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Sony and Samung Increase LCD TV Production

S-LCD announces an additional JPY10 billion investment on facility expansion to increase its LCD panel production capacity by 25%

TANGJEONG, South Korea – S-LCD Corporation (hereafter S-LCD) today announced an expansion of the 7th generation amorphous TFT production facility and an additional investment amounting to approximately 10 billion Japanese Yen. By increasing its production capacity, S-LCD is aiming to meet the increasing demand of LCD panels for TVs.

S-LCD was established as an equal joint venture by Samsung and Sony*1 dedicated to the manufacturing of amorphous TFT LCD panels for LCD TVs. It has a production capacity of 60,000 panels per month (generation 7th glass substrate *2) and is currently in full production manufacturing LCD panels for both Samsung and Sony.

The decision to expand the production facility was made due to increasing market demand for LCD panels for TVs. The capital will be raised by S-LCD itself and the production capacity will be increased by 15,000 panels per month, which will result in a production total of 75,000 panels per month from July 2006.

S-LCD will fully support the LCD TV businesses of both Samsung and Sony as a stable TFT LCD panel supplier.

Details of facility expansion
Amount for the facility expansion : Approximately 100 billion Korean Won
(Approximately 10 billion Japanese Yen)
The capital will be raised by S-LCD
Timing of the investment : Spring, 2006
Production Capacity : 75,000 panels/month
(At present: 60,000 panels/month, generation 7th glass substrate*2)

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*1. Samsung Electronics : 50% plus 1share, Sony:50% minus 1share
*2. 7th generation glass panel size: 1,870mm~2,200mm

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