June 21, 2005

FACT SHEET: SUMMER 2005
PRO:IDIOM DIGITAL RIGHTS MANAGEMENT SYSTEM

Copy-Protection Technology Assures Rapid Hotel HDTV Deployment

"Pro:Idiom," the digital technology platform from LG Electronics (LGE), was developed to meet the needs of the hospitality market for a robust, highly secure Digital Rights Management (DRM) system to help assure rapid, broad deployment of high-definition television (HDTV) and other high-value digital content to the hotel industry.

The development effort began more than two years ago when LGE, a global technology leader and top-tier supplier of flat-panel displays, identified that the widespread deployment of LCD and plasma displays to the lodging industry would be highly dependent on the ability to provide guests with high-value digital content.

In conjunction with LodgeNet Entertainment Corporation, LGE developed an open-standards based DRM system specifically for the lodging industry. The result: LGE's industry-standard Pro:Idiom DRM encryption system, which is being licensed royalty-free to hotel PPV and consumer electronics manufacturers.

Marketplace Advantages

• Designed from a "clean sheet of paper" specifically for the lodging industry, the Pro:Idiom solution is more cost-effective then repurposed consumer approaches.
• Approved for use with both satellite-delivered pay TV content and video-on- demand (VOD) services, this system is the only DRM system embraced by content providers for both of these key programming sources.

Technical Advantages

• The Pro:Idiom specification is an open standard controlled by hospitality industry stakeholders.
• Embedded approach provides security and removes the possibility for guests to tamper with or remove needed components.
• The system does not require "pairing" of the DRM system with the television or activation from a remote host, which vastly simplifies maintenance and installation.

Technology Design Goals
In developing this robust DRM system in conjunction with major PPV providers, LGE's design goals required that the technology must:

• Effectively protect digital video and audio content;
• Provide the most cost-effective solution for hoteliers, PPV providers and manufacturers;
• Scale from small hotels to Las Vegas-style mega-resorts;
• Offer a low implementation complexity to allow easy adoption by all parties; and
• Allow system specifications to be controlled by stakeholders in the lodging industry.

These design objectives are virtually impossible for a repurposed consumer DRM system to achieve. A number of systems can effectively protect content, and various approaches, including CableCARDs, Windows Media DRM and proprietary systems, were evaluated before making the decision to create a unique, open-standards DRM system specifically for the lodging industry.

Secure Encryption
Pro:Idiom has been design to use the AES encryption system with 128 bit keys, which has been approved for financial transactions as well as protecting government secrets, so it contains the latest, state-of-the-art security necessary for premium content. Many of the repurposed consumer solutions rely on outdated 64-bit security protocols that have focused on protecting consumer content, not early-release-window VOD content.

The Pro:Idiom solution has been peer reviewed by third party cryptology consultants as well as movie studios and satellite content providers. In the unlikely case of a security issue, the embedded keys can be renewed without the need for an onsite visit and the system made secure again. Because the security devices are embedded inside the device and not simply a card in a slot that is accessible for the guest to tamper with or remove, many security professionals believe that this embedded approach is more secure then a "carded" solution. If a "carded" solution is compromised the only option is to replace the cards, a costly solution that will require an onsite visit to every room.

Digital Content
LGE has developed the capability to deliver digital high-definition VOD as well as premium satellite content, such as HBO in high definition. LGE has developed not only the television receiver components but also the headend components needed to deliver both kinds of content.

It is believed that no other system can deliver both VOD as well as digital satellite content over the same cost-effective infrastructure. These solutions have been reviewed and approved by major content providers. Consult your PPV provider for further information as each provider has different business arrangements and business terms which may affect digital content availability.

Summary
The LGE Pro:Idiom system provides high-quality security that unlocks the access to premium content availability to help assure rapid, broad deployment of HDTV and other high-value digital content to the hotel industry. Unlike other approaches, Pro:Idiom has been designed specifically for the hotel industry and as such, results in lower costs, and reduced maintenance. Its world-class encryption technology, integrated design and attractiveness to PPV providers make Pro:Idiom the clear choice for delivering HDTV services to hotel guests with confidence.

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