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Subject COWON, Total revenue 16.8 billion for 2002 Date 2003.04.02
- Revenue 16.8 billion won (increased by 99% compare to last year), net profit 3.6 billion won (increased by 100% compare to last year)
- To be registered in KOSDAQ index in June for the first time in the MP3 player industry
- Target turnover for 2003 increased two folds to 35 billion won

April 2, 2003 in Seoul – COWON SYSTEMS, a digital multimedia company (President: Nam Kyu, Park www.cowon.com) announced 16.8 billion won of revenue and 3.6 billion won of net profit for 2002 after the audit.

The revenue (8.45 billion won in 2001) increased by 99% and the net profit (1.8 billion won in 2001) increased by 100% compare to last year, proving that COWON SYSTEMS is sustaining a strong growth aided by 'iAUDIO', a portable MP3 player and a next generation digital audio device substituting walkman, despite of fall in retail consumption sentiment.

The detailed breakdown of the revenue is as follows: 12.2 billion won of MP3 players, 4.2 billion won of wireless internet and 400 million won of others include jetAudio. Especially, the sales of the MP3 players, the company's focusing business, increased by 578% from 1.8 billion won in 2001 to 12.2 billion won aided by a phenomenal success of 'iAUDIO CW200'.

COWON SYSTEMS is a up and coming company developing digital multimedia business by providing hardware (MP3 players), wireless internet (solution, contents), software (Jet Audio), on-line games and etc. Being a blue-chip venture company with 17% debt ratio, 21.3% profit ratio and 43% ROE, it is planning to be listed in KOSDAQ index in June after submitting the financial statements to Securities Management Committee this month.

In the mean while, COWON SYSTEMS is targeting 35 billion won for 2003's total revenue, which is twice as much as 2002. Among 35 billion won, the company is aiming to sell more than 120% of last year's sales record of 12.2 billion won to 27 billion won of iAUDIO, the MP3 player. Together with JetAudio Inc., a US subsidiary company of Cowon, the company is actively developing new markets such as US and Europe. Also, based on broadband wireless Internet, the company's expected revenue from Music On Demand, Ring Back Tone, Ringing Sound and Karaoke is more than 60% of last year's sales to 7 billion won. jetAudio, the company's flagship software, is expected to record regular sales after having its market entrance period with a new version and to promote successful penetration of 'Partyparty (www.partyparty.co.kr)', a 3D avatar game.

The president of the company, Mr. Park, Nam Kyu said, 'COWON SYSTEMS have settled as a digital audio total solution business based on the triangular structure with 'iAUDIO'- the hardware, JetAudio- the software and wireless internet contents services,' he continued, 'we expect more than two folds of sales growth this year with registering KOSDAQ index, giving synergy effect from one business to another.'