LG Display (LPL)

Expansion Projects

We are building additional production and research and development facilities to meet forecasted increases in demand for our products. We commenced mass production at P8, our eighth fabrication facility, in March 2009. We expect that the total cost of the construction and build-out of P8 will amount to approximately (Won)2.7 trillion, of which approximately (Won)2.2 trillion was incurred in 2008 and approximately (Won)0.4 trillion is expected to be incurred in 2009. In addition, we commenced mass production at P6E, our ninth fabrication facility, in April 2009. We expect that the total cost of the construction and build-out of P6E will amount to approximately (Won)1.4 trillion, of which approximately (Won)0.7 trillion was incurred in 2008 and approximately (Won)0.8 trillion is expected to be incurred in 2009. In January 2009, our board of directors approved an investment in a new LTPS TFT-LCD production facility in Paju, Korea for production of premium TFT-LCD panels primarily used in mobile devices. We expect to commence mass production at this production facility in the first half of 2010. We expect that our capital expenditures for such investment in the new LTPS TFT-LCD production facility on a delivery basis will amount to approximately (Won)577 billion, all of which is expected to be incurred in 2009. Such amounts are subject to periodic assessment, and we cannot provide any assurance that such amounts may not change materially after assessment. We expect that our total capital expenditures on a delivery basis to be approximately (Won)2.5 trillion in 2009. We may undertake further expansion projects in the future with respect to our existing facilities as our overall business strategy may require.

Prior to January 16, 2009, the construction of factories exceeding a certain size was prohibited in designated areas around Seoul, such as Paju, under the Presidential Decree of the Industrial Cluster Development and Factory Establishment Act. Due to such prohibition, we had relied on an exemption available to companies whose “foreign equity interest” equals or exceeds 30% to construct the facilities at our Paju Display Cluster. On January 16, 2009, the Presidential Decree was amended to permit the construction or expansion of factories in such designated areas if (i) the purpose of the factory is to manufacture certain equipment, such as audiovisual equipment, and (ii) the factory is located in an area that has been designated as an “industrial complex area” under Korean law. Our Paju Display Cluster meets both such criteria, and we may construct new facilities and make additional expansions at our Paju Display Cluster without relying on the exemption available to companies whose “foreign equity interest” equals or exceeds 30%.

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We do not have any unresolved comments from the Securities and Exchange Commission staff regarding our periodic reports under the Exchange Act.

Expansion Projects

We are building additional production and research and development facilities to meet forecasted increases in demand for our products. In 2005, we built our seventh fabrication facility, or P7, and commenced mass production at P7 in January 2006. During the fourth quarter of 2006, the average production capacity of P7 was 78,000 input sheets of glass substrate per month. P7 reached an initial design capacity of 90,000 input sheets of glass substrate per month in April 2007 and an expanded average capacity of 136,000 input sheets of glass substrate per month during the fourth quarter of 2007. The total cost of the construction and build-out of P7 was approximately (Won)5.0 trillion. Our total capital expenditure on a delivery basis was (Won)1.0 trillion (US$1.1 billion) in 2007, of which approximately (Won)0.2 trillion was attributable to capital expenditure for P7. In addition, we built a new module production plant in Wroclaw, Poland, which commenced mass production in March 2007 and reached an initial production capacity of 3 million modules per year in July 2007. In December 2007, we also commenced mass production at a new module production plant in Guangzhou, China, our second such module production site in China. We are currently constructing our eighth fabrication facility, or P8, in our Paju Display Cluster. We expect our capital expenditures on a delivery basis to be approximately (Won)3.0 trillion in 2008. Such amount is subject to periodic assessment, and we cannot provide any assurance that such amount may not change materially after assessment. We may undertake further expansion projects in the future with respect to our existing facilities as our overall business strategy may require.

We do not have any unresolved comments from the Securities and Exchange Commission staff regarding our periodic reports under the Exchange Act.

