Press Release

07/22/2004

LG Electronics E-VSB Technology is adopted as the standard by ATSC

-LGE is leading the global race in DTV Transmission technology

-LGE is leading the 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 (ATSC) for approving next-generation technology designed to enhance both the transmission and reception capabilities of the ATSC Digital Television (DTV) Standard. LGE's E-VSB technology was selected over such companies as Phillips, Broadcom and Conexant. ATSC is an international organization formed to set voluntary standards for digital TVs in North America. This monumental decision by the ATSC 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 South Korea, the United States 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," Mr. Paik 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 LG innovation, 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).

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