Microsoft and KT Announce Strategic Alliance

SEOUL, Korea, Dec. 21, 2001 — Microsoft Corp. and KT today announced a strategic alliance that will enable and accelerate the delivery of a rich variety of Web services to the Korean market. Under this alliance, which includes a USD 500 million investment by Microsoft, the two companies will work to provide ubiquitous access to the best Internet services for KT customers. In addition, the two companies will develop new integrated services for businesses and consumers, utilizing KT’s leading broadband infrastructure and Microsoft®
.NET Platform.

“We are very excited to be working with KT to offer the citizens of Korea the very best Web services,” said Bill Gates, chairman and chief software architect of Microsoft. “This is a great opportunity for our customers to gain access to all their data, resources and favorite services at any time on any device — and for KT, Microsoft and an array of partners to deliver dynamic solutions and services to this globally connected community.”

“We are pleased to be working with Microsoft, the world’s leading software company, on building an alliance that will further enhance KT’s position as a world-class company delivering world-class service to its customers,” said Dr. Sang Chul Lee, president and CEO of KT. “The alliance, in addition to being of strategic value, contributes to delivering on our goal of full privatization of KT by the first half of 2002.

Through this alliance, KT, a world leader in consumer broadband with nearly 4 million subscribers, will be able to continue its growth as a world-class global telecommunications company. By using KT’s expansive broadband infrastructure, Korean customers will have access to Microsoft and third-party next-generation Web services and applications.

With a shared commitment to customers, KT and Microsoft plan to work closely to upgrade KT’s existing services to a new level of Web services, as well as develop new integrated services.

Key Initiatives

  • Voice over IP (VoIP) service. Easily connect friends and family around the world at a lower cost by integrating KT’s Internet access network and Microsoft Windows®
    Messenger, to provide the ability to make calls from PCs to phones

  • Wireless Internet access. Provide customers with broadband Internet access any time and any place on wireless-capable Windows Powered devices, at public places such as hotels, universities and cafes, utilizing KT’s wireless Internet access technologies, through KT’s Local Remote Network

  • Content Delivery Network (CDN) and Digital Content Services (DCS). Provide subscribers with access to advanced Internet services such as high-speed and high-quality movies and online game services at a lower cost by upgrading KT’s Content Delivery Network with Microsoft technologies

  • Co-branded KT and MSN

    Provide KT customers with a variety of premium Internet services with the launch of a new co-branded portal

The alliance between KT and Microsoft is expected to positively impact both the Korean IT industry and consumers. For the Korean IT industry, the alliance will help create new domestic and overseas opportunities for local businesses and Korean IT venture companies. The relationship also will provide an application infrastructure provider (AIP) environment for the delivery of software as a service. This environment will provide small and medium-sized companies with the opportunity to enhance their business model by using applications hosted over the Internet.

About KT

KT (recently changed its name from Korea Telecom, NYSE: KTC ), established in 1981, provides various telecommunications services including local, long-distance and international calling; satellite communication; data transmission; and wireless telephone services in Korea. As its new motto of the Value Networking Company, KT also offers network portals and world-leading high-speed broadband Internet services market using asymmetric digital subscriber lines (ADSLs).

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

Microsoft, Windows and MSN are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

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