Press Release

04/06/2005

LG Electronics Aims to Become No. 1 in the European Plasma TV Market by end-2005

- Aims to become No. 1 Plasma TV company with 15% market share in Europe

- Aims to become No. 1 Plasma TV company with 15% market share in Europe
- To double its production capacity of DTVs in Poland
- To expand production line-up and distribution channels

Seoul, Korea, April 6, 2005 -- LG Electronics (CEO: S.S. Kim / 06657.KS) plans to reinforce its marketing in the European plasma TV industry.

LG Electronics is planning to
• expand plasma TV production lines,
• enlarge strategic partnerships with distribution channels,
• strengthen marketing to achieve the no.1 market share of plasma TVs in Europe.

To this end, the company will prepare for the growing needs of plasma TVs by expanding the production capability of the Poland DTV factory from 300,000 sets to 600,000 sets a year. At the same time, the company will strengthen
its marketing force by expanding strategic partnerships with distribution channels throughout Europe and launching kick-off events and dealer conventions for new products.

To strengthen the distribution network, LG Electronics will set up strategic partnerships with leading local distributors. The main reason for LG Electronics' recent aggressive marketing is the rising demand for FPDs(flat panel display) such as plasma TVs, which are high value added products. Therefore, it aims to achieve the No.1 market share, 15%, in Plasma TVs through various marketing activities. The goal is to increase 2004 sales of 0.5 million sets to 1.0 million sets in 2005.

Based on the leading technology of FPDs, LG Electronics is planning to expand its overall sales of premium products of NDP(new display products) which include plasma TVs and LCD TVs.

In addition, LG Electronics is going to utilize synergy effects among subsidiaries with integrated marketing activities, business process improvement and innovation activities to develop a premium brand.

• attached photo caption:
LG Electronics showing off high technologies with stylish plasma TVs and LCD TVs during last month's 'CeBIT 2005', the world's biggest IT exhibition show.

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