BOD Approval of Merger among Samsung Display Corp.

BOD Approval of Merger among Samsung Display Corporation,

SMD, and S-LCD Corporation

On April 27, 2012, the BOD of Samsung Electronics approved a merger among Samsung Display Corporation (SDC), SMD, and S-LCD Corporation. Samsung Electronics is the largest shareholder of the three subsidiaries.

□ Details of the Merger

1. Merger date: July 1, 2012

2. Method of merger: SMD and S-LCD Corporation will be merged into SDC

3. Objective of merger: To maximize synergy effect and reinforce business competitiveness.

4. Merger Ratio: SDC: SMD: S-LCD = 1: 1.6487702: 0

- In accordance with domestic regulations on valuation of unlisted companies, the merger ratio

was calculated based on evaluation results provided by outside evaluation agencies.

5. Method of Payment

- SDC will issue new shares (111.83 million shares) to pay for the price of the merger, which

corresponds to the total evaluated value of SMD.

- As shareholders of SMD, Samsung Electronics (64.36% stake) will be receiving 71.97

million shares and Samsung SDI (a 35.64% stake) will be receiving 39.86 million shares,

in proportion to their stakes.

- After the merger, Samsung Electronics will be holding a total of 221.97 million shares

in SDC, including the 150 million outstanding shares, and Samsung SDI 39.86 million shares,

with a stake of 84.78% and 15.22%, respectively.