LG Display (LPL)

First Quarter Financial Review

Revenue and Cost

Revenue for the three-month period ended March 31, 2008, increased by 48% to KRW 4,036 billion (USD 4,083 million) from KRW 2,722 billion (USD 2,753 million) for the corresponding period of 2007. TFT-LCD panels for TVs, monitors, notebook PCs and other applications accounted for 44%, 26%, 24% and 6%, respectively, on a revenue basis in the first quarter of 2008.

Overall, the Company shipped a total of 3.2 million square meters of net display area in the first quarter of 2008, a decrease of 7% quarter-on-quarter. The average selling price per square meter of net display area shipped was USD 1,339, which was a decrease of approximately 3% compared to the average of the fourth quarter of 2007. The ending average selling price per square meter was USD 1,323, a decrease of approximately 4% compared to the end of the fourth quarter of 2007.

For the first quarter of 2008, the cost of goods sold per square meter of net display area shipped in Korean Won basis decreased by 2% to KRW 932 thousand (USD 943) from the fourth quarter of 2007. In terms of USD basis, it was a decrease of 6% Quarter on Quarter.

Liquidity

Cash and cash equivalents including short term financial instruments of LG Display were KRW 2,988 billion (USD 3,022 million) as of March 31, 2008. Total debt was KRW 4,015 billion (USD 4,061 million), and the net debt-to-equity ratio was 12% as of March 31, 2008, compared to 17% as of December 31, 2007.

Capital Spending

Capital investment outlay in fixed assets during the first quarter of 2008 was KRW 233 billion (USD 236 million) compared to KRW 495 billion (USD 501 million) in the first quarter of 2007. On a delivery base, it was KRW 444 billion (USD 449 million)

Capacity

Total production input capacity on an area basis decreased approximately 1% in the first quarter. It was mainly due to retooling and debottlenecking activities we conducted throughout our fabs in order to maximize our input capacity and shipment.

Fourth Quarter Financial Review

Revenue and Cost

Revenue for the three-month period ended December 31, 2007, increased by 9% to KRW 4,322 billion (USD 4,618 million) from KRW 3,065 billion (USD 3,275 million) for the corresponding period of 2006. TFT-LCD panels for TVs, monitors, notebook PCs and other applications accounted for 50%, 24%, 21% and 5%, respectively, on a revenue basis in the fourth quarter of 2007.

Overall, the Company shipped a total of 3.4 million square meters of net display area in the fourth quarter of 2007, an increase of 9% quarter-on-quarter. The average selling price per square meter of net display area shipped was USD 1,375, which was an increase of approximately 1% compared to the average of the third quarter of 2007. The ending average selling price per square meter was USD 1,377, an increase of approximately 1% compared to the end of the third quarter of 2007.

For the fourth quarter of 2007, the cost of goods sold per square meter of net display area shipped decreased 3% to KRW 0.9 million (USD 1,013) from the third quarter of 2007.

Liquidity

Cash and cash equivalents including short term financial instruments of LG.Philips LCD were KRW 1,981 billion (USD 2,116 million) as of December 31, 2007. Total debt was KRW 3,406 billion (USD 3,639 million), and the net debt-to-equity ratio was 17% as of December 31, 2007, compared to 37% as of September 30, 2007.

Capital Spending

Capital investment outlay in fixed assets during the fourth quarter of 2007 was KRW 269 billion (USD 287 million) compared to KRW 334 billion (USD 357 million) in the fourth quarter of 2006, and was largely for overseas module plants. On a delivery base, it was KRW 281 billion (USD 300 million)

Capacity

Total production input capacity on an area basis increased approximately 5% sequentially in the fourth quarter and was largely due to an increase of production, mainly in P7.

Third Quarter Financial Review

Revenue and Cost

Revenue for the three-month period ended September 30, 2007, increased by 43% to KRW 3,953 billion (USD 4,325 million) from KRW 2,773 billion (USD 3,034 million) for the corresponding period of 2006. TFT-LCD panels for TVs, monitors, notebook PCs and other applications accounted for 48%, 25%, 22% and 5%, respectively, on a revenue basis in the third quarter of 2007.

Overall, the Company shipped a total of 3.1 million square meters of net display area in the third quarter of 2007, an increase of 11% quarter-on-quarter. The average selling price per square meter of net display area shipped was USD 1,364, which was an increase of approximately 7% compared to the average of the second quarter of 2007. The ending average selling price per square meter was USD 1,369, an increase of approximately 4% compared to the end of the second quarter of 2007.

For the third quarter of 2007, the cost of goods sold per square meter of net display area shipped decreased 9 % to KRW 1.0 million (USD 1,071) from the second quarter of 2007.

Liquidity

Cash and cash equivalents of LG.Philips LCD were KRW 1,656 billion (USD 1,812 million) as of September 30, 2007. Total debt was KRW 4,432 billion (USD 4,849 million), and the net debt-to-equity ratio was 37% as of September 30, 2007, compared to 49% as of June 30, 2007.

Capital Spending

Capital expenditures in the third quarter of 2007 were KRW 328 billion (USD 359 million) compared to KRW 908 billion (USD 993 million) in the third quarter of 2006, and were largely for P7.

Capacity

Total production input capacity on an area basis increased approximately 17 % sequentially in the third quarter and was largely due to increase of production, mainly in P7.

