Samsung recommends Genuine Windows Vista Business

Q1 Ultra Premium UMPC

Full PC functionality in an Ultra Mobile form factor 7" wide LCD touch-screen, 1024 x 600 resolution, 300 nits brightness Intel Core Solo Ultra Low Voltage U1500 1.33 GHz CPU V1.5 Split-QWERTY keyboard with enhanced ergonomics Integrated 802.11b/g Wi-Fi and Bluetooth 2.0 + EDR Up to 7 hours of battery life with high-capacity Li-Ion battery 300 pixel webcam and 1.3 megapixel video/still camera Biometric fingerprint security
imagine staying in touch with everything and everyone without having to lug a heavy laptop around. The Samsung Q1 Ultra Premium is the latest version of the worlds bestselling Ultra Mobile Personal Computer. Weighing in at under 2 lbs., it features an ultra bright 7" touch-screen and the latest Intel Ultra Low Voltage CPU. So you can run all your Windows software, open all your files, check your email and open all your attachments. Its the ultimate tool for the road warrior who wants to bring it all without carrying it all. With the Samsung Q1 Ultra Premium, its not hard to imagine.

Q1 Ultra Premium

Features Full PC Functionality The included Microsoft Windows operating system software runs all the same software as your home or office computer. Easier Texting Check email, then easily reply with the large, split-QWERTY keypad. Wireless Connectivity Connect wirelessly with 802.11 b/g Wi-Fi or Bluetooth 2.0. Or plug into existing 10/100 BaseTx ethernet networks. Up to 7 Hours Battery Life The high-capacity Li-Ion battery offers up to 7 hours continuous run time. High Resolution 1024 x 600 resolution and 300 nits of brightness give you a sharp, easy-toview screen. Videoconferencing and VoIP A 300 pixel webcam and dual array mic gives you video conferencing and VoIP from anywhere. A 1.3 megapixel digital photo and video camera is also built in. Advanced Security An integrated biometric fingerprint reader ensures all your files are safe and secure. Accessories Docking Station GPS USB 2.0 File Management System (Included) Keyboard and Integrated Track Point Mouse External DVD RW +/Dual Layer Disk Drive 6-Cell Extended Battery 8-Cell Power Bank AC Adapter Car Adapter Replacement Stylus
Hand Strap Hole Origami Instant-On Hold Switch Power Fingerprint Sensor Webcam
Q1 Ultra Premium Ultra Mobile Personal Computer

Specifications

CPU CPU Clock Speed CPU Front Side Bus Speed CPU Cache System Memory Memory Type LCD Standard LCD Size LCD Native Resolution LCD Brightness LCD Technology LCD Touch Screen Graphics Chip Graphics Memory Hard Drive Hard Drive Specs Optical Disk Drive Keyboard Type Keyboard Specs Wireless Communications Wired Communications Audio Specs Audio Speakers Microphone Security Cameras I/O Ports User Interface MultiMedia Instant-On Battery Type Standard Battery Capacity Standard Battery Life Power Managemant Other Operating System Included Software Weight (w/Battery) Dimensions (W x H x D) AC Adapter AC Adapter Weight Total Travel Weight Warranty
Model: Q1UP-XP, Part Number: NP-Q1U/P01
Intel Pentium ULV U1500 1.33 GHz 533 MHz 2MB Level GB DDRMHz WSVGA 7" Wide 1024 x nits LED Backlit TSP - Resistive Intel GMSMB Shared 80 GB 1.8", 4200 RPM Optional - External Split-QWERTY V1.Keys + 4 User Defined Keys + Enter Key 802.11b/g, Bluetooth 2.0 + EDR 10/100 BaseTX HD Audio 1.5 W x 2 Dual Array - Embedded AuthenTec Fingerprint Reader 300P - Video Chat (Front), 1.3MP - Video/Still (Rear) 2-USB 2.0, 2-in-1 Memory Slot (SD/MMC), DB-15 pin External VGA, Headphone Jack, RJ-45, Ethernet Jack 4-User Defined Keys, Enter/Launch Key, Volume Control Buttons, Quick Launch Menu Button, 8-Way Direction JoyStick and Mouse Function, Left/Right Mouse Buttons, Camera Shutter, Button, System Reset Switch MS Origami Instant-On Li-Ion, Prismatic 57.7 wh Up to 7 hours ACPA V2.0 Compliant Stylus, USB File Management Transfer/Sync Cable, Wrist Strap, Slip Cover Microsoft XP Tablet Edition AVStation Now MultiMedia, McAfee Virus Scan (30-day Trial), Adobe Reader, Samsung Easy Battery Manager, Samsung Easy Network Manager, Samsung Magic Doctor Diagnostics 1.9 lbs 8.96" x 4.88" x 1.16" 100~240 VAC, 50-60Hz, AutoSensing 0.83 lbs. 2.73 lbs. 1 year parts and labor

