Company Presentation

(As of Sep. 2001)

1
 History
erfect Link Makes Another World…
2001
1994 1998 1999 2000
~current

•KoreaLink established •1st grade data •Listed in KOSDAQ •Partnerships with •Disti. Agreement with
const. license •Developed EW 2000 -Cisco Systems Cacheflow
•Established R&D •Disti Agreement with -Sitara •Won ISO9001
center Cabletron -WatchGuard •Est. US branch office
•Won a 3Com’s Top -Extreme •Developed EW 4100,
Distributor Award -Alcatel EW4500
•NSI & NDI Agreement •Developed EW 4000 •Developed NetFinder
with Marconi & AMP •Won ISO9001 •Developed Cassini

Mission: Providing the most competitive &

reliable Internet network solutions
2
 Business Portfolio

Intelligent Solution

Security Traffic MGMT Cache

Value Added Solution

Retail Automation

VPN

VoIP VPN

Network Integration
EtherWire

Cabling
Optical Data Switching Access Network 3
Business Groups &
Customer Base

4
 System Integration
•Integration of different platform and technologies
•Building & delivering a network system to specifications
•The purchase, delivery, installation, integration and implementation of hardware and software

TELCO/ISP
•Establishment of carriers` backbone network
•Network Installation projects for macro & micro ISPs
•Establishment of Internet Data Center
•Participations in the military informatization projects

SOLUTION
•Network/System integration of public & educational institutions
•Network/System integration projects of manufacturing, distribution and service
companies and provision of equipment
•Network/System integration projects of financial institutions including banks &
securities
5
 Channel
To make seamless efforts to
satisfy partners and provide
overall business support for their
business operations
To establish reliable equipment
supply situation upon customers’
requests
To support business partners
with stable and competitive price
To provide sales/technical
training for brand new products
and technologies
To provide rebates and marketing
development programs for
partners

6
 Retail Automation
Electronic Shelf Label (ESL)
 Price Label Distribution
 Customizing ESL Managing System
 Developing ESL System

Store Space Management

 Store Space Design
 Customizing Space Management System

Selling price Solar Battery

Market price Product Code

Product name

Major Performance : Nongshimga Mega Discount

Store, Fresh Discount Store, Shinsegae I&C etc.
7
 Broadband
eed
Sp e t
CD ENVIRONMNENT igh tern ss
N H In ce
Internet User of 22 million Ac
(High speed Internet penetrated 50% in Aug. 2001)
More diverse contents requiring larger
bandwidth
Internet Traffic Congestions
Internet
E-Community and E-appliances
Security
Caching Construction Companies’ brand image
upgrade
Alliances between Const. Co and ISPs
Consolidation of ISP & IDC players
More reliable authentification & Internet
security solutions available Wi
t r
ne Ac eles
r ce s
te
In QoS ss

8
 Selected Customer List

YSTEM INTEGRATION/BROADBAND CHANNEL RETAIL AUTOMATION

Korea Telecom’s Young-dong/Mok-dong
 IMT
Pusan/Taegu IDC  NSI
Korean Navy, Air Force, Army  CuscoIT
Financial Supervisory service  Daesin C&C  Shinsege I&C
Palm Spring, a Cyber APT complex ATK  Dong-A Dept. Store
KT Training Center  WithNet Consulting
KNTDS(Korean Naval Tactical Data Sys.)  Daegu Dept. Store
 Pacific IT  Lotte Magnet
Korea Development Bank
National maritime Police Agency  KwangDo Information  Lotte Seven Eleven
Korean National Railroad  link Information Communication
 Vitek Information System  Nongshimga
Cyber APT
Suwon Women’s College  CSIdata
The Catholic University of Korea WriNet Information Communication
GCT-Korea  Yesung Network
ssan  TaeJin System
oyota Motors  Hanawoo Information Communication

