HOMENEWSPress Release Subject COWON, No.2 in Domestic MP3P Market Share Date 2005.04.28 - Green light for 20% domestic market share target this year - 12.3% and 13.3% domestic offline market share based on quantities sold and sales, respectively - Top 3 companies earn 55.2% and 61.0% in domestic offline market share based on quantities sold and sales, respectively April 28, 2005, Seoul – COWON SYSTEMS, Inc. (CEO: Park Nam Gyu, www.cowon.com) announced on April 28th that it rose to the No.2 position in the domestic offline MP3 player market in both quantity and sales volumes for the first quarter of this year, according to market research by GfK Marketing Service Korea. GfK’s research covered major MP3 player distributors in Seoul, Inchoen, Gyeonggi, Gyeongnam, and Gyeongbuk. COWON SYSTEMS, Inc. took second place with 12.3% and 13.3% market share based on quantity and sales, respectively. According to GfK, COWON SYSTEMS, Inc. market share showed a rising trend in January with a 12.2% share by sales, and 12.9% in February, widening the gap with the No.3 manufacturer by over 1% and firmly securing its position as No.2. COWON SYSTEMS, Inc. strengthened its product line-up and followed up with vigorous marketing activities starting in the second half of last year. New product releases included the ultra-compact and fashionable MP3 player, “iAUDIO U2”, a hit model, the iAUDIO G3 with continuous playback for up to 50 hours, and the iAUDIO5, an MP3 player to support the first Korean ubiquitous music service, “Melon”, in partnership with SK Telecom. For this result, Sales and Marketing Director Lee Gi Ung said, “iAUDIO used to be known only to ardent users of MP3 players in Korea, but thanks to its unique designs, excellent customer service, and high-fidelity sound, combined with continuous brand marketing efforts, iAUDIO has succeeded in appealing to general consumers.” COWON SYSTEMS, Inc. also revealed its newest HDD-type model, the iAUDIO X5, that can play back video as well as audio, and is enjoying favorable sales. This model hit the top five HDD-type MP3 players in large Internet shopping malls such as GS eShop and Interpark, within 15 days of its launch. The iAUDIO X5 boasts a huge memory capacity of 20 to 30 GB and setting aside its low-price HDD-type competitors with just 4 to 6 GB capacity, despite its high price tag of 300,000 to 400,000 won. It has been in the spotlight thanks to powerful features including its ultra-slim design and long playback time of up to 35 hours. COWON SYSTEMS, Inc. plans to achieve its target domestic market share of 20% this year by introducing various state-of-the-art flash memory type MP3 players, including the iAUDIO F1 with an organic EL (Electroluminescent) display made of high-tech materials, and the iAUDIO U3 with a color LCD display.