SD/MMC Headphone Jack USB 2.0 Card Slot
1.3 MP Camera Shutter Release
Volume Up/Down 1.5W Stereo Speaker

System Reset DC-in

Split Keyboard 8-Way Mouse/ Joystick 1-Touch Internet
Ethernet Enter Key Left/Right Mouse Buttons USB 2.0

External VGA Port Stylus

Dual Array Microphone
Product Information: 1-866-542-7214 Product Support: 1-800-SAMSUNG
www.samsung.com/us/ultra/premium www.samsung.com/us/q1up-xp
2008 Samsung Electronics America, Inc. Samsung is a registered mark of Samsung Electronics Corp., Ltd. Specifications and design are subject to change without notice. See www.samsung.com for detailed information. Printed in USA. Q1UP2/08R1

Earnings Release Q1 2009

Samsung Electronics

April 2009

Disclaimer
This document is provided for the convenience of investors only, before our external audit on Qfinancial results of our headquarters is completed. The audit outcomes may cause some parts of this document to change. This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects, "anticipates, "intends, "plans, "believes, "seeks or "will ". Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets including fluctuations in exchange rates, interest rates and commodity prices; strategic actions including dispositions and acquisitions; unanticipated dramatic developments in our major businesses including semiconductor, LCD, telecommunication, digital media ; and numerous other matters at the national and international levels which could affect our future results These uncertainties may cause our actual results to be materially different from those expressed in this document.

Sales and Profits

1Q 09 Sales Gross Profit

(Margin)

Q-on-Q

(Unit : Trillion KRW)

4Q 08 18.45 3.49

1Q 08 17.11 4.69

Y-on-Y

18.57 2.98

1% -15% -36% 110% -
9% -36% 12% -93% 16% -74% -85% -72%
SG&A Operating Profit
(Margin) Non-operating income

2.83 0.15

4.42 -0.94

2.53 2.15

Pre-Tax Income

0.54 0.68

0.25 -0.68

0.46 2.62

Income Tax

Net Income

(-0.1%)

Domestic

Profits

2.15 2.19

OP NET

Export

1Q '09

4Q '08

1Q '08
Financial Position & Cash Flow

Financial Position (B/S)

(Trillion KRW)

Cash Flow Statement

1Q 09 Assets Current Assets Cash * A/R & Inventories Non Current Assets P.P.E. Liabilities Debts Shareholders Equity Capital Stock Retained Earnings

74.5 19.2

72.5 17.8
67.5 16.9 Cash* (Beginning of period) Cash flow from Operation Net profit Depreciation Others Cash flow from Investment CAPEX Cash flow from Finance Dividend Repurchase of shares Proceeds from sales of shares under stock option plan Net increase in cash

6.65 -0.06

8.10 0.88

5.3 9.1

6.6 6.9

7.2 5.9

0.62 1.97 -2.65

-0.02 1.97 -1.07

15.7 0.1 58.8 0.9 55.3

14.4 0.1 58.1 0.9 55.4

14.4 0.1 53.1 0.9 52.2

-1.35 5.30

-1.45 6.65

Cash* (End of period)

* Cash = Cash + Cash equivalent + Short-term financial instruments + Marketable securities
<Consolidated Sales / Operating Profit>

1Q 09 Device Solution

Operating Profit

4Q 08 10.63

5.35 5.24

1Q 08 10.51

5.33 5.15

1Q 09 -0.98

(-10%)

4Q 08 -0.93

1Q 08 1.28

5.22 4.11

Semiconductor

(-13%)