9
Strategic Directions

10
 Strategic Businesses in 2001
Wireless

High Speed Internet

Access Business

Telco/ISP

Intelligent Network Solution

Solution Business

Electronic Shelf Label

System Business
11
 New Business

ICN • Generating
• Security Value-added
• Channel • QoS • VoIP
additional
• Caching Revenues
• CDN • VPN
• Pioneering/
High-Speed Disseminating
Wireless
Internet Access emerging IT
• BWLL
• Domestic solution
• Overseas • WLAN
• Increasing
• Network
• Broaden/deepen Vendor Relationship gross profit
Installation • Proprietary network solution deployment margin
• Technical & Business Consulting
• Invigorate internal sales efforts • Hedging
• M&A & Strategic Alliances with foreign
domestic/overseas Partners
currency risk
12
 Korea Link’s Evolution Path
Why:
•Natural Market Evolution
•Competitive Advantage
•Bigger Size of Transactions
•Higher Margins •High Speed Internet Solution
•Recurring Revenue •Value added & Intelligent Network Solution
•Network Installation Business
•Managing Networks and Consulting
•Overseas Business
How;
•Channel •Continues pursuit of R&D efforts
•Solution •Development/provision of emerging solutions
•Acquisition/Retention of integrators to deepen &
broaden customer relationship
•Deepen vendor relationship

Design and implementation of networks for

Telco/ISP, Enterprises and Public Institutions

1999 2000 2001 2002

13
 KLCP
(Korea Link Certified Partner Program)

14
 KLCP
(Korea Link Certified Partner Program)

Launching the program in Apr. 2001

• Diamond/Gold/Silver Partners
• Providing Partners rebates & market development fund based on their quarterly
revenues
• Each level has different percentage of rebates and market development fund
• From On-line information access to B to B E-Commerce

Anticipated Effects
•Reducing account receivable by acquiring cash as collateral
•Focusing on high quality customers (Pareto’s 80/20 Law)
•Incentivising customers to order more product from KL in order to benefit higher
rebates and marketing development fund

15
 KLCP
(Korea Link Certified Partner Program)

http://www.korealink.ne.kr/html/partner/cps/cps_6.html
16
R&D

17
 R&D Directions

Providing
Providingaawhole
wholerange
range
SDSL
SDSL of
ofnetwork
networkequipment
equipment
Access
AccessSystem
System Building
Buildingup
upR&D-focused
R&D-focused
company
company

2000 2001 2002

Router Switch
EW4000 EW4100 EW4500 EW6000
Net Finder Cassini

•SDSL(2.3Mbps) •SDSL(2.3Mbps) •G.SHDSL •Small-sized •10/100 Base-TX •VDSL

•Ethernet Switch •L2/3 Switch (4.6Mbps) Router Switch (10~30Mbps)
•WAN Interface •Include Routing •G.SHDSL Chip •Enterprise SDSL •100 Base-FX •Ethernet/ATM
•24/48 Port Shelf Function •L2/3 Switch, Router Switch Interface
Type •WAN Interface Router •G.SHDSL Router •Gigabit Ethernet
•Non-blocking •WAN Interface Switch

18
 EtherWire4000
 High speed Internet Access
Solution based on SDSL
technology

 Same high speed in both

uploading and downloading

 Simultaneous transmission of
data and voice

EtherWire 4000  High performance Ethernet

Switch mounted

 Enterprises, apartments and individual houses to enjoy high-speed Internet access based on
SDSL technology

 Provides a data uploading and downloading speed of 2.3Mbps anywhere within 5km of the
center equipment installation site using the existing single pair of copper wire

 Users can send and receive data & voice at the same time within a distance of 3km using either
an internally-mounted splitter in the EtherWire4000C or an externally-mounted splitter
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 EtherWire4100
 High-speed Internet Access
Solution based on SDSL
technology

 High performance Routing

function

 Highly efficient Layer 2/3

Switch mounted

EtherWire 4100  Same high speed in both

uploading and downloading

 Highly advanced high-speed Internet access equipment based on SDSL technology

 Provides a routing function, enabling users to install networks without an additional router

