2. TU Media Corp. Current Status and Forecast of Satellite DMB - UK-Korea 2 nd Future Mobile Evolution Forum- Current Status and Forecast of Satellite DMB - UK-Korea 2 nd Future Mobile Evolution Forum- 2005. 9. 7 TU Media Corp.

3. New Emerging Market : DMB Network & Terminals for DMB Service Channel Line-Up of TU Media Brief Introduction of TU Media Contents 1 1 2 2 3 3 4 4 I.TU Media’s Satellite DMB Business II.TU Media’s Business Plan III.TU Media’s Experience and Finding IV.Synergy of Fixed and Mobile Broadcasting

5. 1. New Emerging Market : DMB DMB (Digital Multimedia Broadcasting) Users have limitations of Space, Place, and Time to watch TV Users have limitations of Space, Place, and Time to watch TV Personal Media Any Place Anytime, Any Situation Personal Media Any Place Anytime, Any Situation Fixed Broadcasting - Terrestrial - Cable - Satellite Fixed Broadcasting - Terrestrial - Cable - Satellite Conventional Broadcasting Service Market New Emerging Broadcasting Service Market Mobile Broadcasting - Satellite DMB - Terrestrial DMB Mobile Broadcasting - Satellite DMB - Terrestrial DMB DMB is the new form of ‘personal & interactive’ media displayed via diverse platforms of digital devices, to meet increasing mobile broadcasting demand. “ The Future of Broadcasting is in your hand ” (MIPTV/Milia 2005) DMB is the new form of ‘personal & interactive’ media displayed via diverse platforms of digital devices, to meet increasing mobile broadcasting demand. “ The Future of Broadcasting is in your hand ” (MIPTV/Milia 2005)

6. 2. Network & Terminals for DMB – Network Structure  Satellite signal will be delivered via multiple paths. Directly through Satellite as well as through Gap fillers. ( East longitude 144  ) Program Provider Program Provider Vehicle Receiver Mobile Receiver Terminal Ku-Band 13.824~13.883GHz S-band 2.630 ~2.655GHz Ku-Band 12.214~12.239GHz S-band Satellite DMB Broadcasting Center Satellite DMB Broadcasting Center Satellite Gap Filler Video Audio Data

7. SPEC Direction Manufacturer Mobile phone-combinedPortable Stand AloneVMT (Car Built-in) 2.2” or 2.4” LCD (Support QVGA) Support Wireless Internet 2.5~3.5” LCD No return path Utilizing 5~7” Car TV Reception module type Market launch with Hi-Tier Products and will expand to low-tier afterwards. Introduce MP3 combined products first and will then expand to more convergent products. Introduce reception module type to utilize pre-installed LCD and will expand to LCD combined product for B/M. Samsung, LG, Motorola, SKTT, Pantech&Curitel Cyberbank (PDA combined) Access Telecom Innoace, HDT,Kiryung Electronics, Joongang system,Hyundai Autonet Mobile phone-combined Portable Stand Alone Car Built-in  TU will maximize customer’s convenience and stimulate terminal industry by introducing diverse types of terminals to customers and full support & open policy to manufactures. 2. Network & Terminals for DMB – Terminals

8. 4. 단말기 3. Channel Line-up of TU Media Type Video (Max 14 channels) Program Plan Lineup/Contents Per Genre (8) PP Lease (Modification to Mobile environments) News,Drama,Music,Sports,Education,Game,Movie etc Audio (Max 25 channels) Basic Music (16) DJ Music (7) Variety (4) PP Lease Latest Hit, Oldies,Theme 24 hours Music Star DJ, Amateur DJ, Mania, Live Music etc. DJ Choice Education, Entertainment, Audio Book, News etc. Mobile Specific Programs -Ch. BLUE- (1) In-House - Allocate programs specific for mobile environments ( Short Movies, Animation, Mobile Drama etc.) - Shorter content compared to conventional contents - Will be used for broadcasting services during emergency - 21 hours per day ( 8 hours new program per day ) Information (TBD) Data broadcasting related with Video & Audio Channels and Information Data broadcasting Data In-House and DP Lease  Commercial Broadcasting started with 7 Video and 20 Audio Channels and number of channels will be increased to 14 Video,25 Audio and Data channels. Terrestrial TV (3) TDBSimultaneous retransmission of Major Terrestrial TV

9. 4. Brief Introduction of TU Media - History The policy direction for satellite DMB was determined by the KBC Technical standards for satellite DMB were established by MIC (System-E) The international register for satellite network was applied Sep Feb Apr 2001 2002 2003 TU Media Corp. was established.Dec 2004 The broadcasting Law was revised. Hanbyul satellite for DMB service was successfully launched in Orbit. Mar TU Media Corp. was authorized as Satellite DMB Service Provider Dec TU Media Corp started Satellite DMB Field Trial. Jan 2005 TU Media Corp started commercial broadcasting of Satellite DMB Service May Technical Specification of Satellite DMB Terminal released Nov Reach 100,000 subscribers July

10. 4. Introduction of TU Media - Shareholders Foundation Period Foundation Period Formation of Consortium (November 2003) Foundation of New Entity (May, 2003) Paid-in Capital: $135 million Composition of Stakes Composition of Stakes Company Composition Ratio Remark Major Shareholder Responsibility for management Providing Network 28.5% Largest Shareholder Foreign Strategic Partner 9.5% MBCO Terrestrial Broadcasting Co. Samsung(SEC), LG(LGE), Pantech & Curitel, etc. 34.8% 15% Key business partner in the Supply Value Chain PP 1), Manufacturer, IT Co., etc. 12.2% Other Shareholder Key business partner in the Supply Value Chain SK Telecom  TU Media Corporation was founded in Dec, 2003 and funded with the capital of $135 million until May, 2005.  Major shareholders consist of leading players in the value chain.