Second Quarter Financial Review

Revenue and Cost

Revenue for the three-month period ended June 30, 2007, increased by 45% to KRW 3,355 billion (USD 3,635 million) from KRW 2,315 billion (USD 2,508 million) for the corresponding period of 2006. TFT-LCD panels for TVs, monitors, notebook PCs and other applications accounted for 47%, 27%, 21% and 5%, respectively, on a revenue basis in the second quarter of 2007.

Overall, the Company shipped a total of 2.8 million square meters of net display area in the second quarter of 2007, a 26% increase quarter-on-quarter. The average selling price per square meter of net display shipped was USD 1,274, which was a decrease of approximately 1% compared to the average of the first quarter of 2007. The ending average selling price per square meter was USD 1,314, an increase of approximately 5% compared to the end of the first quarter of 2007.

For the second quarter of 2007, the cost of goods sold per square meter of net display area shipped decreased 13% to KRW 1.1 million (USD 1,168) from the first quarter of 2007.

Liquidity

Cash and cash equivalents of LG.Philips LCD were KRW 1,238 billion (USD 1,341 million) as of June 30, 2007. Total debt was KRW 4,657 billion (USD 5,046 million), and the net debt-to-equity ratio was 49% as of June 30, 2007, compared to 50% as of March 31, 2007.

Capital Spending

Capital expenditures in the second quarter of 2007 were KRW 512 billion (USD 555 million) compared to KRW 990 billion (USD 1,073 million) in the second quarter of 2006, and were largely for P7.

Capacity

Total production input capacity on an area basis increased approximately 12% sequentially in the second quarter and was largely due to increase of production, mainly in P7.

First Quarter Financial Review

Revenue and Cost

Revenue for the three-month period ended March 31, 2007, increased by 10% to KRW 2,722 billion (USD 2,893 million) from KRW 2,471 billion (USD 2,626 million) for the corresponding period of 2006. TFT-LCD panels for TVs, monitors, notebook PC’s and other applications accounted for 45%, 28%, 22% and 5%, respectively, on a revenue basis in the first quarter of 2007.

Overall, the Company shipped a total of 2.2 million square meters of net display area in the first quarter of 2007, a 1% decrease quarter-on-quarter. The average selling price per square meter of net display shipped was USD 1,287, which was a decrease of approximately 9% compared to the average of the fourth quarter of 2006. The ending average selling price per square meter was USD 1,246, a decrease of approximately 10% compared to the end of the fourth quarter of 2006.

The total cost of goods sold decreased 10% sequentially to KRW 2,771 billion (USD 2,945 million), and increased 21% year-over-year. The sequential decrease is largely attributable to cost reduction. The cost of goods sold per square meter of net display area shipped was KRW 1.2 million (USD 1,314) for the first quarter of 2007, down 9% from the fourth quarter of 2006.

Liquidity

As of March 31, 2007, LG.Philips LCD had KRW 980 billion (USD 1,041 million) of cash and cash equivalents. Total debt was KRW 4,332 billion (USD 4,604 million), and the net debt-to-equity ratio was 50% as of March 31, 2007, compared to 46% as of December 31, 2006.

Capital Spending

Capital expenditures in the first quarter of 2007 were KRW 492 billion (USD 523 million) compared to KRW 845 billion (USD 898 million) in the first quarter of 2006, and were largely for P7 and the Poland module plant.

Utilization and Capacity

Total input capacity on an area basis decreased approximately 4% sequentially in the first quarter. This decrease was largely due to reduction of production.

Third Quarter Financial Review

Revenue and Cost

Revenue in the three-month period ended September 30, 2006, increased by 1% to KRW 2,773 billion (USD 2,931 million) from KRW 2,741 billion (USD 2,897 million) in the corresponding period of 2005. TFT-LCD panels for TVs, desktop monitors, notebook computers and other applications accounted for 48%, 26%, 21% and 5%, respectively, on a revenue basis in the third quarter of 2006, the same level as the second quarter.

Overall, the Company shipped a total of 2 million square meters of net display area in the third quarter of 2006, a 34% increase quarter-on-quarter, with an average selling price per square meter of USD 1,430. This represents a decrease in the average selling price per square meter of net display area of approximately 3% compared to the end of the second quarter of 2006 and an average decrease of 11% from the second quarter of 2006.

The total cost of goods sold increased 19% quarter-on-quarter to KRW 3,019 billion (USD 3,190 million), and increased 28% year-on-year, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1.5 million (USD 1,585) for the third quarter of 2006, down 11% from the second quarter of 2006.

“We saw good progress this quarter with a 12% decline in COGS per square meter in USD, although this was not enough to offset the LCD TV price decline. In addition, our decision last quarter to temporize production, along with an increase in shipments, led to a reduction in inventory turnover levels from four weeks at the end of the second quarter, to over two weeks at the end of the third quarter for large panels,” said Ron Wirahadiraksa, CFO of LG.Philips LCD.

“We are now at a crucial inflection point. Without additional measures relating to product mix, cost, and productivity, we will not be able to deliver value to our shareholders. In the coming months, LG.Philips LCD will take the required actions in these areas to better respond to a new reality on pricing, demand and competitive pressures. We are confident that we have at least taken the right first steps - maintaining healthier inventory levels, reducing costs at an expedited rate in Q3, and aligning ourselves in a more substantial way with our customers – and management remains committed to do what is necessary to generate acceptable returns.”

