Solid Mobile Phone: LG Electronics Alliance With Microsoft by Selecting

LG Electronics (LG) and Microsoft Corp. today announced an expanded
alliance to dramatically increase the number of LG phones running
Windows. As part of the agreement, LG will make Windows its primary
operating system for its smartphones and will increase both the number
of Windows phones in its portfolio and the total volume of Windows
phones it distributes. This will create a tenfold increase in the
volume of Windows phones available from LG in 2009 and bring up to 26
new Windows phones to market in 2012 alone. Overall, the agreement can
result in more than 50 new LG Windows phones.

"New LG phones running Windows will take advantage of the excitement
in this dynamically growing market," said Yong Nam, vice chairman and
chief executive officer, LG Electronics. "The Windows platform brings
flexible and customer-friendly software that ties into the Web and the
PC, giving our phones a wide range of new capabilities to address an
increasing number of segments and markets."

"Windows phones enable people to tap into digital experiences that
span their lives so they can connect to the people, information and
services they care about most," said Steve Ballmer, chief executive
officer at Microsoft. "Integrating Windows software with LG's design
leadership will bring new experiences to help enrich people's lives."

The agreement also includes a commitment by both companies to create
joint teams for research and development, to focus on creating phones
with powerful features built on tight integration between hardware and
software. It also details joint marketing efforts to expand the reach
of these phones at a range of prices in markets across the globe.

This agreement follows a memorandum of understanding signed by LG and
Microsoft on Nov. 3, 2008, which put in place strategic collaboration
on the converged mobile device business.