RNS Number:4201R
Samsung Electronics Co. Ld
29 October 2003


                                                               October 28, 2003



                   Samsung Electronics and Sony Signed a MOU

                  to Establish Joint Venture for the 7th Generation

                      Amorphous TFT LCD Panel Production

      Seoul, Korea / Tokyo, Japan, October 28, 2003 - Samsung Electronics Co.,
Ltd (hereafter Samsung) and Sony Corporation (hereafter Sony) have signed a MOU
(Memorandum Of Understanding) with the intention to establish a joint venture
for the manufacture of the 7th generation amorphous TFT LCD panel. The joint
venture is due to be established in the 1st quarter of CY2004, subject to
completion of a definitive agreement and applicable regulatory requirement.

     The joint venture will be investsd by two companies and it will install the
7th generation (1,870mm  2,200mm substrates) amorphous TFT LCD panel production
equipments in the facility constructed by Samsung in Tangjeong, ChungCheongNam
Do, Korea. The production line is targeted to reach a production capacity of
tens of thousands sheets monthly (substrate base) by summer 2005 requiring a
capital investment of approximately $2 billion. These and other details are
subject to further discussion and agreement between the two companies.

      The popularity of flat display TV sets continues to advance rapidly and
consequently the demand for TFT LCD panels has also increased dramatically. The
demand for LCD TV sets is expected to be 14 million units worldwide in FY2005
which is estimated to be as over 10 percent of total TV set sales world wide.

      This investment in the 7th generation production line will enable both
companies to ensure stable production with efficient cost performance allowing
them to supply their products to LCD market. The worlds largest the 7th
generation amorphous TFT LCD manufacturing line will ensure all stakeholders of
the industry what the standard glass size will be, and also enable Samsung to
reinforce its leadership in the fast growing LCD market with Samsungs various
differentiated technologies.

By adding the production capacity of this new company to its existing suppliers,
Sony will be able to secure a stable amorphous TFT LCD panel supply for its own
TV sets in order to promote product development and meet the expanding world
demand.



Joint Venture

(details still under discussion and to be finalized in the 1st quarter of
CY2004)    

   Name of the company :           To be decided

   Capital             :           Approx.$2 billion

   Representatives     :           To be decided
                                   (planned to select CEO from Samsung, CFO from 
                                   Sony)

   Location            :           Tangjeong, ChungCheongNam Do, Korea

   Product             :           Amorphous TFT LCD panels

   Capital Invested    :           Approx. $2 billion (amount to start mass
                                   production)

   Production capacity :           Tens of thousands sheets per month the 7th
                                   generation (1,870mm  2,200mm)

Further details to be decided upon discussion.


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