Liquidity

As of September 30, 2006, LG.Philips LCD had KRW 472 billion (USD 499 million) of cash and cash equivalents. Total debt was KRW 4,480 billion (USD 4,734 million), and the net-debt-to-equity ratio was 57% as of September 30, 2006, compared to 46% as of June 30, 2006.

Capital Spending

Capital expenditures in the third quarter of 2006 were KRW 908 billion (USD 960 million) compared to KRW 1,380 billion (USD 1,458 million) in the third quarter of 2005, and were mainly used for P7, P8 and our module plant in Nanjing, China.

2

Utilization and Capacity

Total input capacity on an area basis increased approximately 10% in the third quarter compared to the second quarter of 2006, mainly due to the further ramp up of P7, which has reached an average of 52,000 input sheets per month.

Second Quarter Financial Review

Revenue and Cost

Revenue in the three-month period ended June 30, 2006, increased by 0.3% to KRW 2,315 billion (USD 2,441 million) from KRW 2,308 billion (USD 2,433 million) in the corresponding period of 2005. TFT-LCD panels for TVs, desktop monitors, notebook computers and other applications accounted for 48%, 26%, 21% and 5%, respectively, on a revenue basis, in the second quarter of 2006, compared to 45%, 30%, 20% and 5%, respectively, in the first quarter of 2006.

Overall, the Company shipped a total of 1.5 million square meters of net display area in the second quarter of 2006, a 17% increase quarter-on-quarter, with an average selling price per square meter of USD 1,598. This represents a decrease in the average selling price per square meter of net display area of approximately 19% compared to the end of the first quarter of 2006 and an average decrease of 18% from the first quarter of 2006.

The total cost of goods sold increased 10% quarter-on-quarter to KRW 2,529 billion (USD 2,666 million), and increased 17% year-on-year, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1,703,000 (USD 1,795) for the second quarter of 2006, down 5% from the first quarter of 2006.

“We are disappointed with our financial performance in the second quarter of 2006. As a result, the Company is now taking initiatives to address the issues that are affecting our business. As we announced in June, we are addressing an increase in inventory levels during a period of overcapacity, primarily in the LCD TV segment, by temporizing production. We will continue to control inventory levels going forward,” said Ron Wirahadiraksa, President and CFO of LG.Philips LCD.”

Mr. Wirahadiraksa continued, “We believe that the temporization of production, along with other efforts, will enable us to maintain our competitiveness as a top-tier player in an industry that is starting to take a more rational approach to capacity and has undiminished long-term growth prospects. While some of the measures are immediate, we generally expect they will strengthen our shareholders’ long–term value and will enable us to leverage the industry’s strong growth opportunities as we closely examine all areas of our manufacturing, capital expenditures, customer relations and expense management. We are confident that LG.Philips LCD’s business results and prospects will improve over the course of 2006.”

Liquidity

As of June 30, 2006, LG.Philips LCD had KRW 779 billion (USD 821 million) of cash and cash equivalents. Total debt was KRW 4,202 billion (USD 4,430 million), and the net-debt-to-equity ratio was 46% as of June 30, 2006, compared to 33% as of March 31, 2006.

Capital Spending

Capital expenditures in the second quarter of 2006 was KRW 990 billion (USD 1,044 million) from KRW 969 billion (USD 1,022 million) in the second quarter of 2005, and were mainly used for the P7 facility.

Utilization and Capacity

Total input capacity on an area basis increased approximately 9% in the second quarter compared to the first quarter of 2006, mainly due to the ramp up of P7, which has reached an average of 34,000 input sheets per month.

First Quarter Financial Review

Revenue and Cost

Revenue in the three-month period ended March 31, 2006 increased by 20% to KRW 2,471 billion (USD 2,544 million) from KRW 2,064 billion (USD 2,125 million) in the corresponding period in 2005, mainly due to increased demand for LCD TVs. TFT-LCD panels for TVs, desktop monitors, notebook computers and other applications accounted for 45%, 30%, 20% and 5%, respectively, on a revenue basis, in the first quarter of 2006, compared to 34%, 38%, 24% and 4%, respectively, on a revenue basis, in the fourth quarter of 2005.

Overall, the Company shipped a total of 1,274,000 square meters of net display area in the first quarter of 2006, a 5% sequential quarterly decrease, with an average selling price per square meter of USD 1,953. This represents a decrease in the average selling price per square meter of net display area of approximately 10% compared to the end of the fourth quarter of 2005 and an average decrease of 8% from the fourth quarter of 2005.

The total cost of goods sold decreased 7% quarter-on-quarter to KRW 2,294 billion (USD 2,362 million), and increased 9% year-on-year. The sequential decrease is primarily due to lower shipments and better than expected cost reduction at the Company’s facilities. The cost of goods sold per square meter of net display area shipped was KRW 1,800,000 (USD 1,853) for the first quarter of 2006, down 2% from the fourth quarter of 2005.

“We continue to focus on profitability. Our EBITDA margin was better than expected, boosted by the operational efficiencies from the launch of P7,” said Ron Wirahadiraksa, President and CFO of LG.Philips LCD. “We believe that our launch of P7 earlier in the year was well timed to take advantage of the growing LCD TV market, particularly in light of the seasonal weakness in notebook and monitor panels.”

Mr. Wirahadiraksa continued, “An important element in our strategy to drive growth is our commitment to cost reduction, which includes process innovation and raw material cost reduction efforts.”

