KT Corporation extends converged MPLS VPN service reach to mainland China with CPCNet

HONG KONG, 23 November 2006 – Hong Kong communications and security solution provider, CPCNet Hong Kong Limited, a wholly owned subsidiary of CITIC Pacific (SEHK: 267), and KT Corporation, South Korea's largest telecommunications carrier, have signed a partnership agreement that enables them to jointly provide Multi Protocol Label Switching (MPLS) VPN services to its customers operating in mainland China.

Available throughout Greater China, this service promises new levels of efficiency, cost-effectiveness and security for organisations who need end-to-end multi-point connections with Quality of Service (QoS). CPCNet and KT expect the service to be welcomed by Korean companies now operating in the PRC.

China has become the world's most attractive place for direct investment and Korean companies are no exception in relocating or expanding their operations in the PRC. In 2002, China overtook the US for the first time as the top investment destination for Korean companies and, according to the Ministry of Finance and Economy of Republic of Korea, it was still the first priority for Korea's foreign direct investment in the first half of 2006, accounting for US$2.01 billion and 22.6% growth compared with the previous year.

"Ever since China and South Korea normalised ties in 1992, trade and direct investment between the two countries have expanded rapidly," said Sung-Go Chung, Vice President, Global Business Department, KT Corporation. "According to a survey by Horizon Research Consultancy Group released earlier this year, South Korea ranks fourth as the most influential country in China's business environment.

"Today, having set up their manufacturing facilities on the mainland, South Korean enterprises - in industry sectors from machinery and equipment, electronics, telecommunications equipment and fabricated metals - are booming. What's more, they have altered their strategies and have started viewing China as a strategic market rather than a production base. These industries are highly competitive, which makes a cost-effective MPLS VPN a very compelling choice."

According to a 2003 survey of Korean companies in China, conducted by the Hong Kong Trade Development Council, Shandong Province and Yangtze River Delta region (Shanghai, Jingsu Province and Zhejiang Province) are gaining importance as a destination for Korean investment in the mainland, both share Korea’s total investment in China of 26% and 28% respectively.

A comprehensive communications provider, CPCNet specialises in secure, value-added managed services. The company already operates 21 managed points of presence (POPs) in Asia, 19 of which are in strategic locations in Greater China. Three additional POPs are planned for Shengyang, Xian and Wuxi. All of these cities, in addition to Shanghai, are popular bases for Korean companies operating in China.

"Many of these are enterprises and manufacturers who rely on a range of business applications including ERP to drive their businesses," said Stephen Ho, Chief Executive Officer, CPCNet. "When it comes to dynamic file sharing and fast database access, our TrueCONNECT^TM - MPLS VPN is ideal. It is a high-bandwidth solution that combines speed, outstanding quality of service and security - all at a fraction of the cost of traditional offerings. By choosing our service, these companies can run their mission-critical applications with ease while enhancing productivity and saving money."

With the highly convenient, cutting-edge end-to-end network offered by CPCNet and KT, customers can enjoy reliable, seamless connections – not only across China and Korea, but globally.

CPCNet is also offering a new series of value-added managed services to meet enterprises' needs for higher integration arising from globalisation. Integrating multimedia technologies, CPCNet has launched multi-party conferencing services - AudioCONNECT and VideoCONNECT. These new conferencing solutions redefine information sharing. They facilitate decision-making and raise the efficiency of cross-border information exchange through interactive communications.

VideoCONNECT does not require extra bandwidth for central site nor does it need any further investment in additional equipment or staff to manage the conferencing platform. Enterprises can conduct multi-point videoconferencing, any time, anywhere with conferencing parties on TrueCONNECT^TM and Internet. CPCNet's AudioCONNECT and VideoCONNECT conferencing services enable executives to make multi-point voice and/or face-to-face conference calls any time and hence enterprises can easily conduct regional meetings and make business decisions in real time.

CPCNet was the first communications service provider to launch MPLS-based IP VPN service throughout Greater China. Called TrueCONNECT^TM, the service was designed to meet the rigorous demands of global enterprise customers for a secure, global, fully meshed converged IP solution. With the launch of TrustCSI^TM in May this year, CPCNet reinforced its position as a trusted communication and security solutions provider for companies with operations in Greater China.

About CPCNet
CPCNet Hong Kong Limited, a wholly owned subsidiary of CITIC Pacific (SEHK: 267), is a communications and security solution provider headquartered in Hong Kong, a preferred partner by multinational corporations (MNCs) and business enterprises requiring seamless connection to Greater China and Asia. By employing state-of-the-art fully meshed network, CPCNet offers TrueCONNECT^TM, an advanced MPLS VPN service, and a whole range of innovative communications products, security solutions and value-added managed services.

To extend its comprehensive compliance solutions, CPCNet has built a world-class Security Operations Centre (SOC) in Hong Kong. CPCNet introduced cutting edge information security services –TrustCSI^TM to deliver an improved level of security, enhanced compliance, greater efficiency of security operations and reduced costs of security initiatives. A series of security services includes: Trust-C^TM: Compliance Management Solution; Trust-S^TM: Managed Security Services (MSS) & Trust-I^TM: Forensics Investigation Services. For more information about CPCNet, please visit www.CPCNet.com.

About Korea Telecom Corporation
Korea Telecom (KT) is the largest and the most sophisticated communication network company in Korea. KT was founded on Dec. 10, 1981, to contribute to social welfare and convenience in everyday life by operating an efficient telecommunications service and developing telecommunications technology. KT announced the space communications era by launching Korea's first satellite, Koreasat 1, followed by Koreasat 2 and 3 over the next few years. KT led Korea into the information age as the nation's major communications company. KT's broadband service (Megapass) caused a great sensation in the domestic high-speed Internet market. Megapass surpassed 5 million subscribers in Jan. 16, 2003 with a domestic market share up to 48%. KT wrapped up the privatization process selling the entire government stake. KT promotes 2.3 GHz Portable Internet service as one of 4 key businesses in 2003. KT will be reborne, not as the public telephone company, but as a progressive and creative company that will lead the way in the global information and telecommunications field.