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Technology Stocks : Korea Thrunet Co Ltd - (KOREA) -- Ignore unavailable to you. Want to Upgrade?

To: Xenogenetic who wrote (405)	7/24/2000 2:13:22 PM
From: Exponent	Respond to of 406

Korea Thrunet Announces Vendor Financing from Cisco SEOUL, South Korea, July 24 /PRNewswire/ -- Cisco Systems Capital Corp. (Cisco), a subsidiary of Cisco Systems (Nasdaq: CSCO), signed a Memorandum Of Understanding (MOU) with Korea Thrunet (Nasdaq: KOREA) on June 29, 2000, to provide up to US $120 million in vendor financing. This is the first time such an agreement has been executed by Cisco in the Korean market, and is a confirmation of the parties' execution of business initiatives envisioned by the strategic alliance MOU executed this past February. Korea Thrunet and Cisco Systems formed a strategic alliance in February 2000 to co-develop next generation IP (Internet Protocol) infrastructure to integrate data communication as well as broadband Internet access service via cable modem in Korea. The alliance also contemplated such beneficial arrangements as the financing program announced today, which should cover all equipment requirements from Cisco until at least the end of 2001. "The broadband Internet access subscriber growth rate in Korea has been exceptional, and Korea Thrunet is right in the center of that growth. The equipment capacity requirement has been increasing substantially to accommodate new subscribers, and Cisco Systems has been our reliable partner for equipment supply. The vendor financing agreement has scaled up the already strong business relationship between Korea Thrunet and Cisco Systems," said Mr. Charles Rim, CFO of Korea Thrunet. He added, "We will be able to unload and spread the cash burn requirements for the relevant equipment, which comprises a substantial portion of our capital expenditures, through this vendor financing agreement." The long-term financing agreement will provide Korea Thrunet the flexibility to either directly purchase Cisco equipment or be utilized in connection with equipment leasing. Cisco may increase the amount if the equipment requirement by Korea Thrunet also expands. Korea Thrunet is exploring expansion of its equipment purchases from Cisco in light of this latest development. Korea Thrunet Co. Ltd. is the leading provider of broadband Internet access services and a major provider of facilities-based data communications in Korea. Korea Thrunet acquired the domain name Korea.com in March 2000, and is developing it into an innovative and versatile Internet platform to meet the communication, community, content and commerce needs of Korean Internet users. The first to offer broadband Internet services in Korea, Korea Thrunet currently passes over 6.2 milion homes. Thrunet service features "always-on" Internet access at speeds up to 100 times faster than traditional dial-up Internet access, with compelling multimedia content ranging from on-demand music videos and Internet telephony to multimedia bulletin board and multimedia chatting services. Korea Thrunet also provides facilities-based data communications services to more than 160 corporate customers in Korea, including several major telecommunications carriers such as SK Telecom Co. Ltd. and Shinsegi Telecomm Inc. /CONTACT: Thomas D. Sung of Korea Thrunet, 822-3488-8059, fax, 822-3488-8511, Thomas@corp.thrunet.com; or Barbara Barry of Thomson Financial Investor Relations, 212-701-1998, fax, 212-344-5929, Barbara.Barry@thomsonir.com/ 12:27 EDT [I/CSV] [I/HOU] [I/IAS] [I/PUB] [I/MED] [I/CMT] [I/TEL] [N/PR] [N/PREL] [N/WEI] [M/NCY] [M/CYC] [M/TEC] [M/NND] [P/DCP] [P/DME] [P/DIT] [P/DAA] [P/DTE] [R/SK] [R/FE] [R/PRM] [R/CA] [R/NME] [R/US] [R/USW]