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HANARO TO CONDUCT KOREAN TRIAL OF FLARION WIRELESS BROADBAND.

Flarion Technologies, Bedminister, N.J., the architect of the flash-OFDM(TM) wireless broadband system for licensed wireless operators, and Hanaro Telecom (KOSDAQ:33630, NASDAQ: HANA), one of Korea's leading high-speed Internet and e-business companies, have announced that Hanaro Telecom will conduct a field trial of Flarion's flash-OFDM(TM) wireless broadband system.

Hanaro Telecom is seeking to develop a combined wireless and wireline service with Flarion's broadband wireless system, which will support their strategy of becoming the leader in next generation high-speed wireless Internet technology. With this service, residential customers will be able to use broadband Internet both inside and outside of their homes. The Korean government is reviewing its policy for use of 2.3GHz frequency for broadband wireless Internet and Hanaro Telecom is testing with Flarion in order to support government policy and Korea's 2.3GHz wireless system development.

"High-speed Internet in Korea has surpassed 10 million subscribers and the market has become very competitive. Providers have begun giving up profits to maintain their market share," said Yun-Sik Shin, CEO of Hanaro Telecom. "Hanaro Telecom plans to create a new 2.3GHz wireless Internet market that will achieve the same level of success we have had with ADSL."

With Flarion's flash-OFDM technology, users experience comparable performance, security and bandwidth allocation as they would in an office on a shared Local Area Network (LAN) environment, without making any modifications to user settings, applications, protocols, content or devices.

"We are pleased to have the opportunity to work with Hanaro Telecom on this trial of our flash-OFDM technology," said Ray Dolan, chairman and CEO of Flarion Technologies. "Hanaro Telecom has become a leading broadband Internet provider and now, they have the opportunity to become one of the leading providers of high speed wireless Internet."

"With more than 10 million wired broadband connections, Korea is the world leader and has defined the wired broadband market. And with almost a 70% penetration rate for cellular service, the country values mobility," said Sauk-Hun Song, senior analyst with Gartner. "With the right technology, there will be a wireline-to-wireless conversion that will enable the same broadband data user experience on a wireless network that is currently available on a wired network. The technology needs to be based on the Internet Protocol (IP), packet-switched, with broadband data rates and low latency. If operators can deliver this type of user experience, then we will see this conversion take place very quickly."

Beginning in April of 2003, Hanaro Telecom, in order to help set their strategy for wireless Internet, will begin broadband wireless Internet service testing of Flarion's flash-OFDM system. The deployment of 2.3 GHz high-speed wireless Internet systems will require significant investment in Internet infrastructure. However, Hanaro Telecom, which currently provides local high-speed fixed line services, can leverage their existing IT infrastructure and thereby avoid these high infrastructure investment costs. The results of the trial testing will help set the technology standard for 2.3GHz and will also serve as a market validation tool to help reduce market risk for operators.

The testing will confirm Flarion's wireless Internet performance, scalability, link budget, performance in the frequency environment and transparent delivery of enterprise and lifestyle applications over an end-to-end IP network infrastructure. The trial will be conducted in the Ilsan area, utilizing the 2.3GHz frequency band and requiring only 1.25MHz of paired FDD spectrum. Hanaro Telecom will deploy Flarion RadioRouter(TM) base stations and utilize existing towers and backhaul infrastructure. In addition, users will have Flarion's Wireless modems for their laptops and Personal Digital Assistants (PDAs), so that they can experience broadband Internet access, email, online gaming and all other IP applications.

About Hanaro Telecom

Founded September 23, 1997, Hanaro Telecom Inc. is one of Korea's largest high-speed Internet service and local telecommunications providers. The company, which was established in 1997 and commenced commercial operations on April 1, 1999, is the only competitive local exchange carrier in Korea licensed to provide voice telephony services across its own last-mile access network. It also provides broadband Internet access, multimedia content and corporate data services bundled with voice telephone in an integrated package. Hanaro deploys multiple broadband last mile access technologies to ensure rapid rollout in high-density areas while preserving access speeds and minimizing coverage overlaps as well as capital expenditure. Hanaro listed on the NASDAQ through issuance of American Depository Receipts (ADRs) on March 29, 2000. Its common shares are listed on KOSDAQ. More information about Hanaro Telecom can be accessed at www.hanaro.com.

About Flarion Technologies

Flarion Technologies is unwiring the Internet with its innovative communications network technology. Flarion's flash-OFDM(TM) technology, which originated in Bell Labs, enables licensed wireless operators to profitably offer Internet Protocol (IP)-based broadband services. For wireless operators, Flarion's technology has the lowest cost per broadband subscriber as compared to any wireless system in the world. Flarion's RadioRouter(TM) base station product easily overlays onto an operator's existing network and radio spectrum, and provides a seamless routing interface to the operator's existing IP network. Flarion's flash-OFDM-based devices provide users wireless Internet access with a true broadband experience. Flarion Technologies is based in Bedminster, New Jersey (USA). The company has been named as the #1 company on Unstrung's "Top 25" and "Top 10 to Watch" by Red Herring Magazine. Investors include Bessemer Venture Partners, Charles River Ventures, Cisco Systems, Equitek Capital, New Venture Partners II LP, Nassau Capital, Pequot Capital and SK Telecom.

For more information, visit http://www.flarion.com or call 408/202-4278.
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Comment:HANARO TO CONDUCT KOREAN TRIAL OF FLARION WIRELESS BROADBAND.
Publication:Worldwide Telecom
Geographic Code:9SOUT
Date:Feb 1, 2003
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