Press Release

05/15/2006

LG SUCCEEDS TO PRODUCE 50-INCH PLASMA PANELS WITH WORLD'S FIRST TECHNOLOGY OF TAKING THREE PANELS OUT OF A SINGLE GLASS

The industry's first technology of slicing multiple panels out of a single panel to enhance efficiency and secure price competitiveness

The industry's first technology of slicing multiple panels out of a single panel to enhance efficiency and secure price competitiveness
May 15th, 2006 --- LG Electronics (LG), one of the global leading players in the Plasma and LCD TV market, begins producing 50-inch plasma display panels in A2 line with world's first technology of taking three panels out of a single glass in the plasma industry.
Until now, it has been making one 50-inch panel from a single glass in A1 line. Through the industry-leading technology which slices three panels from a single mother glass, LG is expected to largely increase the company's overall monthly output capacity for 50-inch plasma panels. Also, the company's plasma substrate size will be enlarged to 1,164 by 1,950mm form the current size, 1,164 by 650mm.
With this break-through technology, LG boosts its growth of monthly 50-inch PDP capacity at its A1 and A2 lines in Gumi from 50,000 to 150,000 panels and additionally expects to cut down costs by reducing the number of processes and lead-time.
Last September, LG began producing 42-inch plasma panels by cutting six panels from a single glass sheet; it was the first technology in the plasma panel industry. Moreover, as a industry leader, LG has also been preparing to produce 50-inch panels with the technology to take six panels out of a single glass at its A3 Gumi production line in case that the rapid growth of demand for plasma TVs.
Kwang-Ho Yoon, executive vice President & general manager of PDP Division, said: "LG plans to enhance investment efficiency and strengthen its business structure with introducing its core technology of taking eight 42-inch panels from one sheet starting form the third quarter, following the cutting-edge technology of making three 50-inch panels from one mother glass."
On the other hand, 50 inches and over-sized flat panel display market that consists of plasma TVs and projection TVs is fast moving to plasma TV: the reason is that plasma TV has price competitiveness as well as the superior picture quality. According to Display Search, one of the well-known market research companies, said that the plasma TV took 18.7% and projection TV was 81.3% in 50 inches and over categories of the world TV market last year. However, plasma TV will increase to 34.1% this year, 54.1% in 2008 and 59.1% in 2010. Butprojection TV is forecasted to 24.6% and LCD TV will be 16.3% in 2010.
[The World Market Size for 50 Inches & Over-Sized Flat Panel Displays]

  2004 2005 2006 2007 2008 2009 2010
Plasma TV 328.7 701.1 1,473.6 2,441.1 3,795.4 5,003.0 6,127.1
LCD TV   2.5 37.2 224.3 535.4 1,007.7 1,695.4
Projection TV 3,227.4 3,054.2 2,805.8 2,629.9 2,685.2 2,657.4 2,549.1
Total 3,556.0 3,757.8 4,316.5 5,295.3 7,016.0 8,668.0 10,371.7
PDP TV M/S 9.2% 18.7% 34.1% 46.1% 54.1% 57.7% 59.1%
LCD TV M/S 0.0% 0.1% 0.9% 4.2% 7.6% 11.6% 16.3%
Projection M/S 90.8% 81.3% 65.0% 49.7% 38.3% 30.7% 24.6%

source : Display Search, unit : 1,000
It is expecting that the world TV market which was 3.76 million units in 50 inches and over categories of last year will be increased up to 10 million units in 2010. That will be 16% growth in AAGR (Average Annual Growth Rate).
LG Electronics (LG), a leader in consumer electronics and mobile communications, took the position of the world's largest maker in plasma panels in the 1st quarter by units, by producing 730,000 panels. Mr. Sang-Han Yoon, President and CEO of LG Electronics Digital Display Company, said: "LG will lead the market for 40-inch or larger flat-panel TVs by maintaining its strong competitiveness on cost and technology. We will keep our spot as the number one plasma panel maker this year and become the largest plasma TV maker in 2007."


About LG Electronics, Inc.
LG Electronics, Inc., (KSE: 06657.KS) is the leader in consumer electronics and mobile communications. The company has more than 72,000 employees working in 77 subsidiaries and marketing units around the world. LG Electronics is the world's largest producer of CDMA handsets, optical storage devices, residential air conditioners and home theater system. With total revenue of more than USD 35 billion (consolidated USD 45 billion), LG Electronics is comprised of four business units: Mobile Communications, Digital Appliance, Digital Display and Digital Media. For more information please visit www.lg.com.


About LG Electronics Digital Display Company
LG Electronics Digital Display Company provides core technologies for cutting-edge digital products and is a world leader in digital display products including Plasma TV, LCD TV and Monitors, and HDTV (high-definition televisions).

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