LG.Philips LCD Reports Third Quarter 2005 Results

-- Sales in the third quarter of 2005 increased by 19% to KRW 2,741 billion (USD 2,630 million) from sales of KRW 2,308 billion (USD 2,214 million) in the second quarter of 2005 and increased 46% compared to KRW 1,875 billion (USD 1,799 million) in the third quarter of 2004. Third quarter 2005 sales were led by the growing demand for large and wide LCD TV panels and a stronger pricing environment for notebook panels.

-- Operating profit in the third quarter of 2005 increased to KRW 240 billion (USD 230 million) from KRW 29 billion (USD 28 million) in the second quarter of 2005, and compared to an operating profit of KRW 256 billion (USD 246 million) in the third quarter of 2004.

-- EBITDA in the third quarter of 2005 increased by 54% to KRW 681 billion (USD 653 million) from KRW 442 billion (USD 424 million) in the second quarter of 2005. EBITDA increased by 20% from KRW 568 billion (USD 545 million) in the third quarter of 2004.

-- Net income in the third quarter of 2005 increased to a net profit of KRW 227 billion (USD 218 million) from KRW 41 billion (USD 39 million) in the second quarter of 2005, and compared to a net profit of KRW 291 billion (USD 279 million) in the third quarter of 2004.

"During the third quarter, we further enhanced our productportfolio, consistently reduced our square meter costs and continuedon our path of market leadership," said Bon Joon Koo, Vice Chairmanand CEO of LG.Philips LCD. "As we predicted, large and wide LCD TVsare becoming mainstream, and we are driving this growth through ourcutting-edge products, manufacturing excellence and innovativepartnerships. Notably, our strategic investment in a new module plantin Poland, announced during the third quarter, will enable us tobetter serve the fast-growing European LCD TV market whilestrengthening relationships with our customers there."

Third Quarter Financial Review

Revenue and Cost

Revenue in the three-month period ended September 30, 2005increased by 46% to KRW 2,741 billion (USD 2,630 million) from KRW1,875 billion (USD 1,799 million) in the corresponding period in 2004,as increases in shipments were robust due to growing TV demand and astabilizing pricing environment. TFT-LCD panels for desktop monitors,TVs, notebook computers and "other applications" accounted for 45%,29%, 22% and 4%, respectively, on a revenue basis in the third quarterof 2005, compared to 53%, 24%,18% and 5%, respectively, on a revenuebasis in the second quarter of 2005.

Overall, the Company shipped a total of 1,248,000 square meters ofnet display area in the third quarter of 2005, a 13.9% sequentialquarterly increase, with an average selling price per square meter ofnet display area of USD 2,121. This represents an increase in theaverage selling price per square meter of net display area ofapproximately 2.9% compared to the average of the second quarter of2005, and an increase of 2.3% at the end of the third quarter ascompared to the end of the second quarter of 2005.

The total cost of goods sold increased to KRW 2,367 billion (USD2,271 million), or 52% year-on-year and 9% compared to the secondquarter of 2005, primarily as a result of increased shipments. Thecost of goods sold per square meter of net display area shipped wasKRW 1,896 thousand (USD 1,819) for the third quarter of 2005, down4.2% from the second quarter of 2005.

"In the third quarter, we experienced increased demand, especiallyin the LCD TV and notebook panel segments, and, as a result, weshipped a record amount of display area, despite a strong competitiveenvironment," said Ron Wirahadiraksa, President and CFO of LG.PhilipsLCD. "We were able to meet this demand growth due in large part to thesuccessful ramp up of our P6 facility, which achieved its initialdesign capacity of 90,000 sheets per month this quarter. While wecontinued to increase capacity, we were also intensely focused on costreduction, which continued to show improvement."

Liquidity

As of September 30, 2005, LG.Philips LCD had KRW 2,129 billion(USD 2,042 million) of cash and cash equivalents. Total debt was KRW3,618 billion (USD 3,471 million), and the net-debt-to-equity ratiowas 20% as of September 30, 2005, compared to 40% last quarter, inlarge part due to the USD 1.4 billion follow-on equity offering inJuly 2005.

Capital Spending

Capital expenditures in the third quarter of 2005 decreased to KRW1,380 billion (USD 1,324 million) from KRW 1,434 billion (USD 1,376million) in the third quarter of 2004. Our capital expenditures forthe third quarter of 2005 were mainly used for continued investment inP6 and P7.

