Press Release

05/05/2004

LG Electronics Posts Record Sales for First Quarter of 2004

-1Q Sales Totals KRW 5,996 billion, Net Profit KRW 585 billion

-1Q Sales Totals KRW 5,996 billion, Net Profit KRW 585 billion

LG Electronics (CEO: S. S. Kim, Korea Stock Exchange: 6657.KS) posted record sales in the first quarter of 2004 despite the sluggish domestic economy. On April 21, 2004, Mr. Young Soo Kwon, Chief of Financial Officer of LG Electronics, announced the first quarter performance at the Korea Stock Exchange. LGE's stellar performance in the first quarter was propelled by solid growth of digital display & media sector and strong sales of premium home appliances. LGE's sales recorded KRW 5,996 billion (export: KRW 472 billion,
domestic sales KRW 128 billion) in total. Furthermore, LGE generated KRW 407 billion in operating profit, KRW 732 billion in recurring profit, and KRW 585 billion in net profit.

LG Electronics, despite the concerns over delayed recovery of the global IT industry, sluggish domestic economy, the strong Korean Won and surging oil prices, recorded its largest quarterly sales in the first quarter of 2004. This is mainly attributable to aggressive marketing on LGE's strategic businesses such as digital TVs, PDPs, and mobile handsets as well as on premium home appliances.

Sales from the Telecommunications Equipment & Handsets Company grew 39.5% compared with the previous period to KRW 1,789 billion. Sales of handsets alone grew 43% on-year to KRW 1,577 billion, with unit growth rising 56% on-year to 8.75 million sets, due to increased
domestic sales and exports. CDMA exports rose 29% due to increased shipment to North America while CDMA unit growth in Korea grew 66%. In addition, GSM unit growth jumped 148% on-year due to increased shipment to the U.S., CIS, Middle East, and Africa.

Sales from the Digital Display & Media Company rose 16.9% on-year to KRW 2,396 billion while its operating profit increased KRW 147 billion with a margin of 6.1%. Sales of digital TVs, such as PDPs and LCDs, were up by 27% compared with the same period in the previous year.
Furthermore, sales of optical storage devices continued to lead the market by maintaining the No.1 global market share (26%). Exports of A/V products, including Combi and DVD-Recorders, also showed significant sales growth as well.

Sales at Digital Appliances Company showed 7% growth compared with the same period in the previous year to KRW 1,766 billion as robust exports of premium products led the overall growth, offsetting the slightly decreased domestic sales.

Meanwhile, LG Electronics earned KRW 407 billion in operating profit with a margin of 6.8%.
Its recurring profit rose 270.1% compared with the same period last year to record KRW 732 billion (margin 12.2%) on the back of equity method gains from LG.Philips LCD.

In particular, LG Electronics' strong performance was fuelled by on-year and on-quarter sales increase in each business sector as well as equity method gains from LG.Philips LCD and overseas subsidiaries. Overall, LG Electronics reached KRW 585 billion in net profit in the first quarter, which is 88% of last year's annual net profit of KRW 663 billion.

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