Digital Media & Communication

9.77 10.07

10.32 12.62

7.49 8.46

Telecom

Digital Media

The consolidated Sales and OP are provided to enhance the understanding of the investors.
Divisional Performance Sales
1Q 09 Device Solution Semiconductor

- Memory - System LSI

4Q 08 8.16 3.92

2.39 0.92

1Q 08 8.76 4.39

2.96 0.70

7.49 3.74

2.47 0.65

-8% -5%

3% -30%

-15% -15%

-17% -8%

3.75 11.08 8.06

-11% 8% 4% -2%

4.21 10.25 7.73

4.34 8.34 5.99

-14% 33% 34% 32%

- Wireless

- Appliances

33% 1%

59% 9%
Divisional Performance Operating Profit

4Q 08 -0.91

(-11%)

1Q 08 1.20

(-17%)

(-14%)

(-0.2%)

DS: Semiconductor

PC Shipment

(M units)

80 Desktop PC Note PC Netbook PC

Q1 Results Analysis

Memory Memory
DRAM : Price remained stable due to supply reduction amid continuous weak demand - PC shipments declined by mid-10%(QoQ) (historical 1Q avg: -10%) GB/Sys growth slowdown continued : Low single digit %(QoQ) - Supply reduced due to low utilization rate and delayed process migration SEC : Strengthened cost competitiveness by expanding leading-edge process technology and enhanced leadership in next-generation high-end products (2G DDR2, 1G DDR3)
0 '08.Q4 '09.Q1 (Source : SEC)
Industry Supply Growth Trend (QoQ)

40% DRAM NAND

NAND : Price increased due to sharp supply reduction amid weak seasonality - Weak demand for mobile and consumer products due to seasonality - Significant reduction in supply due to cutback in production and delayed process migration Supply reduction outpaced contraction in demand price increase SEC : Strengthened product mix - increased high-density embedded products for handsets (e.g. 8/16GB moviNAND)

System LSI System LSI

-40% '08.1Q 2Q 3Q 4Q '09.1Q

(Source : SEC)

Sales declined due to weak demand for set products and inventory adjustments

DDR3 Adoption Forecast

Q109 % of DDR3 in DDR % of DDR3 for servers

Industry base

Business Outlook

Market Market

DRAM - PC shipment to increase slightly (Low single %,QoQ) following significant reduction in Q1 Typical weak seasonality (Historical 2Q PC shipment average: -2%) Low GB/Sys growth to continue (Mid-single %, QoQ) - DDR3 for server applications to increase: 10%(1Q) 40%(2Q) - Supply growth to be limited due to lack of investment capability NAND - Demand to show marginal recovery Expect new consumer product launches and demand for high-density products for smart phones to increase - Supply to marginally increase due to rise in price Recovering industry utilization rate could lead to pricing pressure

Q2 20% 40%

Q3 30% 60%

Q4 40% 75%

10% 10%

(Source : Gartner, SEC)

NAND in Smart phones

(M Units)

180 Smart phones GB/Sys

Samsung Samsung

- DRAM : Widen gap in cost competitiveness, and enhance next-generation & premium products - NAND : Strengthen embedded & bundle products, and increase portion of high-density product sales

2009 0.0

- S. LSI : Expect gradual recovery as set makers increase orders following inventory adjustment

DS: LCD

Large panel shipment (Market)
Large size panels Large size panels Panel demand declined QoQ due to
continuous economic downturn and weak seasonality
- 08.4Q : 95 million units 09.1Q : 85 million units (11% QoQ) 22% YoY

(Unit : Million units)

Market blended ASP declined by 12% QoQ
- IT : Monitor panel price increased slightly from January Notebook PC panel price stabilized from end of January

'08.1Q

'08.4Q

'09.1Q

- TV : Small size (32) panel price increased while large panel (40+) price decreased
(Source : DisplaySearch, 09.Mar)
SEC : Panel shipment increased approximately 10% QoQ

Panel ASP (Market)

(Unit : US$, %)
despite contraction in market demand
- IT : Despite weak PC demand, shipment increased as premium product sales picked up and set makers demand increased due to inventory restocking 16:9, LED, High-resolution & Large size panel (20+) - TV : Strong sales continued due to healthy demand in the US market and Chinas government subsidy program Premium products (Slim LED, 40+)

