Press Release - LG Electronics USA

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                    Microsoft and LG Electronics Announce
                      Broad Patent Licensing Agreement

     Agreement will cover intellectual property contained in hardware and software products,
                                         including Linux.

REDMOND, Wash. and SEOUL, Korea — June 6, 2007 — Microsoft Corp. and LG Electronics (LGE)
today announced that they have entered into a patent cross-license agreement to further
development of the companies’ current and future product lines. Microsoft has focused on
patent agreements in the recent past to develop a best practices model for protecting
intellectual property (IP) and respecting IP rights of others as well as building bridges with an
array of industry leaders, including consumer electronics, telecommunications and computer
hardware providers.
Through this agreement, LGE will be able to use Microsoft’s patented innovations in its products,
including Linux-based embedded devices. Microsoft will have access to LGE’s patents and will
license other patents developed by LGE that are now owned by business solutions provider
MicroConnect Group. The specific financial terms of the agreement are confidential, but the
parties are disclosing that Microsoft will be making a net balancing payment to LGE and
MicroConnect for operating system and computer system-related patents. LGE will be making
ongoing payments to Microsoft for the value of Microsoft patents as they relate to Linux-based
embedded devices that LGE produces.
“This agreement and our good relationship with Microsoft enables LGE to provide improved
telecommunications solutions to our customers,” said Jeong Hwan Lee, Executive Vice President,
Intellectual Property Center at LGE. “We believe that the license arrangement with Microsoft
provides appropriate recognition of the value of LGE’s computer system-related patents, which
includes patents directed to computer architecture utilized in game consoles and other products.
We believe in the importance of respecting the IP rights of others and that patent collaboration
and protection is a best business practice the whole industry should be engaged in.” Alan
Loudermilk, Founding Partner of MicroConnect, added “MicroConnect is pleased to be able to
make a contribution to the strengthened IP relationship between LGE and Microsoft.”
“This agreement is another example of how Microsoft is continuing to build bridges with others
in the industry through intellectual property licensing” said Horacio Gutierrez, Vice President,
Intellectual Property and Licensing at Microsoft. “We are pleased to be working with an industry
leader and partner like LGE to meet our mutual business goals and customer needs.”
In the past twelve months, Microsoft has announced similar agreements with companies such as
Novell, Samsung, NEC, Fuji-Xerox, Seiko-Epson and Nortel to help build bridges between the
world’s leading computer hardware, software and telecommunications solutions providers.


About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer
electronics, home appliances and mobile communications, employing more than 82,000 people
working in over 110 operations including 81 subsidiaries around the world. Comprising four
                                                                           Global Web Site

business units -- Mobile Communications, Digital Appliance, Digital Display and Digital Media
with 2006 global sales of US $38.5 billion -- LG Electronics is the world’s largest producer of
CDMA handsets, air conditioners, optical storage products, DVD players. For more information,
please visit

LG Electronics Digital Media Company is a leading producer of DVD players and home theater
systems. It has been the world’s best-selling optical storage maker for 9 consecutive years. The
company provides digitally integrated products such as audio-video systems, car infotainment,
optical storage products, notebook PCs, and PDAs, and is focusing on next-generation businesses.

About Microsoft
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and
solutions that help people and businesses realize their full potential.

Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries.
The names of actual companies and products mentioned herein may be the trademarks of their respective

  For more information, press only:
          Rapid Response Team, Waggener Edstrom Worldwide, +1 (503) 443-7070,
          Judy Pae, Corporate Communications, LG Electronics, Inc., +82 (2) 3777-7144,

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