LG Electronics Demonstrates First Handset Powered by SavaJe Technologies' Java-based Open OS.

SEOUL, South Korea -- LG Electronics and SavaJe Technologies Inc. are pleased to announce that LG Electronics is the first company in the world to complete development of a handset using SavaJe OS(TM), SavaJe Technologies' Java(TM) Platform, Micro Edition (Java ME) Connected Device Configuration (CDC) based open OS. LG Electronics is demonstrating and promoting the product to operators worldwide, and is ready to mass-produce handsets to operator specifications for delivery in 2006.

The LG Electronics handset features a slide design with 176x220 color TFT display, 1.3MPixel camera, Bluetooth, and an SD Card memory card for storage of up to 1GB of applications, music, video and pictures. The handset plays MP3, AAC and AAC+ music formats as well as H.263 and MPEG4 videos.

SavaJe OS is an advanced open operating system for handsets, based on Sun Microsystems' Java technology. Uniquely, all handset applications, including the handset UI itself, are written in Java. This enables LG Electronics to easily offer operator customizations, while using a common software platform. Using deep theming functionality, SavaJe OS can implement operator-specified applications and menus, as well as color schemes, sounds, background images and icons that affect both built-in and downloaded applications.

SavaJe offers an innovative multitasking mobile handset Java environment for applications developers. The operating system implements open Java standards developed by the Java Community Process (JCP). The OS offers one of the richest and most complete sets of Java ME APIs seen to date on any mobile device, including core support for both the Java ME Connected Limited Device Configuration (CLDC) and the CDC environment, using a single optimized Java Virtual Machine. In addition, SavaJe OS opens wireless development to desktop developers for the first time on mobile devices, with support for Sun's Swing-based advanced graphics API. Additional Java APIs are provided for multimedia, messaging, telephony, IM/chat, networking, file system, and PIM access. As a result, compelling new applications and services can be easily and rapidly developed by both wireless and desktop Java programmers.

Open OS security is addressed by the implementation of OMA-compliant Digital Rights Management (DRM), a secure key store, certificate and policy management, and a complete set of Java ME CDC security APIs for cryptography, secure networking, authorization and authentication.

"The SavaJe and LG Electronics implementation of a complete handset operating system based on Java technologies extends significant opportunities to developers," said Alan Brenner, Vice President, Client Systems Group, Sun Microsystems, Inc. "With the implementation of CDC-based technologies, the handset provides not only functionalities that are compatible with existing Java wireless APIs, but also access to additional APIs in the Java platform that are now made available on mobile devices. This will provide added flexibility and capabilities for developers to create even more exciting mobile applications."

Dr. Skott Ahn, Executive Vice President, LG Electronics, said "LG Electronics and SavaJe Technologies have worked closely together since announcement of the relationship between the two companies a year ago. Creating an open OS is a significant achievement in itself. To do so using Java, offering this level of performance for the entire applications platform, including full telephony support, brings a new era of opportunity for developers, operators and end-users. The combination of LG experience and innovation with SavaJe's Java technology has resulted in a high performance platform that is applicable to handsets for GPRS, EDGE, 3G and beyond. LG is very pleased to be the first manufacturer to demonstrate and offer this platform on a handset to operators worldwide."

"The SavaJe and LG Electronics implementation of a complete handset operating system buries the myth that Java is not suitable for a complete embedded handset applications platform once and for all. The Java Micro Edition (Java ME) platform is already available on over 500 million handsets worldwide. The SavaJe-based LG Electronics handset provides not only compatibility with existing Java wireless standards, but also access to APIs that have until now only been available in the desktop environment. We are excited to be providing the next generation of the wireless Java platform to operators, developers and end users," said George Grey, President, SavaJe Technologies. "SavaJe is very pleased to be working with LG Electronics on commercialization of our open Java-based handset platform. LG Electronics' commitment to innovation and quality has been a key factor in achieving the level of functionality and performance that is now being demonstrated to operators. We look forward to a long and fruitful continuing partnership with LG Electronics."

About LG Electronics, Inc.

LG Electronics (KSE: 06657.KS) is a global leader in providing cutting-edge, convergent electronics, information and communications products designed to meet the diverse needs of fast-changing consumers. With consolidated sales of US$37.7 billion and overseas sales of US$ 32.6 billion (86% of total sales), LG Electronics employs more than 70,000 employees in 76 subsidiaries located in 39 countries and operates four business units including Mobile Communications, Digital Appliance, Digital Display and Digital Media.

For more information, please visit LG Electronics' web site at www.lge.com

About SavaJe Technologies

SavaJe Technologies is the developer of SavaJe OS, an open, standards-based operating system for mobile phones. Based on Sun Microsystems' Java technology, SavaJe OS offers operators and OEMs a standardized platform, with an unmatched level of security. SavaJe OS provides manufacturers and operators with the ability to fully customize the user experience while maintaining full applications compatibility across implementations. The scalability of the platform, which uniquely implements an advanced set of industry-standard Java APIs as its single applications environment, offers significant benefits to OEMs and ODM handset manufacturers. Operator customization, systems integration and handset testing is simplified, and time to market is thereby reduced. SavaJe Technologies is a privately held company, which has been funded by leading venture capital firms VantagePoint Venture Partners, Ridgewood Capital, RRE Ventures and New Venture Partners, as well as by the strategic investment arms of Vodafone, T-Mobile and Orange. SavaJe is headquartered in Boston, Massachusetts, and has European offices in Cambridge, UK.

Sun, Sun Microsystems and Java are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. SavaJe is a registered trademark and SavaJe OS is a trademark of SavaJe Technologies, Inc. All other company and product names are trademarks or registered trademarks of their respective owners.