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					                     創 維 數 碼 控 股 有 限 公 司
              SKYWORTH DIGITAL HOLDINGS LIMITED
To: Business Editors                                              (For Immediate Release)


            Skyworth forged a strategic alliance with LG Display
Highlights:
    Skyworth acquired an equity stake in LCD module plant of LG Display Guangzhou
    Skyworth and LG Display will form a 50:50 R&D JV in display technology
    Skyworth will build a large scale LCD TV production plant in Guangzhou
    The LCD module plant, R&D JV and Skyworth LCD TV plant will all be located in the same
     development zone in Guangzhou


     (Hong Kong, 7 April, 2008) ------- Skyworth Digital Holdings Limited (“Skyworth”, and
collectively with its subsidiaries, the “Group”)(HKEX Stock Code: 0751), a leading television
(“TV”) manufacturer in the People’s Republic of China (the “PRC”), announced in a press
conference held in the evening of 7 April 2008 at its production plant in Shiyan, Shenzhen, that
it had forged a strategic alliance with LG Display Co., Ltd. (NYSE: LPL, KRX: 034220) (“LG
Display”) one of the world most significant thin-film transistor liquid crystal display (“LCD)”
manufacturers and suppliers. In summary, (a) Skyworth acquired an equity stake in LG
Display’s LCD module factory; (b) both parties entered into an agreement in the press
conference to form a display technology research and development joint venture (“R&D JV”);
and (c) Skyworth will build a large scale LCD television (“TV”) production plant in the location
opposite to the LCD module factory of LG Display.

     Mr. Zhang Xue Bin, Executive Chairman and CEO of Skyworth, Mr. Yang Dongwen,
Executive Director and President of PRC TV Business Unit, Mr. Eddie Yeo, Executive Vice
President and Head of TV Business Unit of LG Display and others attended the press
conference.

                            Skyworth moves upstream to LCD modules

        At the press conference, Skyworth and LG Display announced that they reached an
agreement on 17 January 2008. Under the agreement, Skyworth agreed to acquire a
minority equity stake in LG Display Guangzhou Co. Ltd (“LGD Guangzhou”), a wholly owned
subsidiary of LG Display which owns and operates a LCD module plant in Guangzhou
Economic and Technology Development Zone in Guangdong Province of the PRC. This
production facility will become a significant LCD module production base in the PRC.
        The role played by LCD TVs in the PRC TV market is increasingly important. Based
on the market analysis, the volume of LCD TVs in the PRC market reached 10 million units in
2007 and it will keep growing at over 50% volume to more than 15.5 million units in 2008. It
has become a major stream of TVs, especially in the first and second tier cities in the PRC,
and PRC LCD TV manufacturers have been relying on imported panels. Therefore, the
demand for LCD panels is the key barrier against a TV manufacturer’s development. This
time Skyworth directly enters into an international and first class LCD module business by
equity participation will resolve the problem of PRC TV manufactures being lacking of core
components, resolve the problem of Skyworth in sourcing of LCD panels and enable Skyworth
to enjoy the benefits resulting from the integration.

        Zhang Xuebin, Executive Chairman and CEO of Skyworth said, “This is the best
choice for PRC TV manufacturers to move upstream to LCD module industry in an efficient
and technological risk free way. It resolves PRC TV manufacturers the problem in respect of
enterprise development and raw material, improves the efficiency of complementary
businesses, reduces all parties operating costs. This is also the best choice for cooperation
between foreign and domestic manufacturers for future development.”

        Eddie Yeo, Executive Vice President and Head of TV Business unit of LG Display said,
 “PRC is the most important strategic market for LG. LG Display’s prudent decision to
 cooperate with Skyworth was made after study of the TV manufacturers in the PRC.
 Skyworth is the strongest and most sound TV manufacturer in the PRC. Its powerful market
 operating ability and core technology in TV manufacturing can provide the development of
 LGD Guangzhou with a general steady market and leads for technology.”

                         Skyworth and LG Display jointly set up an R&D JV

         In the press conference, Skyworth and LG Display signed an agreement to establish a
display technology research and development company (the “R&D Company) at the same
development zone in Guangzhou. The investment of the R&D Company is RMB50 million with
the total equity interest equally owned by LG Display and Skyworth. The R&D Company will
be established by personnel from both parties. Specifically focusing on the PRC market
demand, it will integrate the latest technological solutions to shorten a raw material producer’s
response time to the market, to speed up the time for bringing new technology and new
products to the market, and to increase the speed for TV product technology upgrade.

        Under the agreement, the R&D Company will be staffed by top experts from both
parties with the objective to jointly develop LCD technology, to follow up and research and
develop new LCD display technology, and to research and develop the large size LCD
modules with high benefits over their costs and the highest adaptability to the market.

