June 21, 2005

BACKGROUNDER: SUMMER 2005
MOMENTUM BUILDING FOR HDTV IN HOTELS

FCC Regulations Transform In-Room Viewing

Federal Communications Commission (FCC) regulations requiring virtually all TVs to include digital television (DTV) tuners by 2007 applies not only to consumer sets, but also to TVs installed in hotel rooms. Those DTV tuners, which receive HDTV broadcasts, are being phased-in with large-screen TVs now, and mid-sized sets beginning in July 2005.

"That means the HDTV experience already in more than 17 million U.S. living rooms will soon become an enhanced guest experience in our 'home away from home,' the millions of hotel rooms across the nation," explained Ron Snaidauf, vice president, Commercial Products, for LG Electronics USA, Inc., whose Zenith subsidiary developed the transmission system at the heart of the FCC's DTV standard.

New FCC regulations that took effect last year will require DTV tuners in virtually all TVs sold over the next two years. The phased-in "FCC DTV Tuner Mandate" started on July 1, 2004, requiring DTV tuners in 50 percent of 36-inch and larger sets sold in the United States.

Effective July 1, 2005, 100 percent of large-screen (36-inch and larger) sets, and 50 percent of mid-sized (25- to 35-inch) sets, sold in the United States will be required to incorporate DTV demodulators. The rule will apply to all 25- to 35-inch sets TVs by March 2006 and all small-screen 13- to 24-inch TVs in July 2007, although the U.S. Congress and FCC are considering accelerating the timing of the DTV tuner mandate for small-screen sets to year-end 2006 or even sooner.

Just as consumers today are experiencing the benefits of digital TV, including its widescreen, high-definition images, hoteliers will be able to offer compelling HDTV content thanks to LG Electronics technology such as the industry's first in-room HDTV system and its industry-standard digital rights management technology called "Pro:Idiom."

With the new FCC DTV regulations now in effect, LG also is developing integrated hotel HDTVs, Snaidauf said, adding: "Now is the time for major chains to plan for the future, joining forces with a total in-room video solution supplier like LG, with leadership both in HDTV and in lodging TVs."

The company's strategy to help hotels and resorts bridge to the digital future involves partnering with leading program providers, while capitalizing on LG's leading technologies developed specifically for the lodging industry, such as its flat-screen hotel TVs, integrated liquid-crystal display and plasma display solutions, and robust digital copy protection technology, he said.

About LG Electronics USA
Based in Englewood Cliffs, N.J., LG Electronics USA, Inc., (LGEUS) is the North American subsidiary of LG Electronics, Inc., a $38-billion global force in consumer electronics, information technology and communications products. LGEUS comprises four core business areas: consumer electronics, home appliances, mobile phones and information technology products, all marketed under its "LG: Life's Good" theme. The LGEUS Commercial Products division serves the business, industrial, education, lodging, healthcare and GSA markets. For more information, please visit www.LGcommercial.com.

CONTACTS:
LG Electronics: John Taylor (847) 941-8181, jtaylor@lge.com
Brent Tongco (312) 397-6007, brent.tongco@ogilvypr.com