ASP Note PC Monitor TV

08.Q4 $59 $76 $274

09.Q1 $50 $68 $228

G/R -17% -10% -17%
2009 Panel Demand Outlook

(Unit : million units)

Market Market Expect demand increase in Q2
- IT : Expect demand to increase due to inventory restocking and 16:9 products - TV : Demand to increase in emerging market led by China (24% QoQ)
Notebook PC Desktop Monitor LCD TV
Weak set product sales and increase in industry utilization could lead to pricing pressure
Samsung Samsung SEC to increase market dominance by strengthening
partnerships with major customers and expanding customer base
- IT : Expand premium product line-up and increase sales for the mini-notebook PC market 16:9, LED, Low-power, High-resolution - TV : Differentiating products & enhancing market dominance Continue to strengthen market leadership through successful ramp-up of the 8-2 line Continue product differentiation strategies focusing on 240Hz, Slim, Edge LED, etc.
2009 Area Breakdown (Market) Notebook 12% LCD TV 62% 26% Monitor

DMC: Telecommunication

Revenue & OP Margin
Revenue (Parent) Revenue (Consolidated) OP Margin

Handsets Handsets

Shipment : Flat YoY (YoY 1%)
- Outperformed market growth low seasonality Expect steady M/S growth Global market contraction due to economic slowdown and - Enhanced line-up in each segment & active joint marketing with carriers Touch-phone (F480), Messaging-phone (A767), Emerging market targeted phones (E250, J700) US : Co-promotion with carriers, China : Channel expansion
(Unit: Trillion Won) 9.77 8.06

11.7%11.5% 2.0% 1.4%

M/S Trends
18.0% 17.1% 16.4% 15.4% 18+%
ASP : Marginal increase (QoQ 2%)
- Improved product mix due to the increase of mid & high-end sales
OP margin increased significantly through product mix improvement and cost-cutting efforts

Network Network

(Source: SA, Company)
Steady sales increase of domestic WCDMA business & Mobile WiMAX business (US, Russia)

Q1 '08

Handset market

(Unit: Billion units)

Market Market Q2 Demand : Flat or marginal increase QoQ
- EU : Demand slowdown to continue due to weak consumer confidence - Emerging market : Weak demand growth due to credit issue & new subscriber growth slowdown - Smartphone / Touchphone / Chinas 3G markets to grow slightly - Expect increased new model launches and intensified price competition

24% 23% 08

23% 22% 09
Samsung Samsung Shipment : Expect to outperform market growth
- Enhance high-end line-up : Touch / Smart phone Ultra Touch, i8910 HD, Android Phone - Improve emerging market line-up & distribution channels - Enhance sales activity targeting Chinas 3G market and strengthen joint promotion with carriers in US, EU, etc.
(Source: SA, Analyst reports)

09 1H Flagship models

Continue to enhance operation efficiency and
Ultra Touch i8910 HD Beat (Music phone)

cost cutting efforts

Networks : Mobile WiMAX service to expand in Japan & US

DMC: Digital Media

FPTV Growth (QoQ)

(Unit: Million)

1Q Result Analysis

Including Overseas Sales

Digital Media Digital Media
DM Consolidated Revenue decreased 20% QoQ (19%YoY)
due to weak seasonality & sales decline in CE products - FPTV: Global demand decreased by 30s%QoQ (10%YoY) while SEC shipments decreased 20s%QoQ (20%YoY)

4Q08 1Q09 4Q08 1Q09

Successful launching of new products (LED-TVs, New LCD-TVs) Strengths of LED-TV: Superior image quality, slimness & eco-friendliness

Market

TV Market Share

#2 #1 #1 #1 #1 #2

- Monitor sales outperformed the market Expect additional M/S gain and strengthen the leadership in the 20+ monitor seg.

