HANA Hanarotelecom Incorporated ADS (MM)

- Revenues and EBITDA increased to KRW 430.9 billion and KRW 135.8 billion, respectively. SEOUL, South Korea, Nov. 8 /PRNewswire-FirstCall/ -- hanarotelecom incorporated (KOSDAQ: 033630) (NASDAQ:HANA) ("Hanaro" or the "Company"), Korea's leading integrated telecommunications company providing a broad range of broadband Internet and voice services, announced on November 8, 2006 that the Company posted a 0.5% gain in revenues to KRW 430.9 billion and a 2.3% increase in EBITDA to KRW 135.8 billion for the third quarter of 2006. The Company also reported operating profit of KRW 10.6 billion, up 41.4% quarter on quarter. The Company explained that despite an increase in marketing expenses for hanaTV service, it achieved EBITDA margin of 31.5%, a 0.5% increase from the previous quarter, attributable to reduced marketing expenses for existing businesses and improved interconnection rates. (Refer to Table - 3Q 2006 Financial Highlights) The Company stated that its broadband subscriber base expanded through the continued net addition in the third quarter despite the intensifying market competition, and the growth rate of voice subscribers has continued to increase in each quarter of this year, adding more than 60,000 subscribers in the third quarter alone. With regard to the 100Mbps optical LAN, Hanaro's mainstay product, the Company expanded the coverage to approximately 3.8 million households, which amount to about two thirds of its apartment coverage, with the cumulative number of subscribers reaching approximately 800,000. The Company stressed that its penetration rate of 21% in optical LAN, which is far higher compared to its competitors, proves high efficiency of investment. After launching hanaTV service late July, the Company has achieved 82,000 sign-ups and 60,000 activated subscribers, successfully laying the foundation for its media business. In addition, with the lower exchange rate of KRW against USD and a higher level of cash on hand, the Company's net debt-to-equity ratio fell to 43.1% in the third quarter from 45.1% in the second quarter, and the Company's credit rating was upgraded to BBB+, which contributed to a more solid financial structure. Mr. Dominic A. Gomez, Chief Operating Officer, said, "In addition to securing a new growth engine through hanaTV, we will foster further accelerated growth by expanding our corporate data business including IDC and business solution services which have high profitability and growth potential." He added, "As the first TPS provider in Korea, we will offer bundles that are easy to understand and provide our customers with added savings. We will leverage our product leadership in Voice, Broadband and TV-Portal services to provide the best value in the marketplace. As a result we will drive increased customer-level ARPU as well as reduced churn." Table - 3Q 2006 Financial Highlights (Unit: KRW billion) 3Q 2006 2Q 2006 Change 3Q 2005 Change (q-q) (note 1) (y-y) Revenues 430.9 428.7 0.5% 361.7 19.1% Operating Profit 10.6 7.5 41.4% 15.0 -29.4% Net Income -17.8 -16.2 loss -16.5 loss continued continued EBITDA 135.8 132.8 2.3% 129.0 5.3% (Note 1) Figures for 2005 are on a stand-alone basis (excluding Thrunet's figures). Contacts: hanarotelecom incorporated Investor Relations 822-6266-4524 / 4473 - or - Taylor Rafferty, New York Reema Parikh 1-212-889-4350 Taylor Rafferty, London Cristina Ungureanu 44-20-7614-2900 DATASOURCE: hanarotelecom incorporated CONTACT: Investor Relations of hanarotelecom incorporated, +822-6266-4524 4473, ; or Reema Parikh of Taylor Rafferty, New York, +1-212-889-4350, or Cristina Ungureanu of Taylor Rafferty, London, +44-20-7614-2900,

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