SAMSUNG

VALUES AND PHILOSOPHY

The Samsung Philosophy
At Samsung, we follow a simple business philosophy: to devote our talent and
technology to creating superior products and services that contribute to a better
global society.

Every day, our people bring this philosophy to life. Our leaders search for the
brightest talent from around the world, and give them the resources they need to be
the best at what they do. The result is that all of our products—from memory chips
that help businesses store vital knowledge to mobile phones that connect people
across continents— have the power to enrich lives. And that’s what making a
better global society is all about.

Our Values
We believe that living by strong values is the key to good business. At Samsung, a
rigorous code of conduct and these core values are at the heart of every decision
we make.

People

Quite simply, a company is its people. At Samsung, we’re dedicated to giving our
people a wealth of opportunities to reach their full potential.
Excellence

Everything we do at Samsung is driven by an unyielding passion for excellence—

and an unfaltering commitment to develop the best products and services on the
market.

Change

In today’s fast-paced global economy, change is constant and innovation is critical

to a company’s survival. As we have done for 70 years, we set our sights on the
future, anticipating market needs and demands so we can steer our company
toward long-term success.

Integrity

Operating in an ethical way is the foundation of our business. Everything we do is

guided by a moral compass that ensures fairness, respect for all stakeholders and
complete transparency.

Co-prosperity

A business cannot be successful unless it creates prosperity and opportunity for

others. Samsung is dedicated to being a socially and environmentally responsible
corporate citizen in every community where we operate around the globe.
VISION AND MISSION
Our Vision
Samsung is guided by a singular vision: to lead the digital convergence movement.

We believe that through technology innovation today, we will find the solutions we
need to address the challenges of tomorrow. From technology comes opportunity
—for businesses to grow, for citizens in emerging markets to prosper by tapping
into the digital economy, and for people to invent new possibilities.

It’s our aim to develop innovative technologies and efficient processes that create
new markets, enrich people’s lives and continue to make Samsung a trusted market
leader.

Our Mission
Everything we do at Samsung is guided by our mission: to be the best “digital-
εCompany”.
Samsung grew into a global corporation by facing challenges directly. In the years
ahead, our dedicated people will continue to embrace many challenges and come
up with creative ideas to develop products and services that lead in their markets.
Their ingenuity will continue to chart Samsung’s course as a profitable,
responsible global corporation.

HISTORY
1938-1969 Samsung's Beginnings
On March 1, 1938, founding chairman Byung-Chull Lee started a business in
Taegu, Korea, with 30,000 won.

At the start, his business focused primarily on trade export, selling dried Korean
fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade,
Samsung—which means "three stars" in Korean—would have its own flour mills
and confectionery machines, its own manufacturing and sales operations, and
ultimately evolve to become the modern global corporation that still bears the same
name today.

1938-1969 Samsung's Beginnings

197 • Black-and-white TV (model: P-3202) production started by Samsung-
0 Sanyo
• Samsung-Sanyo Electronics established (renamed Samsung Electro-
196
Mechanics in March 1975 and merged with Samsung Electronics in
9
March 1977)
196 • Joong-Ang Development established (known today as Samsung
6 Everland)
196 • DongBang Life Insurance acquired (renamed Samsung Life Insurance
3 in July 1989)
195 • Ankuk Fire & Marine Insurance acquired (renamed Samsung Fire &
8 Marine Insurance in October 1993)
195
• Cheil Industries Inc. founded
4
195
• Samsung Moolsan established (now Samsung Corporation)
1
193
• Samsung founded in Taegu, Korea
8

1970-1979 Diversifying in Industries and Electronics

In the 1970s, Samsung laid the strategic foundations for its future growth by
investing in the heavy, chemical, and petrochemical industries.

During this time, the company also took steps to enhance its competitive position
in the world's textile industry, integrating its manufacturing processes from raw
materials to end products. As a result, many new companies were created,
including Samsung Heavy Industries Company in 1974 and Samsung Shipbuilding
and Samsung Precision Company (now Samsung Techwin) in 1977.
Another burst of growth for Samsung came from the burgeoning home electronics
business. Samsung Electronics, already a major manufacturer in the Korean
market, began to export its products for the first time during this period. Samsung
also acquired a 50 percent stake in Korea Semiconductor, further solidifying
Samsung Electronics' position as a leader in semiconductor manufacturing.