                            A new LCD TV production plan for Skyworth

       Skyworth also announced that it will build a modern LCD TV production plant, to be
owned and operated by one of its 100% subsidiaries, next to the LGD Guangzhou. The new
LCD TV production plant will occupy around 130,000 square metre of land and will a planned
capacity of 3 million units of LCD TV. It will absorb the new technology from the R&D JV and
source LCD modules from the LCD module plant owned by LGD Guangzhou. This will be the
fourth TV production base of Skyworth besides the two in Shenzhen and one in Inner Mongolia.
The new LCD TV production plant is expected to commence its production in August 2008.

                                  All three facilities in one location

         Inside the Guangzhou Economic and Technology Development Zone, the LCD module
plant, R&D JV and Skyworth LCD TV plant will all be situated nearby to each other, forming a
single and complete TV business chain combining new product research and development,
raw material supply and TV manufacturing. This alliance not only save both parties logistic
cost. It will also bring benefits to both parties in term of product costs, efficiency, and
effectiveness.


          Skyworth expect that, after these cooperation and construction project are complete, it
will fully master the resource and technology of the upstream business. Adding these to its
already leading application technology, Skyworth will create a strong leading position and
achieve its strategy of strengthening its core business.

         Zhang Xue Bin of Skyworth added, “Each of Skyworth and LG Display is a leader in
their respective businesses. The alliance forged by both parties has been a break through of
the barrier between the upstream and downstream of TV business. It has created
compensating effects for a relationship with mutual benefits, and enabled the technology index,
standards of crafts and market positioning of PRC LCD TV to reach a leading and international
position in full scale.”

         Eddie Yeo of LG Display said, “As a leader in PRC TV industry, Skyworth is our most
important strategic partner in the PRC. The complete LCD business chain to be built up by
both parties will create mutual benefits. I have full confidence in the joint projects. Both
parties will go further and deeper to cooperate with each other within the framework of our
alliance.”

        Yang Dongwen, Executive Director and President of PRC TV concluded, “These joint
projects have marked the milestone for Skyworth that it has made a significant change in its
scale and mode of development, from TV manufacturing to upstream business. The LCD
module production base will also provide the other PRC TV manufacturers a source for LCD
modules.”



                                              - End-
About Skyworth
Skyworth Digital Holdings Ltd. (HKEX stock code:0751) established in 1988. It is the leading PRC TV
manufacturer based in Shenzhen, with a mission to be the No. 1 Display Technology in the PRC.
Skyworth is specialized in TV production with a focus on high-end digital products, including LCD TV, HD
CRT TV, slim CRT TV, Plasma TV, digital set-top box, mobile phones, car electronics, security monitors
and small size LCD modules. In 2006/07, Skyworth’s total sales volume of TV and group turnover
reached 8.6 million units and HK$12.6 billion, respectively. According to the survey conducted by Gfk
Asia Pte. Ltd. in 2006, Skyworth ranked No. 1 among national and foreign brands in terms of sales
amount in 100 major cities in the PRC.In December 2003 Skyworth firstly launched the self-developed
V12 digital engine for high definition TV in China. In 2004-2005, 6 basic colors technology has been
widely applied to Skyworth’s TV. In May 2006, the Group introduced the recordable LCD TV, 3G-USB
LCD TV, auto-adjustable LCD backlight technology in September 2006 and the stabilizing technology to
improve the response time of motion pictures and CooCaa TV in the first and third quarter of 2007,
respectively. Being the first PRC TV manufacturer explored the overseas market in 1993, Skyworth’s
quality OEM products have been recognized by international brands. Overseas markets contributed
9.7% in total turnover in 2006/07. Skyworth's R&D is led by experienced electronics engineers and it
cooperates with well-known suppliers: Real Media Networks, Trident, Pixelworks, Texas Instruments, LG,
Fujitsu and Epson in application software, industrial design and plant management. Skyworth's Science
Industrial Park with a total area of over 640,000 square meters, located in Shiyan, Shenzhen, has
commenced production of flat-panel TV and high-end electronics products in October 2006. Meanwhile,
the new regional production plant at Ruyi district of Huhot, Inner Mongolia has also started operation.
The two new plants give Skyworth additional production capacity of totally 4 million units. Skyworth was
listed on The Stock Exchange of Hong Kong Limited (0751) in April 2000.                       Please visit
www.skyworth.com for more information.

About LG Display
LG Display Co., Ltd [NYSE: LPL, KRX: 034220] is a leading manufacturer and supplier of thin-film
transistor liquid crystal display (TFT-LCD) panels, OLEDs and flexible displays. The company provides
TFT-LCD panels in a wide range of sizes and specifications for use in TVs, monitors, notebook PCs, and
various applications. LG Display currently operates seven fabrication facilities and five back-end
assembly facilities in Korea, China and Poland. The company has a total of 22,000 employees operating
in ten countries around the world. Please visit http://www.lgdisplay.com for more information.



Contact:
Mr. Frederick Leung / Ms. Maggie Mak
Executive Director, CFO and Company Secretary / General Manager – Investor Relations
Skyworth Digital Holdings Limited
Tel: +852 2290 4696 / 2290 4620/ 9788 2288
Fax: +852 2856 3590
E-mail: ir@skyworth.com.hk

				
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