 Provides non-blocking function that allows high-speed IP and IP multicast through 2 ports of
2.048Mbps WAN

 Provides a data uploading and downloading speed of 2.3Mbps anywhere within 5km of the
center equipment installation site using the existing single pair of copper wire
20
 EtherWire4500
 High-speed Internet Access
Solution based on G.SHDSL
technology
 High-speed Internet
connection at the speed of
4.6Mbps through the G.SHDSL
Interface
 High performance Routing
function
EtherWire 4500
 Highly efficient Layer 2/3
Switch mounted

 High-speed Internet access equipment based on G.SHDSL technology that complies with the
requirement of ITU-T standard(ITU-T G.991.2)

 Enables users to enjoy the speed of 2.3Mbps and 4.6Mbps using one pair of existing cooper
wire

 Ensures interoperability with other network equipment by meeting the standard requirements
21
 NetFinder KL-1000
 Small-sized Router for
Internet and Intranet that
easily fits into a small-sized
network environment

 Efficient Bandwidth use

 Outstanding Reliability

 Convenient Network
NetFinder KL-1000 Management

 Its Slim-typed box is very practical, efficient and easy to set up and maintain

 Allows the use of maximum 2 WAN ports V.35 interface. It provides Redundancy/Load Balancing
for the efficient use of bandwidth

 Users to manage network at any place on the network by accessing SNMP or Telnet.

22
 NetFinder KL-1100
 Enterprise SDSL Router
combining Switch, Router
and SDSL technology

 High efficient Routing

function

 Layer 2/3 Switch mounted

 A wide variety of VLAN

NetFinder KL-1100  Network Flexibility

 An enterprise use maximizing the efficiency by providing various types of interfaces

 Provides a data uploading and downloading speed of 2.3Mbps anywhere within 5km of the
center equipment installation site using the existing single pair of copper wire

 Layer 2/3 Ethernet Switch is already mounted in the equipment, thereby eradicating the needs of
an additional Switch in the network
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 NetFinder KL-1300
 G.SHDSL Router
 High efficient Routing function
 High performance Layer 2/3
Switch mounted
 A wide variety of VLAN
 Network Flexibility

NetFinder KL-1300  Convenient Network

Management

 G.SHDSL Router for an enterprise use providing high-speed Internet connection of 4.6Mbps

 Provides a data uploading and downloading speed of 2.3Mbps and 4.6Mbps using the existing
single pair of copper wire

 Uses Redundancy/Load Balancing of WAN port for the efficient use of bandwidth. It allows
flexibility of network installation by providing a maximum 64K MAC address
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 Cassini KL-3000
 High performance Multi-Layer
2/3 Switch

 Various types of Network

Interface

 Class-based Traffic Management

 IP Multicast Routing function

Cassini KL-3000  A wide variety of VLAN

 High performance Multi-Layer Switch suitable small and medium-sized network environments

 Provides switching and routing functions based on Layer 2/3. The user can choose the type of
interface and the number of Ethernet ports

 The data transmitting speed can be improved based on effective traffic management using the
functions of Broadcast Rate Limiting and CoS(Class of Service)
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 Cassini KL-3100
 High performance Multi-Layer
Switch

 High density fast Ethernet

Interface

 High Scalability to Gigabit

Ethernet Interface

 Class-based Traffic Management

Cassini KL-3100  IP Multicast Routing Function

 High performance Multi-Layer Switch providing high density 100Base-FX ports

 Suitable for companies requiring a high density fast Ethernet Interface network environment

 Provides a maximum 12Gbps of back-plane bandwidth base on Store and Forward Switching
System

 In order to prevent drop off in the speed of each subscriber’s line and to improve data
transmitting speed, it provides the IP multicast routing function
26
 Cassini KL-3200
 High performance Multi-Layer
Switch providing up to Gigabit
Ethernet

 High Capacity Networks

Interfaces

 High performance Layer 2/3

Switch
Cassini KL-3200  Class-based Traffic Management

 Allows users to install high capacity networks by offering a maximum of 12 ports of 1000Base-
SK/LX, 48 ports of 100Base-FX and 96 ports of 10/100 Base-TX

