DisplaySearch Adds Portable DVD Players, Pachinko and Game Applications to its Small/Medium Display Reports.

AUSTIN, Texas -- DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting, released its Quarterly Small/Medium LCD Shipment Report and Quarterly Small/Medium LCD Pricing Report by adding a new category of displays, amusement applications, and by differentiating between a-Si TFT LCDs and LTPS TFT LCDs.

In Q2'04, revenues were $4.6 billion -- a new record, up 47% Y/Y and 5% sequentially. Shipments also set a record with 223.5 million, up 19% Y/Y and 5% sequentially. Weighted average ASPs were $19.42, up 2.6% sequentially and 27.0% Y/Y. The small/medium shipment volume is being driven by mobile phones, which shipped a record 58.0 million displays/month, 81.3% of the total vs. 81.9% last quarter. The growth is in color displays and more specifically, a-Si and p-Si TFT LCDs. As a result, there is both revenue growth and ASP growth in this category. The other applications also had significant unit and revenue growth:

--Mobile phone main displays grew 10% Q/Q vs. a forecast of 1% in Q2'04 to a record 58.0 million units/month, up 10% Q/Q and 37% Y/Y. Monochrome displays lead the volume with 24.1%, down 7.8%; 1.8" CSTN followed at 14.2% share and flat Q/Q, and 2.2" a-Si TFT LCDs had a 13.0% share, which was up 78.6%. By technology, CSTN had a 41.2% share, followed by a-Si at 27.0%, MSTN at 24.1% and LTPS at 7.6%. The leading suppliers were Samsung SDI at 21.3%, Philips at 15.5%, and Epson at 13.1%. Mobile phone displays are expected to increase 5% Q/Q in Q3'04 to 60.6 million/month.

--PDA module shipments grew 10% faster than expected, increasing 13.1% Q/Q while rising 26% Y/Y to 1.4 million units/month. 3.8" a-Si QVGA panels lead the category with a 24.6% share followed by 3.8" QVGA LTPS at 19.6% share. By technology, a-Si took over the lead with a 37.0% share followed closely by LTPS at 35.1%. The success by palmOne in its new Treo offerings contributed to the change. ST-LCD continued to lead this segment followed by Sharp and Wintek. However, ST-LCD lost share due in large part to the change in direction at Sony, which is no longer shipping Clies in North America. PDA displays are expected to decrease 3% Q/Q in Q3'04 to 1.3 million/month.

--Automobile monitor module shipments grew 9% faster than forecast in Q2'04, rising 13.7% Q/Q and 37% Y/Y to 928K panels/month. The 7.0" size leads the category with a 44.6% share followed by 6.5" at 33.5%. The growth is a function of entertainment displays, which are very popular in North America, where car navigation systems have yet to gain a strong foothold. The leading suppliers were TMDisplay at 43.1%, Sharp at 34.5% and AUO at 10.3%. Automotive monitors are expected to increase 1% Q/Q in Q3'04 to 935K/month.

--Digital still camera module shipments grew 11% faster than forecast in Q2'04, rising 13.1% Q/Q and 26% Y/Y to 6.6 million panels/month. The 1.5" size dominates the category with a 40.0% share for a-Si and a 33.1% share for LTPS. The leading suppliers were Casio at 27.9%, Sanyo at 20.0% and AUO at 18.9%. Digital Still Camera modules are expected to increase 10% Q/Q in Q3'04 to 7.3 million/month.

--Digital video camera module shipments grew 13% faster than forecast in Q2'04, rising 12.8% Q/Q and 2% Y/Y to 1.5 million panels/month. The 2.5" size dominates the category with a 50.1% share for a-Si and a 48.2% share for LTPS. The leading suppliers were ST-LCD at 30.8%, AUO at 16.7% and TMDisplay at 15.3%. Digital Video Camera modules are expected to decrease 10% Q/Q in Q3'04 to 1.3 million/month.

--Amusement module shipments rose 31.9% Q/Q to 2.7 million panels/month. Games dominate the category with a 64.0% share, which also includes pachinko machines at 12.6% and DVD players at 24.3%. The leading suppliers were Sharp at 71.3%, and TMDisplay at 13.0%. Amusement modules are expected to increase 10% Q/Q in Q3'04 to 2.9 million/month.

In terms of total small/medium shipments on a unit basis, Samsung SDI continued to lead, as shown below, and gained ground as Philips lost share due to the drop in MSTN mobile phone shipments.

Small/Medium LCD Shipment Share and Growth By Supplier (Unit Basis)

                                        Market Share    Q2'04 Growth
                                      ---------------- --------------
        Small/Medium Supplier          Q1'04    Q2'04    Q/Q    Y/Y
SDI                                      20.1%   21.3%     17%    89%
Philips                                  19.3%   15.5%    -12%    -3%
Epson                                    13.3%   13.1%      8%   -16%
Sharp                                    10.9%   11.4%     16%   130%
Wintek                                    5.7%    5.5%      6%   193%
Samsung                                   5.3%    6.3%     31%   441%
Other                                    25.3%   26.8%     16%    22%
------------------------------------- -------- ------- ------- ------
Total                                   100.0%  100.0%     10%    38%
------------------------------------- -------- ------- ------- ------

DisplaySearch's Quarterly Small/Medium LCD Shipment Report reveals each supplier's small/medium unit shipments and revenues by application, size and resolution for Q2'04 and forecasts this data forward two quarters through Q4'04. A supply chain is provided for each application showing display shipments by supplier to each set maker. The Quarterly Small/Medium LCD Pricing Report shows high, average and low prices for all displays by application, size, resolution and technology. The report is now delivered in PowerPoint. To find out which markets and suppliers will gain or lose ground in Q3'04 and Q4'04, please contact Kendra Smith at DisplaySearch at 512-459-3126 or [e-mail] for subscription information.

About DisplaySearch

DisplaySearch (www.displaysearch.com) is the worldwide leader in market research and consulting for the flat panel display (FPD) industry. Founded in 1996, DisplaySearch surveys the entire display industry food chain, including component and equipment manufacturers, display producers, OEMs, distributors and retailers. From this comprehensive vantage point, DisplaySearch prepares a valued suite of market forecasts, technology assessments, studies and analyses, and produces influential industry events worldwide. The firm is comprised of a core team of 19 analysts, located in Japan, Korea, North America and Taiwan.