Samsung Announces 55 Percent Growth in 2003 Shipments

November 2003 -- Samsung Telecommunications America (Samsung), the third largest manufacturer of wireless handsets in the U.S., announced today that the company is on pace for a 55 percent growth in its North American wireless handset business for 2003. The increase marks six consecutive years of growth for Samsung's wireless phone division, a continuous ascent since the company entered the North American market in 1997.

According to research firm IDC, in Q3 2003, Samsung improved its number three global market share position to 11.5 percent, up from 10.5 percent in the previous quarter. Researchers Strategy Analytics note that Samsung shipped 15 million phones worldwide in 3Q 2003.

Samsung's continued success validates the company's strategy of developing the highest quality enhanced wireless devices with an eye toward design leadership. All of Samsung's phones launched in 2003 incorporate the company's world-leading color screen technology, and eight phones feature an embedded digital camera.

Samsung's 2003 camera phone line-up includes the revolutionary a600 for Sprint, with a patented rotating flip design and the newly launched e715 for T-Mobile, featuring a multi-shot function which allows consumers to take up to 15 action pictures in sequence.

Upcoming Wireless Technologies
These enhanced phones are precursors to richer multimedia handsets -- which will support Video Mail and Video on Demand (VOD) services -- and a TV phone the company will introduce in the coming months.

In 2004, Samsung expects to introduce wireless handsets featuring megapixel cameras, ultra-advanced voice recognition technology (speech-to-text), combined GSM/CDMA capabilities (world phones), embedded WiFi, higher definition displays with brighter, richer colors, and Windows Mobile and PalmSource-based handsets with new designs and higher speed processors.

2003 Milestones
Among other metrics the company released, Samsung noted a projected 55 percent increase in 2003 U.S. sales to end-users heading into the high-volume holiday buying season. The wireless handset manufacturer attributed this significant increase in part to its launch of more than 20 wireless phones in the U.S. and Canada, which has helped solidify the company's number one global market share position for CDMA handsets and increased its visibility among GSM carriers and customers.

Samsung continued to bring innovative product design to the GSM market, launching nine phones across all major GSM carriers in the U.S. and Canada. With the company's recent partnership announcement with AT&T Wireless, and the subsequent phone launches, Samsung has increased to 14 the number of phones introduced with North American GSM carriers since delivering its first unit to T-Mobile (then VoiceStream) in 2001.

For carriers, the net effect of Samsung's presence in their product line-up means increased revenues. According to NPD Techworld, a division of the NPD Group, Samsung phones sell at a higher average retail price per unit than those of competitors*.

*Based on top five brands, representing 84% of units in Q3 2004.

"Samsung's focus on being a market-driven solutions provider continues to pay off in terms of market share and revenue growth," said Pete Skarzynski, senior vice president of Samsung's wireless terminals division. "This year, we extended our position as the fastest growing brand in the world for the second consecutive year, and according to Brand Keys, we retained our number one ranking in customer loyalty also for two years running. In 2004, we'll continue to strengthen our relationships with carrier partners, end consumers and enterprise customers by developing the most compelling line-up of next-generation handsets in the market," Skarzynski added.

Mobile Enterprise Solutions Program
According to technology research firm ABI, market interest in enhanced handsets, which feature more processing power, memory and connectivity solutions, continues to grow. In Q3 2003, 66 percent of announced handset shipments were for enhanced handsets, up from 56 percent in 2Q 2003.

To capitalize on this burgeoning market opportunity, Samsung launched its Mobile Enterprise Solutions Program to establish the company as the leading device maker for the wireless enterprise market. Samsung has leveraged its Mobile Intelligent Terminals (MITs) -- the PalmSource OS-based i500 and the Microsoft Windows Mobile -based i600 Smartphone and i700 Pocket PC Phone -- to conduct trial programs with GE Interlogix, Schindler Group and Memorial Hermann Healthcare System in Houston among others. The company will announce the scope of these programs as well as additional enterprise customers in the coming weeks.

Awards
In 2003, numerous Samsung handsets were recognized for their innovative design and technology by the wireless industry and related media. Product awards included:

SPH-i500 fully integrated Palm-Powered phone

• Best of What's New Award from Popular Science magazine
• Best of 2003 recognition from PC World magazine
• Innovations Design and Engineering Award at the 2003 Consumer Electronics Show
• Ultimate Choice Award from Laptop magazine's Ultimate Mobility Sourcebook
• Editor's Choice Award from Laptop magazine
• Editor's Choice Award from both CNET.com and ZDNet.com

SPH-i700 Windows Mobile-based Pocket PC phone

• Best Pocket PC Phone by Pen Computing
• Editor's Choice Award from Pen Computing

SPH-a600 rotating screen camera phone

• Ultimate Choice Award from Laptop magazine's Ultimate Mobility Sourcebook

SGH-v205 camera phone

• Innovations Design and Engineering Award at the 2003 Consumer Electronics Show
• Best of Innovations Award at the 2003 Consumer Electronics Show
• 2003 Mobile Focus Award in the Wireless Phone/Color category
• Editor's Choice Award from Tech Edge magazine

For more information, see STA's website at www.samsungusa.com/wireless.

SOURCE Samsung