About Hyundai Electronics Industries Co.

Newly Formed MicroElectronics Group Becomes the World's Largest Memory Manufacturer

Hyundai Electronics Industries Co., Ltd. (HEI) today announced the successful completion of the merger with Hyundai MicroElectronics Co., Ltd. (formerly LG Semicon). This merger, which has been ongoing since September of 1998, culminates in a newly formed organization under HEI known as Hyundai MicroElectronics, a single and competitive group focused on designing and producing advanced microelectronics. The legal name of the two merged companies remains Hyundai Electronics Industries Co., Ltd.

Young Hwan Kim has been named President and CEO of the Hyundai Electronics Industries Co., Ltd. Sang Ho Park has been named President and COO of the newly formed Hyundai MicroElectronics, the Semiconductor Group of Hyundai Electronics Industries Co., Ltd.

HEI is expected to take the industry's number one DRAM supplier position based on last years' combined company marketshare which equals 20.8%, according to International Data Corporation (IDC).

"With the combined resources and the synergy of this new organization, Hyundai is now poised to move into a leadership position in the global semiconductor market," said Young Hwan Kim, president of Hyundai Electronics Industries. Hyundai MicroElectronics has approximately 3,700 research and development (R&D) design engineers and more than 11 fabrication facilities strategically located in key markets worldwide with a total capacity of more than 300,000 eight-inch wafer starts per month.

"This merger will enable Hyundai to diversify its product line, effectively becoming a `one-stop shop' memory supplier for our customers," noted Mr. Kim. He further explains, "The expanded resources will improve our economies of scale and reduce our cost structure, allowing the Hyundai MicroElectronics Group to decrease product development time and pass cost savings on to our customers."

The key benefits of the combined group include the following: ongoing technology innovation, increased product diversification, efficient operations, strong customer service and expanded fabrication capabilities.

Hyundai MicroElectronics' top priority is to retain customer loyalty and maintain its leadership position in the DRAM market place. Management also expects to grow the group into one of the top five suppliers of both SRAM and Flash memory products. In addition, Hyundai MicroElectronics Group is investing heavily in the System IC market, with non-memory business expected to increase from a current 7 percent of the company's total sales revenue to 18 percent by the year 2001. The plan includes utilizing previous generation manufacturing equipment and facilities as a foundry for customer System IC business. The worldwide non-memory market is $65 billion, and is expected to grow to $130 billion by the year 2003.

"The Hyundai MicroElectronics Group will merge technology from the two former companies at the 256 megabit (Mb) DRAM generation and beyond," said Sang Park, President, Hyundai MicroElectronics. He noted that "Hyundai plans to invest billions of dollars to attain 0.13-micron technology by the year 2002". Mr. Park anticipates geometries will be further reduced to the 0.10-micron level, enabling one gigabit (1Gb) technology by 2003 to create a single-device chip with 128MB of memory.

Hyundai MicroElectronics expects this year's sales to reach $4.5 billion, including LG Semicon's revenue as of October 14, 1999. Sales next year are anticipated to exceed $6.5 billion for the MicroElectronics Group.

About Hyundai MicroElectronics

Hyundai MicroElectronics is a business group of Hyundai Electronics Industries Co., Ltd. (HEI) of Ichon, Korea. Hyundai MicroElectronics is an industry leader in the development, sales, marketing and distribution of high-quality microelectronics (including DRAM, SRAM, Flash memory and System IC) and also provides foundry services for outside customers. According to International Data Corporation (IDC) of Framingham, MA, the Hyundai MicroElectronics Group is the world's largest DRAM supplier. Based in Korea, Hyundai MicroElectronics maintains development, manufacturing, sales and marketing facilities strategically worldwide.

About West Coast Engineering

For over 23 years, West Coast Engineering (WCE) has been supplying electronics to OEMs, CEMs and distributors worldwide. Located in Hawthorne California, near the Los Angeles International Airport (LAX), West Coast Engineering has established itself as a premier independent distributor specializing in providing electronic components for the military, aeronautical, medical, automotive and commercial manufacturing industries. Hynix Semiconductor America is one of the hundreds of manufacturers that WCE carries on its linecard.

WCE has the techology and resources to handle any size transaction, no matter how big or small.

Quick Facts

• Founded: 1984
• Headquarters: Hawthorne, CA
• Other Locations: Futain, Shenzhen ▪ China PRC ▪ Brazil

West Coast Engineering is committed to providing the highest quality service to customers with its large diverse inventory stocked in its ISO9001:2000 and ESD compliant 70,000 sq. ft. warehouse. Year after year, West Coast Engineering has been considered a top independent distributor because of its principled reputation built on longstanding relationships with a dedicated customer base.

WCE's strategies differ from any other independent distributors. Listed below are some of the added measures that WCE takes to make sure that OEMs, CEMs and distributors have peace of mind when placing orders for electornic components, selling excess inventory, forming strategic alliances, and purchasing RoHS or
non-RoHS parts.