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Press Release

06/24/2004

NOTICE TO LG CUSTOMERS AND VENDORS

Counterfeit cell phone batteries have become an industry-wide safety concern. You may have seen news reports about the problems caused by counterfeits for other major mobile phone manufacturers. Recently, it has come to the attention of LG InfoComm U.S.A., Inc. (LG Mobile Phones) that counterfeit LG mobile phone batteries for the model TM-510 are appearing in the U.S. marketplace. These counterfeit batteries are not manufactured by LG, but illegally bear the LG trademark and closely resemble actual LG batteries.

Counterfeit cell phone batteries have become an industry-wide safety concern. You may have seen news reports about the problems caused by counterfeits for other major mobile phone manufacturers. Recently, it has come to the attention of LG InfoComm U.S.A., Inc. (LG Mobile Phones) that counterfeit LG mobile phone batteries for the model TM-510 are appearing in the U.S. marketplace. These counterfeit batteries are not manufactured by LG, but illegally bear the LG trademark and closely resemble actual LG batteries.

In a handful of instances, these counterfeit batteries have ruptured while installed in a TM-510 cell phone, frequently when also attached to an unauthorized aftermarket charger. Based on LG�s investigation to date, it appears that, unlike genuine LG batteries, the counterfeit TM-510 batteries have no or inadequate circuit protection devices to prevent overcharging. Rupture of a counterfeit battery appears more likely when it is used in connection with an unauthorized aftermarket charger, but can occur even when not attached to a charger.

The counterfeiters have imitated the external look of genuine LG batteries. The counterfeit batteries have a similar case and are labeled with the LG trademark, part number and manufacturer date code. However, when analyzed, the assembly techniques and internal components differ substantially from genuine LG cell phone batteries. All of the counterfeit batteries that LG has investigated to date bear one of the three following manufacturer date codes on the label affixed to the back of the battery:

AEMLLL 02220, AEMMHH 02220, AEMLLL 02X25H or AEMHHH 02725

LG CUSTOMERS who purchased their phone and battery from Verizon Wireless and whose TM-510 batteries bear these codes should contact Verizon Wireless at 1- 888-351-2121 for more information.

LG�s primary concern is for the safety of its customers. Genuine LG batteries are carefully designed and manufactured, and thoroughly tested to ensure the highest level of quality and safety. For example, genuine LG batteries contain redundant safety systems to prevent overcharging. LG is not aware of any instances where a genuine LG battery ruptured during proper use or charging.

LG has already identified one source of counterfeit batteries for TM-510 cell phones, has initiated legal action against the U.S. importer of these counterfeit batteries and is working with government agencies to stem the flow of counterfeit batteries into the U.S. marketplace. LG is taking additional aggressive steps to pursue other counterfeiters in order to protect the safety of its customers and to protect its reputation for innovative, high quality and safe products.

Future genuine LG cell phone batteries will include authentication software and/or labels that will verify the genuineness of the battery. In addition, the charging circuits in LG cell phones have been modified to make it more difficult for counterfeit batteries to be used in LG products. Only genuine LG batteries will charge properly on the cell phone, thus preventing potential property damage and injuries from counterfeit batteries. In the meantime, customers need to be aware and protect themselves by purchasing LG products only from authorized resellers. Vendors of LG products should purchase LG cell phone batteries directly from LG. LG�s product warranty applies only to genuine LG products.

If anyone offers to sell you counterfeit LG products, LG would appreciate hearing from you. Please contact us at 1-800-793-8896. You should be suspicious about the genuineness of an LG product if the seller is not an authorized reseller and the asking price for the offered product is well below what LG or its authorized resellers typically charge for the product.

If you have any questions, please call Verizon Wireless at 1-888-351-2121 or LG at 1-800-793-8896.

For more information about this recall please visit The U.S. Consumer Product Safety Commission at http://www.cpsc.gov/cpscpub/prerel/prhtml04/04559.html

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