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S-LCD announces an additional JPY10 billion investment on facility expansion to increase its LCD panel production capacity by 25%

Samsung Press Room
November 22, 2005

S-LCD Corporation (hereafter S-LCD) today announced an expansion of the 7 th generation amorphous TFT production facility and an additional investment amounting to approximately 10 billion Japanese Yen. By increasing its production capacity, S-LCD is aiming to meet the increasing demand of LCD panels for TVs.

S-LCD was established as an equal joint venture by Samsung and Sony *1 dedicated to the manufacturing of amorphous TFT LCD panels for LCD TVs. It has a production capacity of 60,000 panels per m on th ( generation 7 th glass substrate *2 ) and is cu rrently in ful l production man u facturing LCD panels for both Samsung and Sony.

The decision to expand the production facility was made due to increasing market demand for LCD panels for TVs. The capital will be raised by S-LCD itself and the production capacity will be increased by 15,000 panels per month, which will result in a production total of 75,000 panels per month from July 2006.

S-LCD will fully support the LCD TV businesses of both Samsung and Sony as a stable TFT LCD panel supplier.

[Details of facility expansion]

Amount for the facility expansion: Approximately 100 billion Korean Won (Approximately 10 billion Japanese Yen)

The capital will be raised by S-LCD

Timing of the investment : Spring, 2006

Production Capacity: 75,000panels/month (At present: 60,000 panels/month, generation 7 th glass substrate *2 )

*1. Samsung Electronics : 50% plus 1share, Sony:50% minus 1share
*2. 7 th generation glass panel size: 1,870mm×2,200mm

About Samsung
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2004 parent company sales of US$55.2 billion and net income of US$10.3 billion. Employing approximately 113, 6 00 people in over 90 offices in 48 countries, the company consists of five main business units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones, and TFT-LCDs. For more information, please visit www.samsung.com