LG Electronics strengthens its brand strategy in Barcelona

Issued: 8 May 2009

• Becoming A Global Partner of Formula 1™ and A Technology Partner of Formula 1™ is the starting point of the company’s brand strategy

• The LG Arena mobile multimedia phone is launched in Spain and the new LH5000 LCD TV, ideal to view fast F1™ images on, is set to arrive in June

LG Electronics (LG), a global leader and technology innovator in consumer electronics and mobile phones, is unveiling its strategy to strengthen LG’s brand identity, seeking to consolidate the company’s leading position in the Spanish market within the framework of Formula One™. The company is also launching its two flagship products in the mobile phone and TV ranges.

LG Electronics, which recently announced its global agreement to become A Global Partner of Formula 1™ and A Technology Partner of Formula 1™, is making efforts worldwide to reinforce the LG brand thereby strengthening its position in today’s market situation, increasing sales and adding value for consumers. In the context of the upcoming FORMULA 1 GRAN PREMIO DE ESPAÑA TELEFÓNICA 2009 , the President of LG Electronics Spain, Sun Hun Han has outlined the values that shape LG’s new global identity “with the mission of providing finest design and best technology in products that fit consumer’s 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.”

In pursuit of this goal, LG Electronics Spain is creating a space in Barcelona to provide users with the opportunity to live the LG brand experience during the FORMULA 1 GRAN PREMIO DE ESPAÑA TELEFÓNICA 2009 . Over the weekend in Barcelona, LG will showcase the company’s products that best reflect the perfect harmony between design and technology. The products on show will include the LG Arena mobile handset with 3D touch screen that is just being released on the Spanish market today. In the competition area equipped with video-games, users can try out for the first time the LH5000 LCD TV with bluetooth and the lowest response time on the market, which is ideal for viewing speed motion images such as Formula One™ racing and arrives in Spain in June. Other innovative products on display include the LG steam washing machine or LG blu-ray home theatre system offering Youtube access, which are unique on the market.

Moreover, Sun Hun Han emphasized the global profile of the LG Electronics brand “LG’s global branding activities and campaigns reinforce this mission. LG has formed exciting partnerships with global organizations such as Formula One™, to not only ensure success for its key initiatives but also best highlight and enhance the profiles of both global organizations over the long term.”

LG as A Technology Partner of Formula 1™

Underlying the global strategy and key to LG’s new brand positioning, the company recently announced the signing of an agreement to become A Global Partner of Formula 1™ and A Technological Partner of Formula 1™. As part of this top-level association that runs from January 2009, LG acquires exclusive designations and marketing rights as The Official Consumer Electronics, Mobile Phone and Data Processor of Formula 1™.

This partnership is part of LG’s new strategic focus on increasing brand awareness (it is the second brand in Spain enjoying a 39.8% share), and reinforcing its position as global technological leader.

“Formula One represents the absolute peak of technological innovation and style, which is also our vision for the LG Electronics brand,” said Mr. Sung Hun Han, President of LG Electronics Spain. “We feel the excitement and electricity of F1 is unmatched by any sport, and we feel the same passion and energy here at LG.”

LG and Formula One™ will be working closely in the years to come with the goal of providing an enhanced viewing experience for the hundreds of millions of fans that watch the sport globally.

LG Electronics’ vision and position in the global market and in Spain

LG is taking the right steps to achieve its goal of becoming one of the three leading brands in mobile phones and home appliances by 2010. At present, LG has managed to achieve solid global leadership positions.

In mobile handsets, LG has consolidated its position as the third largest manufacturer in the world and in Spain during the first quarter of 2009. LG Electronics is already the third global manufacturer of flat panel TVs, refrigerators and washing machines. Besides, for several years it has been positioning itself as the undisputed leader in air conditioning and optical storage.

LG is performing very well in the Spanish market. According to data from GFK, at the end of the first quarter of 2009, LG has increased its sales of mobile handsets to become the third largest mobile phone manufacturer in Spain, as well as achieving third position in the global market.

In the TV category LG has become the second brand in terms of value and units sold in the sector, and it is the most preferred flat panel TVs brand in Spain, holding the first position in the market.

Other product ranges in which LG is the leading brand in Spain include DVD players, microwave ovens and in the total market for refrigerators, in which it has been the pioneer in No-Frost technology, a segment it has led for over five years.

LG Electronics’ global vision in the long term is to become the top player by 2012, not just in terms of market share but also in terms generating value for shareholders and employees. The company’s strategy to achieve this goal is not just brand-driven; LG is leading trends in the market thanks to R&D investment of over a billion US dollars annually and in-depth knowledge of consumer needs worldwide. LG develops products that find the perfect harmony of stylish design and smart technology and are ideal for today’s lifestyle thereby delivering value and satisfaction to consumers. Moreover, this move towards global leadership is being under LG’s vision of sustainable and responsible growth, implementing corporate responsibility initiatives on environmental and social areas.

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.

About LG Electronics SpainLG Electronics has been operating in the Spanish market since 1994 and markets a wide range of electronic products through its 5 sales divisions (Mobile phones, Consumer Electronics, IT, Home appliances and Air-conditioning). LG Electronics Spain has consolidated its leadership in the market of flat panel TVs, home theatre systems and air conditioners. It is also the market leader in refrigerators, microwave ovens, DVD players, recording devices and optical storage products. In Spain, LG Electronics employs 327 people, distributed between its head office in Madrid and its sales offices in Barcelona, Bilbao and Seville, as well as its logistics centre and technical service in Valencia. For more information, please visit: www.lge.es.

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 long-term 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 http://www.lg.com.

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