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SEOUL, Korea (January 24, 2005) ？ 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 full-year periods ended December 31, 2004. Amounts in Korean Won are translated into US dollars at the noon buying rate in effect on December 31, 2004, which was KRW 1,035.1 per US dollar.

· Sales in the fourth quarter of 2004 increased by 3% to KRW 1,933 billion (USD 1,867 million) from sales of KRW 1,875 billion (USD 1,811 million) in the third quarter of 2004. Sales decreased by 9% in the fourth quarter of 2004 from KRW 2,135 billion (USD 2,063 million) in the fourth quarter of 2003 due to decreases in panel prices. Fourth quarter 2004 sales comparisons, from both a sequential and year-on-year perspective, were also impacted by the Korean Won appreciation against the US dollar during this period. Revenues for 2004 were KRW 8,328 billion (USD 8,046 million), an increase of 37% from KRW 6,098 billion (USD 5,891 million) in 2003.
· Operating income in the fourth quarter of 2004 decreased by 99% from KRW 256 billion (USD 247 million) in the third quarter of 2004. Operating income decreased to
KRW 2 billion (USD 1.9 million) in the fourth quarter of 2004 from KRW 552 billion (USD 533 million) in the fourth quarter of 2003. Operating income for 2004 was KRW 1,728 billion (USD 1,669 million), an increase of 61% from KRW 1,074 billion
(USD 1,038 million) in 2003.
· EBITDA in the fourth quarter of 2004 decreased by 27% to KRW 412 billion (USD 398 million) from KRW 568 billion (USD 549 million) in the third quarter of 2004. EBITDA in the fourth quarter of 2004 decreased by 51% from KRW 837 billion (USD 809 million) in the fourth quarter of 2003. EBITDA for 2004 was KRW 2,994 billion (USD 2,892 million), an increase of 43% from KRW 2,091 billion (USD 2,020 million) in 2003.
· Net income in the fourth quarter of 2004 decreased by 88% from KRW 291 billion (USD 281 million) in the third quarter of 2004. Net income decreased to KRW 35 billion (USD 34 million) in the fourth quarter of 2004 from KRW 544 billion (USD 526 million) in the fourth quarter of 2003. Net income for 2004 was KRW 1,655 billion (USD 1,599 million), an increase of 62% from KRW 1,019 billion (USD 984 million) in 2003.
“We continue making steady gains towards our goal of becoming the number one LCD company in the industry,” said Bon Joon Koo, Vice Chairman and CEO of LG.Philips LCD. “In the third quarter of 2004 we began mass production at the world’s largest sixth generation factory, ‘P6’, reaching an average capacity of 35,000 input sheets per month in the fourth quarter. Our advanced technology enables us to further enhance our product offerings, strengthen our market position and fortify our strategic relationships with key customers. We remain committed to growing the LCD TV segment and have announced plans for our seventh generation factory, ‘P7’, which will enable us to meet the future product needs of our customers and capitalize on the growing global opportunity for LCD TVs.”


[Fourth Quarter Financial Review]

- Revenue and Cost

Revenues decreased by 9% to KRW 1,933 billion (USD 1,867 million) in the three-month period ended December 31, 2004, from KRW 2,135 billion (USD 2,063 million) in the corresponding period in 2003 due to decreases in panel prices. The effect of the overall decrease in panel prices was offset by an increase in the volume of panels for notebook computers, desktop monitors and TVs resulting from increased production capacity, especially from P6, which commenced operations in August 2004. TFT-LCD panels for desktop monitors, notebook computers, TVs and applications accounted for 53%, 27%, 15% and 5% respectively on a revenue basis, in the fourth quarter of 2004, compared to 55%, 27%, 14% and 4% respectively on a revenue basis, in the third quarter of 2004.

Overall, LG.Philips LCD shipped a total of 771,000 square meters of net display area, a 38% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,304 in the fourth quarter of 2004. This represents a decline in the selling price per square meter of net display area of approximately 19% compared to the average of the third quarter of 2004 and a decline of 14% at the end of the fourth quarter as compared to the end of the third quarter of 2004.

The cost of goods sold per square meter of net display area shipped was KRW 2,271 thousand (USD 2,194) for the fourth quarter of 2004, down 9.0% from the third quarter of 2004. Cost of goods sold increased to KRW 1,840 billion (USD 1,778 million), or 22% year-on-year and 18% compared to the third quarter of 2004, as a result of increased volume year-on-year.