11. Business Model Market Forecast Contents 1 1 2 2 I.TU Media’s Satellite DMB Business II.TU Media’s Business Plan III.TU Media’s Experience and Finding IV.Synergy of Fixed and Mobile Broadcasting

13. 1. Business Model  Subscription fee from subscribers will be the major source of revenue. TU will share its revenue with business partners such as PP and CP. Subscriber Agency TU Media (Satellite DMB Operator) TU Media (Satellite DMB Operator) Network Installer (Satellite/Gap Filler) Network Installer (Satellite/Gap Filler) Program Provider Contents Provider Operation Fee ※ Subscription Fee: Initial Fee ( GBP 11 ) Monthly Fee ( GBP 7 ) Contents Profit Share Commission Subscription Fees/ Monthly Fee Subscriber Fees

14. 2. Market Forecast 600 1,400 2,700 4,300 5,800 6,600 (Units : 1,000 subscribers ) Expected Subscribers  Target number of subscribers for Satellite DMB service will be 0.6M by 2005 and expected to reach 6.6M by 2010. (Unit : 1 Million USD) Expected Revenue & Profit

15. I.TU Media’s Satellite DMB Business II.TU Media’s Business Plan III.TU Media’s Experience and Finding IV.Synergy of Fixed and Mobile Broadcasting Commercial Service Result of first 4 months Detail demographics of TU customers Preferred content from TU customers Watching behaviors Contents 1 1 2 2 3 3 4 4

16.  Commercial service of Satellite DMB started on May 1 st, and subscribers increase in number daily (average of 1,200) Commercial Service Period Commercial Service Period ’05.5.1 ~ 05.8.30 Contents Video: 9 Ch. (News, Music, Drama, Movie, game, Sports, Education, Ch.Blue) Audio: 25 Ch. ( DJ Ch - 5Ch, Variety Ch - 4Ch, Non-stop Music Ch - 16Ch) Video: 9 Ch. (News, Music, Drama, Movie, game, Sports, Education, Ch.Blue) Audio: 25 Ch. ( DJ Ch - 5Ch, Variety Ch - 4Ch, Non-stop Music Ch - 16Ch) Subscriber Total Number of subscribers: about 150,000 Mobile Phone Combined: 93.5% Car Receiver : 7.5% Total Number of subscribers: about 150,000 Mobile Phone Combined: 93.5% Car Receiver : 7.5% Marketing Commercial Ad & Promotion & Event (subway, university, etc.) Terminal 7 Mobile Phone Combined and 4 Car Receiver are available for Service Popular Contents Popular Contents Drama > Channel Blue > Game > News > Movies > Korea Pop Audio Distribution Channel Through SKT, KTF, & LGT & Own Distribution Network 1. Commercial service result of first four months

17. ※ Note : Based on TU Subscribers on ’05.8.4, Percentage by Sex  Male, age groups between early twenties to early thirties are major customer group of TU Media 2. Detail demographics of TU customers Percentage by Age Group MALE : 62% 20~30 Age Group : 72% 26% 65%

18. Percentage by Region 2. Detail demographics of TU customers  Young male who live in Metropolitan areas use Mobile-phone combined units to watch satellite DMB services Percentage by types of Terminal Urban Areas : 82%Mobile-Phone Terminal : 94% 94%82%

19.  On average, daily usage of TU service is around 57~ 80 minutes (July 2005 )  During Primetime, both Video & Audio channels are similar in popularity Channel Blue Game Movies Drama News Video Total: 74% Others Korean Pop Debut/ New Music Korean “Trot” Hit Chart K. Pop 90’s Mobi Club Audio Total: 26% Others 3. Watching Behaviors - Contents 74 %

20.  Represents the total percentage of users throughout the day(July 2005) Use of TU service generally begins at 7 in the morning, and maintains a steady stream of users, reaching peak points from Morning rush hour to Evening rush hour (6:00 PM~8:00 PM). 3. Watching Behaviors – Usage by hours FIXED TV S-DMB

21. I.TU Media’s Satellite DMB Business II.TU Media’s Business Plan III.TU Media’s Experience and Finding IV.Synergy of Fixed and Mobile Broadcasting Synergy of Fixed and Mobile Broadcasting Contents 1 1

23. 1. Synergy of Fixed and Mobile Broadcasting - Terrestrial - Cable - Satellite - Terrestrial - Cable - Satellite - Satellite DMB - Terrestrial DMB - Satellite DMB - Terrestrial DMB Fixed Broadcasting Fixed Broadcasting Mobile Broadcasting Mobile Broadcasting Promoting Social Welfare - Meet public demand for watching TV in mobile environments. - Provide efficient communication tool for emergent situation. - Offer effective tools for education by delivering educational programs. - Meet public demand for watching TV in mobile environments. - Provide efficient communication tool for emergent situation. - Offer effective tools for education by delivering educational programs. Promoting Industry - Contribute to contents industry by creating new market. - Stimulate IT and Manufacturing industry. - Lead to growth of national economic. - Contribute to contents industry by creating new market. - Stimulate IT and Manufacturing industry. - Lead to growth of national economic.  The advent of DMB services not only promote broadcasting industry but also promote social welfare by creating new market for industry and satisfying the public demand for information.

24. TU Media Corp. Finance Bldg., 84, Taepyeongno 1-ga, Jung-gu, Seoul 100-768, Korea Tel No : 82-2-6323-4149 Fax No : 82-2-6323-4411 http://www.tu4u.com ( htshin@tu4u.com ) T hank yo U