 12 slots enable users to have outstanding capacity and apply the equipment to a wide variety of
network environment

 Provides a maximum 34.56Gbps of back-plane bandwidth base on Store and Forward Switching
Systems
27
 R&D Fields
BSP/Driver,RTOS, Protocol, SNMP,
S/W Other Applications

Small Router, SDSL Router, Gigabit

System H/W Switch, G.shdsl system, VDSL System

System Test, Quality/Prod, Control,

Production Purchasing/Inventory Control,
Outsourcing

B2B/B2C, E-Commerce System,

E-Commerce Security Solution

Internet
Web Portal Service System

28
Financials & Shareholders

29
 Revenue & Net Income

Revenue Net Income

(Unit:KRW bn) (Unit:KRW bn)
12
140
120 10
120 1 Ha lf Yea r En 1 Half Y ear E n

100
8

80 64

60 49 4 4
4
40 30 2
22 2
1
20 14 13

0 0
99 00' 01E
98 99 00' 01E
• 2000 EPS of KRW 314 & ROE of 10%
• 2001(E) EPS of KRW 740 (Fully Diluted)
30
 Gross Profit & Gearing
(Unit:KRW mil) (Unit:KRW mil)
7000 12139 100 33721 100
20000
6500 90
83.5% 90
6000 81.1%
80 80
5500
5013
5000 15000 70%
70%
4500
60 60
4000
10217
3500 50 50
10000
3000
40 40
2500 25.5% 29.7%
30 30
2000
5000
1500 20 20
1000
10 10
500

1999 2000 1999 2000

Gross Profit Cost of Sales Liability Debt to Cap

* Interest bearing debt/(interest bearing debt+total shareholders’ Equity) 31

 Gross Profit & Gearing (2001.
1 st Half)
(Unit:KRW mil) (Unit:KRW mil)
8500 100 40000 100
7993
8000
90 34106 90
7500 83.8% 35000
7000 78.4% 80
80
6500 30000
6000 70% 70%
5500 25000
4777 60 60
5000
4500
50 20000 50
4000
3500 15212 40
40 15000 34.7%
3000
2500 30 30
10000 18.3%
2000
20 20
1500
1000 5000
10 10
500

2000.1H 2001.1H 2000.1H 2001.1H

Gross Profit Cost of Sales Liability Debt to Cap

* Interest bearing debt/(interest bearing debt+total shareholders’ Equity) 32

 KL Operating Margins vs.
(%)
industry
14
12.6
12 12

10 9.9 9.7
9.1 9.2
8.4
8
6.7 7 7
6 6

4 4

0
1998 1999 2000(E) 2001(E)

Equipment Infra KL

(Source : Samsung Securities)

33
 Revenue Breakdown in 2001
(Unit:KRW mil)

 Broadband : High speed internet access

solution, Management Security, VoIP, VPN,
Intelligent Contents Network solution, Wireless
LAN etc.
10000
30,000
 Channel : Medium to High-end Switch, Router,
Hub, LAN Card etc.
40,000

 System Integration : IT projects for Telcos &

40,000
ISPs, Military intelligent projects, Government
Network Projects, NI projects of large& medium-
sized company
C h a n n eSl I B r o a d b a nRde ta i A u to .
 Retail Automation : Nongshimga, Shinsege I&C,

Estimated Revenue: KRW120 bn Donga Dept., Lotte discount stores etc.

34
 Shareholding Structure
 Capital Stock : KRW 6.76
0 .1 5 0 .6 6
1 .6 2 5 .4 billion

 Total Number of Shares :

13.52 million

 Current liability to equity

ratio : 74%

9 2 .1 7
 Debt to Cap ratio : 35%
s e c u ritie s I n v e s tm e n t T ru s tM u tu a l C re d it T ru s t
(as of June. 30, 2001)
I n d iv id u a ls F o re in g e rs

(as of Dec. 31, 2000)

35