Liquidity

As of March 31, 2006, LG.Philips LCD had KRW 1,060 billion (USD 1,091 million) of cash and cash equivalents. Total debt was KRW 3,616 billion (USD 3,722 million), and the net-debt-to-equity ratio was 33% as of March 31, 2006, compared to 26% as of December 31, 2005.

Capital Spending

Capital expenditures in the first quarter of 2006 increased to KRW 845 billion (USD 870 million) from KRW 453 billion (USD 466 million) in the first quarter of 2005, and were mainly used for the P7 and P8 facilities.

2

Utilization and Capacity

Total input capacity on an area basis increased approximately 7% in the first quarter compared to the fourth quarter of 2005, mainly due to the ramp up of P7, which has reached an average of 16,000 input sheets per month.

Fourth Quarter Financial Review

Revenue and Cost

Revenue in the three-month period ended December 31, 2005 increased by 53% to KRW 2,963 billion (USD 2,934 million) from KRW 1,933 billion (USD 1,914 million) in the corresponding period in 2004, due to continued growth in TV and notebook sales. TFT-LCD panels for desktop monitors, TVs, notebook computers and “other applications” accounted for 38%, 34%, 24% and 4%, respectively, on a revenue basis in the fourth quarter of 2005, compared to 45%, 29%, 22% and 4%, respectively, on a revenue basis in the third quarter of 2005.

Overall, the Company shipped a total of 1,343,000 square meters of net display area in the fourth quarter of 2005, a 7.6% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,112. This represents a decrease in the average selling price per square meter of net display area of approximately 0.5% compared to the average of the third quarter of 2005, and a decrease of 4.1% at the end of the fourth quarter as compared to the end of the third quarter of 2005.

The total cost of goods sold increased to KRW 2,457 billion (USD 2,433 million), or 34% year-on-year and 4% compared to the third quarter of 2005, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1,830,000 (USD 1,812) for the fourth quarter of 2005, down 3.5% from the third quarter of 2005.

“Our financial performance in the fourth quarter reflects the consistent approach we have taken to managing our business,” said Ron Wirahadiraksa, President and CFO of LG.Philips LCD. “We continue to enjoy unit and area demand growth, especially in the LCD TV and notebook panel segments, and are leveraging our extensive portfolio of production facilities to meet the dynamic needs of our customers. We are committed to providing the market with innovative and top quality TFT-LCD panels. Our shipment growth this quarter was slightly lower than expected due to a production shift in our existing facilities to support our strategy of growing the demand of large size TVs, particularly 42” panels, in advance of the P7 ramp-up. This facilitated our sooner than expected P7 ramp up in the first week of January 2006. We anticipate sequential shipment growth in the first quarter of 2006, despite historical industry seasonality.”

Mr. Wirahadiraksa continued “Throughout the year, we have continued to advance our technology leadership, improve operational efficiency and execute on our growth strategy. As a result, LG.Philips LCD’s balance sheet remains one of the strongest in the industry and provides us with the financial flexibility to fund the opportunities we see for future growth.”

Liquidity

As of December 31, 2005, LG.Philips LCD had KRW 1,579 billion (USD 1,563 million) of cash and cash equivalents. Total debt was KRW 3,566 billion (USD 3,531 million), and the net-debt-to-equity ratio was 26% as of December 31, 2005, compared to 20% last quarter.

2

Capital Spending

Capital expenditures in the fourth quarter of 2005 increased to KRW 1,396 billion (USD 1,382 million) from KRW 473 billion (USD 468 million) in the fourth quarter of 2004. Capital expenditures for the fourth quarter of 2005 were mainly used for investments in P7 and future production facilities.

Utilization and Capacity

Total input capacity on an area basis increased approximately 6% in the fourth quarter compared to the third quarter, due mainly to P6 exceeding its initial design capacity of 90,000 input sheets per month to 112,000 sheets per month.

Third Quarter Financial Review

Revenue and Cost

Revenue in the three-month period ended September 30, 2005 increased by 46% to KRW 2,741 billion (USD 2,630 million) from KRW 1,875 billion (USD 1,799 million) in the corresponding period in 2004, as increases in shipments were robust due to growing TV demand and a stabilizing pricing environment. TFT-LCD panels for desktop monitors, TVs, notebook computers and “other applications” accounted for 45%, 29%, 22% and 4%, respectively, on a revenue basis in the third quarter of 2005, compared to 53%, 24%,18% and 5%, respectively, on a revenue basis in the second quarter of 2005.

Overall, the Company shipped a total of 1,248,000 square meters of net display area in the third quarter of 2005, a 13.9% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,121. This represents an increase in the average selling price per square meter of net display area of approximately 2.9% compared to the average of the second quarter of 2005, and an increase of 2.3% at the end of the third quarter as compared to the end of the second quarter of 2005.

The total cost of goods sold increased to KRW 2,367 billion (USD 2,271 million), or 52% year-on-year and 9% compared to the second quarter of 2005, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1,896 thousand (USD 1,819) for the third quarter of 2005, down 4.2% from the second quarter of 2005.

“In the third quarter, we experienced increased demand, especially in the LCD TV and notebook panel segments, and, as a result, we shipped a record amount of display area, despite a strong competitive environment,” said Ron Wirahadiraksa, President and CFO of LG.Philips LCD. “We were able to meet this demand growth due in large part to the successful ramp up of our P6 facility, which achieved its initial design capacity of 90,000 sheets per month this quarter. While we continued to increase capacity, we were also intensely focused on cost reduction, which continued to show improvement.”

