Hanarotelecom Posts Net Income for the Fourth Consecutive Quarter

Hanarotelecom Posts Net Income for the Fourth Consecutive Quarter

    Business Editors/Technology Editors

    SEOUL, South Korea--(BUSINESS WIRE)--May 11, 2005--hanarotelecom incorporated:

--	Hanarotelecom announces 2005 first quarter earnings results.
--	The company posts KRW 357.9 billion in revenues, KRW 126.9 billion in EBITDA and KRW 5.1 billion in net income.
--	The company focuses on creating synergies at an early stage by completing Thrunet acquisition.

    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, today announced its first-quarter results for 2005.
    The company stated that it posted revenues of KRW 357.9 billion, operating profit of KRW 15.3 billion and EBITDA of KRW 126.9 billion for the first quarter of 2005. Most significantly, it recorded net income for the four consecutive quarters following its first-ever net income generated in the second quarter of 2004. (Refer to Table - 1Q 2005 Financial Highlights)
    According to the announcement, the company had revenue growth of 2.5% from the same period of last year helped by growth in the voice business. Although operating profit was down 39% year-on-year due to competitors' excessive marketing campaigns during the course of the Thrunet acquisition, the company's net income jumped about nine times from the previous quarter.
    The company plans to sustain stable growth of its broadband business by expanding its own networks and investing in the network upgrade for quality services such as hanafos Fiber Lan (fiber optic LAN). As for the voice business, hanarotelecom is proactively seeking to add FNP (Fixed-line Number Portability) subscribers by introducing various pricing schemes such as 'hanafone 3050.'
    Ms. Janice Lee, Chief Financial Officer, said, "The successful issuance of 7-year USD 500 million global bonds and refinancing of KRW 720 billion syndicated loans greatly enhanced the company's financial stability." She added, "We expect that once we have completed the Thrunet acquisition and successfully integrated the network and subscriber bases, the resulting synergies and market stabilization will lead to a visible improvement of our operating results."

Table - 1Q 2005 Financial Highlights ------------------------------------ (Unit: KRW billion)

1Q 2005 4Q 2004 Change 1Q 2004 Change (q-q) (y-y) ---------------------------------------------------------------------- Revenues 357.9 365.6 -2.1% 349.3 2.5% ---------------------------------------------------------------------- Operating Profit 15.3 23.2 -33.9% 25.2 -39.3% ---------------------------------------------------------------------- Net Income Turned 5.1 0.5 883% -5.4 Positive ---------------------------------------------------------------------- EBITDA 126.9 132.0 -3.8% 140.0 -9.4% ----------------------------------------------------------------------

    Hanaro will be discussing its 2005 first quarter results during a conference call for domestic and overseas investors later today at 4:00 PM (Seoul). If you have not already registered to receive dial-in or replay numbers, please do so at http://invite.taylor-rafferty.com/_hanaro/asia/

    This disclosure contains "forward-looking statements" that are based on the Company's current expectations, assumptions, estimates and projections about our company and our industry. The forward-looking statements are subject to various risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements as a result of a number of factors, including without limitation, the Company's history of operating losses; the Company's inability to generate sufficient cash flow from its operations to meet its operating needs and its reliance on equity and debt financings to fund its operations; the decline in the prices for communications services; increasing competition in the telecommunications sector in Korea and other factors beyond the Company's control. Investors are directed to hanarotelecom's reports and documents filed from time to time with the U.S. Securities and Exchange Commission for additional factors that should be considered prior to investing in the Company's securities. Hanarotelecom does not intend to update or otherwise revise the forward-looking statements in this release, whether as a result of new information, future events or otherwise. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release might not occur in the way the Company expects, or at all. Investors should not place undue reliance on any of the forward-looking statements.

    Company Information

    Hanarotelecom is Korea's leading integrated telecommunications company that provides a broad range of broadband Internet and voice services. The company commenced its commercial operations in April 1999 and revolutionized the IT industry by launching the world's first commercialized ADSL services. Currently, it provides high-speed Internet and voice telephony services, as well as leased lines and Internet Data Center (IDC) services. Hanarotelecom was listed on Nasdaq through issuance of American Depository Receipts (ADR) in March 2000. Its common shares were listed on KOSDAQ in November 1998.
    For additional information, please visit hanarotelecom's Investor Relations website: http://www.hanaro.com/eng/ir/

Corporate Headquarters 43, Taepyongno 2-Ga, Jung-Gu, Seoul, 100-733 Republic of Korea

--30--BS/ny*

CONTACT: hanarotelecom incorporated Investor Relations 822-6266-4554 / 7855 sinhye@hanaro.com or Taylor Rafferty, New York Brian Rafferty, 1-212-889-4350 or Taylor Rafferty, London Kate Spiro, 44-20-7936-0400 hanaro@taylor-rafferty.com

KEYWORD: NEW YORK SOUTH KOREA INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING EARNINGS CONFERENCE CALLS SOURCE: hanarotelecom incorporated

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