Utilization and Capacity

Total input capacity on an area basis increased approximately 17%in the third quarter compared to the second quarter, due mainly to P6achieving its initial design capacity of 90,000 input sheets permonth. The Company intends to expand this capacity further over time.

Outlook

The following expectations are based on current information as ofOctober 11, 2005. The Company does not expect to update itsexpectations until next quarter's earnings release. However, theCompany may update its full business outlook, or any portion thereof,at any time for any reason.

"For the fourth quarter of 2005, we anticipate our area shipmentswill increase by a low teens percentage quarter-on-quarter due tocontinued growth, especially in the rapidly expanding TV segment,"commented Mr. Wirahadiraksa. "We expect our average selling price persquare meter of net display area shipped at the end of the fourthquarter of 2005 to be flat to slightly down, as compared to the end ofthe third quarter of 2005, largely due to potentially weaker pricingfor some monitors. Our EBITDA margin for the fourth quarter isexpected to be in the mid-to-high twenties. Our CAPEX guidance for2005 remains unchanged from the previous quarter's guidance, and atthis stage, we maintain our preliminary CAPEX for 2006 to be in therange of KRW 3.5 trillion to KRW 4.5 trillion."

Earnings Conference and Conference Call

LG.Philips LCD will hold a Korean language earnings conference onOctober 11, 2005 at 4:30 p.m. Korea Standard Time on the 1st floor, inthe International Conference Room of the Korea Exchange Building(KRX). An English language conference call will follow at 9:00 p.m.Korea Standard Time, 8:00 a.m. EST and 1:00 p.m. GMT. The call-innumber is 031-810-3001 for callers in Korea and +82-2-6677-2256 forcallers outside of Korea. The confirmation number is 3777.Corresponding slides will be available at the Investor Relationssection of the LG.Philips LCD website.

http://www.lgphilips-lcd.com

Investors can listen to the conference call over the Internet athttp://www.lgphilips-lcd.com. To listen to the live call, please go tothe Investor Relations section of the website at least 15 minutesprior to the call to register and install any necessary audiosoftware.

For those who are unable to participate in the call, a replay willbe available for 30 days after the call. The call-in number is1566-2258 for callers in Korea and +82-31-810-3100 for callers outsideof Korea. The confirmation number for the replay is 38104#.

About LG.Philips LCD

LG.Philips LCD (NYSE: LPL, KRX: 034220) is a leading manufacturerand supplier of thin film transistor liquid crystal display (TFT-LCD)panels. The Company manufactures TFT-LCD panels in a wide range ofsizes and specifications primarily for use in notebook computers,desktop monitors and televisions. Headquartered in Seoul, South Korea,LG.Philips LCD currently operates six fabrication facilities in Koreaand has approximately 17,000 employees in locations around the world.

For more information about the Company, please visithttp://www.lgphilips-lcd.com.

LG.Philips LCD makes "Technology you can see!"

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements. Statementsthat are not historical facts, including statements about our beliefsand expectations, are forward-looking statements. These statements arebased on current plans, estimates and projections, and therefore youshould not place undue reliance on them. Forward-looking statementsspeak only as of the date they are made, and we undertake noobligation to update publicly any of them in light of new informationor future events. Forward-looking statements involve inherent risksand uncertainties. We caution you that a number of important factorscould cause actual results to differ materially from those containedin any forward-looking statement. Additional information as to factorsthat may cause actual results to differ materially from ourforward-looking statements can be found in our filings with the UnitedStates Securities and Exchange Commission.
LG.Philips LCD
CONSOLIDATED STATEMENTS OF INCOME
( In millions of KRW)
(The financial statements are based on unaudited Korean GAAP)

----------------------------------
2005
----------------------------------
Three months Nine months
ended Sep 30 ended Sep 30
----------------------------------

NET REVENUES 2,740,507 100% 7,112,883 100%
Cost of goods sold (2,367,145) -86% (6,638,041) -93%

---------------- ----------------

GROSS PROFIT 373,362 14% 474,842 7%

Selling, general & administrative (132,959) -5% (339,529) -5%

---------------- ----------------

OPERATING INCOME 240,403 9% 135,313 2%

Interest income 15,446 1% 36,487 1%
Interest expense (27,954) -1% (78,675) -1%
Foreign exchange gain (loss), net (2,055) 0% (21,039) 0%
Others, net (8,881) 0% (11,943) 0%
---------------- ----------------
Total other income (expense) (23,444) -1% (75,170) -1%
---------------- ----------------

