■ In the fourth quarter, a revenue of 214.4 billion, an operating profit of 9.8 billion won and a current net income of 26.0 billion won were achieved.

■ Annual cumulative sales amounted to 967.8 billion won, operating profit 70.4 billion won, and current net income 71.9 billion won.

■ Goals for 2006 include 10% sales growth over the previous year and 8% operating margin growth.

▣ As regards its business performance in the fourth quarter, LG H&H announced that it achieved 214.4 billion won in sales and 9.8 billion won in operating profit. Compared to the same period in the previous year, sales and operating profit have increased 6.8% and 250%, respectively. A turnaround was achieved in current net income to arrive at a surplus of 26 billion won.

▣ In terms of sales, a year-to-year downward streak that continued for 11 quarters until the first half of the current year has been overcome, and the company has attained growth for two consecutive quarters. The highest quarterly operating profit growth rate has been achieved thanks to surplus in its cosmetics business.

▣ LG H&H explained that both sales and operating profit have increased due to improved sales as a result of focused efforts in premium products including high-end cosmetics despite the potential for a decline in sales due to the divestiture of overseas business activities and poorly performing non-core businesses.

▣ Sales last year amounted to 967.8 billion won, which was comparable to the preceding year despite potential sources of a reduction in sales such as the divestiture of poorly performing businesses. An operating profit of 70.4 billion won was achieved, representing a 29.7% increase over the previous year.

▣ Current net income amounted 71.9 billion won, which represents a 97% increase as compared to the previous year. Taking into consideration the impact of the company’s win in a lawsuit launched by Yuhan-Kimberly (21.8 billion won) still reveals growth of 37%.

▣ In 2006, LG H&H plans to increase its sales by 10% over the previous year and increase its operating margin from 7% in the preceding year to 8%. In addition, it plans to achieve an operating margin of over 10% in the next 1-2 years.

▣ To this end, LG H&H continues to expand the share of premium products in its sales and make an entry in strategic new business areas, such as the paper industry. At the same time, it plans to solidify its dominance in the luxury cosmetic market.