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Press Release

03/15/2005

LG Electronics is set to substantiate its penetration into North America's 3G WCDMA mobile phone market

- On March 14, LG Electronics successfully test runs its commercialized 3.5 G HSDPA-enabled mobile handset jointly with Lucent Technology at 'CTIA Wireless 2005'

- On March 14, LG Electronics successfully test runs its commercialized 3.5 G HSDPA-enabled mobile handset jointly with Lucent Technology at 'CTIA Wireless 2005'
- The model enables the realtime downloading of large-capacity DVD videos and multimedia-feature music in a 1.4Mbps transmission environment
- Equipped with the Qualcomm's MSM 6275 chip, the model supports multiple modes such as GSM/GPRS/EDGE/WCDMA. LG was selected last year as the strategic provider of 3G phones to Cingular and now is keen to fast respond to the North America's 3G market
- Buoyed by its No. 1 position in North America's CDMA mobile phone market for a second straight year, the company is focusing on North America's WCDMA market


LG Electronics has recently made another successful test-run of its 3.5-generation HSPDP (high speed downlink packet access)-enabled mobile phone in North America following its previous test in Europe, and is now pushing to penetrate the global 3.5G mobile handset market.

LG Electronics (CEO: S. S. Kim / 06657.KS) announced that it has made a successful demonstration of 3.5G high-speed data transmission at CTIA Wireless 2005, taking place in New Orleans, from March 14-16, using Lucent Technology's 14Mbps download-supportive WCDMA system, as well as its own-developed commercialized HSDPA-enabled mobile phone.

LG Electronics successfully demonstrated HSDPA mobile handset's downloading of DVD video and large-capacity multimedia-feature music in a Web server-based 1.4Mbps transmission environment, as well as other innovative services available in a 3G mobile infrastructure.

The model is the same type as the HSDPA whose test run was made successful at Nortel lab on March 6, the first of its kind in the world. Equipped with Qualcomm's MSM 6275 chip, it is the industry's first multi-mode mobile phone that can support not only the existing 3G WCDMA platform, but also 2G GSM, 2.5G GPRS, and 2.75G EDGE. The company's successful test runs of the model in Europe and the U.S., both promising WCDMA markets, is profoundly meaningful.

The commercialized HSDPA service, which is a pre-4G multimedia technology that will lead the 3G mobile services, will be introduced starting 2006 to Korea, Europe, the U.S. and other WCDMA service-provided countries, after its networks are structured and its technology is upgraded starting in the second half of this year.

The HSDPA service, which can provide a data transmission environment with a maximum speed of 14 megabits per second, i.e., seven times faster than EVDO service, and five times faster than existing WCDMA service, enables a smoother video telephony and downloading of large-capacity multimedia data even on the road. The HSPDA service thus enables high-speed wireless Internet connection via mobile phones, PDAs and notebook PCs while on a bus, subway, and high-speed bullet trains.

In particular, the HSPDA will likely be launched by operators centering on U.S.'s largest mobile operator Cingular in North America's WCDMA market in the second half of this year, and the American market is paying keen attention to the expected introduction of HSDPA service, a technology upgraded a notch form the existing WCDMA service.

Since LG Electronics was selected as the strategic handset provider in December 2004 by Cingular, and is fast leading the HSDPA-enabled handset market, it is thus set to widen its presence in North America's 3G and 3.5G mobile handset market.

LG Electronics is positively responding to domestic 3G service operators using its own-developed HSDPA system, while to positively penetrate overseas markets in tandem with global 3G equipment makers like Lucent and Nortel, it is conducting tests to link with HSDPA networks, leading the HSDPA-enabled mobile handset technology.

Juno Cho, Executive Vice President for North America Business Division at LG Electronics, said, "The first successful test run of our HSDPA mobile handset at CTIA has made our leading 3G technological prowess recognized in this market, and offered a better position for LG Electronics to preoccupy the North American market of WCDMA service which will go into full swing this year. We seized the top spot in North America's CDMA handset market for a second straight year last year, and buoyed by such performance, we expect to do very well in North America's WCDMA market this year."

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