1. Quality System & Performance SUNGSHIN APR. 10, 2004

2. SUNGSHIN  CONTENTS Ⅰ. Quality assurance diagram ---------------- 3 Ⅱ. Quality performance record --------------- 4 Ⅲ. QA SYSTEM -------------------------------------- 5 Ⅳ. Certification ------------------------------------- 6 Ⅴ. Reliability ----------------------------------------- 7 ∼ 13  CONTENTS Ⅰ. Quality assurance diagram ---------------- 3 Ⅱ. Quality performance record --------------- 4 Ⅲ. QA SYSTEM -------------------------------------- 5 Ⅳ. Certification ------------------------------------- 6 Ⅴ. Reliability ----------------------------------------- 7 ∼ 13 2/13

3. SUNGSHIN 1. Quality assurance flow-chart Needs Development & Design LPP CTQ Review Incoming Insp. Production Outgoing Insp. Packing, Handling Delivery Contact reviewOrder Customer Sales. R&DProductionQAPurchaseRemarks  Inspection Measuring and test equipment Process control Supplier’s evaluation & selection Work instruction First-piece report Traceability Non-conforming production Corrective & preventive action 3/13

4. SUNGSHIN 2. Quality performance record 2.1 Air conditioners 2.2 Refrigerators 2.3 M.W.O PARTInput (EA)Defects (EA)PPMRemarks Samsung474,07287184 LG3,021,490507167 CLK493,5433877 PARTInput (EA)Defects (EA)PPMRemarks Samsung2,070,17200 LG1,863,227179 PARTInput (EA)Defects (EA)PPM Samsung760,0771520 4/13

5. SUNGSHIN 3. QA SYSTEM 3.1 1 st factory (Bucheon factory) - Approval ISO 9001:Version 2000 in Jun 16. 1995 From UL - Approval Q-plus Ⅱ in July, 1996 from CLK and upgraded Q-plus Ⅲ in May, 2003 from CLK 3.2 2 nd factory (Incheon factory) - Approval ISO 9001/14001: in Feb.,1998 from BVQA 3.3 3 rd factory (Yang San factory) - Approval ISO 9001: Version2000 in OCT. 20, 2001 from UL 3.4 4 th factory (Qingdao factory) - Approval ISO 9001: Version2000 in Mar. 24, 2003 from UL (Yangsan factory) (Qingdao factory) 5/13

6. SUNGSHIN 4. Certification 1) Test Lab. Status : UL Test Lab.approval From UL ; 02.6.30, 82 ㎡ 1) Test Lab. Status : UL Test Lab.approval From UL ; 02.6.30, 82 ㎡ 2) File status : Class ” B ” System file : 1 file 2 models 2) File status : Class ” B ” System file : 1 file 2 models Thermal protector type : 1 file 46 models Thermal protector type : 1 file 46 models Impedance protector type : 1 file 33 models Impedance protector type : 1 file 33 models Component type : 1 file 2 models Component type : 1 file 2 models CSA : 1 file 8 models CSA : 1 file 8 models DEMKO : 1 file 8 models DEMKO : 1 file 8 models TUV : 5 file 11 models TUV : 5 file 11 models 3) Approval period : Approval confirm within three weeks 3) Approval period : Approval confirm within three weeks 1) Test Lab. Status : UL Test Lab.approval From UL ; 02.6.30, 82 ㎡ 1) Test Lab. Status : UL Test Lab.approval From UL ; 02.6.30, 82 ㎡ 2) File status : Class ” B ” System file : 1 file 2 models 2) File status : Class ” B ” System file : 1 file 2 models Thermal protector type : 1 file 46 models Thermal protector type : 1 file 46 models Impedance protector type : 1 file 33 models Impedance protector type : 1 file 33 models Component type : 1 file 2 models Component type : 1 file 2 models CSA : 1 file 8 models CSA : 1 file 8 models DEMKO : 1 file 8 models DEMKO : 1 file 8 models TUV : 5 file 11 models TUV : 5 file 11 models 3) Approval period : Approval confirm within three weeks 3) Approval period : Approval confirm within three weeks 6/13 UL Only UL & CSACSA VDE TUV DEMKOSEMKO CCC China

7. SUNGSHIN 5. Reliability - Useful Test & measuring Equipment ＊ Low to High Temperature test room (-25 ℃ ~ +50 ℃ ) ＊ Heat shock & Low Temp (-100 ℃ ~ +200 ℃ ) - Verify R&D developed Sample - Short-term development & Low Cost - Ability of reliability test 1) Standard Safety Test – UL-WTDP Lab., TUV-ACT Lab. (UL&IEC Std.) 2) Life test (ALT, HALT Test) 3) EMC Test – Immunity (IEC61000 Series) 4) Insulation test : Torture, ALT(Accelerated lift test), UL746 Series Test 5) Other analysis System 7/13

8. SUNGSHIN Lab. 1 ( 150 ㎡ ) Lab. 2 Room Temp. 5.1 Laboratory for reliability Low temp. room High temp. room Safety test room Life test room1 Life test room 2 8/13

9. SUNGSHIN 5.2 Life test(1) Life test room 1 ( 56 ㎡ ) Life test room 2 ( 38 ㎡ ) 9/13

10. SUNGSHIN Low temp. room ( 5.5 ㎡ ) Pump motor life test 5.2 Life test(2) 10/13

11. SUNGSHIN 5.3 ALT, HALT test High temp. room ( 49.5 ㎡ ) Thermal shock testWEIBULL software (for evaluation of electricity & life test) 11/13

12. SUNGSHIN Motor torture test room ( 5 ㎡ ) Shower test Temp. water tank 5.4 Insulation evaluation 12/13

13. SUNGSHIN Noise test roomVibration & Noise Measurement Motor torque Measurement SystemTemp. analysis System ( 300ch.) 5.5 Others 13/13