"As we announced in December 2004, price declines in the fourth quarter were greater than we anticipated earlier in that period,” said Ron Wirahadiraksa, President and Chief Financial Officer of LG.Philips LCD. “Yet, despite these conditions, LG.Philips LCD continued to execute well on its plan to sustain market leadership, manufacturing efficiencies and sound financial management.”

Mr. Wirahadiraksa continued, “Our strength and commitment to state-of-the-art manufacturing resulted in an impressive 38% increase in area shipped for the quarter, while at the same time, we were able to reduce our costs of goods sold. In 2005, we believe there will be strong growth in consumer demand for flat screen TVs, and our focus remains the same: superior execution, prudent cost-cutting measures and investing in our business to further improve our competitive position and long-term growth prospects."

- Liquidity

As of December 31, 2004, LG.Philips LCD had KRW 1,361 billion (USD 1,315 million) of cash and cash equivalents. Total debt at December 31, 2004, was KRW 2,679 billion
(USD 2,588 million) with a net-debt-to-equity ratio of 23%.

During the fourth quarter of 2004, LG.Philips LCD issued USD 200 million of US dollar-denominated floating rate notes and KRW 300 billion of Korean Won-denominated fixed rate bonds. The capital raised is being used for general investment purposes and refinancing of existing debt.



- Capital Spending

Capital expenditures in the fourth quarter of 2004 sequentially decreased to KRW 473 billion (USD 457 million) from KRW 1,434 billion (USD 1,385 million) in the third quarter of 2004, and from KRW 544 billion (USD 526 million) in the fourth quarter 2003. The capital expenditures for the fourth quarter of 2004 were mainly used for investments in P6 and ongoing operations.

- Utilization and Capacity

Total input capacity on an area basis increased approximately 24% in the fourth quarter compared to the third quarter, due mainly to the ramp-up of P6. P6 averaged 35,000 input sheets per month for the fourth quarter of 2004.


- Outlook

The following expectations are based on current information as of January 24, 2005. The Company does not expect to update its expectations until next quarter’s earnings release. However, the Company may update its full business outlook, or any portion thereof, at any time for any reason.

According to DisplaySearch, the TFT-LCD industry should experience both unit and area growth in 2005. LG.Philips LCD plans to increase its output to meet this anticipated growth and to meet its customers’ needs.

“We expect the industry supply/demand balance will begin to stabilize in the second quarter and then show signs of strengthening later in the year,” commented Mr. Wirahadiraksa. “For the first quarter of 2005, we see our area shipments increasing approximately 9% quarter-on-quarter. We expect a high single digit rate decline on the ASP per net display area shipped at the end of the first quarter of 2005 as compared to the end of the fourth quarter of 2004. As a result, we expect our EBITDA margin rate in the first quarter of 2005 to be in the range of the mid-teens.”


- Earnings Conference and Conference Call

LG.Philips LCD will hold a Korean language earnings conference on January 24, 2005 at
4:30 p.m. Korea Standard Time on the 21st floor of the Korea Stock Exchange (KSE). An English language conference call will follow at 10:00 p.m. Korea Standard Time (8:00 a.m. EST and
1:00 p.m. GMT). The call-in number is 1566-2256 for callers in Korea and +82-2-6677-2256 for callers outside of Korea. The confirmation number is 3777. Corresponding slides will be available at the Investor Relations section of the LG.Philips LCD website.
http://www.lgphilips-lcd.com

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 website at least 15 minutes prior to the call to register and install any necessary audio software.

For those who are unable to participate in the call, a replay will be available for 30 days after the call. The call-in number is 031-810-3100 for callers in Korea and +82-31-810-3100 for callers outside of Korea. The confirmation number for the replay is 22619#.




[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 13,000 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)
LG.Philips LCD
Tel: +822-3777-1010
Email: jay.hong@lgphilips-lcd.com

Monica Huang (USA)
Sloane & Company
Tel: +1-212-446-1874
Email: Mhuang@sloanepr.com


Media Contacts:

Elliot Sloane (USA)
Sloane & Company
Tel: +1-212-446-1860
Email: ESloane@sloanepr.com

Sue Kim (Korea)
Edelman
Tel: + 822-2022-8239
Email: