HANA Hanarotelecom Incorporated ADS (MM)

- Hanarotelecom records KRW 432.3 billion in revenues and KRW 142.8 billion in EBITDA in the first quarter of the year 2006. SEOUL, South Korea, May 10 /PRNewswire-FirstCall/ -- hanarotelecom incorporated (KOSDAQ: 033630) (NASDAQ:HANA) ("Hanaro" or the "Company"), Korea's leading integrated telecommunications company providing a broad range of broadband Internet and voice services, announced a 17% gain in revenues to KRW 432.3 billion on the back of an increase in broadband revenues resulting from the merger with Thrunet and a continuous growth in voice net additions in its first-quarter earnings release for 2006. The Company stated that it posted EBITDA of KRW 142.8 billion and an operating profit of KRW 16 billion while significantly reducing the net loss to KRW 6.1 billion. (Refer to Table - 1Q 2006 Financial Highlights) The Company also said that it attracted 7,300 broadband subscribers in April, posting a net addition for the first time this year, and acquired about 15,300 voice subscribers in April alone, continuing a sustained growth of net addition. This shows that Hanaro's aggressive marketing activities have led to a turnaround in operating results. In particular, the Company expanded optical LAN coverage in the first quarter of 2006 to 4,500 apartment complexes with 2.6 million households, which accounts for 52% of nationwide apartment complex coverage. In the voice business, Hanaro laid the foundation for accelerating subscriber net additions by adding 10 local call service areas and thus securing 80% of nationwide coverage areas. Ms Janice Lee, Senior Executive Vice President and Chief Financial Officer, said, "We have successfully completed post-merger integration with regard to IT systems, distribution channels and call centers, including network transfer for 440,000 Thrunet subscribers from leased network of Powercomm to Hanaro's own access network in the first quarter of this year. As a result, we expect the synergy effects from network integration, including a reduction in network lease expenses, to reach KRW 35 billion." She also stressed, "By focusing on the 100 Mbps service such as optical LAN and launching a commercial TV-Portal service in July this year with a target of attracting 250,000 subscribers by the end of 2006, we will be able to achieve satisfactory results in both core business and new business." Table - 1Q 2006 Financial Highlights (Unit: KRW billion) 1Q 2006 4Q 2005 note 1) Change 1Q 2005 note 1) Change (q-q) (y-y) Revenues 432.3 370.9 16.6% 357.9 20.8% Operating Profit 16.0 26.3 -39.1% 15.3 4.6% Net Income -6.1 -164.3 Net loss 5.1 Turned decreased Negative EBITDA 142.8 141.6 0.8% 126.9 12.5% Note 1) Figures for 2005 are on a stand-alone basis. Contacts: hanarotelecom incorporated Investor Relations 822-6266-4524 / 4473 - or - Taylor Rafferty, New York Luis Severiano 1-212-889-4350 Taylor Rafferty, London Erin Gordon 44-20-7614-2900 DATASOURCE: hanarotelecom incorporated CONTACT: hanarotelecom incorporated Investor Relations, +822-6266-4524, 822-6266-4473, ; or Luis Severiano of Taylor Rafferty, New York, +1-212-889-4350, or Erin Gordon of Taylor Rafferty, London, +44-20-7614-2900,

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