PDP-TV

SEC 1Q sales portion of 20+ monitor seg.: high-20% vs. mid-20%(Mkt)

LCD-TV TV Total 1Q09(E)

- Appliances revenue declined by low single-digit QoQ due to the economic slowdown but increased by low teens YoY
Steady gain in M/S led by strong sales in 3-door refrigerators and drum washing machines

16% 3Q08 4Q08

TV Market Forecast

Q2'09 QoQ

Q408 CRT LCD PDP DLP Total 19.6 33.4 4.4 0.1 57.6

Q1'09 QoQ 17.8 -9%

Flat panel TV: Market demand to increase by 10%+ QoQ
- launching of digital broadcasting in the US, attractive price range, and lower FPTV household penetration Emerging market growth to lead the global market growth (50%YoY)

15.5 -13%

23.1 -31% 25.4 10% 2.8 -37% 0.0 -64% 3.2 15% 0.0 -36%
Appliances : Expect QoQ demand growth due to the strong seasonality

43.7 -24% 44.2 1%

(Source: DisplaySearch 09.Mar)
FPTV : Samsung to outperform the market growth ; Increase profitability & M/S by expanding differentiated products
- Increase sales of LED and LCD-TVs introduced in 1Q and expand LED-TV product line-up in 2Q - Improve cost competiveness by strengthening SCM Reduction in lead-time & quick response to changes in the market
Appliances Market Forecast

Freezer

W asher

4Q'08 1Q'09 2Q'09

(AHAM, GFK, SEC Estimates)
Appliances: Continue to launch new differentiated products and focus on high premium products
- Introduce premium products for the advanced market and energy saving products for the emerging market 13
[Appendix 1] Proforma Balance Sheet (Parent Basis)
(Unit : 100 Million, KRW)
1Q '09 (A) Current Assets
- Cash & Cash Equivalents - Marketable Securities - A/R - Inventories - Other Current Asset

4Q '08 (B) 177,908

56,665 9,821 30,898 38,178 42,346

1Q '08 (C) 169,111

61,758 10,239 23,640 35,681 37,793

Q-on-Q (A - B) 14,231

-9,415 -4,052 21,5,742

Y-on-Y (A - C) 23,028

-14,508 -4,470 28,466 3,245 10,295

192,139

47,250 5,769 52,106 38,926 48,088

Non Current Assets

- Investment - PPE - Intangible Assets - Other Non Current Asset

552,787

239,537 295,471 6,631 11,149

547,284

216,531 312,498 6,531 11,725

506,387

182,791 307,000 5,756 10,840

23,007 -17,-576

46,400

56,746 -11,309

Total Assets Liabilities
- Debts - Trade Accounts and N/P - Other Accounts and N/P - Accrued Expenses - Income Tax Payable - Other Liabilities

744,926 156,567

1,252 40,086 26,042 37,754 1,901 49,532

725,192 144,057

1,142 23,881 37,874 38,367 4,124 35,341

675,497 144,055

939 26,432 31,225 32,807 7,499 45,153

19,734 12,510

110 16,205 -11,832 -3,941 -2,223 14,191

69,429 12,512

313 13,654 -5,183 4,947 -5,598 4,378

Shareholders' Equity

- Capital Stock - Capital Surplus - Capital Adjustments - Accumulated Other Comprehensive Income - Retained Earnings Total Liabilities & Shareholder's Equity

588,360

8,975 66,182 -85,662 45,866 552,998

581,135

8,975 65,896 -85,970 38,074 554,161

531,442

8,975 65,482 -87,342 22,816 521,511

308 7,792 -1,163

56,918

1,680 23,050 31,487

744,926

725,192

675,497

19,734

69,429
[Appendix 2] Proforma Income Statement (Parent Basis)

1Q '09 (A)

4Q '08 (B)

1Q '08 (C)

Q-on-Q (A - B)

Y-on-Y (A - C)

185,662

184,504

171,073

14,589

- Domestic

31,017

29,637

35,967

-4,950

- Export

154,645

154,867

135,107

19,538

Cost of Sales

155,899

149,650

124,203

31,696

Gross Profit

29,763

34,853

46,870

-5,090

-17,107

SG&A

28,287

44,224

25,330

-15,937

- Wages & Fee

-1,439

- Marketing Expenses

19,481

-12,798
- R&D / Royalty Expenses

11,118

12,135

-1,018

Operating Profits Non OP Income & Expenses

- F/X Gain (or Loss)

-9,371

21,540

10,847

-20,064

-1,134

-1,190

- Gain (or Loss) on Foreign Currency Translation - Gain (or Loss) on Equity Investment

-2,733

-1,242

-2,707

-1,491
Income before Income Taxes

- Income Taxes

-6,826

26,157

13,653

-19,330

-6,604

-3,646

21,876

-15,684