2006 was a year of challenges for the TFT-LCD industry as the business environment was affected by consolidation and pricing pressures that were much more severe than anticipated. LG Display was not immune to these pressures; we saw our profitability erode in these conditions and quickly realized that the only truly successful companies would be those best able to adapt to rapidly changing market conditions today and tomorrow.

We accepted this challenge.

We adopted a value-over-volume strategy that better meets the demands of this new business environment. By focusing on collaborative customer relationships, cost reduction, manufacturing excellence and technology leadership as well as rational capacity and prudent investments, we took tangible and measurable steps to reaffirm our leadership in the industry.

As we entered 2007, we continue to progress well in our cost reduction efforts, improving our expense structure in product planning and development while reducing component costs. At the same time, we are working hard to better align with our global customers for better understanding of their needs and higher quality standards for our products. Equally important is the progress we are making in technology and manufacturing as we continue to expand our capacity, develop high-end products and facilitate process innovation. Simultaneously, we are undertaking prudent investment in the productivity of our existing facilities and efficiently balancing our production lines. We are pleased with our progress in these areas and believe that, coupled with a better operating environment in 2007, we will see improved operating and financial performance.

Supporting and shaping these efforts are several new executives, including our new CEO, Mr. Young Soo Kwon, who joined our management team. They are providing LG Display with a solid mix of industry experience and knowledge that we believe will enable us to reach our objectives in an expedited manner. I am delighted to be working closely with this team.

Our future success is dependent upon a few key areas, and we believe the growth characteristics of the TFT-LCD industry remain undiminished and intact. We believe we are moving in the right direction. With your ongoing support and participation, LG Display will travel steadily on the road to long term success and shareholder value creation.