IR News

-    Shipped GPRS handset (LG-510) developed with LGE’s own technology to China
-    Earned high recognition for leading-edge technology in GSM
-    Already secured order for 500,000 units from China with GPRS handset alone
-    LGE focused on expanding its presence in China including establishment of an organization dedicated in overseeing LGE's information and communication business in China

LG Electronics has become the first in Korea to export GPRS (General Packet Radio Service) handsets to China.

LGE recently completed development of its GPRS handset (Model: LG-510), a 2.5G GSM service, and won an initial order for 500,000 units. The first shipment for the handsets was already made and LGE plans to expand its position in the Chinese GSM market.

The ultra-slim (15mm) folder type GPRS handset LGE is introducing in China is the next generation handset with data transmission speed of 115kbps. It is a 78g-range very light handset with: Embedded WAP browser to support fast wireless Internet connection; 8-line wide LCD allowing users to check a variety of information at a glance; and voice dial recording.

LGE has already secured initial order for 500,000 GPRS handsets and expects to see an increase in volume in the near future. China began GSM service in the fourth quarter of 2001.

China currently has over 140 million mobile subscribers - the world's largest. But handset penetration ratio is low (around 10% range) signaling high growth potential. For the total population of 1.3 billion, China Telecom (70%) and China Unicom (30%) is offering GSM and CDMA services. The number of subscribers is expected to grow by over 20% every year.

Although LGE is a latecomer in the GSM handset market, it has already made successful entry into Italy, Russia, and Indonesia last year. In addition to successful launch in China, LGE plans to enter markets in Europe, the Middle East, and Southeast Asia this year to mount strong competition against first movers in the GSM sector.

To increase effectiveness of its operation in China, LGE newly established an organization dedicated to information and communication business in China under its China holding company in November last year. The new organization will be in charge of not only overseeing information and communication business, but also running the R&D center. This is a part of the company's "end-to-end localized" strategy based on firm local business foundation to give LGE a competitive edge in the 2G as well as in the next generation handset market.