1970-1979 Diversifying in Industries and Electronics

197
• Began mass production of microwave ovens
9
197
• 4 millionth black-and-white TV (most in the world) produced
8
197 • Samsung Precision Co. established (now Samsung Techwin)
7
• Started export of colour televisions

• Samsung Fine Chemicals established

 • Samsung Construction established
197
• 1 millionth black-and-white TV produced
6
• Samsung Heavy Industries incorporated
197
• Samsung Petrochemical established
4
• Began washing machine and refrigerator production
197 • Began production of black-and-white televisions for domestic
2 sale

1997-1999 Advancing the Digital Frontier

Despite the 1997 financial crisis that affected nearly all Korean businesses, Samsung was one of
few companies that continued growing, thanks to its leadership in digital and network
technologies and its steady concentration on electronics, finances and related services.
Samsung responded to the crisis by reducing the number of its affiliated companies to 45
(according to the Monopoly Regulation and Fair Trade Act), decreasing personnel by almost
50,000, selling 10 business units and improving the soundness of its financial structure, lowering
its 365 percent debt ratio in 1997 to 148 percent by late 1999.
1997-1999 Advancing the Digital Frontier

• Samsung Aerospace (known today as Samsung Techwin), Daewoo Heavy

Industries, and Hyundai Space and Aircraft formed a single business
entity, Korea Aerospace Industries
199
9 • First in the world to mass-produce and offer a full line up of digital TVs
• Developed the world's first 3D TFT-LCD Monitor
• Developed wireless Internet phone (Smartphone), a small, multi-function
phone

• Achieved top share of world’s TFT-LCD market

• Mass production of world's first digital TV begun
• Began mass production of the world’s first digital TV
199
• Development of completely flat-screen TV completed
8
• Served as Olympic Partner at Nagano Winter Olympics
• World's first 128M SDRAM introduced
• Developed world's first 128MB Synchronous DRAM and 128MB Flash
memory
 • Became a Worldwide Olympic Partner (TOP) in the wireless
communications category
• Signed contract to become an Olympic Partner in wireless equipment
199 category for Nagano Winter Olympics
7 • Developed world's lightest PCS (105g)
• Developed world's largest TFT-LCD (30)
• Development of world's first 30" TFT-LCD completed
• Announced 2nd phase of New Management

2000-Present Pioneering the Digital Age

The digital age has brought revolutionary change – and opportunity – to global
business, and Samsung has responded with advanced techno-logies, competitive
products, and constant innovation.

At Samsung, we see every challenge as an opportunity and believe we are perfectly

positioned as one of the world's recognized leaders in the digital technology
industry.
Our commitment to being the world's best has won us the No.1 global market share
for 13 of our products, including semiconductors, TFT-LCDs, monitors and
CDMA mobile phones. Looking forward, we're making historic advances in
research and development of our overall semiconductor line, including flash
memory and non-memory, custom semiconductors, DRAM and SRAM, as well as
producing best-in-class LCDs, mobile phones, digital appliances, and more.

2000-Present Pioneering the Digital Age

200 • Named Yoon-Woo Lee as a Vice Chairman & CEO of Samsung
8 Electronics

• Launched OMNIA phone

• Completed establishing TV manufactory in Russia Kaluga

• Became the official sponsor of 2010 Guangzhou Asian Game

• Developed the world's first 2Gb 50 NANO

 • Samsung takes No. 1 spot in U.S. cellphone market

• Opened Global Brand PR Centre ‘Samsung D'light'

• No.1 worldwide market share position for TVs achieved for the 9th
quarter in a row
• No.1 worldwide market share position for TVs achieved for the seventh
quarter in a row

200 • Developed the world's first 30nm-class 64Gb NAND Flash™ memory
7 • BlackJack bestowed the Best Smart Phone award at CTIA in the U.S.

• Attained No.1 worldwide market share position for LCD for the sixth
year in a row
• Developed the world's first real double-sided LCD

• Developed the worlds' first 50nm 1G DRAM

• Unveiled 10M pixel camera phone

200
• Launched "Stealth Vacuum," a vacuum cleaner with the world's lowest
6
level of noises

• Launched the worlds' first Blu-Ray Disc Player

• Developed 1.72"Super-Reflective LCD Screen

200 • Developed the largest Flexible LCD Panel
5
• Ranked 27th in "the World's Most Admired Company" of Fortune

• Became the official sponsor of Chelsea, the renowned English soccer

club

• Released the world's first 7 mega pixel camera phone

• Developed the world's first OLED for 40" TV

• Became the official sponsor of Chelsea, the renowned English soccer

 club

• Developed the first-ever speech recognition phone

• Produced the first wrinkle-free steam washer

• Sold more than 20 million cellular phones in the U.S

• Developed the world's first 60-nano 8GB NAND Flash memory chip

200 • Ranked top in mobile phone sales in Russia

4 • Released new PDP TV featuring the highest contrast ratio in the world

• Developed a 3rd Generation Optical Blu-Ray Disc Recorder

• Developed cellular phone chip for satellite DMB system

• Released 46" LCD TV for the first time in the world

• Samsung brand value ranked 25th in the world by Interbrand

200 • Ranked 5th on the "Most Admired Electronics Company" list released
3 by the Fortune Magazine

• Released the first HD DVD combo

• Development of the 54"TFT-LCD, the largest digital TV monitor in the
world

200 • Launches PDP-TV, the slimmest in the world

2 • Launch of colour mobile phones in which the new concept UFB-LCD
is introduced

