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▶ Sales in the second quarter of 2005 increased by 12% to KRW 2,308 billion (USD 2,231 million) from sales of KRW 2,064 billion (USD 1,995 million) in the first quarter of 2005 and decreased 1% compared to KRW 2,332 billion (USD 2,254 million) in the second quarter of 2004. Second quarter 2005 sales were led by increased shipments of large and wide LCD TV panels, desktop monitor panels, and notebook panels.
▶ Operating income in the second quarter of 2005 swung to an operating profit of KRW 29 billion (USD 28 million) from a loss of KRW 135 billion (USD 130 million) in the first quarter of 2005, compared to an operating profit of KRW 771 billion (USD 745 million) in the second quarter of 2004.
▶ EBITDA in the second quarter of 2005 increased by 64% to KRW 442 billion (USD 427 million) from KRW 269 billion (USD 260 million) in the first quarter of 2005. EBITDA in the second quarter of 2005 decreased by 57% from KRW 1,034 billion (USD 1,000 million) in the second quarter of 2004.
▶ Net income in the second quarter of 2005 swung to a profit of KRW 41 billion (USD 40 million) from a loss of KRW 79 billion (USD 76 million) in the first quarter of 2005, compared to a net profit of KRW 701 billion (USD 678 million) in the second quarter of 2004.

“In this dynamically expanding industry, LG.Philips LCD continues to be the number one provider of large TFT-LCD panels, with a large panel revenue market share of 24.2% in the second quarter according to DisplaySearch,” said Bon Joon Koo, Vice Chairman and CEO of LG.Philips LCD. “In the second quarter, we were encouraged by the growth in shipments of LCD TV panels and remain committed to executing our leadership strategy. Furthermore, our notable accomplishments during the quarter included signing a new supply agreement with HP for TFT-LCD panels, as well as receiving the Society of Information Display ？Display of the Year Award’ for the second consecutive year and DisplaySearch’s overall ‘Customer Satisfaction Award’ for the fourth consecutive year.”


Second Quarter Financial Review

- Revenue and Cost
Revenues in the three-month period ended June 30, 2005 decreased by 1.0% to KRW 2,308 billion (USD 2,231 million) from KRW 2,332 billion (USD 2,254 million) in the corresponding period in 2004, as increases in shipments mostly offset the effect of decreases in panel prices. TFT-LCD panels for desktop monitors, notebook computers, TVs and “other applications” accounted for 53%, 18%, 24% and 5%, respectively, on a revenue basis in the second quarter of 2005, compared to 56%, 18%, 22% and 4%, respectively, on a revenue basis in the first quarter of 2005.

Overall, LG.Philips LCD shipped a total of 1,096,000 square meters of net display area in the second quarter of 2005, a 14% sequential quarterly increase, with an average selling price per square meter of net display area of USD 2,062. This represents a decline in the average selling price per square meter of net display area of approximately 1.1% compared to the average of the first quarter of 2005 and an increase of 1.6% at the end of the second quarter as compared to the end of the first quarter of 2005.

Total cost of goods sold increased to KRW 2,169 billion (USD 2,097 million), or 46% year-on-year and 3% compared to the first quarter of 2005, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1,980 thousand (USD 1,913) for the second quarter of 2005, down 9.8% from the first quarter of 2005.

“In the second quarter we experienced increased demand for monitor and LCD TV panels,” said Ron Wirahadiraksa, President and Chief Financial Officer of LG.Philips LCD. “In anticipation of this demand, we continued the successful ramp-up of our P6 facility. TV panel shipments have benefited from LCD TV sets approaching more attractive ‘sweet spot’ prices. We have already taken a leading position in this segment and we expect to further strengthen our market position in the second half of 2005 as demand grows. As our ‘P6’ facility approaches its design capacity in Q3, we also expect further progress on our cost down efforts, especially for large and wide panels.”

- Liquidity
As of June 30, 2005, LG.Philips LCD had KRW 1,331 billion (USD 1,287 million) of cash and cash equivalents. Total debt was KRW 3,589 billion (USD 3,469 million), with a net-debt-to-equity ratio of 40% as of June 30, 2005.

- Capital Spending
Capital expenditures in the second quarter of 2005 increased to KRW 969 billion (USD 937 million) from KRW 453 billion (USD 438 million) in the first quarter of 2005, and from KRW 1,239 billion (USD 1,198 million) in the second quarter of 2004. Our capital expenditures for the second quarter of 2005 were mainly used for P6 and P7.

- Utilization and Capacity
Total input capacity on an area basis increased approximately 11.4% in the second quarter compared to the first quarter, due mainly to the ongoing ramp-up of P6. P6 averaged 72,000 input sheets per month for the second quarter of 2005.

- Outlook
The following expectations are based on current information as of July 11, 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.

“We expect the business environment to continue strengthening in the second half of 2005,” commented Mr. Wirahadiraksa. “For the third quarter of 2005, we believe our area shipments will increase by a mid teen percentage quarter-on-quarter due to continued growth in the monitor and TV segments. We expect a single digit percentage increase in our average sales price per square meter of net display area shipped at the end of the third quarter of 2005 as compared to the end of the second quarter of 2005. We continue to lead the TFT-LCD market expansion and remain well positioned with the ramp up of our P6 facility and the construction of our P7 facility. Our CAPEX guidance for 2005 remains unchanged from the previous quarter’s guidance. At this stage, we estimate our preliminary CAPEX for 2006 to be in the range of KRW 3.5 trillion to KRW 4.5 trillion.”

- Earnings Conference and Conference Call
LG.Philips LCD will hold a Korean language earnings conference on July 11, 2005 at
4:30 p.m. Korea Standard Time on the 21st floor of the Korea Exchange (KRX). An English language conference call will follow at 9:00 p.m. Korea Standard Time 8:00 p.m. EST and 1:00 p.m. GMT. The call-in number is 02-3288-5446 for callers in Korea and +82-2-3288-5446 for callers outside of Korea. The confirmation number is 4590#. 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 02-3288-5446 for callers in Korea and +82-2-3288-5446 for callers outside of Korea. The confirmation number for the replay is 4591# (Press 2005042719 when asked for the authorization number.)


[About LG.Philips LCD]
LG.Philips LCD [NYSE: LPL, KRX: 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 15,000 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]
LG.Philips LCD
Tel: +822-3777-0970
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