January 13, 2006

SAMSUNG Electronics Reports 2005 Fourth Quarter Results Record Quarterly Revenue of 15.52 trillion won

Samsung reports quarterly sales of KRW15.52 trillion,

operating income of KRW2.14 trillion and net income of KRW2.56 trillion.





SEOUL, Korea - January 13, 2006 : Samsung Electronics
Co., Ltd. today announced its financial results for 2005 fourth quarter
ended December 31, 2005. The company posted net income of 2.56 trillion
won, on revenue of 15.52 trillion won. Operating income for the fourth
quarter was 2.14 trillion won, compared with 2.13 trillion in the previous
quarter.



Net income in the fourth-quarter increased 36% compared with the previous
quarter, while revenue jumped 7% compared to the previous quarter.



“Despite challenging market conditions, we achieved strong profit growth
in the fourth quarter driven by healthy, solid results in our key business
units and overseas subsidiaries,” said Dr. Woosik Chu, senior vice president
and head of Samsung Electronics’ investor-relations team. “This is a result
of our competitiveness and focus on innovation.”



Revenue and operating income growth for the quarter were driven by continued
strength in the Semiconductor and LCD businesses. Operating profit increased
slightly in the fourth quarter from the previous quarter even though the
company set-aside provisions for a newly adopted long-term, incentive-based
compensation structure after the decision to abolish stock-options.



The company also announced revenue of 57.46 trillion won for the fiscal
year ended December 31, 2005. Net income for the fiscal year 2005 was
7.64 trillion won and operating income was 8.06 trillion won.



Sales and net income of the Semiconductor Business increased to 5.09 trillion
won and 1.62 trillion won, respectively, as demand for NAND Flash chips
used in MP3 players and mobile phones remained robust. Migration to the
finer process technology in NAND Flash helped reduce manufacturing costs
and boost profitability. Operating profit margins stood at 32% in the
fourth-quarter, a 3%-point increase from the previous quarter.



Samsung expects solid momentum heading into 2006, as demand for value
added, “specialty DRAMs” used in graphic-focused products and 8Gb NAND
Flash is expected to increase.



The Telecommunication Network Business posted revenue of 4.95 trillion
won, and operating income of 380 billion won. Samsung sold 27.2 million
phones in the fourth quarter, the highest number of units on a quarterly
basis. Demand for D600, 3G phones, and high-end premium phones, remained
strong in the fourth quarter in Europe.



Samsung expects global demand for mobile phones to increase 5%-10% in
2006, and the company is confident to keep market leadership with the
expansion of the high-end premium handset portfolio including 3G phones
and WiBro.



The LCD Business reported revenue and operating income of 3.01 trillion
won and 400 billion won, respectively. The full ramp up of the latest
seventh-generation production line helped Samsung Electronics post solid
results and shore up profit margins in the fourth quarter. Margins in
the fourth quarter was 13%, up 2% points from the previous quarter.



The seventh generation line processes glass sheets that measure 187 centimeters
by 220 centimeters on which eight 40-inch panels or six 46-inch panels
can be made with little waste. In January 2006, Samsung opened a second
production line, or 7-2, and began shipping the first panels off the line.
The two production lines are expected give further cost advantages to
Samsung Electronics.



Digital Media Business sales decreased to 1.58 trillion won and posted
a 200billion won operating loss. Sales of its Digital Appliance Business
dropped 12% to 750 billion won and operating loss of 60 billion won.





About Samsung and the Olympic Games

(in trillion won)





Business

2004

2005

Growth


Semiconductor

18.22

18.33


1%





Memory

14.11

14.08


-





System LSI

2.28


2.01


(12%)





LCD

8.69


9.71


12%





Telecommunication
Network

18.94


18.82


(1%)





Mobile Phone

17.75


17.77


-





Digital Media

8.03



6.48



(19%)






Digital Appliance

3.26



3.38



4%





Total Revenue

57.63



57.46



-












Business

Q305

Q405

Growth


Semiconductor

4.59

5.09

11%





Memory

3.47

3.84

10%





System LSI

0.55

0.56

1%





LCD

2.68

3.01

12%





Telecommunication
Network

4.58

4.95

8%





Mobile Phone

4.37

4.65

6%





Digital Media

1.64


1.58


(4%)





Digital Appliance

0.85


0.75


(12)%





Total Revenue

14.54


15.52


7%







Operating Profit by Business

(in trillion won)





Business

2004

2005

Growth


Semiconductor

7.48

5.46

(27%)





LCD

1.88

0.73

(61%)





Telecommunication
Network

2.81

2.30

(18%)





Digital Media

(0.03)


(0.31)


(1,118%)





Digital Appliance

(0.05)


(0.09)


(70%)





Total Operating
Profit

12.02


8.06


(33%)












Business

Q305

Q405

Growth


Semiconductor

1.35

1.62

21%





LCD

0.30

0.40

36%





Telecommunication
Network

0.55

0.38

(31%)





Digital Media

(0.02)


(0.20)


(706%)





Digital Appliance

(0.04)


(0.06)


(43%)





Total Operating
Profit

2.13


2.14


-







About Samsung and the Olympic Games

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication,
digital media and digital convergence technologies with 2004 parent company
sales of US$55.2 billion and net income of US$10.3 billion. Employing
approximately 113,600 people in 90 offices in 48 countries, the company
consists of five main business units: Digital Appliance Business, Digital
Media Business, LCD Business, Semiconductor Business and Telecommunication
Network Business. Recognized as one of the fastest growing brands, Samsung
Electronics is the world's largest producer of color monitors, color TVs,
memory chips and TFT-LCDs. For more information, please visit, http://www.samsung.com


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