Press Release

Chocolate phone,

new top of the range LG mobile A new strategy based on customer proximity -You’ve just launched LG mobile phone on Moroccan market. Why “chocolate”? We’ve been associated this new mobile to the “chocolatr” word because it looks like a chocolate bar. Moreover, chocolate is synonymous of love, sensuality, softness… It’s a nice product, very emotional. - What do you expect of this new product and how is it positioned compared to other ones? It’s a top of the range product which has already known a great success in Korea. Within 3 months, 400 000 units have been sold. In Europe, sales have began last May. Consumers enjoyed the advertising campaign. So that we decided to leave Moroccan consumers also appreciate Chocolate phone. It’ll be sale in Maroc Telecom operator, in pre and post-paid communications. - Are you going to sale it through Méditel? Yet Méditel has shown its interest so… - What about Moroccan communication campaign? We’ve already been initializing an international communication campaign, very intense on TV chains such as LBC, MBC and other European canals. - What about local chains ? Here, we shall orientate our actions through animations in Maroc Telecom agencies and other usual medias. -Concerning GSM, in a technological point of view, all mobiles present same characteristics. With Chocolate Phone, is design your main matte ? On mobile market you may easily find 70 different models. Consumer has so much choice. If you look at market structure you will see that only 10 mobiles represent 80% market share. Among these tenth, two categories: one price orientated, the other design orientated. We try to make the difference with our design and technology. Typically through Chocolate Phone. -… and its price? Of course we do care about the price, it’s such an important matter. - What is your position on Moroccan market? You must understand that LG is positioning on middle and high range products. Though the rest of the market is 60% present on a low range. We occupy the 4th range in a volume matter and we represent 23% of GSM market share. We are very competitive on middle and top of the range products. - LG is also a household appliance manufacturer. Is that why you are late comparing your competitors? First of all, we are satisfied of our results. And comparing to our competitors, we are only present in Morocco since 2003. Being fourth within 2 and a half years means that we have been successful. But every work is perfectible. We expect to be first or second, and we are confident in our objectives. We already are second in middle and top of the range mobiles. That’s a good sign. Moreover, we have a lot of visibility and in Europe, UMTS and third generation mobiles are already there. Soon you will see that these new technologies will evaluate in Morocco, with LG. - What was LG turnover in 2005? In 2005 we’ve been selling more than 100 000 units un Morocco and for this year, we expect 300 000 units. With Chocolate phone, sales will be quite reduced because it’s a top of the range mobile. - Compared to previous years, it seems that LG is less aggressive, that there is less products…. Previously, in fact, we used to communicate a lot. But since last year, we’ve opting for a new strategy. Today everybody knows LG and LG mobiles. Now we’ve been opting for a consumer proximity. We privilege sales shops animations. Within these 6 next months, you’ll see that we are very aggressive and we shall reveal you great strategy axes… - Concretely, what is your new strategy? We’ve been opting for a consumer feed-back, which is very important for us because it helps to understand consumers waits. Since this strategy is existing, sales have increased of nearly 10%. - How is LG percept in mobile telephony?