Liquidity

As of September 30, 2005, LG.Philips LCD had KRW 2,129 billion (USD 2,042 million) of cash and cash equivalents. Total debt was KRW 3,618 billion (USD 3,471 million), and the net-debt-to-equity ratio was 20% as of September 30, 2005, compared to 40% last quarter, in large part due to the USD 1.4 billion follow-on equity offering in July 2005.

Capital Spending

Capital expenditures in the third quarter of 2005 decreased to KRW 1,380 billion (USD 1,324 million) from KRW 1,434 billion (USD 1,376 million) in the third quarter of 2004. Our capital expenditures for the third quarter of 2005 were mainly used for continued investment in P6 and P7.

Utilization and Capacity

Total input capacity on an area basis increased approximately 17% in the third quarter compared to the second quarter, due mainly to P6 achieving its initial design capacity of 90,000 input sheets per month. The Company intends to expand this capacity further over time.

Third Quarter Financial Review

Revenue and Cost

Revenue in the three-month period ended September 30, 2005 increased by 46% to KRW 2,741 billion (USD 2,630 million) from KRW 1,875 billion (USD 1,799 million) in the corresponding period in 2004, as increases in shipments were robust due to growing TV demand and a stabilizing pricing environment. TFT-LCD panels for desktop monitors, TVs, notebook computers and “other applications” accounted for 45%, 29%, 22% and 4%, respectively, on a revenue basis in the third quarter of 2005, compared to 53%, 24%,18% and 5%, respectively, on a revenue basis in the second quarter of 2005.

Overall, the Company shipped a total of 1,248,000 square meters of net display area in the third quarter of 2005, a 13.9% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,121. This represents an increase in the average selling price per square meter of net display area of approximately 2.9% compared to the average of the second quarter of 2005, and an increase of 2.3% at the end of the third quarter as compared to the end of the second quarter of 2005.

The total cost of goods sold increased to KRW 2,367 billion (USD 2,271 million), or 52% year-on-year and 9% compared to the second quarter of 2005, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1,896 thousand (USD 1,819) for the third quarter of 2005, down 4.2% from the second quarter of 2005.

“In the third quarter, we experienced increased demand, especially in the LCD TV and notebook panel segments, and, as a result, we shipped a record amount of display area, despite a strong competitive environment,” said Ron Wirahadiraksa, President and CFO of LG.Philips LCD. “We were able to meet this demand growth due in large part to the successful ramp up of our P6 facility, which achieved its initial design capacity of 90,000 sheets per month this quarter. While we continued to increase capacity, we were also intensely focused on cost reduction, which continued to show improvement.”

Liquidity

As of September 30, 2005, LG.Philips LCD had KRW 2,129 billion (USD 2,042 million) of cash and cash equivalents. Total debt was KRW 3,618 billion (USD 3,471 million), and the net-debt-to-equity ratio was 20% as of September 30, 2005, compared to 40% last quarter, in large part due to the USD 1.4 billion follow-on equity offering in July 2005.

Capital Spending

Capital expenditures in the third quarter of 2005 decreased to KRW 1,380 billion (USD 1,324 million) from KRW 1,434 billion (USD 1,376 million) in the third quarter of 2004. Our capital expenditures for the third quarter of 2005 were mainly used for continued investment in P6 and P7.

Utilization and Capacity

Total input capacity on an area basis increased approximately 17% in the third quarter compared to the second quarter, due mainly to P6 achieving its initial design capacity of 90,000 input sheets per month. The Company intends to expand this capacity further over time.

Second Quarter Financial Review

Revenue and Cost

Revenues in the three-month period ended June 30, 2005 decreased by 1.0% to KRW 2,308 billion (USD 2,231 million) from KRW 2,332 billion (USD 2,254 million) in the corresponding period in 2004, as increases in shipments mostly offset the effect of decreases in panel prices. TFT-LCD panels for desktop monitors, notebook computers, TVs and “other applications” accounted for 53%, 18%, 24% and 5%, respectively, on a revenue basis in the second quarter of 2005, compared to 56%, 18%, 22% and 4%, respectively, on a revenue basis in the first quarter of 2005.

Overall, LG.Philips LCD shipped a total of 1,096,000 square meters of net display area in the second quarter of 2005, a 14% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,062. This represents a decline in the average selling price per square meter of net display area of approximately 1.1% compared to the average of the first quarter of 2005 and an increase of 1.6% at the end of the second quarter as compared to the end of the first quarter of 2005.

Total cost of goods sold increased to KRW 2,169 billion (USD 2,097 million), or 46% year-on-year and 3% compared to the first quarter of 2005, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1,980 thousand (USD 1,913) for the second quarter of 2005, down 9.8% from the first quarter of 2005.

“In the second quarter we experienced increased demand for monitor and LCD TV panels,” said Ron Wirahadiraksa, President and Chief Financial Officer of LG.Philips LCD. “In anticipation of this demand, we continued the successful ramp-up of our P6 facility. TV panel shipments have benefited from LCD TV sets approaching more attractive ‘sweet spot’ prices. We have already taken a leading position in this segment and we expect to further strengthen our market position in the second half of 2005 as demand grows. As our ‘P6’ facility approaches its design capacity in Q3, we also expect further progress on our cost down efforts, especially for large and wide panels.”

Liquidity

As of June 30, 2005, LG.Philips LCD had KRW 1,331 billion (USD 1,287 million) of cash and cash equivalents. Total debt was KRW 3,589 billion (USD 3,469 million), with a net-debt-to-equity ratio of 40% as of June 30, 2005.

