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SEOUL, Korea (Oct. 11, 2004) - LG.Philips LCD (NYSE: LPL, KSE: 034220), one of the world's leading TFT-LCD manufacturers, today reported unaudited earnings results based on consolidated Korean GAAP for the three-month and nine-month periods ended September 30, 2004. Amounts in Korean Won are translated into US dollars at the exchange rate of KRW 1,152 per US dollar as of September 30, 2004.


- Sales increased by 11.5% to KRW 1,875 billion (USD 1,601 million) in the third quarter of 2004 from KRW 1,681 billion (USD 1,425 million) in the third quarter of 2003 due to increased demand. Sales in the third quarter declined 19.6% compared to the second quarter of 2004 due to pricing pressure as a result of increased capacity in the industry, which stemmed in part from the easing of industry-wide shortages of materials and a build-up of inventory.


- Operating income decreased by 29.9% to KRW 256 billion (USD 223 million) in the third quarter of 2004 from KRW 365 billion (USD 318 million) in the third quarter of 2003 and by 66.8% from KRW 771 billion in the second quarter of 2004.


- Net income decreased by 15.2% to KRW 291 billion (USD 252 million) in the third quarter of 2004 from KRW 343 billion (USD 298 million) in the third quarter of 2003. This represents a decrease of 58.5% from KRW 701 billion (USD 609 million) in the second quarter of 2004.


"In our first quarter as a public company, we continued to experience year-on-year revenue growth, as we utilized our increased capacity to generate higher sales to our global merchant customers," said Bon Joon Koo, Chief Executive Officer, LG.Philips LCD. "It was a notable quarter in which we completed the world's first concurrent dual listing with our IPO on the Korea Stock Exchange and the New York Stock Exchange, successfully commenced production at our sixth generation fabrication facility (P6) and maintained our position as the largest merchant supplier of TFT-LCD panels in the world," concluded Mr. Koo.



Third Quarter Financial Review

Revenue and Cost
Revenue increased by 11.5% to KRW 1,875 billion (USD 1,601 million) in the three-month period ended September 30, 2004, from KRW1,681 billion (USD 1,425 million) in the corresponding period in 2003. Increases in capacity contributed to additional unit sales of large-size panels for notebook computers, desktop monitors and TVs in the three-month period ended September 30, 2004, compared to the corresponding period in 2003. TFT LCD panels for desktop monitors accounted for 54.5% in terms of revenue, with notebook computers accounting for 26.5%, TVs accounting for 13.5% and applications accounting for 5.4%.

Overall, LG.Philips LCD shipped a total of 560,194 square meters of net display area with an average selling price per square meter of USD 2,857 in the third quarter of 2004. This represents a decrease of 8.8% year-on-year and a decrease of 19.6% compared to the second quarter of 2004.

Cost of goods sold increased to KRW 1,555 billion, or 24.1% year-on-year and 4.6% compared to the second quarter of 2004, as a result of increased volume year-on-year and the start of depreciation of P6.

"While we experienced greater than expected pricing declines during the quarter, we believe these declines should lead to increased acceptance and sales in the global TV market," commented Ron Wirahadiraksa, Chief Financial Officer, LG.Philips LCD. "Furthermore, we believe that LG.Philips LCD is well positioned to capture market share and to grow our customer relationships. Our funding position has strengthened considerably due to the IPO proceeds and to strong cash-flow from operations," concluded Mr. Wirahadiraksa.

Liquidity
As of September 30, 2004, LG.Philips LCD had KRW 1,212 billion (USD 1,052 million) of cash and cash equivalents. Total debt at September 30, 2004, was KRW 2,283 billion (USD 1,982 million) with a net-debt-to-equity ratio of 18.8%.

Capital Spending
Third quarter capital expenditure increased to KRW 1,434 billion (USD 1,245 million) from KRW 386 million during the third quarter of 2003 mainly due to investments in P6, LG.Philips LCD's most recent, sixth generation, fabrication facility.

Utilization and Capacity
The capacity of our G5 lines increased approximately 5% in the third quarter. P6 input glass averaged 10K per month for the quarter.

Outlook
The TFT-LCD industry should experience both unit and area growth in the fourth quarter of 2004 and during 2005.
LG.Philips LCD will increase its output to meet this growth and to meet its customers' needs.
We expect prices to further stabilize, as they currently are, in Q4 2004. Prices in the first half of 2005 are expected to remain weak for both PC computers and TVs and to improve in the second half of 2005, mainly due to growing demand for LCD TVs.

Web Cast and Replay
LG.Philips LCD will hold conference calls to review earnings and performance trends today, October 11, 2004. There will be a Korean language conference call at 5:00 p.m. Korea Standard Time. The call-in number is 1566-2255 for callers in Korea and +82-31-500-0500 for callers outside of Korea with a confirmation number of 3777 for both phone numbers.

In addition, there will be an English language conference call at 9:00 p.m. Korea Standard Time (8:00 am in New York and 1:00 p.m. in London). The call in number is 1566-2256 for callers in Korea and +82-31-500-0501 for callers outside of Korea with a confirmation number of 3777 for both phone numbers. There will be corresponding slides available at LG.Philips LCD's website: http://www.lgphilips-lcd.com

For those who will be unable to participate on the call, a replay will be available for 30 days after the call. The call in number is 031-500-0401 for callers in Korea and +82-31-500-0401 for callers outside of Korea with a confirmation number of 17213# for both phone numbers.

Alternatively, investors can listen to the conference call over the Internet at http://www.lgphilips-lcd.com. To listen to the live call, please go to the Investor Relations section of the Web site at least 15 minutes prior to the call to register, download and install any necessary audio software.

About LG.Philips LCD
LG.Philips LCD (NYSE: LPL, KSE: 034220) is a leading manufacturer and supplier of thin film transistor liquid crystal display (TFT-LCD) panels. The Company manufactures TFT-LCD panels in a wide range of sizes and specifications primarily for use in notebook computers, desktop monitors and televisions. Headquartered in Seoul, South Korea, LG.Philips LCD currently operates six fabrication facilities in Korea and has approximately 12,000 employees in locations around the world. For more information about the Company, please visit http://www.lgphilips-lcd.com.
LG.Philips LCD makes "Technology you can see!"

Forward-Looking Statement Disclaimer
This press release contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Additional information as to factors that may cause actual results to differ materially from our forward-looking statements can be found in our filings with the United States Securities and Exchange Commission.


Investor Relations Contacts:
Jay Hong (Korea)
ir@lgphilips-lcd.com
LG.Philips LCD
+ 822-3777-1010
~ or ~
Monica Huang (USA)
mhuang@sloanepr.com
Sloane & Company
+1 212-446-1874

Media Contact:
Eliot Slone (USA)
ESloane@sloanepr.com
Sloane & Company
+ 1 212-446-1860
~ or in Korea ~
Sue Kim
Sue.kim@edelman.com
Edelman / Seoul
+ 822-2022-8239