Hyundai Communications and Network Attracts KRW160 Billion (US$169 Million) Equity Investment from Carlyle; Carlyle Becomes No. 2 Shareholder in HCN by Acquiring 33.5% Stake; Carlyle and HCN to Exchange Advanced Cable Industry Know-How and Expertise

Seoul, Korea - Hyundai Communications and Network (HCN), a multiple system operator and affiliate of Hyundai Department Store Group, announced today that it signed definitive agreements for the investment of KRW160 billion (US$169 million) in new equity capital by The Carlyle Group (Carlyle), a U.S.-based global private equity firm.

With this investment, Carlyle becomes the largest shareholder in HCN (33.5%) following the Hyundai Department Store Group (65%). HCN will use these proceeds to further strengthen its competitiveness by upgrading its digital network and improving the quality of its digital content and services to its 1.1 million subscribers nationwide.

In addition to the infusion of new capital, this partnership allows HCN to access Carlyle’s global network of telecommunications and media companies. HCN and the cable TV companies owned by Carlyle (including Eastern Multimedia Company in Taiwan and Insight Communications in the U.S.) will share cable management know-how and global best practices with the goal of providing world-class broadcasting, Internet and value-added services to Korea’s cable television subscribers.

"Korea is one of Carlyle’s key markets in Asia, and Korea’s telecommunications and media sector is one of the most advanced in the world with exciting growth prospects. We believe that Hyundai Department Store and HCN are the best partners for Carlyle in Korea in this sector and are fully prepared to support HCN with our capital, expertise and global network," said Mr. John Il Kwun, Managing Director of The Carlyle Group.

"We also look forward to working with Carlyle’s telecommunications and media companies globally to strengthen HCN’s competitiveness. In addition, we hope this will become an opportunity to upgrade to the next level Korea’s cable broadcasting industry and our services to our subscribers," said Mr. Daekwan Kang, Representative Director of HCN.

Carlyle, based in Washington, DC, is one of the world’s largest private equity firms with US$44.3 billion under management and extensive investments across various industries around the world. Carlyle has made numerous investments throughout Asia, including China Pacific Life Insurance (China’s third largest life insurance company), Chongqing Polycomp (China’s third largest manufacturer of high-performance glass fiber), Eastern Multimedia Company (Taiwan’s second largest cable TV operator), Eastern Broadcasting Company (Taiwan’s leading media programming company), Taiwan Broadband (Taiwan’s third largest cable TV operator), KorAm Bank (Korea’s major commercial bank), and WILLCOM (Japan’s largest provider of PHS wireless service).

HCN, a multiple system operator (MSO) and affiliate of Hyundai Department Store Group, owns and operates 11 cable TV systems throughout Korea, including franchise areas in Seoul, Busan, Daegu, Cheongju and Pohang. HCN is one of the top four MSOs in Korea with 1.1 million CATV subscribers, including 41,000 digital CATV subscribers, and 93,000 broadband Internet subscribers.

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