A3 will serve as foundation for LGE to become world's no.1 PDP manufacturer by 2005

Dubai, October 7, 2004: Further reinforcing its position in the Plasma Display Panel (PDP) market, global consumer electronics and digital leader LG Electronics is developing its new 'A3' PDP line at its Display Workplace in Gumi, South Korea.

Reflecting its confidence in the global PDP market, LG is determined to concentrate its core capabilities on building A3, its 4th PDP line, which will be capable of producing 120,000 units monthly. The project requires an investment of US$568 million. 

"With its investment in A3, LG will be able to reinforce its PDP market presence and drive towards securing the world's number one position by 2005," said Mr K.H. Kim, President of LG Electronics Middle East and Africa.  

LG will invest US$568 million by the second quarter of 2005 in the first stage of A3, which will be built on a 125,620 square metre site. Responding rapidly to the fast-growing PDP market, the company then plans to pursue development of the second and third stages.

"A3 has the capacity to open two more additional lines in the future.  When LGE will invest in these lines will depend on future PDP market conditions," said Kim.  "When the first stage of A3 is completed, with a monthly capacity of 120,000 units, LGE will become the world leader for PDP manufacture with a total monthly capacity of 285,000 units."

LG hopes to establish A3 as the most competitive and sophisticated line of its type. Thanks to world-first technology, the line will be equipped with a mass-production system capable of producing six panels from a single sheet of glass, and the line will harness additional innovative technologies and processes.

In the meantime, LG has begun to put A2, its third line, into full operation with a monthly production capacity of 75,000 units, based on technology that produces three panels from a single piece of glass.  A2 was built in the second quarter of 2003 with an investment of US$281 million. LGE is set to boost A2's monthly capacity to 100,000 units by the year-end by producing four panels from a single piece of glass.

PDP demand is expected to surge to four million units this year and reach 13 million units by 2007. The industry saw a demand of 1.7 million units last year.

On the back of its enhanced capacity and price competitiveness, LG hopes to increase its global market share to 30 per cent by 2005, making it the world's largest player for PDPs. 

"The investment in A3 will enable LGE to solidify its leadership in the global PDP market.  We will continue to boost facility and R&D investments, aggressively drive marketing campaigns, and further upgrade our PDPs with the world's top technology," added Mr Kim.

-Ends- 

About LG Electronics, Inc.
LG Electronics, Inc. (Korea Stock Exchange: 066570.KR) was established in 1958 as the pioneer in the Korean consumer electronics market. The company is a major global force in electronics and information and communications products with more than 64,000 employees working in 76 overseas subsidiaries and marketing units around the world.  With annual total revenues of more than US $16.9 billion (non-consolidated), LG Electronics conducts its business in three main areas: Digital Display & Media, Digital Appliances, and Telecommunications Equipment & Handsets.

The LG Digital Display & Media Company provides core technologies for cutting-edge digital products and is a world leader in digital display products including plasma TVs, LCD TVs and monitors, and digital high-definition televisions (HDTV). The Digital Display & Media Company also provides digitally integrated products such as AV systems, optical storage, set-top boxes and home servers and is focusing on next-generation businesses such as home and mobile networks.

LG Electronics' goal is to enable the intelligent networking of digital products that will make consumers' lives better than ever. For more information, please visit www.lge.com

For more information, contact:
Hamad M. Malik                                                               Shilpa Mathai/Rana Bechara
Senior Regional Manager                                                   Polaris Public Relations             
arketing & Corporate Communications                                  Dubai, UAE
LGE Middle East & Africa Operations                                    Tel: +9714-3348522
Tel: +9714-8812199                                                         Fax: +9714-3341326
Fax: +9714-8813996                                                         Email: s.mathai@polaris-me.com
Email: hamad@lge.com                                                      Email: r.bechara@polaris-me.com

© Press Release 2004