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▶ Sales in the first quarter of 2007 decreased by 11% to KRW 2,722 billion (USD 2,893 million) from sales of KRW 3,065 billion (USD 3,257 million) in the fourth quarter of 2006 and increased 10% compared to KRW 2,471 billion (USD 2,626 million) in the first quarter of 2006.
▶ Operating loss in the first quarter of 2007 was KRW 208 billion (USD 221 million) compared to an operating loss of KRW 177 billion (USD 188 million) in the fourth quarter of 2006, and an operating profit of KRW 52 billion (USD 55 million) in the first quarter of 2006.
▶ EBITDA in the first quarter of 2007 was KRW 515 billion (USD 547 million), a decrease of 8% from KRW 559 billion (USD 594 million) in the fourth quarter of 2006 and a year-over-year decline of 23% from KRW 670 billion (USD 712 million) in the first quarter of 2006.
▶ Net income in the first quarter of 2007 was a loss of KRW 169 billion (USD 180 million) compared to a loss of KRW 174 billion (USD 185 million) in the fourth quarter of 2006 and a profit of KRW 48 billion (USD 51 million) in the first quarter of 2006.
Young Soo Kwon, CEO of LG.Philips LCD, said, “During the first quarter, our sales performance was encouraging, particularly in the TV and notebook PC segments, as the supply/demand environment improved and pricing began to stabilize. While we are pleased with these results, we continue to direct our resources on a number of key areas that we believe will bring about long-term shareholder value creation.”

“First, our efforts to better collaborate with our customers continue to pay off, as exemplified by major customers ranking us among their top suppliers. Second, our continued focus on intensive cost reduction resulted in a sequential 9% decrease in cost of goods sold on a square meter basis. Third, our finished goods inventory levels came in at approximately two weeks at the end of the quarter. Lastly, our approach to CAPEX has made certain that investments specifically correspond with market demand.”

Mr. Kwon continued, “While the first quarter presented many of the same industry-wide challenges that have been affecting the Company for the past several quarters, there are a few recent trends that are now positively impacting the industry: consumers are demanding LCDs over plasma display panels due to superior technology at comparative pricing in the 40” TV segment; and the industry is taking a more conservative and realistic approach to production and capital spending. We expect that going forward these dynamics will bring further strength to the market and are indicative of an industry turnaround in the very near future.”

First Quarter Financial Review
Revenue and Cost

Revenue for the three-month period ended March 31, 2007, increased by 10% to KRW 2,722 billion (USD 2,893 million) from KRW 2,471 billion (USD 2,626 million) for the corresponding period of 2006. TFT-LCD panels for TVs, monitors, notebook PC’s and other applications accounted for 45%, 28%, 22% and 5%, respectively, on a revenue basis in the first quarter of 2007.

Overall, the Company shipped a total of 2.2 million square meters of net display area in the first quarter of 2007, a 1% decrease quarter-on-quarter. The average selling price per square meter of net display shipped was USD 1,287, which was a decrease of approximately 9% compared to the average of the fourth quarter of 2006. The ending average selling price per square meter was USD 1,246, a decrease of approximately 10% compared to the end of the fourth quarter of 2006.

The total cost of goods sold decreased 10% sequentially to KRW 2,771 billion (USD 2,945 million), and increased 21% year-over-year. The sequential decrease is largely attributable to cost reduction. The cost of goods sold per square meter of net display area shipped was KRW 1.2 million (USD 1,314) for the first quarter of 2007, down 9% from the fourth quarter of 2006.

Liquidity

As of March 31, 2007, LG.Philips LCD had KRW 980 billion (USD 1,041 million) of cash and cash equivalents. Total debt was KRW 4,332 billion (USD 4,604 million), and the net debt-to-equity ratio was 50% as of March 31, 2007, compared to 46% as of December 31, 2006.

Capital Spending

Capital expenditures in the first quarter of 2007 were KRW 492 billion (USD 523 million) compared to KRW 845 billion (USD 898 million) in the first quarter of 2006, and were largely for P7 and the Poland module plant.

Utilization and Capacity

Total input capacity on an area basis decreased approximately 4% sequentially in the first quarter. This decrease was largely due to reduction of production.


Outlook

The following expectations are based on information as of April 10, 2007. The Company does not expect to update its expectations until next quarter’s earnings announcement. However, the Company reserves the right to update its full business outlook, or any portion thereof, at any time and for any reason.

“Generally, our results in the first quarter of 2007 came in better than the guidance provided last quarter. Looking ahead, we expect continued execution on our core operational drivers and a healthier market situation. This will have a direct and positive impact on our sequential improvement in profitability,” said Ron Wirahadiraksa, CFO of LG.Philips LCD.

“For the second quarter of 2007, in the TV segment we expect shipments to increase by a high twenties percentage with an average and ending ASP decline of a mid-single digit percentage. In the IT segment, we anticipate shipments to increase by a low teens percentage with an average ASP decline of a low-single digit percentage and an ending ASP increase of a mid-single digit percentage. Overall, we expect shipments in the second quarter of 2007 to increase by a high teens percentage with an average ASP decline of a mid-single digit percentage and an ending ASP decline of a low-single digit percentage. Our COGS reduction per square meter is expected to be a low teens percentage in the second quarter. As a result, EBITDA margin for the second quarter of 2007 is expected to be a low twenties percentage. As previously discussed, we plan to maintain our capital expenditures in 2007 at approximately KRW 1 trillion, and expect to increase P7 input capacity to 110,000 input sheets per month in the third quarter, gearing us up for the anticipated demand increase in the second half of the year,” Mr. Wirahadiraksa concluded.


Earnings Conference and Conference Call

LG.Philips LCD will hold a Korean language earnings conference on April 10, 2007, at
4:30 p.m. Korea Standard Time on the 21st floor, in the Main Conference Room of the Korea Exchange Building (KRX). An English language conference call will follow at 9:00 p.m. Korea Standard Time, 8:00 a.m. EDT and 12:00 p.m. GMT. The call-in number is +82 (0)31-810-3001 for both callers in Korea and callers outside of Korea. The confirmation number is 3777. Corresponding slides will be available at the Investor Relations section of the LG.Philips LCD web site: http://www.lgphilips-lcd.com.

Investors can listen to the conference call via 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 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 91448#.


About LG.Philips LCD

LG.Philips LCD Co., Ltd. [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 for use in TVs, monitors, notebook PCs, and various applications. LG.Philips LCD currently operates seven fabrication facilities and four back-end assembly facilities in Korea, China and Poland. In addition, LG.Philips LCD has sales and representative offices in ten countries and has approximately 23,000 employees globally. Please visit http://www.lgphilips-lcd.com for more information.


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:
John Kim [Korea]
LG.Philips LCD
Tel: +822-3777-1010
Email: jonghkim@lgphilips-lcd.com

Joshua Hochberg [USA]
Sloane & Company
Tel: +1-212-446-1892
Email: jhochberg@sloanepr.com


Media Contacts:
Sue Kim [Korea]
LG.Philips LCD
Tel: +822-3777-0970
Email: sue.kim@lgphilips-lcd.com

Elliot Sloane [USA]
Sloane & Company
Tel: +1-212-446-1860
Email:ESloane@s