Capital Spending

Capital expenditures in the second quarter of 2005 increased to KRW 969 billion (USD 937 million) from KRW 453 billion (USD 438 million) in the first quarter of 2005, and from KRW 1,239 billion (USD 1,198 million) in the second quarter of 2004. Our capital expenditures for the second quarter of 2005 were mainly used for P6 and P7.

2

Utilization and Capacity

Total input capacity on an area basis increased approximately 11.4% in the second quarter compared to the first quarter, due mainly to the ongoing ramp-up of P6. P6 averaged 72,000 input sheets per month for the second quarter of 2005.

Second Quarter Financial Review

Revenue and Cost

Revenues in the three-month period ended June 30, 2005 decreased by 1.0% to KRW 2,308 billion (USD 2,231 million) from KRW 2,332 billion (USD 2,254 million) in the corresponding period in 2004, as increases in shipments mostly offset the effect of decreases in panel prices. TFT-LCD panels for desktop monitors, notebook computers, TVs and “other applications” accounted for 53%, 18%, 24% and 5%, respectively, on a revenue basis in the second quarter of 2005, compared to 56%, 18%, 22% and 4%, respectively, on a revenue basis in the first quarter of 2005.

Overall, LG.Philips LCD shipped a total of 1,096,000 square meters of net display area in the second quarter of 2005, a 14% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,062. This represents a decline in the average selling price per square meter of net display area of approximately 1.1% compared to the average of the first quarter of 2005 and an increase of 1.6% at the end of the second quarter as compared to the end of the first quarter of 2005.

Total cost of goods sold increased to KRW 2,169 billion (USD 2,097 million), or 46% year-on-year and 3% compared to the first quarter of 2005, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1,980 thousand (USD 1,913) for the second quarter of 2005, down 9.8% from the first quarter of 2005.

“In the second quarter we experienced increased demand for monitor and LCD TV panels,” said Ron Wirahadiraksa, President and Chief Financial Officer of LG.Philips LCD. “In anticipation of this demand, we continued the successful ramp-up of our P6 facility. TV panel shipments have benefited from LCD TV sets approaching more attractive ‘sweet spot’ prices. We have already taken a leading position in this segment and we expect to further strengthen our market position in the second half of 2005 as demand grows. As our ‘P6’ facility approaches its design capacity in Q3, we also expect further progress on our cost down efforts, especially for large and wide panels.”

Liquidity

As of June 30, 2005, LG.Philips LCD had KRW 1,331 billion (USD 1,287 million) of cash and cash equivalents. Total debt was KRW 3,589 billion (USD 3,469 million), with a net-debt-to-equity ratio of 40% as of June 30, 2005.

Capital Spending

Capital expenditures in the second quarter of 2005 increased to KRW 969 billion (USD 937 million) from KRW 453 billion (USD 438 million) in the first quarter of 2005, and from KRW 1,239 billion (USD 1,198 million) in the second quarter of 2004. Our capital expenditures for the second quarter of 2005 were mainly used for P6 and P7.

2

Utilization and Capacity

Total input capacity on an area basis increased approximately 11.4% in the second quarter compared to the first quarter, due mainly to the ongoing ramp-up of P6. P6 averaged 72,000 input sheets per month for the second quarter of 2005.

First Quarter Financial Review

Revenue and Cost

Revenues decreased by 6% to KRW 2,064 billion (USD 2,033 million) in the three-month period ended March 31, 2005, from KRW 2,188 billion (USD 2,155 million) in the corresponding period of 2004 due to decreases in panel prices and the strong appreciation of the Korean Won. The effect of the overall decrease in panel prices was partially offset by an increase in the volume of large and wide panels for notebook computers, desktop monitors and TVs. The increase in volume shipments was in response to the growing market needs for large and wide flat panels, especially for large size TV panels. TFT-LCD panels for desktop monitors, notebook computers, TVs and applications accounted for 56%, 18%, 22% and 4% respectively on a revenue basis in the first quarter of 2005, compared to 53%, 27%, 15% and 5% respectively on a revenue basis in the fourth quarter of 2004.

Overall, LG.Philips LCD shipped a total of 958,000 square meters of net display area, a 24% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,085 in the first quarter of 2005. This represents a decline in the selling price per square meter of net display area of approximately 10% compared to the average of the fourth quarter of 2004, and a decline of 9% at the end of the first quarter as compared to the end of the fourth quarter of 2004.

The cost of goods sold per square meter of net display area shipped was KRW 2,177 thousand (USD 2,144) for the first quarter of 2005, down 2.3% from the fourth quarter of 2004. Total cost of goods sold increased to KRW 2,102 billion (USD 2,070 million), or 48% year-on-year and 14% compared to the fourth quarter of 2004, as a result of increased volumes shipped as well as an increase in large and wide panels, especially in the TV segment.

“While the first quarter was challenging due to the strengthening of the Korean Won and a difficult pricing environment, we did see some positive emerging trends,” said Ron Wirahadiraksa, Chief Financial Officer of LG.Philips LCD. “During this quarter, the average LCD size increased with the adoption of large and wide LCD monitors and the growing popularity of LCD TVs. To meet the increase in demand, we continue to focus on effectively using our resources to serve our customers and improve operational efficiency.”

