LG Electronics in "pole position" with F1™ for market leadership

Issued: 31 August 2009

Amstelveen, 31 August 2009 – LG Electronics (LG) has set its objectives to become the largest worldwide manufacturer of mobile phones and consumer electronics by 2013. The company, which reported a historic profit growth over the last quarter and a record growth in Benelux over the last year, is getting ready to take market leadership. With its new brand strategy, LG wants to further strengthen and build its brand with compelling values that are recognized by its target groups and are differentiating in the market. Part of this strategy is a worldwide cooperation with Formula One™. LG Electronics is A Global Partner of Formula 1™ and A Technology Partner of Formula 1™. With the Grand Prix™ taking place at Spa Francorchamps in Belgium from 28 to 30 August 2009, LG will also locally leverage the global partnership in its marketing activities.

Earlier, LG stated its goal to become one of the three largest brands in mobile phones and consumer electronics by 2010. In het first quarter of 2009, the company remained third as the largest manufacturer of mobile phones. LG Electronics is also the number three in the flat screen TV, refrigerator and washing machine market. In addition, LG is a market leader for some years now in air conditioners and optical storage devices.

‘By providing finest design and best technology in products that fit consumers’ lives, we are poised to take the LG brand forward in a compelling way. We are working to establish a single LG brand that is easy for consumers to identify with and that is differentiated from other global electronics brands as refreshing, modern and refined’, says Patrick Bakker, Corporate Marketing Director Benelux at LG Electronics.

LG products are a combination of stylish design and the best possible technology. The strong results of the company in recent times underline the fact that LG’s vision and smart technology is more and more recognized. Consumers are increasingly identifying themselves with the LG brand which they regard as innovative, modern and refined. The worldwide and local marketing campaigns and branding activities, including the cooperation with Formula One™, are focused on further strengthening the brand experience.

As A Global Partner of Formula 1™ and A Technology Partner of Formula 1™, LG have also acquired exclusive designations and marketing rights as Official Consumer Electronics, Mobile Phone and Data Processor of this global sporting event. The partnership is part of LG’s strategic focus to enhance its brand awareness and strengthening its position as a worldwide technology leader.

LG’s long term vision is not only to become a market leader in consumers electronics and mobile phones by 2013, but also in shareholders value and HR. In addition to strengthening the brand experience among consumers, LG Electronics invests over a billion dollar in research and innovation. LG efforts towards market leadership coincide with supporting sustainable growth. For this purpose, LG started various initiatives on protecting the environment and promoting sustainable business processes.

About LG Electronics, Inc LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 84,000 people working in 115 operations including 84 subsidiaries around the world. With 2008 global sales of USD44.7 billion, LG is comprised of five business units –- Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is the world’s leading producer of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines. LG has signed a longterm agreement to become both A Global Partner of Formula 1™ and A Technology Partner of Formula 1™. As part of this top-level association, LG acquires exclusive designations and marketing rights as the official consumer electronics, mobile phone and data processor of this global sporting event. For more information, please visit www.lg.com.

About Formula One™ Formula One™, which began in 1950, is the world’s most prestigious motor racing competition and is the world’s most popular annual sporting series. In 2008 it was watched by over 600 million unique television viewers from 188 territories. The 2009 FIA Formula One World Championship™ which began in March, spans nine months and will be contested by ten Formula One™ teams. It will be staged over 17 races in 16 countries across five continents. Formula One Administration Limited, a subsidiary of the Formula One group, was founded by CEO Bernie Ecclestone and holds the exclusive commercial rights to the FIA Formula One World Championship™. For more information on Formula One™ visit Formula1.com.