January 31, 1997 in Social Responsibility News

SAMSUNG Continues to Regulate 16M DRAM Production

.Samsung Electronics will continue to regulate the production volume of the 16-megabit DRAM chips
on an on-going basis: The market price of the 16M DRAM chip has been falling severely since the end of 1995,
getting close to a point where the market price and production cost do not break even.
Thus from the third quarter of 1996, Samsung Electronics has been downsizing its production volume of
16M DRAM chips, which seems to have started to show positive results beginning of this year.

.Samsung Electronics will regulate its production cuts on the basis that it does not effect the business
of its long-term contracted clients. However, until the prices rise to a reasonable level,
regulation of the 16M DRAM production capacity will continue.

.The reason for such action is that the market price of the 16M DRAMs has fallen nearly
beyond the production costs, not just for Samsung Electronics, but for other worldwide producers
in such countries as Japan and the USA. It appeared to have been widely understood within the
industry, that further price reductions would threaten the entire business of DRAM manufacturers.

.Due to the reduction of the 16M DRAM volume, fabrication capacity will be available for increased production
of SRAMs, graphic memory and other memory chips, ASIC, non-memory chips such as Micom and embedded DRAM logic chips.

Samsung Electronics Company Ltd., a US$21 billion company of the US$87 billion (95) Samsung Group, is a
world leader in electronics, with operations in more than 60 countries. The company challenges itself to
make consumer electronics, semiconductors and industrial electronics that are effective, useful, simple
and powerful. According to Dataquest, Samsung Electronics was the 7th largest semiconductor maker
in the world in 1996. Samsung is the world`s largest DRAM producer with 17 global market share .

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