INCOME BEFORE INCOME TAX EXPENSE 216,959 8% 60,143 1%

Income tax expense 10,013 0% 129,043 2%

---------------- ----------------
NET INCOME(LOSS) 226,972 8% 189,186 3%
---------------- ----------------


----------------------------------
2004
----------------------------------
Three months Nine months
ended Sep 30 ended Sep 30
----------------------------------

NET REVENUES 1,875,195 100% 6,395,438 100%
Cost of goods sold (1,555,192) -83% (4,459,955) -70%

---------------- ----------------

GROSS PROFIT 320,003 17% 1,935,483 30%

Selling, general & administrative (63,626) -3% (209,067) -3%

---------------- ----------------

OPERATING INCOME 256,377 14% 1,726,416 27%

Interest income 5,227 0% 12,998 0%
Interest expense (11,775) -1% (37,465) -1%
Foreign exchange gain (loss), net (7,784) 0% (23,965) 0%
Others, net (1,884) 0% (8,987) 0%
---------------- ----------------
Total other income (expense) (16,216) -1% (57,419) -1%
---------------- ----------------

INCOME BEFORE INCOME TAX EXPENSE 240,161 13% 1,668,997 26%

Income tax expense 50,707 3% (48,973) -1%

---------------- ----------------
NET INCOME(LOSS) 290,868 16% 1,620,024 25%
---------------- ----------------


- These financial statements are provided for informational purposes
only



LG.Philips LCD
CONSOLIDATED BALANCE SHEET
( In millions of KRW)
(The financial statements are based on unaudited Korean GAAP)

----------------------------------
2005
----------------------------------
Sep 30 Jun 30
----------------------------------

ASSETS
Current assets:
Cash and cash equivalents 2,129,456 16% 1,330,973 11%
Trade accounts and notes receivable 1,307,958 10% 1,215,026 10%
Inventories 724,954 5% 721,298 6%
Other receivables and assets 248,701 2% 299,725 3%
Total current assets 4,411,069 33% 3,567,022 30%

---------------- ----------------

Investments and other non-current
assets 413,959 3% 350,716 3%
Property, plant and equipment, net 8,548,527 63% 7,754,666 65%
Other Intangible assets, net 167,933 1% 171,311 1%

---------------- ----------------

Total assets 13,541,488 100% 11,843,715 100%

---------------- ----------------
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:

Short-term debt 794,504 6% 631,798 5%
Trade accounts and notes payable 730,003 5% 651,783 6%
Other payables and accrued
liabilities 1,816,328 13% 1,836,142 16%

---------------- ----------------

Total current liabilities 3,340,835 25% 3,119,723 26%

---------------- ----------------

Long-term debt 2,822,930 21% 2,957,417 25%
Reserves for pension 59,528 0% 54,160 0%

---------------- ----------------

Total liabilities 6,223,293 46% 6,131,300 52%
---------------- ----------------

Common Stock and additional paid-in
capital 4,069,499 30% 2,668,718 23%
Accumulated result 3,280,838 24% 3,053,889 26%
Capital adjustment (32,142) 0% (10,192) 0%
Shareholders' equity 7,318,195 54% 5,712,415 48%

---------------- ----------------

Total liabilities and shareholders'
equity 13,541,488 100% 11,843,715 100%

---------------- ----------------


--------------------------------
2004
--------------------------------
Sep 30 Jun 30
--------------------------------

ASSETS
Current assets:
Cash and cash equivalents 1,211,843 12% 559,936 7%
Trade accounts and notes receivable 885,790 9% 1,342,193 16%
Inventories 692,395 7% 452,856 5%
Other receivables and assets 127,888 1% 147,773 2%
Total current assets 2,917,916 30% 2,502,758 30%

--------------- ---------------

Investments and other non-current
assets 292,942 3% 138,611 2%
Property, plant and equipment, net 6,327,617 65% 5,534,822 66%
Other Intangible assets, net 198,100 2% 200,831 2%

--------------- ---------------

Total assets 9,736,575 100% 8,377,022 100%

--------------- ---------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:

Short-term debt 632,052 6% 575,421 7%
Trade accounts and notes payable 489,602 5% 438,438 5%
Other payables and accrued
liabilities 1,221,747 13% 1,438,639 17%

