Samsung Begins Mass Production at Second 7G LCD Line.

TANGJEONG, Korea -- Samsung Electronics Co., Ltd., the world's largest provider of thin-film transistor, liquid crystal display (TFT-LCD) panels, announced that it has begun mass production at Line 7-2, its second 7th Generation (7G) TFT-LCD line. Mass production began only two months after the company successfully concluded pilot production of a 40" S-PVA panel last November.

A total KRW 4.132 trillion will be invested in Line 7-2 for the production of panels for LCD TVs of 32" or larger when it is fully-operational. The investment covers two phases, with the company investing KRW 2.368 trillion in phase one to reach a monthly production capacity of 45,000 substrates. An additional KRW 1.764 trillion will be invested in phase two to add another 45,000 substrates to capacity for a full-scale production capacity of 90,000 substrates per month. Phase two is expected to conclude during the second half of 2006.

Currently, Samsung is operating another 7G line (Line 7-1) through its joint venture with Sony, called S-LCD. Production commenced at Line 7-1 in April 2004, with the full capacity of 60,000 substrates per month being reached in October 2005. In November 2005, the company announced that it will increase capacity at Line 7-1 by another 15,000 substrates, by July 2006.

Samsung will produce a combined 165,000 substrates monthly, or 1.32 million 40" panels per month, at its 7G lines when Line 7-2 reaches full capacity.

Mass production at Line 7-2 is deemed a major watershed for Samsung Electronics, giving the company an advantageous position in standardizing LCD TVs around 40" and 46".

Meanwhile, Samsung Electronics has become the first in the industry to pass the $10 billion mark in annual sales of LCDs in 2005. The company has maintained its lead in the global LCD market in terms of sales revenue since 2002, this includes accumulation of sales for the first 11 months of 2005.

About Samsung Electronics

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2004 sales reaching US$55.2 billion and net income of US$10.3 billion reported by the parent company. Employing approximately 113,600 people in over 90 offices in 48 countries, the company consists of five primary business units: the Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, please visit www.samsung.com.