Liquidity

As of March 31, 2005, LG.Philips LCD had KRW 1,350 billion (USD 1,330 million) of cash and cash equivalents. Total debt as of March 31, 2005, was KRW 3,030 billion (USD 2,984 million) with a net-debt-to-equity ratio of 30% compared to the 23% at the end of the fourth quarter of 2004.

During the first quarter of 2005, LG.Philips LCD issued KRW 400 billion of Korean Won-denominated fixed rate bonds. The capital raised is being used for capital expenditures.

Capital Spending

Capital expenditures, on a cash basis, in the first quarter of 2005 decreased to KRW 453 billion (USD 446 million) from KRW 473 billion (USD 466 million) in the fourth quarter of 2004, and from KRW 730 billion (USD 719 million) in the first quarter of 2004. Capital expenditures for the first quarter of 2005 were mainly used for investments in P7.

2

Utilization and Capacity

Total input capacity on an area basis increased approximately 13% in the first quarter of 2005 compared to the fourth quarter, due mainly to the ramp-up of P6. P6 averaged 55,000 input sheets per month for the first quarter of 2005.

First Quarter Financial Review

Revenue and Cost

Revenues decreased by 6% to KRW 2,064 billion (USD 2,033 million) in the three-month period ended March 31, 2005, from KRW 2,188 billion (USD 2,155 million) in the corresponding period of 2004 due to decreases in panel prices and the strong appreciation of the Korean Won. The effect of the overall decrease in panel prices was partially offset by an increase in the volume of large and wide panels for notebook computers, desktop monitors and TVs. The increase in volume shipments was in response to the growing market needs for large and wide flat panels, especially for large size TV panels. TFT-LCD panels for desktop monitors, notebook computers, TVs and applications accounted for 56%, 18%, 22% and 4% respectively on a revenue basis in the first quarter of 2005, compared to 53%, 27%, 15% and 5% respectively on a revenue basis in the fourth quarter of 2004.

Overall, LG.Philips LCD shipped a total of 958,000 square meters of net display area, a 24% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,085 in the first quarter of 2005. This represents a decline in the selling price per square meter of net display area of approximately 10% compared to the average of the fourth quarter of 2004, and a decline of 9% at the end of the first quarter as compared to the end of the fourth quarter of 2004.

The cost of goods sold per square meter of net display area shipped was KRW 2,177 thousand (USD 2,144) for the first quarter of 2005, down 2.3% from the fourth quarter of 2004. Total cost of goods sold increased to KRW 2,102 billion (USD 2,070 million), or 48% year-on-year and 14% compared to the fourth quarter of 2004, as a result of increased volumes shipped as well as an increase in large and wide panels, especially in the TV segment.

“While the first quarter was challenging due to the strengthening of the Korean Won and a difficult pricing environment, we did see some positive emerging trends,” said Ron Wirahadiraksa, Chief Financial Officer of LG.Philips LCD. “During this quarter, the average LCD size increased with the adoption of large and wide LCD monitors and the growing popularity of LCD TVs. To meet the increase in demand, we continue to focus on effectively using our resources to serve our customers and improve operational efficiency.”

Liquidity

As of March 31, 2005, LG.Philips LCD had KRW 1,350 billion (USD 1,330 million) of cash and cash equivalents. Total debt as of March 31, 2005, was KRW 3,030 billion (USD 2,984 million) with a net-debt-to-equity ratio of 30% compared to the 23% at the end of the fourth quarter of 2004.

During the first quarter of 2005, LG.Philips LCD issued KRW 400 billion of Korean Won-denominated fixed rate bonds. The capital raised is being used for capital expenditures.

Capital Spending

Capital expenditures, on a cash basis, in the first quarter of 2005 decreased to KRW 453 billion (USD 446 million) from KRW 473 billion (USD 466 million) in the fourth quarter of 2004, and from KRW 730 billion (USD 719 million) in the first quarter of 2004. Capital expenditures for the first quarter of 2005 were mainly used for investments in P7.

2

Utilization and Capacity

Total input capacity on an area basis increased approximately 13% in the first quarter of 2005 compared to the fourth quarter, due mainly to the ramp-up of P6. P6 averaged 55,000 input sheets per month for the first quarter of 2005.

Fourth Quarter Financial Review

Revenue and Cost

Revenues decreased by 9% to KRW 1,933 billion (USD 1,867 million) in the three-month period ended December 31, 2004, from KRW 2,135 billion (USD 2,063 million) in the corresponding period in 2003 due to decreases in panel prices. The effect of the overall decrease in panel prices was offset by an increase in the volume of panels for notebook computers, desktop monitors and TVs resulting from increased production capacity, especially from P6, which commenced operations in August 2004. TFT-LCD panels for desktop monitors, notebook computers, TVs and applications accounted for 53%, 27%, 15% and 5% respectively on a revenue basis, in the fourth quarter of 2004, compared to 55%, 27%, 14% and 4% respectively on a revenue basis, in the third quarter of 2004.

Overall, LG.Philips LCD shipped a total of 771,000 square meters of net display area, a 38% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,304 in the fourth quarter of 2004. This represents a decrease in the selling price per square meter of net display area of approximately 19% compared to the average of the third quarter of 2004 and a decline of 14% at the end of the fourth quarter as compared to the end of the third quarter of 2004.

The cost of goods sold per square meter of net display area shipped was KRW 2,271 thousand (USD 2,194) for the fourth quarter of 2004, down 9.0% from the third quarter of 2004. Cost of goods sold increased to KRW 1,840 billion (USD 1,778 million), or 22% year-on-year and 18% compared to the third quarter of 2004, as a result of increased volume year-on-year.

