Net Profit Increases More than 300 Percent from Same Period Last Year

SEOUL, Apr. 29, 2014 — LG Electronics Inc. (LG) today announced a 319 percent increase in first-quarter net profit compared with the same period last year. First-quarter 2014 net profit rose to KRW 92.60 billion (USD 86.62 million) while operating profit of KRW 504billion (USD 471.47million) marked a significant improvement from the previous quarter due to improved profitability from the LG Home Entertainment Company. Unaudited first quarter consolidated revenues of KRW 14.27 trillion (USD 13.35 billion) increased 1.2 percent compared to the same quarter in 2013.

The LG Home Entertainment Company reported first-quarter revenues of KRW 4.95 trillion (USD 4.63 billion), a 3 percent increase from the first quarter a year ago.Operating profit of KRW 240.30 billion (USD 224.79 million) exceeded expectations due to stronger sales of larger-sized TVs and better cost structure resulting from declining material prices. Revenues are expected to increase in the second quarter with new model launches. LG will continue to diversity its premium Ultra HD TV and OLED TV lineup with more sizes and price levels to offset greater competition.

The LG Mobile Communications Company shipped 12.3 million smartphones in the first quarter — comprising 75 percent of all phones shipped — an increase of 19 percent from the same period the previous year. LG’s shipment of 5 million LTE smartphones was the most ever in a single quarter, an increase of 79 percent year-over-year, accounting for 41 percent of all smartphone shipments in the quarter compared to 27 percent for all of 2013. Revenues of KRW 3.41 trillion (USD 3.19 billion) increased 6 percent year-on-year and operating profit margins rose quarter-on-quarter due to the launch of G Pro 2 in the domestic market and more efficient marketing spending. Higher revenues are expected in the second quarter with the release of the flagship LG G3 smartphone and wider roll-out of the mass-tier L series III.

The LG Home Appliance Company posted strong sales in the Korean market but first-quarter revenue of KRW 2.72 trillion (USD 2.54 billion) was lower year-over-year due to greater competition in North America and unfavorable foreign currency exchange movement in developing markets. Improved cost structure resulted in first-quarter operating profit of KRW 109.20 billion (USD 102.15 million) and a profit margin of 4 percent. Going forward, LG expects revenues for home appliances to increase with the launch of market leading washing machine and refrigerator products.

The LG Air Conditioning & Energy Solution Company reported strong sales of commercial air conditioners in overseas markets with revenues of KRW 1.22 trillion (USD 1.14 billion) in the first quarter and operating profit of KRW 89.8 billion (USD 84 million), an increase of nearly 10 percent from the same period last year. LG expects both revenue and profitability to improve with a greater portion of sales from commercial air conditioners and increasing demand for new products such as dehumidifiers and air purifiers in Korea.

20141Q Exchange Rates Explained

LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending March 31, 2014. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW 1,069 per USD (20141Q).

Earnings Conference and Conference Call

LG Electronics will hold a Korean language earnings conference on April 29, 2014 at 16:00 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea). An English language conference call will follow the next day on April 30, 2014 at 10:00 Korea Standard Time (01:00 GMT/UTC). Participants are instructed to call +82 31 810 3069 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at 14:00 on April 29, 2014. Please visit http://pin.teletogether.com/eng/ and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142730# when prompted.

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LG Furthers Its Commitment to Environmental Stewardship

with Low-Carbon Products

SEOUL, Apr. 22, 2014 ― LG Electronics (LG) cut emissions from the use of its products by 38 million tons in 2013. This exceeded the company’s target to reduce emissions from the use of LG products by 30 million tons in a year, a target which LG had previously projected would not be reached until 2020.

Buoyed by this success, LG has set itself the even more challenging goal of cutting emissions associated with product use by 60 million tons a year in 2020 ― an accumulated reduction of approximately 420 milliontons between 2008 and 2020. A decrease of this size will have the same positive impact on air quality as the planting of 3 billion pine tree seedlings a year.

LG’s advanced technologies helped to lower greenhouse gas emissions through impressive energy saving performance. The company’s Linear Compressor used in refrigerators and Direct Drive technology in its washing machines are clear proof of LG’s commitment to, and leadership in, delivering environmentally friendly products. LG’s LED-backlit LCD TV achieved 67 percent improved energy efficiency¹ by using Smart Energy Saving Technology.

