IR News

- LG's own technological strength earns high recognition in the U.S. - the home of synchronous CDMA technology…LG secures strong foothold in its advance into U.S. synchronous 3 G equipment market
- Vice Chairman & CEO John Koo of LGE hosts cdma2000 1X system launching ceremony at the Kumi plant with the attendance of Chairman George Tronsrue of Monet Mobile Networks and other representatives of both companies
- LGE to supply US$70 million worth of equipment including commercial system equipment, base station controllers, and base stations for the next 3 years to support commercial service in the central region of the U.S. including the Dakotas
- LGE and Monet signs MOU for equipment supply to prepare for possible additions in Monet's service licenses

By becoming the first Korean company to introduce cdma2000 1X system to be exported to the U.S., the heart of the global communication industry, and also by signing a MOU for additional equipment supply, LG Electronics has secured a firm footing for supply of 3G telecommunications equipment in the U.S.

▶ U.S. Bound cdma2000 1X Equipment Launched

On August 13, LG Electronics held a cdma2000 1X system (Model: STAREX-IS) launch ceremony at its Kumi plant in Korea with the participation of John Koo, Vice Chairman & CEO, Ghung-Gun Park, President of Information and Communication System Company, George Tronsrue, Chairman & CEO of Monet Mobile Networks, Rich Kingston, President of Monet Mobile Networks. The new cdma2000 1x system will be shipped to Monet Mobile Networks in the U.S.

STAREX-IS is a synchronous cdma2000 1x system encompassing BSC and BTS. This new system will be supplied to the central U.S. region including Dakotas until the end of the year. Monet plans to put the system into commercial service from December after completing system implementation and trial operation.

Generally, because stability of system covering everything from switch center, base station to base station controller plays a key role in ensuring high quality mobile communication service, these systems have to meet far more strenuous conditions than handsets to be eligible for international sales.

In this regard, the fact that LGE's new cdma2000 1x equipment is Korea's first 3G equipment to be exported to the U.S. and that LG's and by extension Korea's CDMA technological strength has won recognition in the U.S. - the birthplace of CDMA technology - entails strong significance.

LGE's CDMA handsets have already won high praises in the U.S. through its supply to Verizon - the largest mobile service provider in the U.S. and Sprint. Now by adding CDMA systems to its product range in the U.S., LGE's standing in technology and reliability takes a strong leap forward and gives the company a firm footing to mark itself in the 3G system market of the U.S.

"This is the first time cdma2000 1x system is being exported to the U.S. I am confident that the new system will open a new chapter in communication services created through the partnership between LGE and Monet," stressed Vice Chairman & CEO John Koo at the launch ceremony.

"We are very pleased to call LGE, a company with a global competitive edge in CDMA, as our partner," said Chairman George Tronsrue of Monet. Adding, "Monet hopes to become the first and the best wireless data service provider in the U.S. with cdma2000 1x equipment provided by LGE."

LGE plans to migrate the current cdma2000 1x system to cdma2000 1x EV-DO (Data Only) system by the first half of 2002.

▶ Signs MOU for Large Scale Equipment Supply

After the launch ceremony, LGE signed a Memorandum of Understanding with Monet Mobile Networks for long-term supply of cdma2000 1x systems. The MOU gives LGE a strong base for large-scale supply of cdma2000 1x equipment to the important U.S. market.

Since the possibility of Monet winning additional licenses are good and as the potential number of subscribers is close to 10 million, LGE will be able to supply hundreds of millions of dollars worth of equipment.

LGE already has a 3-year US$50 million cdma2000 1x equipment supply agreement with Monet.
"Monet plans to become a nationwide wireless data service provider in the U.S. with its existing licenses and by winning additional licenses in 43 areas in approximately 10 states. With the MOU, LGE's equipment supply to Monet will increase with time. The MOU will also increase the possibility to win other equipment contracts with other major U.S. CDMA service providers," explained Ghung-Gun Park, President of Information and Communication System Company.

Monet Mobile Networks is a high-speed wireless Internet data service provider established in 1998 and is headquartered in Seattle, Washington. Monet was founded with funding from Qualcomm, Intel Capital, and other leading technology funds as well as Mayfield Fund and Soros Private Equity. It is one of the most promising companies in the high-speed wireless Internet industry that is already emerging as the industry leader.

■ FYI

- Mayfield Fund : One of the Top 10 venture capital firms in Silicon Valley.
- Soros Private Equity Partners: Investment firm affiliated with George Soros
- cdma2000 1X EV-DO: Transmission technology for wireless data proposed by Qualcomm to transmit packet data at high speed. It can transmit data at max 2Mbps, which is close to IMT-2000. With dual mode handset, it can also support voice service via interface with IS-95C network.