expectations  and  involve  certain  risks and
uncertainties.  Actual  results may differ from those  projected  in the forward
looking statements.  Additional  information concerning factors that could cause
actual results to materially differ from those in the forward looking statements
is contained in the Securities and Exchange Commission filings of this Company.