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SEOUL, Korea ？ January 14, 2008 ？ LG.Philips LCD [NYSE: LPL, KRX: 034220], one of the world’s leading TFT-LCD manufacturers, today reported unaudited earnings results based on consolidated Korean GAAP for the three-month period ended December 31, 2007. Amounts in Korean Won (KRW) are translated into US dollars (USD) at the noon buying rate in effect on December 31, 2007, which was KRW 936 per US dollar.

？ Sales in the fourth quarter of 2007 increased by 9% to KRW 4,322 billion (USD 4,618 million) from sales of KRW 3,953 billion (USD 4,223 million) in the third quarter of 2007 and increased 41% compared to KRW 3,065 billion (USD 3,275 million) in the fourth quarter of 2006.
？ Operating profit in the fourth quarter of 2007 was KRW 869 billion (USD 928 million) compared to an operating profit of KRW 693 billion (USD 740 million) in the third quarter of 2007, and an operating loss of KRW 177 billion (USD 189 million) in the fourth quarter of 2006.
？ EBITDA in the fourth quarter of 2007 was KRW 1,775 billion (USD 1,896 million), an increase of 29% from KRW 1,376 billion (USD 1,470 million) in the third quarter of 2007 and a year-over-year increase of 218% from KRW 559 billion (USD 597 million) in the fourth quarter of 2006.
？ Net income in the fourth quarter of 2007 was a profit of KRW 760 billion (USD 812 million) compared to a profit of KRW 524 billion (USD 560 million) in the third quarter of 2007 and a loss of KRW 174 billion (USD 186 million) in the fourth quarter of 2006.
Young Soo Kwon, CEO of LG.Philips LCD, said, “We are delighted with our outstanding performance last quarter and throughout 2007, which was driven by strong global demand and stabilized ASP. In addition, we have continuously focused on cost savings and were able to achieve our planned reduction in COGS per square meter in USD of 2% (3% in KRW) during the fourth quarter. On an annualized basis, we exceeded our projected cost reduction in COGS per square meter in USD of 25%, reporting a very strong 31% annual reduction. Further, our commitment to achieve sustainable growth by staying close to our customers, investing in technology leadership and process innovation also contributed to the strong results. These accomplishments are the result of the hard work by our team members across all levels of the organization.”

Mr. Kwon continued “The fourth quarter was marked by several important strategic initiatives. As part of our ongoing efforts to enhance our customer relationships, during the quarter we opened a module plant in Guangzhou, our second such module site in China. Our strategy of building locally situated module plants allows us to better serve our customers and in this case, specifically in the rapidly emerging Chinese LCD TV market. Additionally, during the quarter we announced a strategic alliance with Taiwan’s HannStar Display Corp. that links LPL’s acquisition of preferred shares with a commitment to purchase high quality LCD panels from HannStar. We believe these two initiatives are good examples of the innovative steps LPL has historically taken to bind and secure our relationships with important customers and suppliers in an increasingly competitive and dynamic marketplace.

“We are proud of the significant improvements we have made throughout 2007. Going forward, we aim to deliver more predictable and stable growth for the mid-to-long term, which we expect will translate into greater shareholder value. In the meantime, we will also continue our efforts to construct the most competitive Gen 8 fab in the industry, and make this investment a success by both maximizing efficiency and productivity and devising a roadmap for future growth.” Mr. Kwon said.

“With the sell down of Philips’ stake below the 25% threshold, Mr. Ron Wirahadiraksa will step down as Joint Representative Director and CFO at the Company’s Annual General Meeting, in late February. On behalf of the entire Board of Directors and management team, I want to thank Ron for his many tireless years of service at LPL. Ron has been a vital member of our Board and management team since the inception of LPL in 1999 and has built a world-class finance department. Moreover, he has made significant contributions to our development, manufacturing and process engineering achievements, and has created a culture of transparency that has been one of the key factors for the company’s global success. With his next challenge ahead, we wish him all the best and appreciate his support in working with us during a transition period. James Jeong, formerly Executive Vice President and CFO of LG Electronics is planned to serve as our next CFO and will begin his duties after the Annual General Meeting this year.” Mr. Kwon concluded.


