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SEOUL, Korea (21, December, 2004) - LG.Philips LCD (NYSE: LPL, KSE: 034220), one of the world's leading TFT-LCD manufacturers, today updated its outlook for the fourth quarter of 2004 and the first half of 2005.

Based on currently available information, the Company said it experienced higher than expected sequential pricing erosion from the third quarter of 2004 and now anticipates average panel price declines per square meter of glass for the fourth quarter of 2004 to be closer to 20% quarter-on-quarter, a revision from previously issued price decline guidance at the high end of a 10-15% range.

"The industry continues to experience greater than expected price declines and LG.Philips LCD is not immune from these market dynamics," commented Ron Wirahadiraksa, Chief Financial Officer of LG.Philips LCD. "In addition, the recent strengthening of the Korean Won negatively impacts our results. As a result of these factors, combined with our ongoing cost reduction efforts, we expect our fourth quarter 2004 EBITDA margin to be close to 20%."

The Company expects continued downward price pressure in the first half of 2005.

"At this time, we reaffirm our previously guided range of 10-20% half-on-half average price declines per square meter of glass for the first half of 2005. These price declines will impact our EBITDA margin rate in the first half of 2005, which we now expect to be lower than that of the fourth quarter of 2004," said Mr. Wirahadiraksa."And as we have stated, we believe the supply/demand balance will first stabilize and then tighten in the second half of 2005."

"We also believe today's price declines should lead to increased consumer demand in 2005, particularly for LCD televisions, with LG.Philips LCD well positioned to meet the dynamic growth of the flat screen television market worldwide," stated Mr. Wirahadiraksa.

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 9,000 employees in locations around the world. For more information about the Company, please visit 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