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Press Release


LG Electronics pushes into CIS, makes splash at 'EXPOCOMM Moscow 2005'

- To showcase over 20 high-end products at a giant booth in the largest information

- To showcase over 20 high-end products at a giant booth in the largest information
& telecommunications exhibition in the CIS
- Over 10 new products, including MP3 phones and EDGE phones, will take up 30
percent of the CIS mobile phone market by end of 2005
- LG Action Sports European Tour to kick off in Russia after EXPOCOMM ‐
complete with concurrent rock concert

Should you have any questions, please contact our Corporate Communications Teamat +82-3777-3920.

May 12, 2005, Moscow, Russia - Seoul, LG Electronics (CEO: S. S. Kim / 06657.KS) is aggressively pushing into the Russian and CIS mobile phone markets. Through high-profile participation in the largest information & telecommunications exhibition in the CIS, "SVIAZ EXPOCOMM Moscow 2005" from May 10th to 14th, and via related marketing events, LG Electronics will stake out its premium brand positioning.

At a press conference in Moscow on May 12, LG Electronics announced that its goal in Russia is to gain a 10 percent market share in 2005, and become one of the Top 3 mobile phone brands in 2006 by reinforcing its position in the premium-level mobile phone market in the CIS with 42 million sets this year. LG Electronics is planning to be the most popular CIS mobile brand by 2007.

Under the theme 'Leader in Mobile Entertainment' LG Electronics will exhibit advanced MP3 phones, 3D game phones, health-care phones, mega-pixel fingerprint identification phones, mega-pixel 3G mobile phones and terrestrial/satellite DMB-receiving phones, at the company's 336 square-meter booth at the expo at Krasnaya Presnya Fairground, Moscow, from May 10 to 14.

About 870 global telecommunications companies from 36 countries will participate in the event - the largest wired/wireless telecommunications exhibition in Russia. It has been held every year since 1991.

"The Russian mobile phone market is a rapidly growing, with an expected volume increase from 28 million sets last year to 33 million sets this year," said LG Electronics' Executive Vice President, Jae Bae, who leads the Global Strategy & Business Management Division. "Competition will be much more fierce this year than it was before." He added,"LG Electronics is planning to take-off as a leading company here through innovative products and continuous brand-building activities that specifically target young consumers."

Consumers in the CIS are currently placing high priority on design and functions. Sales of high-priced, compact music phones with advanced gadgetry, such as cameras, blue tooth and MP3 players, are rapidly increasing. With this given, LG Electronics will introduce its top three music phone models with MP3 functions and refined internal antenna to the CIS markets: its 'sports car' phone (model: LG-M4410); its karaoke phone (model: LG-F2300); and its GPRS camera phone (model: LG-C3400).

The 'sports car' phone (model: LG-M4410), has been attracting attention pre-launch, as the model will take a point role in capturing the 2005 global GSM market. The 'LG-M4410' seized attention with its design ‐ styled after a sports car - at 'CeBIT 2005' held in Hanover, Germany, in March. In addition to its sleek look, it supports all 3G services- GSM/GPRS/EDGE- and has a built-in MP3, 1.3 mega pixel camera, blue tooth and external Mini SD card slot. It is priced at over US$500.

The karaoke phone (LG-F2300) is specially developed for consumers in the CIS, who enjoy indoor singing and dancing in cold weather. Purchasers of this phone are provided with a free MP3 CD that includes the 100 latest Russian hits. The songs can be downloaded onto the mobile phone from PCs, and the lyrics are displayed on the handset's LCD, like a karaoke player, when the songs are played.

The LG-C3400, exclusive for GSM/GPRS, will be launched alongside the above models. It emphasizes an MP3 function that supports MMS (Multimedia Messaging Service) with simple internal antenna style, and is expected to contribute to the popularization of high-end music phones.

In addition, LG Electronics will launch 20 new products - a 100 percent increase from last year ‐ after May. The company will focus on mass-producing hit models, emphasizing high-priced phones of above US$250 and music phones.

LG Electronics established its "Russia R&D Center" at St. Petersburg University at the end of last year. More than 100 researchers are leading local mobile phone software development for the CIS. LG Electronics is now equipped with global R&D centers in eight strategic locations around the globe: Europe (Paris), China Beijing), United States (San Diego), India (Bangalore), Brazil (Sao Paolo) and Russia (St. Petersburg). They reinforce the activities of the company's mobile phone research center in Seoul.

As the launch pad to becoming the top cellular phone brand in Russia by 2007, LG Electronics has selected Russia as the location to kick off its 'LG Action Sports European Tour.'

The 'LG Action Sports Championship Russia Tournament' will take place at the Luzhniki Complex, Moscow, for two days from May 14 - the last day of the expo - promoting a young, edgy and premium brand image. A major rock concert by famous local musicians will also be held concurrently over both days.

With its strategic goal of becoming a Global Top 3 player in the mobile sector by 2006, LG Electronics concluded a sponsorship contract with the action sports association ASA (Aggressive Skaters Association) in April 2004, to hold an LG Action Sports Tour in major countries around the world for five years.

LG Electronics successfully held the first competition in Los Angeles, California, in November 2003, and will hold the '2005 LG Action Sports European Tour' in Russia, Germany, France, Spain and Italy after holding preliminaries in China.