Pantech to supply 3G handsets to KDDI

August 14, 2005

Pantech announced that it has signed an agreement to supply CDMA handsets to Japanese long distance carrier KDDI.

KDDI is one of the top three phone service providers in Japan. Under the terms of the agreement - which marks the first time that a Korean handset manufacturer has entered the Japanese market - the handsets will be sold under au and Pantech brand name. Pantech plans to supply KDDI 3G mobile phones starting from the fourth quarter.

Dr. Moon S. Song, President & CEO of Pantech&Curitel Communications, said: "The Japanese handset market is one of the most competitive in the world, with exceptionally high standards in phone design and functionality. The fact that we have successfully met these standards represents a major endorsement of our progress in recent years".

The Japanese handset market is currently dominated by domestic manufacturers, such as NEC, Sharp and Panasonic. With 87 million mobile subscribers, Japan currently represents 9% of the world's mobile handset market. In Japan, KDDI has 22% market share in the mobile carrier space and is the leader in 3G services, with around 60% market share. It anticipates market growth in the 3G sector of over 70% by the end of this year.

"KDDI is one of the most established carriers in the Japanese mobile phone sector and we are looking forward to working together to increase our collective presence in the market over the coming years. We feel this partnership represents the latest stage in the ongoing global expansion of Pantech worldwide," said Dr. Song.

"As the first Korean handset manufacturer to enter the Japanese market, we also feel that we have laid a trail for other Korean companies to set up operations in this dynamic and world leading country," he said.

Pantech expects to export handsets to more than 51 countries worldwide, with total annual sales of over 30 million units this year.