Korea's LG.Philips LCD climbs new summits as it expands its global profile LG.Philips LCD, already recognized as one of the world's leading innovators of thin-film transistor liquid crystal display (TFT-LCD) technology has set its sights firmly on becoming the world's leading LCD company. Offering "No.1 Value" to customers, shareholders and employees, it aims to achieve this goal through technology leadership, timely investments, cost leadership and sales marketing leadership. The firm says its spirit of "challenge and creativeness" will further propel it toward its goal of becoming the world's No. 1 LCD company, according to Vice Chairman & CEO Bon Joon Koo. He points to the fact that digital technology is already playing a vital role in our everyday lives, expressing a similar vision of the future to that outlined by Microsoft Chairman Bill Gates in his keynote speech at the 2006 CES in Las Vegas, USA. The firm's CEO sees turning dreams into reality as what digital technology is all about. LG.Philips LCD is expanding the role of digital technology in people's lives through the development of TFTLCDs that deliver digital data clearly and accurately, with superior resolution and quality. LG.Philips' spirit of "speed and openness" is cited by the CEO as an important reason why it has successfully established its knowledge management system and performance-based corporate values. Most importantly, LG.Philips LCD pledges to enhance people's lifestyles through the world of digital displays. LG.Philips LCD is a leading manufacturer and supplier of thin film transistor liquid crystal display, manufacturing TFT-LCD panels in a wide range of sizes and specifications primarily for use in notebook computers, desktop monitors and televisions. Headquartered in Seoul, South Korea, LG.Philips LCD currently operates seven fabrication facilities in Korea and has approximately 19,000 employees in locations around the world. LG.Philips LCD announced that it had signed an investment agreement with Poland to build an LCD module plant in Wroclaw. The company is looking forward to reaching new heights in 2006, as the recent start of mass production of its P7 facility, which is optimized for large and wide 42" and 47" LCD TV panels, reinforces its already strong position in the TFT-LCD industry. Its capital expenditure guideline for 2006 is KRW 4.2 trillion, which will be used mainly for ongoing investment in P7 and future production facilities. Sales in the fourth quarter of 2005 increased by 8% to KRW 2,963 billion (USD 2,934 million) from sales of KRW 2,741 billion (USD 2,714 million) in the third quarter of 2005 and increased 53% compared to KRW 1,933 billion (USD 1,914 million) in the fourth quarter of 2004. Fourth quarter sales were led by the continued growth in demand for large and wide LCD TV and notebook panels, which softened the impact of a challenging monitor demand environment. Operating profit in the fourth quarter of 2005 increased to KRW 334 billion (USD 331 million) from KRW 240 billion (USD 238 million) in the third quarter of 2005, and compared to an operating profit of KRW 2 billion (USD 2 million) in the fourth quarter of 2004. As one of the world's leading innovators of thin-film transistor liquid crystal display (TFT-LCD) technology, recently showcased its cutting-edge suite of TFT-LCDs for HDTVs, desktop monitors, notebook PCs, digital information displays and other applications during 2006 CES in Las Vegas. Apart from walking away with various awards at the 2006 CES in Las Vegas last month, LG.Philips LCD Co., Ltd., was awarded the Customer Satisfaction Award by DisplaySearch, a leading display market-research firm based in Austin, Texas, in May 2005 while sweeping all four categories including overall, TV, monitor and Notebook PC. It was the fourth consecutive year LG.Philips LCD has won the award. In July 2004, as part of its initial public offering (IPO), LG.Philips LCD became the world's first company to have a dual concurrent listing on the Korea Exchange (KRX) and the New York Stock Exchange (NYSE). The company has grown dramatically in recent years. Total sales in 2005 were more than KRW 10 billion, up from KRW 2.4 billion in 2001. LG.Philips LCD currently operates seven fabrication facilities, P1, P2, P3, P4, P5, P6 and P7, located in Gumi and Paju, Korea, and three back-end assembly facilities located in Gumi, Korea and Nanjing, China. In September 2005, LG.Philips LCD announced plans to extend its global presence by becoming the first TFTLCD producer to build a back-end module facility in Wroclaw, Poland, to meet the needs of its customers with manufacturing facilities in Europe. LG.Philips LCD's world's largest generation seven fabrication facility, P7, began operation in January 2006 in the Paju Display Cluster to address the market for large and wide high-definition LCD TVs. LG.Philips LCD is one of the world's leading suppliers of TFT-LCDs for high definition LCD TVs, large and wide PC monitors and thin and light notebook PCs. In addition, the company provides a broad scope of solutions for mobile products such as portable DVD players and rear-seat TVs, and serves other value-added, display- centric markets, such as the multimedia, mobile, medical and aerospace industries. The TFT-LCD industry has enjoyed significant growth, driven by demand for thin and light monitor and notebook displays and the recent growth of the LCD TV market. Investments in research & development and manufacturing facilities ensure that LG.Philips LCD can consistently deliver products with clear technology and product performance advantages. Going forward, the company remains committed to investment in new products and technologies, setting the stage to continue its leadership role in the TFT-LCD sector. LG.Philips LCD's consistently strong performance in recent years is due in part to its comprehensive manufacturing base, high glass conversion ratio and leading process innovation. The company plans to continue its emphasis on raw material cost reductions, ongoing manufacturing technology improvements, continued manufacturing innovations and enhanced economies of scale. In addition, LG.Philips LCD's focus on "high-end" products facilitates higher average selling prices than most major competitors in the industry. On September 6, 2005 LG.Philips LCD announced that it had signed an investment agreement with the governments of Poland and the municipality of Wroclaw to build a module plant in Wroclaw, a city in southern Poland. It plans to construct the "backend" module production plant in Wroclaw, becoming the first global LCD industry player to commence such production in Europe. The signing ceremony was held at the official residence of the Prime Minister of Poland located in Warsaw. Vice Chairman & CEO, Bon Joon Koo, and President & CFO, Ron H. Wirahadiraksa, of LG.Philips LCD, and Prime Minister Marek Belka, Minister of Economic Affairs and Labor Jacek Piechota and Wroclaw Mayor Rafal Dutkiewicz of Poland were present. LG.Philips LCD plans to build a production plant at the site with an annual capacity of 11 million units and will invest a total of EUR 429 million by 2011. The company will break ground for the plant in the first half of 2006 and commence mass production in the first half of 2007 when construction of the first batch of module lines is completed with an annual capacity of 3 million units. Wroclaw, Poland's educational and commercial center, is known to have a well established infrastructure, including convenient road networks as well as abundant high quality labor. The Polish government has committed to support this project. Vice Chairman & CEO, Bon Joon Koo of LG.Philips LCD said, "Our planned production facility in Poland is an important step for LG.Philips LCD, as we establish our manufacturing expertise in the geographic center of Europe. With this first major factory outside of Asia, LG.Philips LCD will better serve the rapidly growing European LCD TV market. As we implement our strategic plan for the future, we are proud to broaden the reach of our industry-leading LCD technology and expand our customer intimacy as we bring our products closer to our customers. We are grateful to the Polish government and the city of Wroclaw for their support and cooperation in this great partnership."