Seoul, Korea, 29 June 2010 – SK Telecom (NYSE: SKM), a leading mobile service provider in Korea, and Packet One Networks (Malaysia) Sdn Bhd ("P1"), which is the 4G WiMAX Telecommunications company (Telco) arm and subsidiary of Green Packet Berhad, today announced a strategic alliance in Malaysia, under which SK Telecom will invest USD100 million and become the second largest shareholder of P1, with approximately 25% stake, and secure two seats on the Board of Directors.

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 has acquired more than 175,000 subscribers (at end March 2010) and recorded USD44 million of yearly revenue in 2009.

The SK Telecom investment would be used to continue P1’s nation-wide WiMAX rollout over the next 2-3 years , to accelerate and expand its customer acquisition activities and for general corporate purposes. The investment will help P1 in achieving 65% population coverage by 2012. SK Telecom plans to make available to P1 its substantial technology and network expertise as well as its customer products portfolio, helping P1 to achieve its goal of a robust, high performance network and an outstanding level of customer service. Through this alliance, P1 would have access to SK Telecom’s network and operational management experience and its global procurement resources allowing it to further enhance its operational and financial performance.

SK Telecom’s partnership with P1, which is the world No.2 4G WiMAX Telco (on 802.16e 2.3 GHz WiMAX), will position SK Telecom to participate in other wireless broadband opportunities across Southeast Asia and other emerging markets.

At the signing ceremony, Ki Haeng Cho, President of SK Telecom’s GMS CIC (Company In Company) said, "The Malaysian market has great potential for growth and the partnership with P1, the leading WiMAX provider of Malaysia, is an extremely attractive opportunity for SK Telecom. The alliance will allow SK Telecom to rise as a global telecommunications company based on its cutting edge technology and innovative marketing tools."

"SK Telecom also looks forward to expanding our wireless network business in emerging markets, while gaining technical background and infrastructure capabilities for successful global Industry Productivity Enhancement (IPE) business implementation. We look forward to attracting potential IPE customers and business partners and build a strong foundation for SK Telecom’s success in the global communications market," Cho added.

CC Puan, Group Managing Director and CEO of Green Packet Berhad, said, "P1’s strategic alliance with SK Telecom will significantly enhance P1’s ability to serve the Malaysian broadband user needs with 4G WiMAX technology. Moreover, having access to SK Telecom’s expertise as a leading global Telco, supports our strategic agenda to be the leading 4G WiMAX Telco in Malaysia and eventually in the region."

Puan went on the comment, "Korea is the leading example of a country rising from a low level of ICT access to one of the highest in the world. It represents an impressive and relevant case-study on how a nation can be transformed through broadband technology with one of the highest PC and broadband penetration rates and fastest connectivity in the world. Through this alliance, Malaysia as a nation can draw from this experience in pursuing its own broadband penetration goals."

The signing of the definitive agreement for the strategic alliance was witnessed by His Excellency Bong Ryull Yang, the Ambassador of the Republic of Korea; Yang Berhormat Dato’ Joseph Salang Gandum, Malaysia’s Deputy Minister for Information, Communication and Culture; and Tae-gun Hyung, the Comissioner of South Korean regulator Korea Communications Commission. 

DBS Bank Ltd. acted as exclusive financial advisor to SK Telecom and J.P.Morgan acted as exclusive financial advisor to Green Packet Berhad and Packet One Networks on the transaction.