Fourth Quarter Financial Review

Revenue and Cost

Revenue for the three-month period ended December 31, 2007, increased by 9% to KRW 4,322 billion (USD 4,618 million) from KRW 3,065 billion (USD 3,275 million) for the corresponding period of 2006. TFT-LCD panels for TVs, monitors, notebook PCs and other applications accounted for 50%, 24%, 21% and 5%, respectively, on a revenue basis in the fourth quarter of 2007.

Overall, the Company shipped a total of 3.4 million square meters of net display area in the fourth quarter of 2007, an increase of 9% quarter-on-quarter. The average selling price per square meter of net display area shipped was USD 1,375, which was an increase of approximately 1% compared to the average of the third quarter of 2007. The ending average selling price per square meter was USD 1,377, an increase of approximately 1% compared to the end of the third quarter of 2007.

For the fourth quarter of 2007, the cost of goods sold per square meter of net display area shipped decreased 3% to KRW 0.9 million (USD 1,013) from the third quarter of 2007.

Liquidity

Cash and cash equivalents including short term financial instruments of LG.Philips LCD were KRW 1,981 billion (USD 2,116 million) as of December 31, 2007. Total debt was KRW 3,406 billion (USD 3,639 million), and the net debt-to-equity ratio was 17% as of December 31, 2007, compared to 37% as of September 30, 2007.

Capital Spending

Capital investment outlay in fixed assets during the fourth quarter of 2007 was KRW 269 billion (USD 287 million) compared to KRW 334 billion (USD 357 million) in the fourth quarter of 2006, and was largely for overseas module plants. On a delivery base, it was KRW 281 billion (USD 300 million)

Capacity

Total production input capacity on an area basis increased approximately 5% sequentially in the fourth quarter and was largely due to an increase of production, mainly in P7.


Outlook

The following expectations are based on information as of January 14, 2008. 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.

“Our continuous focus on value based management through rational production, prudent CAPEX spending, cost reduction activities and ongoing product innovation, added by strong demand worldwide for flat-screen panels, allowed an earlier than expected turnaround in the first half of 2007 and better than anticipated results throughout 2007. We will continue to focus on these areas into the year 2008 and beyond, which we believe are ingredients towards securing sustainable growth for the long term.” said Ron Wirahadiraksa, CFO of LG.Philips LCD.

“Looking ahead, we expect shipments in the first quarter of 2008 to decrease by a low single digit percentage with a mid single digit percentage declining average ASP and a high single digit percentage declining ending ASP. We expect shipments in the TV segment to decrease by a high single digit percentage with a mid single digit percentage declining average and ending ASP. In the IT segment, we anticipate shipments to increase by a high single digit percentage with a high single digit percentage declining average ASP and a mid teens percentage declining ending ASP. Our COGS reduction per square meter is expected to be a low single digit percentage in the first quarter. As a result, we expect our EBITDA margin for the first quarter of 2008 to be in the mid thirties percentage range. Our CAPEX guidance for 2008 remains at approximately KRW 3 trillion. Our 2008 CAPEX will be utilized for Gen 8 facilities, and production efficiency enhancement for existing facilities. ” Mr. Wirahadiraksa concluded.


Earnings Conference and Conference Call

LG.Philips LCD will hold a Korean language earnings conference on January 14, 2008, at
4:30 p.m. Korea Standard Time at the LG Twin Tower Auditorium (East Tower, B1F) in 20 Yoido-dong, Yeongdeungpo-gu, Seoul, Korea. An English language conference call will follow at 10:00 p.m. Korea Standard Time, 8:00 a.m. EDT and 1:00 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 119495#.


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. The company has a total of 23,000 employees operating in ten countries around the world. 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
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