--------------- ---------------

Total current liabilities 2,343,401 24% 2,452,498 29%

--------------- ---------------

Long-term debt 1,651,164 17% 1,648,543 20%
Reserves for pension 43,050 0% 39,347 0%

--------------- ---------------

Total liabilities 4,037,615 41% 4,140,388 49%
--------------- ---------------

Common Stock and additional paid-in
capital 2,640,848 27% 1,450,000 17%
Accumulated result 3,056,254 31% 2,765,385 33%
Capital adjustment 1,858 0% 21,249 0%
Shareholders' equity 5,698,960 59% 4,236,634 51%

--------------- ---------------

Total liabilities and shareholders'
equity 9,736,575 100% 8,377,022 100%

--------------- ---------------


- These financial statements are provided for informational purposes
only



LG.Philips LCD
CONSOLIDATED STATEMENTS OF CASH FLOW
( In millions of KRW)
(The financial statements are based on unaudited Korean GAAP)

-------------------------------------
2005
-------------------------------------
Three months ended Nine months ended
Sep 30 Sep 30
-------------------------------------
Net Income 226,972 189,186
Depreciation 440,522 1,254,722
Amortization 11,097 34,225
Others 29,241 78,354
------------------ -----------------
Operating Cash Flow 707,832 1,556,487
Net Change in Working Capital 55,994 (337,329)
Change in accounts receivable (95,131) (404,252)
Change in inventory (3,657) 80,406
Change in accounts payable 83,020 150,432
Change in others 71,762 (163,915)
------------------ -----------------
Cash Flow from Operation 763,826 1,219,158
Capital Expenditures (1,380,277) (2,801,669)
Acquisition of PP&E (1,370,812) (2,786,520)
(Delivery) (1,207,522) (3,277,936)
(Other account payables) (163,290) 491,416
Intangible assets investment (7,720) (10,147)
Others (1,745) (5,002)
------------------ -----------------
Cash Flow before Financing (616,451) (1,582,511)
Cash Flow from Other Financing
Activities 13,754 949,548
Proceeds from Additional
Stocks 1,401,180 1,401,180
------------------ -----------------
Net Cash Flow 798,483 768,217
------------------ -----------------


------------------ -----------------
2004
-------------------------------------
Three months ended Nine months ended
Sep 30 Sep 30
-------------------------------------
Net Income 290,868 1,620,024
Depreciation 309,620 850,839
Amortization 10,974 33,750
Others 1,787 24,378
------------------ -----------------
Operating Cash Flow 613,249 2,528,991
Net Change in Working Capital 230,040 17,136
Change in accounts receivable 458,029 254,322
Change in inventory (240,490) (355,219)
Change in accounts payable 52,565 85,601
Change in others (40,064) 32,432
------------------ -----------------
Cash Flow from Operation 843,289 2,546,127
Capital Expenditures (1,432,812) (3,402,287)
Acquisition of PP&E (1,331,947) (3,288,947)
(Delivery) (1,102,461) (3,231,135)
(Other account payables) (229,486) (57,812)
Intangible assets investment (12,303) (19,161)
Others (88,562) (94,179)
------------------ -----------------
Cash Flow before Financing (589,523) (856,160)
Cash Flow from Other Financing
Activities 50,581 373,208
Proceeds from Additional Stocks 1,190,849 1,190,849
------------------ -----------------
Net Cash Flow 651,907 707,897
------------------ -----------------


- These financial statements are provided for informational purposes
only



LG.Philips LCD
CONSOLIDATED STATEMENTS OF INCOME
( In millions of KRW)
(The financial statements are based on unaudited US GAAP)

----------------------------------
2005
----------------------------------
Three months Nine months
ended Sep 30 ended Sep 30
----------------------------------

REVENUE 2,740,507 100% 7,112,883 100%
Cost of goods sold (2,364,366) -86% (6,613,579) -93%

---------------- ----------------

GROSS PROFIT 376,141 14% 499,304 7%

Selling, general & administrative (137,490) -5% (350,047) -5%

---------------- ----------------

OPERATING INCOME 238,651 9% 149,257 2%

Interest income 15,446 1% 36,487 1%
Interest expense (27,451) -1% (81,149) -1%
Foreign exchange gain (loss),net (9,568) 0% (33,016) 0%
Others, net (1,021) 0% (527) 0%
---------------- ----------------
Total other income (expense) (22,594) -1% (78,205) -1%
---------------- ----------------

