| Seoul, Korea, June 9, 2005 – LG Electronics is enhancing the company’s stature in China’s premium TV market with the supply of plasma TVs and LCD monitors to Nanjing’s subway, which is one of the Mainland’s largest transportation hubs,. LG Electronics will supply two thousand, 42” plasma TVs in and around the Nanjing subway system and on the concourses, and will also provide one thousand 19” LCD monitors in the trains by 2006. One of LG Electronics major digital television factories is located in Nanjing. In the installation process, LG Electronics have been conscious of the problems that large electrical products run into, such as large quantities of dust and heavy vibrations, when operating in subway conditions. As such, LG Electronics has undertaken numerous quality and efficiency tests in the installation of the plasma TVs. Nanjing’s subway, which is currently undergoing final testing, is scheduled to start operating in September and will become the main form of transportation for Nanjing’s 6.2 million residents. In December, “The 10th People’s Republic of China’s Sports Event” will be held in Nanjing. This week-long event will bring thousands of visitors to the city who will rely on this new transportation system. LG Electronics excellent quality and service was recently recognised by two of China’s major broadcasters. Last year, the company supplied 100 LCD TVs to Shanghai Broadcasting last year, and this year, LG Electronics supplied 50 LCD TVs to Beijing Central Broadcasting. Elsewhere in China, LG Electronics is seen as a premium brand, and the company has provided plasma and LCD TVs to high-class hotels such as Sunjjun Landmark Hotel and Shamun Sofitel Hotel. Following the increase in demand for LG Electronics digital TVs, the PDP module factory with annual production capacity of 240,000 modules was built in Nanjing. China is one of LG Electronics top 3 markets for digital TV and the company is making efficient use of its strategic advantages from the government, and is acquiring competitiveness in both prime cost and consumer price through local production and sales. In the premium TV market, plasma TV, LCD TV and projection TV, LGE has 10.2% of the market last year. Kim In Gi, the head of LG Electronics in Nanjing, China, said, “LG has received a great deal of recognition throughout China by supplying premium display products in public places like Nanjing Subway. With our advanced digital TV technology, we will be launching premium products in this market to enhance our brand name not only to the consumer market but also to government departments and hotels. To enhance its corporate awareness and strengthen its technology leadership position, LGE is focusing on ‘transportation hub marketing’ and placing its products in high traffic areas such as subway stations and airports. Located in these areas, LG Electronics products attract considerable attention from large numbers of people including many opinion leaders. LG Electronics believes the advertising value of such product placement is beyond calculation. Recently in Europe LG Electronics reinforced its marketing efforts by selecting Frankfurt airport to showcase its cutting-edge technology. LG Electronics has installed one hundred and ten 42” plasma TVs in Frankfurt airport to strengthen its brand name in preparation for the 2006 German World Cup. In a similar exercise in 2003, LG Electronics installed 94 42” and 60” plasma TVs at Almaty International Airport in Kazakhstan. LG Electronics plans to exploit its innovative technology and trend setting designs to develop leading digital display products. The company will continue to seek out other opportunities to install its TVs at major airports and subway stations, as part of a programme of aggressive marketing activities designed to fulfill LG Electronics goal to become the Global top display company by 2007.
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