CJ Investment Trust & Securities and the Prudential Insurance Company of America Finalize 110 Billion Korean Won Investment Deal.

Business Editors

SEOUL, Republic of Korea--(BUSINESS WIRE)--Jan. 31, 2001

Business Agreement is one of the First Foreign Financial Commitments

in the Korean Investment Trust Industry

CJ Investment Trust & Securities Company (CJITS), a leading South Korean investment trust and securities company, and The Prudential Insurance Company of America, one of the largest global financial institutions based in the United States, announced today that they have signed a definitive agreement by which Prudential will invest 110 billion Korean won (approximately US$90 million) in CJITS through preferred stock and convertible debentures. The agreement also provides Prudential with the opportunity to make subsequent investments in CJITS that could reach 500 billion Korean won (approximately US$400 million), depending on future market conditions.

Separately, International Finance Corporation (IFC), the private sector arm of the World Bank Group, also signed a definitive agreement today, which will result in an investment of about 40 billion Korean won in CJITS in the form of preferred stock and convertible debentures.

The agreement between Prudential and CJITS formalized the preliminary investment agreement signed in August 2000 and marks one of the first financial commitments from a foreign financial institution into the Korean investment trust industry. The two companies have already started to develop major strategic initiatives in the area of product development and distribution platforms.

"Completion of the strategic investment with Prudential places CJITS in a strong position to grow in the Korean investment trust marketplace," said Sung-Ho Hwang, president and chief executive officer of CJ Investment Trust & Securities Company. "Our growth in the marketplace will be driven by the development and implementation of products and services that are at the global standards of major financial institutions worldwide," said Hwang.

"Prudential is excited that this deal is finalized and is looking forward to developing a successful investment trust business with CJITS," said Stephen Pelletier, president of Prudential's International Capital Group. "CJITS' customers will begin to have immediate access to a global financial institution that offers investors superior asset management, diversified product availability and investor relationship and service expertise," said Pelletier.

"Our entrance into the Korean market is part of Prudential's strategy to expand our investment and asset management capabilities in Asia and around the globe," added Pelletier. "The completion of this deal puts into place a full complement of our financial services in Korea as we have already successfully achieved in Mexico, Japan and Taiwan."

"We view this investment as a great opportunity that can foster the development of financial markets in emerging and developing economies, which is one of our missions," said Jean-Marie Masse, Principal Investment Officer at the International Finance Corporation. "As part of the World Bank Group, we seek investment opportunities that can achieve this goal," said Masse.

Prudential already has a strong presence in Korea through The Prudential Life Insurance Company of Korea, Ltd., the company's 11 year-old life insurance operation. Prudential of Korea (POK) is regarded as one of the most trusted insurance companies in Korea in terms of business quality, policy persistency, and customer satisfaction

The Prudential Insurance Company of America, with more than $363 billion in assets under management as of December 31, 1999, is one of the largest life insurance companies in the United States and is among the largest financial services institutions in the world. Prudential serves millions of individual and institutional customers worldwide and offers a variety of products and services, including life insurance, property and casualty insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, real estate brokerage franchising and relocation services. The Prudential Insurance Company of America is not connected with UK-based Prudential PLC.

CJ Investment Trust & Securities Company is a leading South Korean investment trust distributor and brokerage company. CJITS is the parent company and majority owner of CJ Investment Trust Management Company, known as "CJITM," which is Korea's 5th largest investment trust manager with assets under management of approximately $10 trillion Korean won (US$8 billion). CJITS oversees the sale, marketing and distribution of investment trust products and also handles the securities brokerage side of the business. CJITM manages the investment assets, which include both fixed income and equity investment trusts and mutual funds.

The International Finance Corporation is the private sector arm of the World Bank Group. Since its establishment in 1958, IFC's role has been to foster economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets and providing technical assistance and advice to governments and businesses.