For its continued leadership in manufacturing and promoting efficiency, LG was recognized by the U.S. Environmental Protection Agency (EPA) with the2014 ENERGY STAR Partner of the Year-Sustained Excellence Award, the highest distinction best owed upon ENERGY STAR partners. In Korea, LG has earned 98 low-carbon product certifications in the field of home appliances from the Ministry of Environment and Korean Environmental Industry & Technology Institute, more than any other manufacturer to date. Furthermore, LG was ranked first in the Carbon Management Global Leaders Club by CDP (Carbon Disclosure Project) Korea from 2009 to 2012.

“Reaching this milestone could not have been possible if not for the dedication of our employees who have led the way in environmental stewardship,” said Joon-ho Kim, senior vice president and head of LG’s Quality Center. “We will continue to push the boundaries to bring innovations to our customers that are both technologically superior and environmentally responsible.”

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¹LG TV model 47LB6700versus model 47LC7DF.

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Joint Research Advances Gas, Liquid and Air Purification Technology for

Future Commercialization

SEOUL, Apr. 18, 2014 ― Researchers from LG Electronics (LG) and Swiss university ETH Zurich (Swiss Federal Institute of Technology Zurich) have developed a method to greatly increase the speed and efficient transmission of gas, liquid and water vapor through perforated graphene, a material that has seen an explosion of scientific interest in recent years. The findings open up the possibility in the future to develop highly efficient filters to treat air and water.

Graphene, a versatile material composed of a one-atom thick layer of graphite, is the thinnest, lightest and strongest compound currently known to man. It was first successfully isolated in 2004 and since then much research has been conducted with sheets of graphene, which have the unique property of being the only material where each single atom is exposed to a chemical reaction from both sides due to its 2D structure. Reliability and consistency when working with extremely delicate graphene has been a constant challenge for researchers.

Scientists from ETH Zurich and LG developed a reliable method for creating 2D membranes using chemical vapor deposition (CVD) optimized to grow graphene with minimal defects and cracks to form graphene layers thinner than 1 nm (nanometer). Using a focused ion beam (FIB), the researchers then drilled nanopores in double layers of graphene to produce porous membranes with aperture diameters between less than 10 nm and 1 µm (micrometer).

Testing various sized perforations, the researchers found that their graphene membrane resulted in water permeance five- to sevenfold faster than conventional filtration membranes and transmission of water vapor several hundred times higher compared to today’s most advanced breathable textiles such as Gore-Tex. The findings of the LG-ETH Zurich team could lead to the development in the future of highly breathable materials that are also waterproof and more effective filters to separate dangerous gases from the air.

The team’s research paper “Ultimate Permeation across Atomically Thin Porous Graphene” will be published today in Science, the academic journal of the American Association for the Advancement of Science, one of the world’s top scientific journals.

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EPA Recognizes LG for Efforts to Protect the Environment

Through Superior Energy Efficiency and Climate Communications 

SEOUL, Apr. 3, 2014 — LG Electronics, a global technology leader in consumer electronics and home appliances, has been recognized by the U.S. Environmental Protection Agency (EPA) with a 2014 ENERGY STAR Partner of the Year-Sustained Excellence Award, the highest distinction bestowed upon ENERGY STAR partners. LG also is being honored with the inaugural 2014 ENERGY STAR Partner of the Year-Climate Communications Award.

According to the EPA, LG is being recognized as ENERGY STAR Partner of the Year for its continued leadership in protecting the environment by manufacturing and promoting products with superior energy efficiency as well as educating consumers on the important, positive effects that energy-efficient behaviors can have on the environment.

For example, in the past year American consumers purchased more than 1.6 million LG products awarded the “ENERGY STAR Most Efficient 2013” distinction, which helps consumers easily identify the most efficient products among those that have earned the ENERGY STAR label. LG increased the number of Most Efficient models available by 55 percent in 2013 from 2012 and increased its percentage of total sales dollars that were ENERGY STAR qualified by more than 13 percent from 2012.

LG also expanded its programs designed to change consumer behaviors. In 2013, the company generated more than 2 billion consumer impressions by stepping up its nationwide public education and community out reach campaign. Key to this effort was LG’s industry-leading support of “Team ENERGY STAR,” a multi-year initiative from EPA’s ENERGY STAR program that involves kids in helping their families save energy and money at home, while teaching them how energy efficiency is good for the environment. The company worked with EPA and PTO Today to award a total of 50 prizes (primarily LG ENERGY STAR certified products) to families who participated in the campaign.

“As a long-time ENERGY STAR partner, LG is extremely proud to be recognized by the EPA for our ongoing leadership and long-term commitment to energy efficiency through both the ENERGY STAR Sustained Excellence and Climate Communications awards,” said William Cho, president and CEO of LG Electronics USA. “LG works to reduce greenhouse gas emissions and help fight climate change by bringing energy-efficient products to the market as quickly as possible and by teaching consumers simple actions they can take to protect the environment.”

