Latest News

Sales in the second quarter of 2007 increased by 23% to KRW 3,355 billion (USD 3,635 million) from sales of KRW 2,722 billion (USD 2,949 million) in the first quarter of 2007 and increased 45% compared to KRW 2,315 billion (USD 2,508 million) in the second quarter of 2006.
Operating profit in the second quarter of 2007 was KRW 150 billion (USD 163 million) compared to an operating loss of KRW 208 billion (USD 225 million) in the first quarter of 2007, and an operating loss of KRW 372 billion (USD 403 million) in the second quarter of 2006.
EBITDA in the second quarter of 2007 was KRW 850 billion (USD 921 million), an increase of 65% from KRW 515 billion (USD 558 million) in the first quarter of 2007 and a year-over-year increase of 250% from KRW 243 billion (USD 263 million) in the second quarter of 2006.
Net income in the second quarter of 2007 was a profit of KRW 228 billion (USD 247 million) compared to a loss of KRW 169 billion (USD 183 million) in the first quarter of 2007 and a loss of KRW 322 billion (USD 349 million) in the second quarter of 2006.

Young Soo Kwon, CEO of LG.Philips LCD, said, “Our second quarter’s performance was better than expected, which underscored a faster than anticipated turnaround. This was driven in large part by the successful implementation of our strategies aimed at reducing costs, sustaining a disciplined CAPEX strategy, maintaining healthy inventory levels and developing plans for capacity expansion, especially at P7. Overall, we benefited from the market’s more rational production and pricing levels and believe LG.Philips LCD is well positioned for continued performance improvement in the second half of 2007.”

Mr. Kwon continued, “In the second quarter, enhanced customer collaboration and overall strong market demand were the primary drivers of improved shipment levels in the monitor and notebook segments. We were pleased to see that shipments for the TV segment also increased in the second quarter, with ASP declines stabilizing to levels better than those projected in previous guidance. Innovative cost reduction initiatives resulted in the sequential decrease in cost of goods sold per square meter of 12% and we are well on our way to achieving around 30% in cost reductions for 2007.”


“Our objective to balance the goal of maximizing output capacity through improving input capacity and production excellence was critical in the decision to cancel the investment in Gen 5.5 equipment. Instead, we are focusing on ways to maximize capacity at existing production lines and are studying investment in Gen 8 equipment, targeting ramp up in the first half of 2009 in the already constructed building. We believe this strategy creates stronger opportunities to further enhance competitiveness, eventually returning us to performance levels that will produce greater shareholder value in the mid-to-long term. The second quarter’s performance demonstrates that we are moving in the right direction,” Mr. Kwon concluded.


Second Quarter Financial Review

Revenue and Cost

Revenue for the three-month period ended June 30, 2007, increased by 45% to KRW 3,355 billion (USD 3,635 million) from KRW 2,315 billion (USD 2,508 million) for the corresponding period of 2006. TFT-LCD panels for TVs, monitors, notebook PCs and other applications accounted for 47%, 27%, 21% and 5%, respectively, on a revenue basis in the second quarter of 2007.

Overall, the Company shipped a total of 2.8 million square meters of net display area in the second quarter of 2007, a 26% increase quarter-on-quarter. The average selling price per square meter of net display shipped was USD 1,274, which was a decrease of approximately 1% compared to the average of the first quarter of 2007. The ending average selling price per square meter was USD 1,314, an increase of approximately 5% compared to the end of the first quarter of 2007.

For the second quarter of 2007, the cost of goods sold per square meter of net display area shipped decreased 13% to KRW 1.1 million (USD 1,168) from the first quarter of 2007.

Liquidity

Cash and cash equivalents of LG.Philips LCD were KRW 1,238 billion (USD 1,341 million) as of June 30, 2007. Total debt was KRW 4,657 billion (USD 5,046 million), and the net debt-to-equity ratio was 49% as of June 30, 2007, compared to 50% as of March 31, 2007.

Capital Spending

Capital expenditures in the second quarter of 2007 were KRW 512 billion (USD 555 million) compared to KRW 990 billion (USD 1,073 million) in the second quarter of 2006, and were largely for P7.

Capacity

Total production input capacity on an area basis increased approximately 12% sequentially in the second quarter and was largely due to increase of production, mainly in P7.


Outlook

The following expectations are based on information as of July 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.

“Over the last 12 months, we have become a more market-driven and value-based company, focusing on smart operational growth. This has played an essential role in achieving a return to profitability,” said Ron Wirahadiraksa, CFO of LG.Philips LCD.

“Looking ahead, we expect shipments in the third quarter of 2007 to increase by a mid-teens percentage with an average ASP increase of a low-single digit percentage and a flat quarter ending ASP. We expect shipments in the TV segment to increase by a high-twenties percentage with an average ASP decline of a low-single digit percentage and a quarter ending ASP decline of a mid-single digit percentage. In the IT segment, we anticipate shipments to be flat with an average ASP increase of a low teens percentage and a quarter ending ASP increase of a high-single digit percentage. Our COGS reduction per square meter is expected to be a mid-single digit percentage in the third quarter. As a result, we expect our EBITDA margin for the third quarter of 2007 to be in the high twenties percentage range. We plan to maintain our capital expenditures in 2007 at approximately KRW 1 trillion, and expect to ramp up P7 beyond its initial design input capacity of 110,000 input sheets per month, expecting around 130,000 sheets on average in the third quarter, to better prepare us 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 July 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 100530#.


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 sites 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
LG.Philips LCD
Tel: +822-3777-1010
Email: jonghkim@lgphilips-lcd.com



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