Seoul, Korea, 27 May 2010 – SK Telecom (NYSE: SKM), the leading mobile service provider in Korea, announced today that its Board of Directors approved a USD100 million investment in Packet One (P1), a Malaysian 4G WiMAX Telecommunications company (Telco) arm and subsidiary of Green Packet Berhad.

The proposed agreement, which is expected to be signed in June, between the two companies would be subject to certain closing conditions, with details of the strategic alliance to be disclosed upon signing of the proposed agreement. Pending final procedures, SK Telecom is to become a significant minority shareholder with approximately 25 percent stake.

Capitalizing on its first-mover advantage in Malaysia, P1, the first WiMAX provider in the country, has established itself as the market leader in high-speed wireless broadband access for both consumers and businesses. Since its commercial launch on August 19, 2008, P1 have acquired more than 175,000 subscribers (at end March 2010) and recorded USD 43.8 million of yearly revenue in 2009.

SK Telecom pointed out the huge growth potential of the Malaysian communications market which is still at its nascent stage. In addition, P1 is considered a strong strategic partner having been the first large-scale commercial deployment of mobile WiMAX in Southeast Asia.

SK Telecom underlined the significance of the deal not only as an investment targeting overseas wireless broadband business but also as groundwork for its Industry Productivity Enhancement (IPE) business expansion abroad. Given that wireless broadband network is a prerequisite infrastructure for successful IPE solutions, the deal is expected to create a powerful synergy, attracting potential IPE customers and business partners in the process.

SK Telecom also explained that the deal will further build up the company’s mobile broadband network business expertise in emerging markets, playing as a springboard for SK Telecom’s overseas expansion in Southeast Asia with new business opportunities in the global communications market.

SK Telecom President and CEO Man Won Jung said, "P1 has huge growth potential with its success in the nation’s first deployment of WiMAX service and adoption of differentiated marketing strategies. Based on SK Telecom’s ICT expertise and capability achieved in the Korean market, SK Telecom is committed to exert our best endeavor to ensure successful business with P1. SK Telecom will continue to focus our efforts in expanding overseas business through IPE strategy to become a true ’Global ICT Leader’."

DBS Bank Ltd. acted as the exclusive financial advisor to SK Telecom on the Strategic Investment.