June 20, 2006

HOTEL INDUSTRY EMBRACES DIGITAL TV AND HDTV AS ALL 25-INCH AND LARGER TVs NOW MUST INCLUDE DIGITAL TUNERS

FCC Regulations Transform In-Room Viewing, Require Digital Tuning in Lodging TVs

MINNEAPOLIS, June 20, 2006 - The lodging industry is paying close attention to Federal Communications Commission (FCC) regulations requiring that all TV sets with screens 25-inches diagonal or larger include digital television (DTV) tuners. That's because the new regulations apply not only to consumer sets, but also to TVs installed in hotel rooms.

Most TVs now sold to motel, hotels and resorts must be digital TVs, and in less than nine months all TVs including small-screen sets, will be covered by the FCC rules, 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.

"The FCC's rules mean that the digital experience already in more than 35 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," he said.

The so-called "FCC DTV Tuner Mandate" has been implemented in several phases. Since July 1, 2005, 100 percent of 36-inch and larger sets were required to incorporate DTV demodulators. The rule applied to all 25- to 35-inch TVs sold to hotels beginning March 1, 2006, and all TVs, including those under 13-inches diagonal, by March 1, 2007.

With these FCC DTV regulations in effect, LG Electronics is leading the lodging industry in offering integrated digital TV sets - specifically digital high-definition television (HDTV) models designed for hotels, Snaidauf said, citing the company's broad line of lodging plasma, LCD and CRT HDTVs. Snaidauf explained that the company's digital transition strategy for hotels and resorts centers on partnering with leading program providers, while capitalizing on LG's leading technologies developed specifically for the lodging industry, such as Pro:Idiom and its flat-screen hotel TVs and integrated liquid-crystal display and plasma display solutions.

Just as consumers today are experiencing the benefits of digital TV, including its widescreen, high-definition images, hoteliers are now able to offer compelling HDTV content thanks to LG Electronics technology such as the first in-room HDTV system and the industry-standard Pro:Idiom™ digital rights management system to assure secure delivery of video-on-demand high-definition programming.

ABOUT LG ELECTRONICS USA
Based in Englewood Cliffs, N.J., LG Electronics USA, Inc., is the North American subsidiary of LG Electronics, Inc., a $45-billion global force in consumer electronics and mobile 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:
John I. Taylor (847) 941-8181, jtaylor@lge.com
Brent Tongco (312) 397-6007, brent.tongco@ogilvypr.com