Citibank establishes ADR program for Korea Mobile Telecommunications.

NEW YORK--(BUSINESS WIRE)--July 2, 1996--Citibank N.A. is pleased to announce that it has established an American Depositary Receipt (ADR) program for Korea Mobile Telecommunications Corp.

The ADR shares for the program, for which Citibank acts as Depositary, will trade on the New York Stock Exchange. Each American Depositary Share (ADS) issued under the program represents One-Ninetieth of a share of common stock. The ADRs will trade under the symbol "SKM" (CUSIP No. 500912 209).

According to the company, Korea Mobile Telecom is Korea's leading wireless telecommunications service provider, serving over eight million subscribers throughout the country. The company is the leading provider of cellular communications services in Korea, serving over two million subscribers, and is also Korea's leading provider of paging services, with almost six million paging subscribers. The company has grown rapidly in the last several years, with sales and net income increasing at compound annual rates of 73.1 percent and 43.7 percent, respectively, during the five years ended Dec. 31, 1995. In 1995, the company had consolidated sales of Won 1,322.5 billion (US$1,704.7 million) and consolidated net income of Won 181.9 (US$234.5 million).

In 1995, cellular service generated 64.1 percent of the company's consolidated sales. The company's integrated national analog cellular network provides service to an area covering approximately 93 percent of the Korean population. The analog cellular service employs Advanced Mobile Phone System ("AMPS") technology, a widely-used analog system developed in the United States. The number of subscribers for the company's analog cellular service has grown from 271,878 at the end of 1992 to 2,267,914 at the end of May 1996, representing a penetration rate of approximately 5 percent. To service this demand, the company has expanded its analog network capacity significantly during the last three years and the company plans to further increase its analog capacity in 1996.

In January 1996, the company introduced a second cellular service using digital Code Division Multiple Access ("CDMA") technology. CDMA is a new digital technology which benefits cellular users by providing better transmission quality and security and new value-added services, as well as network operators by providing greater capacity through more efficient frequency utilization. The company initiated its digital service in January 1996 in the Incheon and Bucheon area (a part of the Seoul Metropolitan area) and in April 1996 commenced offering digital service in Seoul and Taejon. As of May 31, 1996, the company's digital network had a total capacity of 300,000 subscribers. The company plans to further expand its digital service to other key metropolitan areas in Korea (including Pusan, Taegu and Kwangju) by the end of 1996, when the company's digital network capacity is expected to increase to 770,000 subscribers, to offer coverage by the end of 1997 in all major population centers in Korea and to complete its planned digital network expansion by the end of 1998. Although the company expects that digital service will eventually replace analog service as analog subscribers migrate to the digital network, the company plans to operate both systems simultaneously for the next several years. The company was Korea's sole provider of cellular services from the date it began network operations in 1988 until April 1996, when another company began operating a CDMA-based digital cellular system initially in Seoul and Taejon.

The company's business strategy is to maintain its leading position in the growing Korean market for wireless telecommunications services while selectively diversifying into advanced telecommunications and multimedia services.

"On the occasion of listing on the New York Stock Exchange, we would like to increase Korea Mobile Telecom's presence in the U.S. capital market, as well as to further enhance our relationship with the U.S. investors," stated Hyo-Sup Song, director, Treasury Division, Korea Mobile Telecommunications Corp.

Citibank is a leading depositary serving over 500 issuers worldwide. The bank began offering depositary receipts services in 1928 and has been the leading market innovator in recent years. With local presence in 98 countries and unsurpassed strength in delivering on-line information, Citibank is uniquely qualified to support the funding needs of issuers around the world.

CONTACT: Citibank, N.A., New York 

Jarvis Cromwell, 203-975-6037 (Press contact)

S.T. Yang, 212/657-8782 (Business contact)

or

Korea Mobile Telecom

Min-Jeong Kang, 011-822-3709-0684