Press Release

07/26/2004

LG ELECTRONICS E-VSB TECHNOLOGY ADOPTED AS STANDARD BY ATSC

- LGE is leading global race in DTV Transmission technology

- LGE is leading global race in DTV Transmission technology
- Will develop E-VSB chips by the end of 2005 and commercialize them in 2006

SEOUL, July 22, 2004 -- LG Electronics, Inc. today commended the Advanced Television Systems Committee Inc. (ATSC) for approving next-generation technology designed to enhance both the transmission and reception capabilities of the ATSC Digital Television (DTV) Standard. This decision by the ATSC -- an international DTV standards organization -- has reaffirmed that LGE is leading the global race in DTV transmission technology.

Developed jointly by LG Electronics, its U.S. subsidiary, Zenith Electronics Corporation, and ATI Technologies, Inc., the Enhanced VSB (E-VSB) standard will provide digital TV broadcasters in the United States, South Korea and other ATSC countries with greater flexibility in the transmission system as well as improved over-the-air DTV reception, particularly in signal-challenged locations. A powerful and practical option, E-VSB will allow broadcasters to extend robust, over-the-air signals to wider audiences, while at the same time offering new services likely to produce new revenue streams.

LGE plans to finish development of the E-VSB chips by the end of 2005 and related services and products will be launched in 2006.

LGE's Chief Technology Officer Woo Paik welcomed the ATSC's decision to embrace E-VSB. We take considerable pride in what our colleagues here and in the United States have created, he emphasized, namely a flexible new technology that promises to improve digital television service for consumers and broadcasters alike.

Dr. Paik, who himself is widely recognized as a key figure in the development of the ATSC DTV Standard, said, "The broad support for E-VSB among broadcasters and especially from Korean ATSC members reflects the flexibility of the new more robust mode and flexibility it brings to the ATSV DTV standard."

Building on another innovation by LG's Zenith subsidiary, 8-VSB (vestigial sideband) transmission, E-VSB's refinements to the ATSC DTV Standard are designed to give digital TV broadcasters the flexibility to choose between bit rate and added robustness without impeding high-definition television (HDTV). Broadcasters using E-VSB will reach more digital TV sets with simple antennas; this is important because in the United States, for example, four out of five TV households have at least one terrestrial broadcast-only TV set (not connected to cable or satellite).

About LG Electronics, Inc.
LG Electronics, Inc. (CEO: S.S. Kim, 06657.KS) was established in'58 as the pioneer in the Korean consumer electronics market. The company is a major global force in electronics and information and communications products with more than 64,000 employees working in 76 subsidiaries and marketing units around the world. With annual total revenues of more than $16.9 billion (non-consolidated), LG Electronics comprises three main business companies: Digital Display & Media, Digital Appliance and Telecommunication Equipment & Handset. LG Electronics' goal is to enable the intelligent networking of digital products that will make consumers" lives better than ever. For more information, please visit www.lg.com

Contacts:
Leon Sharp lsharp@lge.com
+82-2-3777-3918
John Taylor john.taylor@lge.com
+1-847-941-8181


ATSC PRESS RELEASE

ATSC APPROVES ENHANCEMENTS TO DTV STANDARD
E-VSB Provides Additional Flexibility


WASHINGTON, D.C., July 20, 2004 -- The Advanced Television Systems Committee, Inc. (ATSC) has approved an amendment to the A/53C DTV Standard that adds a new optional mode of transmission called Enhanced VSB (E-VSB). Services transmitted in the E-VSB mode have additional forward error correction coding layers that allow reception under weaker signal conditions.

"E-VSB was developed in response to the desire of broadcasters to add more flexibility to the DTV Standard," said Mark Richer, ATSC president. "E-VSB was chosen from among multiple technologies after a rigorous evaluation process that included laboratory and field tests." E-VSB provides optional modes of operation that allow broadcasters to trade-off data rate for a lower carrier-to-noise threshold for some services. Examples of potential applications for EVSB include delivery of "fall back" audio, programming services targeted at small DTV receivers with indoor antennas, non-real time transmissions of file-based information to handheld and pedestrian receivers, and robust data broadcasting to devices such as desktop and laptop computers.

The ATSC has previously published a number of related Candidate Standards that support the E-VSB System. CS/T3-608 and CS/T3-609 provide transport specifications, and CS/T3-606 provides enhancements to the ATSC PSIP Standard (A/65). Enhancements to AC-3 audio (E-AC-3) are contained in documents CS/T3-613 and CS/T3-614. ATSC Standards and Candidate Standards are available at www.atsc.org/standards.html.

The Advanced Television Systems Committee, Inc. is an international, non-profit organization developing voluntary standards for digital television. The ATSC member organizations represent the broadcast, broadcast equipment, motion picture, consumer electronics, computer, cable, satellite, and semiconductor industries.

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