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Press Release

08/11/2005

LG ELECTRONICS DRIVES FOR EXPLOSIVE U.S. MARKET GROWTH IN KEY PRODUCT CATEGORIES

CEO Michael Ahn Highlights Progress, Momentum on Revenue Growth,

CEO Michael Ahn Highlights Progress, Momentum on Revenue Growth,
Brand Positioning and Market Penetration at Summer Line Show

NEW YORK, Aug. 2, 2005 --- Capitalizing on its expanding premium brand presence in the United States, LG Electronics is experiencing explosive growth in its key product categories, from mobile phones and plasma HDTVs to digital appliances and computer products, according to the company's most senior executive in the Western Hemisphere.

Michael Ahn, president and CEO of LG Electronics North American Headquarters, highlighted LG's first-half performance in his keynote speech at LG's "Life's Good" summer line show an exclusive gala-by-the-sea event, aboard the Lady Windridge private yacht.

"At LG, "Life's Good" is more than a marketing theme. It captures the essence of what LG is all about our products and technologies and their impact on peoples lives, Ahn said, as an introduction to his remarks highlighting progress in three key areas: revenues, brand and market penetration.

Sales: During the first six months of 2005, LG's U.S. operations achieved a 12 percent revenue increase from the same period last year  to sales of $3.6 billion. Every division is up, with consumer electronics experiencing the highest percentage growth, at a phenomenal rate of 68 percent,
Ahn said.

Brand: Ahn discussed the success of the "LG: Life's Good" campaign and its premium brand positioning: "With this effort, LG's brand awareness, particularly in mobile phones and premium home appliances, is continuing its healthy upward trend." He noted that in only 18 months since launching its U.S. brand campaign LG already made BusinessWeek's Interbrand listing of top and 'most powerful' brands.

Market Penetration: "As a key player in the most dynamic market segments, LG Electronics has made great strides in establishing a leading position in key areas," Ahn said. For example, LG Mobile Phones achieved the Number 2 market share position in the U.S. during the first quarter, owning 17.65 percent of the market. With cutting-edge products and excellent relationships with key carriers, LG is doing better than others in the U.S., especially CDMA phones where LG is ranked Number 1.

In consumer electronics, he explained that LG already has established a strong market position in flat-panel digital TVs in the U.S. In fact, since the fourth quarter last year until June, LG maintained the Number 2 market share position in plasma, while continuing to expand its share of the LCD TV market. "And we are capitalizing on our global leadership in HDTV technology to address the world's largest HDTV market, the United States,"Ahn added.

LG's home appliances sales channel expansion strategy is working, the CEO explained. "Complementing the success of our regional accounts and very positive Best Buy relationship, LG's newest national account is Home Depot, where we have just launched a full line of home appliances. LG front-load washer and dryers and bottom-freezer refrigerators are doing quite well. And, I would add that, unlike most of our competitors, we focus on the premium segment of the market with premium products at premium prices."

Finally, in computer products, Ahn said LG continues to maintain its Number 1 position in the U.S. digital storage market led by its Super Multi optical drives, while growing the LCD computer monitor business through a successful retail expansion in Circuit City in the second quarter.

At tonight's pre-holiday season preview, the company showcased its broad product portfolio, including its digital displays, digital audio/video products, home appliances and mobile phones.

ABOUT LG ELECTRONICS U.S.A.
Based in Englewood Cliffs, N.J., LG Electronics U.S.A., Inc., (LGEUS) is the North American subsidiary of LG Electronics, Inc. LGEUS key product areas  consumer electronics, home appliances, information technology products and mobile phones are designed to deliver on the promise of its "LG: Life's Good" 2005 marketing theme. For more information, please visit www.lgusa.com.

ABOUT LG ELECTRONICS, INC.
LG Electronics, Inc. (Korea Stock Exchange: 06657.KS) is a global force in electronics, information and communications products with 2004 annual sales of US $38 billion (consolidated). With more than 66,000 employees working in 76 subsidiaries in 39 countries around the world, LG Electronics is comprised of four main business companies including Mobile Communications, and Digital Appliance, Digital Display, and Digital Media. The LG Electronics Digital Display Company provides core technologies for cutting-edge digital products and is a world leader in digital display products including Plasma TVs, LCD TVs and Monitors, and HDTV (high-definition televisions). For more information please visit www.lg.com.

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