INCOME BEFORE INCOME TAX EXPENSE 216,057 8% 71,052 1%

Income tax expense 21,952 1% 110,882 2%

---------------- ----------------
NET INCOME(LOSS) 238,009 9% 181,934 3%
---------------- ----------------


----------------------------------
2004
----------------------------------
Three months Nine months
ended Sep 30 ended Sep 30
----------------------------------

REVENUE 1,873,579 100% 6,392,062 100%
Cost of goods sold (1,543,259) -82% (4,423,667) -69%

---------------- ----------------

GROSS PROFIT 330,320 18% 1,968,395 31%

Selling, general & administrative (65,609) -4% (222,809) -3%

---------------- ----------------

OPERATING INCOME 264,711 14% 1,745,586 27%

Interest income 5,227 0% 12,998 0%
Interest expense (13,870) -1% (40,832) -1%
Foreign exchange gain (loss),net (6,002) 0% (18,047) 0%
Others, net 271 0% 857 0%
---------------- ----------------
Total other income (expense) (14,374) -1% (45,024) -1%
---------------- ----------------

INCOME BEFORE INCOME TAX EXPENSE 250,337 13% 1,700,562 27%

Income tax expense 47,557 3% (52,428) -1%

---------------- ----------------
NET INCOME(LOSS) 297,894 16% 1,648,134 26%
---------------- ----------------


- These financial statements are provided for informational purposes
only



LG.Philips LCD
CONSOLIDATED BALANCE SHEET
( In millions of KRW)
(The financial statements are based on unaudited US GAAP)

----------------------------------
2005
----------------------------------
Sep 30 Jun 30
----------------------------------

ASSETS
Current assets:
Cash and cash equivalents 2,129,456 16% 1,330,973 11%
Trade accounts and notes receivable 1,307,958 10% 1,215,026 10%
Inventories 723,917 5% 720,836 6%
Other current assets 248,029 2% 297,800 3%
Total current assets 4,409,360 33% 3,564,635 30%

---------------- ----------------

Investments and other non-current
assets 434,718 3% 361,167 3%
Property, plant and equipment, net 8,578,817 64% 7,788,439 66%
Intangible assets, net 42,341 0% 36,058 0%

---------------- ----------------

Total assets 13,465,236 100% 11,750,299 100%

---------------- ----------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:

Short-term debt 794,689 6% 633,107 5%
Trade accounts and notes payable 730,003 5% 651,783 6%
Other payables and accrued
liabilities 1,820,576 14% 1,840,072 16%

---------------- ----------------

Total current liabilities 3,345,268 25% 3,124,962 27%

---------------- ----------------

Long-term debt 2,875,674 21% 3,005,875 26%
Other non-current liabilities 61,138 0% 54,829 0%

---------------- ----------------

Total liabilities 6,282,080 47% 6,185,666 53%

Common Stock & APIC 4,032,294 30% 2,630,379 22%
Retained Earnings 3,182,954 24% 2,944,967 25%
Capital adjustment (32,092) 0% (10,713) 0%
Shareholders' equity 7,183,156 53% 5,564,633 47%

---------------- ----------------

Total liabilities and shareholders'
equity 13,465,236 100% 11,750,299 100%

---------------- ----------------


--------------------------------
2004
--------------------------------
Sep 30 Jun 30
--------------------------------

ASSETS
Current assets:
Cash and cash equivalents 1,211,843 13% 559,936 7%
Trade accounts and notes receivable 885,312 9% 1,341,749 16%
Inventories 691,145 7% 451,383 5%
Other current assets 130,765 1% 169,366 2%
Total current assets 2,919,065 30% 2,522,434 31%

--------------- ---------------

Investments and other non-current
assets 311,099 3% 150,117 2%
Property, plant and equipment, net 6,360,059 66% 5,565,875 67%
Intangible assets, net 33,335 0% 26,934 0%

--------------- ---------------

Total assets 9,623,558 100% 8,265,360 100%

--------------- ---------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:

Short-term debt 632,052 7% 575,617 7%
Trade accounts and notes payable 491,903 5% 438,438 5%
Other payables and accrued
liabilities 1,219,144 13% 1,441,381 17%

