LG Display (LPL)

We sell our products to a select group of key customers, including our two principal shareholders, who may no longer rely on us as a strategic supplier of TFT-LCD products, and any significant decrease in their order levels will negatively affect our financial condition and results of operations.

A substantial portion of our sales is attributable to a limited group of end-brand customers and their designated system integrators. Sales attributed to our end-brand customers are for their end-brand products and do not include sales to these customers

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for their system integration activities for other end-brand products, if any. Our top ten end-brand customers, including our two principal shareholders, together accounted for 77.4% of our sales in 2004, 73.0% in 2005 and 71.3% in 2006. Our top three end-brand customers together accounted for 42.9% of our sales in 2004, 40.1% in 2005 and 42.0% in 2006. In 2006, three end-brand customers, LG Electronics (excluding its purchases made as a system integrator), Philips Electronics and Dell, each contributed to 10% or more of our sales.

We benefit from the strong collaborative relationships we maintain with our end-brand customers by participating in the development of their products and gaining insights about levels of future demand for our products and other industry trends. Customers look to us for a dependable supply of quality products, even during downturns in the industry, and we benefit from the brand recognition of our customers’ end products. The loss of these end-brand customers, as a result of customers entering into strategic supplier arrangements with our competitors or otherwise, would thus result not only in reduced sales, but also in the loss of these benefits.

We cannot provide assurance that these customers, including our two principal shareholders, will continue to place orders with us in the future at the same levels as in prior periods, or at all.