“As we announced in December 2004, price declines in the fourth quarter were greater than we anticipated earlier in that period,” said Ron Wirahadiraksa, President and Chief Financial Officer of LG.Philips LCD. “Yet, despite these conditions, LG.Philips LCD continued to execute well on its plan to sustain market leadership, manufacturing efficiencies and sound financial management.”

Mr. Wirahadiraksa continued, “Our strength and commitment to state-of-the-art manufacturing resulted in an impressive 38% increase in area shipped for the quarter, while at the same time, we were able to reduce our costs of goods sold. In 2005, we believe there will be strong growth in consumer demand for flat screen TVs, and our focus remains the same: superior execution, prudent cost-cutting measures and investing in our business to further improve our competitive position and long-term growth prospects.”

Liquidity

As of December 31, 2004, LG.Philips LCD had KRW 1,361 billion (USD 1,315 million) of cash and cash equivalents. Total debt at December 31, 2004, was KRW 2,679 billion (USD 2,588 million) with a net-debt-to-equity ratio of 23%.

During the fourth quarter of 2004, LG.Philips LCD issued USD 200 million of US dollar-denominated floating rate notes and KRW 300 billion of Korean Won-denominated fixed rate bonds. The capital raised is being used for general investment purposes and refinancing of existing debt.

2

Capital Spending

Capital expenditures in the fourth quarter of 2004 sequentially decreased to KRW 473 billion (USD 457 million) from KRW 1,434 billion (USD 1,385 million) in the third quarter of 2004, and from KRW 544 billion (USD 526 million) in the fourth quarter 2003. The capital expenditures for the fourth quarter of 2004 were mainly used for investments in P6 and ongoing operations.

Utilization and Capacity

Total input capacity on an area basis increased approximately 24% in the fourth quarter compared to the third quarter, due mainly to the ramp-up of P6. P6 averaged 35,000 input sheets per month for the fourth quarter of 2004.

Fourth Quarter Financial Review

Revenue and Cost

Revenues decreased by 9% to KRW 1,933 billion (USD 1,867 million) in the three-month period ended December 31, 2004, from KRW 2,135 billion (USD 2,063 million) in the corresponding period in 2003 due to decreases in panel prices. The effect of the overall decrease in panel prices was offset by an increase in the volume of panels for notebook computers, desktop monitors and TVs resulting from increased production capacity, especially from P6, which commenced operations in August 2004. TFT-LCD panels for desktop monitors, notebook computers, TVs and applications accounted for 53%, 27%, 15% and 5% respectively on a revenue basis, in the fourth quarter of 2004, compared to 55%, 27%, 14% and 4% respectively on a revenue basis, in the third quarter of 2004.

Overall, LG.Philips LCD shipped a total of 771,000 square meters of net display area, a 38% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,304 in the fourth quarter of 2004. This represents a decrease in the selling price per square meter of net display area of approximately 19% compared to the average of the third quarter of 2004 and a decline of 14% at the end of the fourth quarter as compared to the end of the third quarter of 2004.

The cost of goods sold per square meter of net display area shipped was KRW 2,271 thousand (USD 2,194) for the fourth quarter of 2004, down 9.0% from the third quarter of 2004. Cost of goods sold increased to KRW 1,840 billion (USD 1,778 million), or 22% year-on-year and 18% compared to the third quarter of 2004, as a result of increased volume year-on-year.

“As we announced in December 2004, price declines in the fourth quarter were greater than we anticipated earlier in that period,” said Ron Wirahadiraksa, President and Chief Financial Officer of LG.Philips LCD. “Yet, despite these conditions, LG.Philips LCD continued to execute well on its plan to sustain market leadership, manufacturing efficiencies and sound financial management.”

Mr. Wirahadiraksa continued, “Our strength and commitment to state-of-the-art manufacturing resulted in an impressive 38% increase in area shipped for the quarter, while at the same time, we were able to reduce our costs of goods sold. In 2005, we believe there will be strong growth in consumer demand for flat screen TVs, and our focus remains the same: superior execution, prudent cost-cutting measures and investing in our business to further improve our competitive position and long-term growth prospects.”

Liquidity

As of December 31, 2004, LG.Philips LCD had KRW 1,361 billion (USD 1,315 million) of cash and cash equivalents. Total debt at December 31, 2004, was KRW 2,679 billion (USD 2,588 million) with a net-debt-to-equity ratio of 23%.

During the fourth quarter of 2004, LG.Philips LCD issued USD 200 million of US dollar-denominated floating rate notes and KRW 300 billion of Korean Won-denominated fixed rate bonds. The capital raised is being used for general investment purposes and refinancing of existing debt.

2

Capital Spending

Capital expenditures in the fourth quarter of 2004 sequentially decreased to KRW 473 billion (USD 457 million) from KRW 1,434 billion (USD 1,385 million) in the third quarter of 2004, and from KRW 544 billion (USD 526 million) in the fourth quarter 2003. The capital expenditures for the fourth quarter of 2004 were mainly used for investments in P6 and ongoing operations.

Utilization and Capacity

Total input capacity on an area basis increased approximately 24% in the fourth quarter compared to the third quarter, due mainly to the ramp-up of P6. P6 averaged 35,000 input sheets per month for the fourth quarter of 2004.