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Overview: Market Overview

2005 2006 2007 2008 (F)Households - 26.4Population - 60.0Interest Rate - ??%

Freesat LaunchesBSkyB via DTT review endsAnalogue switch off begins – Border region 1.0% pop

Total Market – 6.2m Total Market – 6.5m Total Market – 7.9m Total Market – 8.9m

4.1m

1.8m0.3m

2.5m

3.9m

0.4m1.2m

6.7m

0.6m0.3m

7.9m

0.7m

Growth60%217%133%

Growth28%156%150%

Growth

107%125%

Profitability FocusIncrease average AMPExpand Distribution

1080p LaunchTraining Team EstablishedIndependent Team EstablishedSales team restructure

Households - 25.8Population - 59.5Interest Rate - 4.5%

DTV Penetration – 70.0%Freeview - 6.0m homesBSkyB - 7.7m homesFTA Sat - 0.5m homesCable - 2.6m homes

Households - 26.0Population - 59.7Interest Rate - 4.75%

DTV Penetration – 77.2%Freeview - 7.7m homesBSkyB - 8.0m homesFTA Sat - 0.8m homesCable - 3.3m homes

* Sky HD Launched

Households - 26.2Population - 59.8Interest Rate - 5.75%

DTV Penetration – 84.0%Freeview - 13m homesBSkyB - 8.1m homesFTA Sat - 0.9m homesCable - 3.1m homes

* Freeview Playback Launched* Top up TV Anytime Launched

Large Screen Focus

HD Ready Launch

Marketing Team EstablishedPricing Structure Revised

High Volume, High M/S Focus

CRTLCDPLASMA

Profitability FocusIncrease average ASPExpand Distribution

Focus on step-up & premium products

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1.2

0.3 0.035

6.77.9 8.3

0.610.7 0.75

2007 2008 F 2009 F

Market Review: TV Market Forecast

• Total TV market 8.4 million units• LCD – 7.4 million• PDP – 0.7 million• CRT – 0.3 million

• 07’ – 08’ Flat Panel Growth 13% YoY

• Market growth driven by HD Ready 1080p & unique TV design

• TV Market will slow as prices become more stable and availability reduces. CRT business shall finish by 2009

2008/2009 Forecast

CRT

LCD

PLASMA

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1,311,396

293,368

279,975

1,472,301

Jan 07-Jun 07 Jan 08-Jun 08

2,599

3,411

294.2

268.3

Jan 07-Jun 07 Jan 08-Jun 08

Total Flat Panel Market

Value (£000,s)

Units (000,s)

LCD Plasma

Units (000,s)

Value (£000,s)

395.4549.5

462.9 489.3

726 780

1,088

857

516 572456

573434.4

40.8

50.2

50.1 42.9

7360

72

65

4144

43

58

43

Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 M ar-08 Apr-08 M ay-08 Jun-08

189,266

261,527211,470 216,718

324,292 340,682

452,123384,158

220,698 239,326194,638

244,168188555.7

42,602

52,290

49,145 43,070

70,736 60,041

70,544

65,018

40,76743,267

40,136

51,646

38896.6

Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 M ar-08 Apr-08 M ay-08 Jun-08

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15.420.7 22.8 23.5

53 5564

54

2734

25

36

22.5

5.7

6.5 5.4 6.9

208

7

8

6

3

3

5

4

Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08

68,154

41,400

25,063

92,671

Jan 07-Jun 07 Jan 08-Jun 08

124.1

198.3

43.4

29

Jan 07-Jun 07 Jan 08-Jun 08

LG Total Flat Panel Market

Value (£000,s)

Units (000,s)

LCD Plasma

Units (000,s)

Value (£000,s)

7,65811,041 11,641 12,761

27,154 25,86928,896

25,380

13,254 14,33112,187

17,013

10,465

5,190

6,041 4,9026,100

15,594

6,646

6,356

6,746

4,745 3,173

2,766

4,204

3,428

Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08

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Non HD HD

84.5 85.2 86.283.9

15.4 14.8 13.816

Jan 08-Jun 08 Jul 07-Jun 08 Jun-07 Jun-08

7.5

23.4

5.418.7

10

32.7

79.7

71.4

79.7

74.378.9

62.7

12.8 5.214.9

7 11.1 4.6

Jan 07-Jun 07 Jan 08-Jun 08 Jul 06-Jun 07 Jul 07-Jun 08 Jun-07 Jun-08

Total Flat Panel Market – Technology (Value Share)

Offline OnlineFull HD

JUNE 08

1) HD62.7%

2) F-HD32.7%

3) Non HD4.6%

JUNE 08

1) Offline83.9%

2) Online16%

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27.7

13.8

16.5

6.36.1

8.1

7.26.46.2

6.9

7.26.7

10.8

7.35.5

5.46.3

0

5

10

15

20

25

30

2007_ 6

_

2007_ 7

_

2007_ 8

_

2007_ 9

_

2007_ 10

_

2007_ 11

_

2007_ 12

_

2008_ 1

_

2008_ 2

_

2008_ 3

_

2008_ 4

_

2008_ 5

_

2008_ 6

_

Percentage (%)

SAMSUNG SONY PANASONIC PHILIPS LG

Total Flat Panel Market: Value

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5.5

27.7

16.7

10.4

6.3

7.6

76.3666.6

6.48.4

5.95.5

4.24

0

5

10

15

20

25

30

Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 M ar-08 Apr-08 M ay-08 Jun-08

Percentage (%)

SAMSUNG SONY PANASONIC PHILIPS LG

LCD Panel Market: Value

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46.1

27.9

9.3

22

11.1

6.9 8.88.1

7.311.6

10.49

14.2

1011.6

12.2

6

0

5

10

15

20

25

30

35

40

45

50

Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 M ar-08 Apr-08 M ay-08 Jun-08

Percentage (%)

PANASONIC SAMSUNG PIONEER LG PHILIPS

LG Plasma: Value