• Launched new high-definition TFT-LCD colour cellular phone

200 • Ranked No. 1 of world's Top 100 IT Companies by BusinessWeek
1
• Unveils 16 Chord Progression Melody Phone

• Begins Mass Production of 512Mb Flash Memory Device

 • Unveils Industry's First Ultra-Slim Handset

• Develops World's first 40 inch TFT-LCD

• Unveils TFT-LCD with Record-breaking Definition

• Launches PDA phone

• Samsung Olympic Games Phone selected as the official mobile phone

of the Sydney 2000 Olympic Games

200 • TV Phone and Watch Phone Make Guinness Book of World Records

0 • Unveils the Worlds Fastest Graphics Memory Chip

• Samsung Electronics and Yahoo! Form Strategic Alliance

• Develops Unique All-in-one DVD Player

• Developed world's first 512Mb DRAM

• Developed world's first 512Mb DRAM

MANAGEMENT

Yoon-Woo Lee was named Vice Chairman and Chief Executive Officer of
Samsung Electronics in May 2008. He was also appointed in January 2009 as the
Head of Device Solutions, which includes the company's Semiconductor and LCD
component divisions.

An engineer and 40-year veteran of Samsung, Mr. Lee's leadership and in-depth
technology expertise have helped build Samsung into the world's largest
electronics company. He is widely credited with growing Samsung's
Semiconductor Business into one of the most successful in the industry, and
implementing policies and training programs that have earned Samsung the
reputation of being the best company in Korea at which to work.

First joining Samsung in 1968, Mr. Lee became Managing Director of Giheung's
main semiconductor plant operations in 1987, and was appointed as President of
Samsung's Semiconductor Business in 1996. Demonstrating his business acumen
in a dynamic and fast-paced semiconductor industry, he successfully implemented
diversification strategies that allowed the Semiconductor Business to navigate
through cyclical market downturns while increasing market share, year after year.

In 2004, Mr. Lee was promoted to Vice Chairman in charge of Global

Collaboration, and also was appointed Head of the Samsung Advanced Institute of
Technology. In 2005, he became Chief Technology Officer, responsible for
planning mid- and long-term strategies for promoting new business development
based on leading-edge technologies.

Mr. Lee serves in numerous industry leadership positions including Chairman of

the Korean Engineers' Club and Vice Chairman of Korea Business Council for
Sustainable Development. In 2005, he was honoured by the Korea Management
Institute as CEO of the Year. Mr. Lee holds a bachelor's degree in Electrical
Engineering from Seoul National University.

Mr. Jung Soo Shin is the President and CEO of Samsung South West Asia
Operations and President & CEO of Samsung India Electronics Ltd.
Prior to assuming his current position, Mr. Shin has served as Head of Marketing
for the Digital Appliances Business, Samsung Electronics. In his current role as
President & CEO of Samsung South West Asia Regional HQ, Mr Shin will
oversee the operations of all existing Samsung subsidiaries in India, namely
Samsung India Electronics Pvt. Ltd. (SIEL), Samsung India Software Operations
(SISO), Samsung’s R & D Centre, based in Bangalore as well as the Company's
operations in the SAARC Region .

Mr Shin has around 25 years of work experience at Samsung Electronics. During

this period, he has handled Samsung's global operations for 19 years, being based
in the Company's overseas subsidiaries. He has worked as Head of Strategy
Marketing, Digital Appliances Business and Head of Global Strategy as Corporate
Staff, based in South Korea. He has been the President of Samsung’s Digital
Consumer Electronics Business in America as well as MD of Samsung subsidiary
in Australia. He has been the President of Samsung’s BENELUX (Belgium,
Netherlands and Luxemburg) operations and managed the Company's business in
Germany as well. In the early part of his career with Samsung Electronics, he has
been responsible for Samsung's export business.

FINANCIAL PROFILE

Samsung Profile 2008

Wherever you are... in the hustle of the streets or the comfort of the
home...Samsung is part of the fabric of your life. As a global leader we are at the
forefront of change, anticipating today what our customers around the world will
want tomorrow.
2007 Financial Overview (WON/DOLLARS/EUROS)
2007 Financial Overview
AMOUNTS IN BILLIONS WON DOLLARS EUROS
161,847.
Net Sales* 174.2 127.2
4
284,165.
Total Assets 302.9 205.7
5
180,833.
Total Liabilities 192.7 130.9
2
103,332.
Total Stockholder's Equity 110.1 74.8
3
Net Income* 12,873.7 13.9 10.1
[Amounts in billions]

* Won/U.S. dollar yearly average exchange rate: 929.20/1, Won/Euro: 1,272.72/1

Won/U.S. dollar as of the end of December 31, 2007: 938.20/1, Won/Euro: 1,381.26/1
Financial data includes Samsung affiliates ending their fiscal year at the end of March 2008,
such as Samsung Life Insurance, Samsung Fire & Marine Insurance,
Samsung Securities, Samsung Investment Trust Management.