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Press Release


LG Electronics Expands Brazil Mobile Phone Plant

- Expands the existing plant in Taubate, Sao Paulo, Brazil

- Expands the existing plant in Taubate, Sao Paulo, Brazil
- Joining the groundbreaking ceremony are LG Electronics CEO S. S. Kim, Sao Paulo State Governor, and other Brazilian government officials
- Aims to roll out 6.5 million CDMA/GSM mobile phones in Brazil by 2007
- Expects to account for 45% of premium CDMA market this year, up 135% from last year

November 22, 2004, Seoul, Korea - LG Electronics (CEO: S. S. Kim /06657.KS) is set to expand its existing
Brazilian mobile phone plant and aggressively penetrate the new mobile phone market of Central and South America.

LG Electronics held a groundbreaking ceremony in Taubate, Sao Paulo, on November 18 (local time) to expand its Taubate mobile phone plant. Attending the event were LG Electronics CEO S. S. Kim, the company's Latin America Business Division President Cho Choong-Bong, and other LG Electronics officials, as well as Sao
Paulo State Governor Geraldo Alckmin, Taubate Mayor Roberto Peixoto, and Brazilian government's officials.

LG Electronics CEO S. S. Kim said in the ceremony, "The expansion of Taubate mobile phone plant aims to help the company take the largest market share in this giant Brazilian market with a population of 200
million by 2006, as well as to foster Brazil as the company's mobile phone production base in Central and South America." He added, "By expanding the plant in Sao Paulo, Brazil's biggest transportation hub, LG
Electronics can expect to largely reduce logistics costs and aggressively penetrate the mobile phone market of Central and South America with a population of 500 million."

LG Electronics' Taubate mobile phone plant is scheduled to be completed by April 2005, and will further expand its capacity three times more than now by 2007 to be capable of manufacturing 6.5 million CDMA/GSM mobile phones a year.

As such, by the end of 2005, LG Electronics will be capable of manufacturing 70 million mobile phones a year around the world through its production bases in Korea, China, Mexico, India, and Brazil, as well as the GSM phone plant in Pune, India, scheduled to operate early next year.

Meanwhile, the Brazil's mobile phone market, with an estimated 62 million mobile phone service subscribers by the end of 2004, sees a new demand of about 1.3 million subscribers being created every month. CDMA
market accounts for about 50% in Brazil.

LG Electronics this year is estimated to account for about 45% of the segment of premium CDMA handsets including camera phones in Brazil's mobile phone market, and is to supply 2 million units to the market
this year, up 135% from last year. Also, the company aims to achieve over 100% annual growth rate, and capture 20% share of Brazil's mobile phone market by 2006, thus taking the No. 1 spot.

In addition, LG Electronics has since 2001 been sponsoring Sao Paulo FC, Brazil's most popular soccer team, which was launched in'35, and currently has three national players such as Cafu and Kaka on the team. This sponsorship maximizes the exposure of LG brand to the public and gives the company the effect of over USD30 million worth of advertisement.

LG Electronics' Latin America Business Division President Cho Choong-bong
said, "The expansion of Taubate plant's production line will allow us to early deliver customized products to our Central and South American customers at a more reasonable price."