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Expansion Projects

We are building additional production and research and development facilities to meet forecasted increases in demand for our products. In 2005, we built our seventh fabrication facility, or P7. We commenced mass production at P7 in January 2006. During the fourth quarter of 2006, the average production capacity of P7 was 78,000 input glass sheets per month. P7 is expected to reach an initial design capacity of 90,000 input glass sheets per month in the first half of 2007 and an expanded capacity of 110,000 input glass sheets per month in the third quarter of 2007. We currently estimate that the construction and build-out of P7, at an expanded capacity of 110,000 input glass sheets per month, will cost approximately (Won)5.3 trillion in total. Our total capital expenditure on a delivery basis was (Won)2.8 trillion (US$3.0 billion) in 2006, of which (Won)1.2 trillion was attributable to capital expenditure for P7. We expect our capital expenditures for P7 on a delivery basis to be approximately (Won)0.2 trillion in 2007. In addition, we are currently building our eighth fabrication facility, or P8, in our Paju Display Cluster and

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we also broke ground on the new module production plant in Wroclaw, Poland in June 2006, which commenced mass production in March 2007. The Polish plant is expected to reach an initial production capacity of 3 million modules per year by the end of 2007. Currently, we are also constructing our new module production plant in Guangzhou, China. In May 2006, we entered into an investment agreement with the Guangzhou Development District Administrative Committee to construct a module production plant in Guangzhou, a city in southern China, and established our subsidiary, LG.Philips LCD Guangzhou Co., Ltd., in June 2006. We expect our capital expenditures for construction of new production facilities on a delivery basis to be approximately (Won)0.6 trillion in 2007. Such amount is subject to periodic assessment, and we cannot provide any assurance that such amount may not change materially after assessment. We may undertake further expansion projects in the future with respect to our existing facilities as our overall business strategy may require.

Expansion Projects

We are building additional production and research and development facilities to meet forecasted increases in demand for our products. In 2005, we built our seventh fabrication facility, or P7. We commenced mass production at P7 in January 2006. By the second quarter of 2006, we expect that P7 will reach a production capacity of 45,000 glass sheets per month. By the end of 2006, P7 is expected to reach its initial design capacity of 90,000 input sheets per month. We currently estimate that the construction and build-out of P7, at a capacity of 90,000 sheets per month, will cost approximately (Won)5.3 trillion in total. Our total capital expenditure was (Won)4.4 trillion (US$4.4 billion) in 2005, of which (Won)3.2 trillion was attributable to capital expenditure for P7. We expect our capital expenditures for P7 to be approximately (Won)1.8 trillion in 2006. In addition, we installed equipment in AP1, for the manufacture of display panels using low temperature polysilicon technology and commenced mass production at AP1 in June 2005. Currently, we are building our eighth fabrication facility, or P8, in our Paju Display Cluster. Our estimated total capital expenditure for P8 is yet undecided as we continue to evaluate production capacity targets for P8. We expect P8’s initial production capacity will depend on future growth trends in the TFT-LCD panel market. We also broke ground on the new module production plant in Wroclaw, Poland in June 2006. We expect production at the Polish plant to commence in the first half of 2007 at an initial production capacity of 3 million modules per year. We plan to invest a total of €429 million in the plant by 2011, at which time it is scheduled to reach its design capacity of 11 million units per year. We are currently expanding our module production plants in Nanjing, China. In May 2006, we also entered into an investment agreement with the Guangzhou Development District Administrative Committee to construct a module production plant in Guangzhou, a city in southern China. We may undertake further expansion projects in the future with respect to our existing facilities as our overall business strategy may require.

We do not have any unresolved comments from the Securities and Exchange Commission staff regarding our periodic reports under the Exchange Act of 1934.

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Expansion Projects

We are considering building additional production and research and development facilities to meet forecasted increases in demand for our products. In March 2004, we broke ground on a new TFT-LCD display cluster to be developed in Paju, Korea where we are building our seventh fabrication facility, or P7, which is designed to process 1,950 x 2,250 mm glass substrates and has a design capacity of 90,000 sheets per month. We plan to commence mass production at P7 with an initial design capacity of 45,000 sheets per month during the first half of 2006. We may expand P7’s capacity to 90,000 sheets per month depending on future market and other conditions. We currently estimate that the construction and build-out of P7, at a capacity of 90,000 sheets per month, will cost approximately (Won)5.3 trillion. We expect our capital expenditure for P7 to be approximately (Won)3.1 trillion in 2005. In addition, we are currently installing equipment in P6, to be known as AP1, for the manufacture of display panels using low temperature polysilicon technology. We currently estimate that the equipping of AP1 will cost approximately (Won)202.6 billion. We plan to commence mass production at AP1 in the first half of 2005. We may undertake further expansion projects in the future with respect to our existing facilities as our overall business strategy may require.