May 16 , 2005

LG ELECTRONICS CLAMPS DOWN ON
UNAUTHORIZED INTERNET SALES


NetEnforcers to Police Violators of LG Commercial Products Policies

LG Electronics USA, Inc. has retained NetEnforcers, the Internet's leading provider of brand and product protection services, as its investigation and reporting agency to police Internet sales and intellectual property (IP) violations.

Under an agreement announced today, NetEnforcers will continuously search the Internet for sales of LG- and Zenith-brand consumer electronics products and use of the company's IP. NetEnforcers will report its findings of inappropriate Internet sales to LG Electronics for follow-up and enforcement actions.

According to Ronald Snaidauf, LG's vice president, Commercial Products, LG Electronics USA prohibits the sales of LG-brand consumer electronics products via the Internet, and strictly controls Internet sales of Zenith-brand CE products. NetEnforcers also will report Internet sales and IP usage for the LG Electronics Commercial Products division serving the lodging, education, healthcare, industrial and business channels, as well as the consumer electronics division.

"Our Internet sales policies are critical success factors as we continue to grow the premium LG brand and effectively manage distribution of our broader-market digital brand, Zenith," Snaidauf said. "Based on reports from NetEnforcers, which will include serial numbers of products offered for sale on the Internet, we will be able to trace an individual product's distribution path, allowing us to enforce our agreements and policies."

Joseph Loomis, vice president, sales and marketing for NetEnforcers, applauded LG's commitment to customer satisfaction."Knowing that Internet abuse costs corporations billions of dollars each year in lost sales and diminished goodwill, NetEnforcers is enthusiastic about partnering with LG Electronics on its important Internet sales initiatives." NetEnforcers' specialized staff will use its proprietary technology to LG's maximum advantage, examining millions of Internet home pages and web page source code as well as visible and invisible instances in the page text. It also checks for variations of brand names to ensure that non-authorized sites do not benefit from typing errors.

The NetEnforcers agreement and LG's related commercial products/consumer electronics Internet sales policies do not apply to LG-brand computer monitors, optical storage devices, home appliances or mobile phones.

About NetEnforcers
Based in Coral Springs, Fla., NetEnforcers is a pioneering provider of Internet-based, business-to-business brand and commerce protection services. Founded and operated by a skilled team of technology, legal, and enforcement specialists, NetEnforcers offers comprehensive, 24/7 Internet monitoring that identifies online brand, copyright, trademark infringement, channel and distribution abuse, software piracy, product counterfeiting, defamation and other threats to a company's valuable brand. Privately-owned NetEnforcers is retained by some of America's largest consumer products companies. For more information, visit www.NetEnforcers.com.

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, mobile phones, home appliances and information technology products, all marketed under its "LG: Life's Good" theme. For more information, please visit www.LGusa.com.