In the fourth quarter of 2006, sales and operating profit increased by 12.7% and 58.2%, respectively, over the same period of the previous year.

■ 241.7 billion won in sales and 15.5 billion won in operating profit. In 2006, quarterly growth rates were consistently up over the same period of the previous year.

■ Annual cumulative sales totaled 1.0328 trillion won and operating profit reached 94.5 billion won, representing an increase of 6.7% and 34.3%, respectively

■ In 2007, LG H&H aims to achieve over 10% growth in sales and a 25% increase in operating profit.

▣ Regarding performance in the fourth quarter of 2006, LG H&H announced that it had achieved 241.7 billion won in sales and an operating profit of 15.5 billion won. Comparing to the same period of the previous year, sales were up 12.7% while operating profit soared by 58.2%.

▣ Compared to the same period of the previous year, sales grew 3.1% in the first quarter, 4.2% in the second quarter, 7.7% in the third quarter and 12.7% in the fourth quarter, while operating profit increased by 21.5% in the first quarter, 30.3% in the second quarter, 41.5% in the third quarter and 58.2% in the fourth quarter. Sound growth continued as growth rates improved steadily.

▣ As for individual business sectors, the household goods division achieved 153.0 billion won in sales, up 12.6% over the previous year. Its operating profit was 7.4 billion won, which was comparable to the previous year. In cosmetics, sales increased by 14.2% to reach 90.3 billion won and the operating profit surged 237.5% to stand at 8.1 billion won.

▣ In addition, annual sales in 2006 increased 6.7% to reach 1.0328 trillion won, while operating profit reached 94.5 billion won, up 34.3%.

▣ LG H&H explained that rising sales in the household goods division may be attributable to the tangible effects of business restructuring efforts that began in 2005, including a reduction in distribution inventories and the reduction of discount rates, and an increased share of high-end products in sales as the company shifted away from the earlier unprofitable price competition and now focuses on premium markets.

▣ In cosmetics, based on a select and focus strategy, marketing resources were concentrated on high-end products and as a result the sales of strategic brands such as OHUI (46%↑), Whoo (79%↑) and SooRyeHan (145%↑) rose sharply.

▣ Meanwhile, in 2007, LG H&H plans to achieve over 10% growth in sales and 25% growth in operating profit.

▣ To this end, LG H&H will continue to expand the share of premium products in sales. In the case of household goods, the company will try to establish a successful business model for premium household goods such as “Beyond” and introduce environmentally friendly, non-polluting products.

▣ As for cosmetics, the company plans to enhance its competitiveness in markets targeting those in their forties and over by launching OHUI The First and Whoo Jinyul. It will also secure a leading position in non-irritation/highly functional cosmetics by launching fermented cosmetics for the first time in Korea.