Phone capable of receiving ground-based digital multimedia broadcasts

Dubai, January 4, 2004: Global and regional digital leader LG Electronics has unveiled the world's first terrestrial digital multimedia broadcast receiving mobile (DMB) phone. 

The state-of-the-art mobile phone resolves problems surrounding the bulky terminal size and power consumption of previous terrestrial DMB terminals, which lacked mobile phone functions. The phone is equipped with a mega-pixel camera and MP3 player functions. LG has built a standard home TV antenna function into the new phone to receive broadband DMB that adopts the DMB-receiving System-on-Chip (SoC). The chip enables users to watch terrestrial broadcasts and talk on the phone at the same time. The phone can broadcast continuously for two and a half hours.

This terrestrial DMB phone has opened up a new world where people can watch terrestrial DMB TV and simultaneously speak via a mobile phone, said K H Kim, President, LG Electronic Middle East and Africa Operations. The phone uses our handset design technologies and terrestrial broadcast-receiving chip, giving it the competitive edge in size, performance, and convenience. By overtaking Europe in launching the terrestrial DMB phone, we can have a bigger voice in setting global standards.

LG invested nine billion US dollars to develop the phone, developed over two years by 130 top researchers. The company has filed 150 patents applications for technologies, including H.264 video decoder enabling technology.

DMB technology will open up a new world of mobile possibilities. This breakthrough, along with our satellite DMB phone, the SB-100 unveiled in May 2004, has proved LG's capabilities, giving us the momentum to lead the multimedia mobile handset market revolution. Using the terrestrial DMB phone technologies, LG will aggressively penetrate markets including Europe, South America and China. I am convinced this will help us achieve our goal of being the top three players in the global handset industry by 2006, Kim added.

The terrestrial DMB SoC can be applied to mobile phones, notebook computers, PDAs, and car terminals. LG, backed by its expertise in integrating DAB (Digital Audio Broadcasting) and FEC (Forward Error Correction) technologies, is developing various broadcasting-related technologies such as satellite and terrestrial DMB related handsets. The company will continue to enhance its product line up by upgrading broadcast receiving and battery capacity.

To upgrade product offering and expand existing capabilities, LG is also investing around US $ 400 million on its production facility in Taubate, Brazil. The plant will be operational by April 2005 and cater to the burgeoning Central and South American market with three production lines; around 20 percent of the plant's output will be earmarked for export. LG aims to produce 6.5 million CDMA/GSM mobile phones in Brazil by 2007.

This expansion will largely reduce logistics costs and help drive sales within the Central and South America market. By the end of 2005, LG Electronics will manufacture 70 million mobile phones a year around the world, through its production bases in Korea, China, Mexico, India, Brazil and Pune, India, scheduled to commence operations next year,? said S. S Kim, CEO and Chairman, LG Electronics.

-Ends- 

Editor's notes:
* LG Electronics DMB SoC is the world's first to integrate broadcast-receiving section and media-process (audio-visual signal treatment) section into one chip. It also adopts picture-enhancement mobile-XD engine.

* The company applied its own-developed algorithms aimed at enhancing receiving sensitivity and reducing power consumption through an audio-visual treatment-enabled platform based on digital signal processor.

* DMB services will generate huge ripple effects in the whole IT industry including parts, devices, contents and infrastructure.

* The galvanization of DMB services will highlight DMB-related chip-set display, batteries, and storage devices as core elements, thus helping develop related industries, and in turn boosting demand for related terminals, car electronics devices, and new portable devices. This move will likewise invigorate related contents, services, and infrastructure, thus having huge ripple effects on the whole IT sector.

* Terrestrial DMB will become a radio-like concept in the long term and will be available with all IT devices.

* DMB (Digital Multimedia Broadcasting) provides CD-quality-level sounds, data and video services via mobile handsets, while their holders move or stay in certain places.

* DSP (Digital Signal Processor) is an integrated circuit that can treat digital signals in the hardware way.

* DAB (Digital Audio Broadcasting) can transmit not only CD-level high quality sounds, but also texts, graphics, and videos. The basic standard is Eureka-147.

Terrestrial DMB phone specification:

- Large 2.4?QVGA screen, high-definition LCD

- 1.3 Mega Pixel CCD camera

- CDMA mobile service / T-DMB(OFDM) receiving

- High-definition video C H.264 CIF 30 fps

- Enabling terrestrial DMB video (H.264)/audio (BSAC) standard

- DAB-MUSICAM

- High-quality audio play C MP3 Player

- 3D Surround Sound / Dual Stereo Speaker

Ripple effects of terrestrial DMB production

Unit: 100 million won

Year

2004

2005

2006

2007

2008

2009

Total

Receiver Market

771

1,562

2,924

5,885

8,619

12,267

32,028

Service Market

74

134

227

548

672

1,202

2,856

Total

844

1,696

3,151

6,433

9,291

13,469

34,884

Market prospect for terrestrial DMB car receivers

Unit: 1,000 units, 100 million won

Year

2004

2005

2006

2007

2008

2009

Total

No. Of units

155

270

424

996

1,405

1,910

5,160

Market Size

372

596

860

1,853

2,411

3,015

9,107


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 Telecommunication Equipment & Handset Company provides total solutions ranging from wired and wireless handsets to telecommunication equipment. The company is a leader in the innovation and development of cutting -edge technologies in next-generation wireless telecommunications and is steadily expanding its global market share in 3G (WCDMA / cdma2000) wireless systems.

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             
Marketing & Corporate Communications                       Dubai, UAE
LGE Middle East & Africa Operations                           Tel: +9714-3348522
Tel: +9714-3340066                                                Fax: +9714-3341326
Fax: +9714-3370515                                               Email: s.mathai@polaris-me.com
Email: hamad@lge.com                                             Email: r.bechara@polaris-me.com

© Press Release 2005