--------------- ---------------

Total current liabilities 2,343,099 24% 2,455,436 30%

--------------- ---------------

Long-term debt 1,657,916 17% 1,656,606 20%
Other non-current liabilities 46,249 0% 39,347 0%

--------------- ---------------

Total liabilities 4,047,264 42% 4,151,389 50%

Common Stock & APIC 2,629,531 27% 1,450,000 18%
Retained Earnings 2,945,489 31% 2,647,595 32%
Capital adjustment 1,274 0% 16,376 0%
Shareholders' equity 5,576,294 58% 4,113,971 50%

--------------- ---------------

Total liabilities and shareholders'
equity 9,623,558 100% 8,265,360 100%

--------------- ---------------


- These financial statements are provided for informational purposes
only



LG.Philips LCD
CONSOLIDATED STATEMENTS OF CASH FLOW
(In millions of KRW)
(The financial statements are based on unaudited US GAAP)

--------------------------
2005
--------------------------
Three months Nine months
ended Sep 30 ended Sep 30
--------------------------
Cash flows from operating activities:
Net income 238,009 181,934
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 440,892 1,255,835
Amortization 1,436 5,242
Others, net 52,126 107,240
Change in operating assets and liabilities:
Change in A/R (90,238) (456,946)
Change in inventory (3,080) 80,273
Change in A/P 83,021 148,897
Change in others 43,464 (105,387)
------------ ------------
Net cash provided by operating activities 765,630 1,217,088
------------ ------------

Cash flows from investing activities:
Purchase of property, plant and equipment (1,370,812) (2,786,520)
Proceeds from sales of property,
plant and equipment 223 2,727
Others, net (9,688) (17,876)
------------ ------------
Net cash used in investing activities (1,380,277) (2,801,669)
------------ ------------

Cash flows from financing activities:
Financing Activities 13,754 949,548
New Equity & Others 1,401,180 1,401,180
------------ ------------
Net cash provided by financing activities 1,414,934 2,350,728
------------ ------------

Effect of exchange rate change on cash and
cash equivalents (1,804) 2,070

------------ ------------
Net increase (decrease) in cash 798,483 768,217
------------ ------------


---------------------------
2004
---------------------------
Three months Nine months
ended Sep 30 ended Sep 30
---------------------------
Cash flows from operating activities:
Net income 297,894 1,648,134
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 312,615 849,689
Amortization 1,293 4,747
Others, net (16,435) (4,643)
Change in operating assets and
liabilities:
Change in A/R 468,313 272,543
Change in inventory (237,939) (349,880)
Change in A/P 53,053 88,238
Change in others (26,158) 61,729
------------- ------------
Net cash provided by operating
activities 852,636 2,570,557
------------- ------------

Cash flows from investing activities:
Purchase of property, plant and
equipment (1,446,738) (3,416,422)
Proceeds from sales of property, plant
and equipment 955 4,151
Others, net 714 (2,272)
------------- ------------
Net cash used in investing activities (1,445,069) (3,414,543)
------------- ------------

Cash flows from financing activities:
Financing Activities 50,575 358,052
New Equity & Others 1,190,849 1,190,849
------------- ------------
Net cash provided by financing
activities 1,241,424 1,548,901
------------- ------------

Effect of exchange rate change on cash and
cash equivalents 2,916 2,914

------------- ------------
Net increase (decrease) in cash 651,907 707,829
------------- ------------


- These financial statements are provided for informational purposes
only



LG.Philips LCD
Net Income Reconciliation to US GAAP
( In millions of KRW)

--------------------------
2005
--------------------------
Three months Nine months
ended Sep 30 ended Sep 30
--------------------------
Net Income under K GAAP 226,972 189,186
US GAAP Adjustments 11,037 (7,252)
Depreciation of property,
plant and equipment (655) (1,965)
Amortization of Intellectual Property
Rights 9,095 30,081
Adjustment of AR discount loss 670 765
Capitalization of financial interests (2,827) (3,540)
Inventory Valuation effect of US GAAP
Adjustments (10) (963)
Pension expense (318) (53)
Income tax effect of US GAAP
Adjustments 11,352 (18,748)
ESOP (737) (2,597)
Convertible bonds (including FX
valuation) (4,589) (8,596)
Stock appreciation right (944) (1,636)
--------------------------
Net Income under US GAAP 238,009 181,934
--------------------------


- These financial statements are provided for informational purposes
only