Across the United States, top companies and organizations are leading the way toward a more energy-efficient future through their participation in ENERGY STAR. Through 2013, with help from ENERGY STAR, American families and businesses have saved USD 297 billion on utility bills and prevented more than 2.1 billion metric tons of greenhouse gas emissions.

“LG has earned EPA’s highest ENERGY STAR award — the 2014 Partner of the Year- Sustained Excellence Award — because of its unwavering commitment to helping consumers become increasingly more energy efficient,” said EPA Deputy Administrator Bob Perciasepe. “By using innovative marketing and communications, LG is helping to raise the public’s awareness of climate change. An informed public can make smarter choices about the purchases they make and the impact that they have on the environment and our changing climate.”

The 2014 Partner of the Year-Sustained Excellence Awards are given to organizations to recognize their contributions to reducing greenhouse gas emissions through superior energy efficiency. These winners have reduced greenhouse gas emissions by setting and achieving aggressive goals and by employing innovative energy efficiency approaches. These awards recognize ongoing leadership across the ENERGY STAR program, including energy-efficient products, services, new homes, and buildings in the commercial, industrial, and public sectors.

LG and other 2014 award winners are selected from the 16,000 organizations that participate in the ENERGY STAR program. In addition to its Sustained Excellence recognition in 2014, LG is one of only 10 ENERGY STAR Partners to receive the Climate Communications Award, a new award for 2014 that honors outstanding efforts to raise its customers’ awareness about climate change.

LG Electronics’ accomplishments will be recognized at an awards ceremony in Washington, D.C. on April 29.

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First Regional Roadshow Showcases LG’s Consumer-Focused

Product Lineup to Asian Audience

SEOUL, Apr. 2, 2014 — LG Electronics (LG) kicked off the third leg of its global Innovation Festival (InnoFest) roadshow in Seoul with a showcase of its newest products aimed at Asian consumers, which included the company’s diverse lineup of TVs, refrigerators, washing machines, air conditioners and smartphones. InnoFest Asia follows on the heels of InnoFest Middle East & Africa event in Turkey and InnoFest Europe in Italy in February and March, respectively.

“LG expanded LG InnoFest to Asia this year for the first time to show our regional business partners and stakeholders LG’s diverse lineup of consumer-centered products for 2014,” said Weon-dae Kim, senior vice president and regional head of LG Electronics Asia. “The hundreds of guests who come to LG InnoFest are the first impression customers have of LG so it’s critical that they have all the tools and knowledge to be our ambassadors.”

LG showcased its full lineup of TVs for Asian consumers starting with the superior picture quality of ULTRA HD TVs. LG announced the expansion of its ULTRA HD TV family from 49 to 105 inches and adding two new models — 77 and 65 inches — to its current 55-inch OLED TV offering. LG also introduced its newest smart TV operating system, webOS, at InnoFest Asia. Setting up, searching and viewing content and connecting to other devices are incredibly simple and intuitive with webOS.

LG also showcased at InnoFest Asia its latest big capacity, energy conserving home appliances. Interest was high for LG’s top-load washing machines with Tub Clean+ which increases water temperature to 60 degrees Celsius to wash dirt and germs from inside the unit. LG’s new front-load washing machine reduces wash time to only 59 minutes¹ with its TurboWash™ technology and removes wrinkles and odors from delicate clothes with TrueSteam™.

In the kitchen, LG’s refrigerators equipped with Inverter Linear Compressor and the double layered Door-in-Door™ system take energy efficiency and convenience to a whole new level. LG’s Deluxe Inverter V smart air conditioners can be adjusted to operate under four power consumption options, according to needs and conditions. Artcool Mirror Inverter V air conditioner includes LG’s proprietary Voice Mate feature enabling it to respond to vocal commands. Smart cleaning solutions such as HOM-BOT SQUARE and KOMPRESSOR RoboSense™ round out LG’s appliance lineup at LG InnoFest Asia.

Other products featured at LG InnoFest Asia include LG G Flex, the ergonomic,  curved smartphone designed around the human face, and the new G Pro 2, G2 mini, L Series ^III, as well as the company’s first wearable fitness device, Lifeband Touch.

“It was very impressive to see LG Electronics’ technology leadership and innovative products right here, the country where LG was born and raised,” said Mr. Handy Sundjaja, Owner of Log-In, one of the biggest retailers in Indonesia. “I hope we can continue to help each other grow, succeed and lead the Indonesian market going forward.”

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¹ Based on tests carried out by Intertek, LG Model F94933WHS (washing load 5kg on Cotton cycle).

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