LG Electronics Announces First DVD Recorder with Microsoft DVR Software Technology.

LAS VEGAS -- Powerful Combination of Technologies from Microsoft and LG Raises Bar for Digital Recorder Market

LG Electronics, Inc. today announced the world's first DVD recorder with digital video recorder (DVR) functionality using new software technology from Microsoft Corp. LG model LRM-519 will be available to consumers by fall 2005.

Unveiled by Microsoft Chairman and Chief Software Architect Bill Gates during his keynote address on the eve of the International CES 2005, the LG model LRM-519 raises the bar in the exploding DVD recorder market as the first combination DVD recorder and 160-gigabyte hard-disc-drive (HDD) convergence product with an electronic program guide (EPG) and PC connectivity using technology from Microsoft.

"As the 'digital convergence' concept becomes more commonplace, the powerful combination of Microsoft and LG technology will redefine recordable media for home entertainment," said Hee-Gook Lee, chief technology officer, LG Electronics. "With support for wired or wireless in-home networking and innovative PC connectivity, the LG LRM-519 is a true digital convergence product."

The result of a strategic relationship between Microsoft and LG Electronics, a top-tier technology leader in DTV, telecommunications and digital convergence products, this new product reflects LG's commitment to achieving global consumer electronics leadership, Dr. Lee explained. The LRM-519, offers an array of options for digital entertainment on the DVR DVD recorder by enabling powerful multimedia experiences and seamless connectivity with Windows XP-based PCs and PCs running Windows XP Media Center Edition 2005.

"Consumers want flexibility and choice in digital entertainment, and our partnership with LG is a successful example of just that," said Rick Thompson, corporate vice president of the Windows Client Extended Platforms Division at Microsoft Corp. "With this new DVD recorder, consumers will benefit from the combination of LG's expertise and Microsoft technology that together deliver innovative DVD and DVR solutions with access to digital photos, music and more on Windows XP-based PC and PCs running Windows XP Media Center Edition 2005."

This DVR DVD recorder also enables playback of music, pictures, and video with computers running Windows XP and Windows XP Media Center Edition over a home network. The LG LRM-519 can play and display files including MPEG, Windows Media Audio and Video (WMA/WMV), MP3 and JPEG images on TV. Supported network connections include Ethernet or Wi-fi (802.11a/g). This wireless connection is four-to-five times faster than that of 802.11b, enabling seamless data reception.

The LG LRM-519 includes an integrated EPG service provided by Microsoft. This programming guide combines channel guides from multiple sources such as cable, satellite, and terrestrial TV. As such, the guide allows consumers to easily discover, record and enjoy their favorite television programs. The LG LRM-519 also comes with a built-in Ethernet adapter, allowing high-speed reception of the EPG guide data.

At 160GB, the internal HDD offers up to 160 hours of conventional analog TV programming storage. The DVR allows program burning from HDD to DVD (DVD-R/RW, DVD+R/RW, DVD+R Double Layer), further strengthening the flexibility of the device for users to record their favorite programs. Also with a 90-minute buffer time for Live TV, it offers three times more flexibility in watching other media compared to other manufacturers.

The LG LRM-519 also offers true networking versatility as users can watch programmed TV recorded from the DVR on their Windows XP-based PC running Windows XP Media Center Edition 2005 and then take it on the go with them on Portable Media Center devices.

The product will also support the PlaysForSure logo program, which is designed to help consumers with Windows XP-based PCs find devices and online music or video stores that work together. Seeing the logo will allow consumers to know that music or movie content from download or subscription services will work.

The LG LRM-519 stands out in key areas when compared to the competition. The CPU is much like that of a personal computer, enabling four-to-five times more powerful processing speeds found in comparable DVR products. The product also boasts a 3D comb filter that provides far superior video quality than other DVRs. Another outstanding feature is the USB device input support such as portable HDD, USB memory and card readers which expands the versatility of the product. The significance of this USB input support is that the option of the connecting a portable hard drive offers limitless storage space for users' multimedia files.

LG plans to introduce the LG LRM-519 in the United States by fall 2005.

ABOUT LG ELECTRONICS U.S.A.

Based in Englewood Cliffs, N.J., LG Electronics USA, Inc., (LGEUS) is the North American subsidiary of LG Electronics, Inc. LGEUS' key product areas - consumer electronics, home appliances, information technology products and mobile phones - are designed to deliver on the promise of its "LG: Life's Good" 2005 marketing theme. For more information, please visit www.lgusa.com.

ABOUT LG ELECTRONICS, INC.

LG Electronics, Inc. (Korea Stock Exchange:06657.KS), headquartered in Seoul, South Korea, was established in 1958 and has grown into a global force in electronics, information and communications products with annual total revenues of US $29.9 billion (consolidated). With more than 64,000 employees working in 73 overseas subsidiaries and marketing units around the world, LG Electronics is comprised of four main business companies including Digital Display, Digital Media, Digital Appliance, and Mobile Communications.

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

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