Hanaro Posts Record-High Revenues of KRW 451.1 Billion for the First Quarter of 2007

Hanaro Posts Record-High Revenues of KRW 451.1 Billion for the First Quarter of 2007

-- Operating profit turned positive, amounting to KRW 12.4 billion

-- Revenues of IDC and NI/Solution, the new growth engines, grew 80% year on year

-- Upward trend in subscriber growth continued, with broadband net adds of 34,000 and voice net adds of 73,000 in the first quarter

SEOUL, South Korea, May 8 /PRNewswire-FirstCall/ -- hanarotelecom incorporated (KOSDAQ: 033630) (NASDAQ:HANA) ("Hanaro" or the "Company"), Korea's leading integrated telecommunications company, announced on May 9, 2007 that the Company achieved the highest-ever quarterly revenues of KRW 451.1 billion, and operating profit turned positive, amounting to KRW 12.4 billion for the first quarter of 2007.

(Refer to Table - 1Q 2007 Financial Highlights)

Hanaro explained that revenues increased 4.6% quarter on quarter owing to robust growth across all business segments including broadband, voice and corporate business. The Company added that EBITDA increased 13% to KRW 140.1 billion on the back of revenue growth and the efficient execution of marketing expenses. Net loss decreased 80% from the previous quarter to KRW 9.6 billion.

Hanaro also stated that strong subscriber growth continued, with broadband net adds of 34,000 and voice net adds of 73,000 for the first quarter, backed by marketing activities focused on bundled products.

In addition, the Company said that the 100Mbps service coverage expanded to 7.3 million households as of the end of 1Q07 from 4.3 million households as of the end of 2006, on the right track to achieve the full-year target of 12.6 million households, and the number of 100Mbps broadband subscribers exceeded 1 million in the first quarter on the back of such coverage expansion.

Meanwhile, hanaTV and corporate business, the two areas that the Company announced it would foster as new growth engines this year, delivered strong results.

The number of hanaTV subscribers grew by 230,000 in the first quarter, reaching 380,000 activated subscribers on a cumulative basis, while revenues of IDC and NI/Solution rose by 20% quarter on quarter and 80% year on year, increasing the proportion of corporate business revenues to 24% of the total revenues.

Chief Financial Officer Janice Lee said, "By building a solid foundation for stable growth in core businesses including broadband and voice and fostering new growth engines such as hanaTV and corporate business, we will achieve revenue growth and transform into a company that can generate sustainable profits." "In particular, we will expand our subscriber base through marketing campaigns focused on bundled products while strengthening our position as a leading player in the communications-media convergence market through hanaTV," she added.

Table -- 1Q 2007 Financial Highlights
(Unit: KRW billion)
1Q 2007 4Q 2006 Change 1Q 2006 Change
(q-q) (y-y)

Revenues 451.1 431.3 4.6% 432.3 4.3%

Operating 12.4 -3.3 turned 16.0 -22.8%
Profit positive

Net Income -9.6 -45.9 loss -6.1 loss
continued continued

EBITDA 140.1 124.1 12.9% 142.8 -1.9%

Contacts : hanarotelecom incorporated
Investor Relations
822-6266-4524 / 4473
yeojin@hanaro.com
- or -
Taylor Rafferty, New York
Reema Parikh
1-212-889-4350
Taylor Rafferty, London
Stewart Taylor
44-20-7614-2900
hanaro@taylor-rafferty.com

Source: hanarotelecom incorporated

CONTACT: Investor Relations, hanarotelecom incorporated, +1-822-6266-4524,
+1-822-6266-4473, or yeojin@hanaro.com; or Reema Parikh, of Taylor Rafferty,
New York, +1-1-212-889-4350 or Stewart Taylor of Taylor Rafferty, London,
44-20-7614-2900, or hanaro@taylor-rafferty.com both for hanarotelecom
incorporated

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