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Press Release

05/29/2006

LG's 'Chocolate' Becomes Worldwide Phenomenon

A delectable mobile handset known as the 'Chocolate Phone', first in LG Electronics (LG) black-label phone series has become the favourite treat of handset buyers worldwide. The phone from LG, a leader in consumer electronics and mobile communications, officially d�buted in London, U.K. in early May and continued its tour to China, Russia, Mexico, Taiwan, Hong Kong, Singapore, Turkey, Iran and U.A.E.. There are still upcoming launch events in other cities around the world. The earliest event is scheduled on May 29 in Bangkok. The phone has been sparking a buzz among trendsetters and socialites in every fashion capital.

A delectable mobile handset known as the 'Chocolate Phone', first in LG Electronics (LG) black-label phone series has become the favourite treat of handset buyers worldwide. The phone from LG, a leader in consumer electronics and mobile communications, officially d�buted in London, U.K. in early May and continued its tour to China, Russia, Mexico, Taiwan, Hong Kong, Singapore, Turkey, Iran and U.A.E.. There are still upcoming launch events in other cities around the world. The earliest event is scheduled on May 29 in Bangkok. The phone has been sparking a buzz among trendsetters and socialites in every fashion capital.

Mr. Mun-Hwa Park, President and CEO of LG Electronics Mobile Communications Company, said, "The Chocolate phone is for discerning customers, in every market worldwide, who view mobile phones as fashion statements. LG is now positioning its mobile handsets as premium products and this stunning phone is just the beginning. The global launch has been extremely successful and we are already seeing a flood of reorders."

More than half a million Chocolate Phones have been sold worldwide in the four weeks since the global launch in London, where the phone has already sold out. Retailers there are anxiously awaiting additional shipments, and there are long waiting lists of customers with a craving for Chocolate. The phone has also taken the No. 1 best seller position at Carphone Warehouse, the largest European mobile phone retail chain. It also took the top sales spot in Mexico, with 25% market share, beating Motorola's Razr when it was launched there. Saudi retailers have already signed numerous pre-release sales contracts for the phone, anticipating a huge demand. It is no wonder why the Chocolate phone was chosen for the cover of Swedish mobile phone specialty magazine Mobil, which touted it as the next million unit seller after Razr.

The Chocolate Phone's success results from the combination of its excellent design, marketing and a proactive sales strategy. LG has hired Colleen McLoughlan, fashion icon and girlfriend of premier leaguer Wayne Rooney, as UK's primary Chocolate phone ambassador. She mentioned, "The LG Chocolate phone is working as an accessory for any outfit. It's unique, sleek and exactly the right size to pop into any handbag for any occasion. The black and red theme really makes this phone stand out and the touch sensitive buttons make it beautiful."

The Chocolate phones have also been presented as gifts for celebrities like Pierce Brosnan, Gwyneth Paltrow and Claudia Shiffer in London launch event. The strategy to position the phone in the luxury market was a great success. In Taiwan, a huge buzz was created prior to the launch event, because of a massive outdoor advertising campaign, and buzz among bloggers. LG use of locale tailored marketing strategies and securing of sales channels through major retailers, led to the incredible sales success.

Though the Chocolate phone phenomenon is expected to continue for the time being, LG is already planning the next move to secure its premium position in global mobile industry, now being established.

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