1. Smart Transportation Pricing - Value Case Cisco Internet Business Solutions Group - December 2008

2. Value Drivers Carbon Excellence Service Excellence Service adoption and retention Cost Quality Delivery Passenger Impact 80% Adoption and Utilization Systems x Node  Performance  Cost (internal/external)  Utility  Data Integrity  Risk Management (ID and Mitigation) Operational Excellence Value Monitor Economic Profit Closed Loop Revenue Impact Return on Invested Capital

3. Package-based Program Building Smart Transportation (Packaged Program) Total Impact Mobility Marketing Mobility Management Mobility Substitute Mobility Alternatives Personal Travel Assistant Smart Transportation Pricing Smart Work Center Connected Bus Short-Term  Total decreased traffic volume  Total decreased VKT  Increased public transport volume Longer-Term  Less use of Energy  Less use of Space + 13.7%5.42%17% Traffic Volume Reduction Avg. Speed Increase Emission Reduction 2.92%1.52%4% Traffic Volume Reduction Avg. Speed Increase Emission Reduction 12.68%12.8%6.3% Traffic Volume Reduction Avg. Speed Increase Emission Reduction  Decreased Traffic Volume  Increased Public Transport Volume

4. Smart Transportation Pricing Impact Analysis Traffic Impact Environmental Impact Avg. Travel Speed (km/h) VKT (pcu·km) Before9.581,549,499 After10.101,340,622 Change 5.42%  13.4%  CO2 (tons/day) PM10 (kg/day) Before75759 After63349 Change 16%  17%  Charging: 4,000 won fixed Analysis Time Period: 07:00~21:00 Toll gate

5. Smart Transportation Pricing Value Case Model

6. Emission Calculation Procedure Private Car (gasoline) Bus (diesel) Etc. ( truck & van using diesel) Emission (g) = EF x Avg. Speed x Avg. Transit Time x Traffic Vol. Avg. Speed (km/hr) Avg. Transit Time (hr) Traffic Vol. EF (g/km)  EF (Emission Factor) for each pollutant: a function of vehicle speed, depending on vehicle types and fuels. For example, EF for a private car fueled by gasoline: EF(CO 2 ) = 1248.4 x (Avg. Speed)^(-0.4845) EF(NOx) = 3.4578 x (Avg. Speed)^(-0.7978)

7. Smart Transportation Pricing Scenario Analysis  Analysis Area : The Center of Seoul (About 6.38 km 2 of Jongno-Gu~Jung-Gu)  Input Data : Survey Data from SDI in 2005 O/D : Passenger Car, Bus, Taxi, Subway, etc - Network - 27% Reduction of Passenger Cars by Imposing on Inflow Vehicles  Analysis Time Period : Whole Day in the Time (07:00~21:00)  Analysis Indices : Average Travel Speed, Average Travel Time, VKT, Traffic Volume AlternativeCondition Scenario #1 Uniform Rates System -Congestion Fee : 4,000(Korean Won)

8. Impact on Transportation & Environment 4,762,991 (13.7% decrease) 1,340,622 (13.4% decrease) 14.8 (5.13% decrease) 10.10 (5.42% increase) Scenario #1 5,519,189 1,549,49915.69.58 Base Total Volume (pcu/day) VKT (pcu·km) Avg. Travel Time (min) Avg. Travel Speed (km/h) Transportation -16%-17% % Change -124-10-403Differnce(sc1-b) 633491924Scenario #1 757592327Base CO2 (tons/day)PM10 (kg/day)NOx (kg/day) Environment

9. Smart Transportation Pricing Scenario Change of Traffic Volume Difference of Traffic Vol. (pcu /day) Scenario1 - Base % Change of Traffic Vol. (Scenario1 – Base)/Base