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Samsung and Sony Agree to Establish Additional 8th Generation Line at S-LCD

Samsung Electronics Co., Ltd. (“Samsung”) and Sony Corporation (“Sony”) today announced that they have signed a contract to establish an additional 8th generation amorphous TFT-LCD manufacturing line (“8-2 line”) through their joint venture, S-LCD Corporation (“S-LCD”).

S-LCD, established in April 2004, started operating its 7th generation line in April 2005 and its first 8th generation line in August 2007 to manufacture and supply TFT-LCD panels for Samsung and Sony. To meet the increase in world demand for LCD televisions, Samsung and Sony had agreed to expand the capacity of the 8th generation line. Total investment for the 8-2 line will be approximately 1.8 trillion KRW (approximately $1.9 billion or 200 billion JPY), to be invested by S-LCD.

The 8-2 line is to be built in the Tangjeong Complex, and production is targeted to start in the second quarter of 2009. Production capacity for the new line is expected to be 60,000 sheets per month initially (substrate glass input basis). The size of substrate glass from this line will be 2,200 x 2,500mm.

By adding the output of the 8-2 line to that of the current 8th and 7th generation lines in Tangjeong, S-LCD is expected to be a more stable and efficient supplier of large screen LCD panels to Samsung and Sony.

S-LCD Production Line Status (as of April 25, 2008)

Startup Current Capacity Motherglass Size
7th Generation Line April 2005 100,000 sheets / month1 1,870 x 2,200 mm
First 8th Generation Line August 2007 50,000 sheets / month1 2,200 x 2,500 mm
Additional 8th Generation Line 2nd Quarter 2009 60,000 sheets / month1 2,200 x 2,500 mm

1 substrate glass input basis

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About Samsung Electronics
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2007 consolidated sales of US$103.4 billion. Employing approximately 150,000 people in 134 offices in 62 countries, the company consists of five main business units: Digital Media Business, LCD Business, Semiconductor Business, Telecommunication Business and Digital Appliance Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, please visit http://www.samsung.com.

About Sony Corporation
Sony Corporation is a leading manufacturer of audio, video, game, communications, key device and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and on-line businesses, Sony is uniquely positioned to be the leading electronics and entertainment company in the world. Sony recorded consolidated annual sales of approximately $70 billion for the fiscal year ended March 31, 2007. Sony Global Web Site: http://www.sony.net/

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