Pantech & Curitel and SK Telecom Form Global Strategic Alliance
Pantech & Curitel acquires 60% ownership of SK Teletech from SK Telecom

SEOUL, May 3, 2005 - Pantech & Curitel Communications, Inc. - an affiliate of Pantech, one of the world's leading mobile communications groups - has announced that it has reached an agreement with SK Telecom Co., Ltd. to acquire 60% of the shareholding of SK Teletech Co., Ltd., the handset manufacturing arm of SK Telecom.

The transaction is part of a major global strategic alliance between Pantech & Curitel and SK Telecom, under the terms of which the two companies will collaborate in joint research and development initiatives and will work together in the global expansion of their respective businesses into overseas markets, particularly the U.S.

Dr. Moon S. Song, President & CEO of Pantech & Curitel Communications, Inc., said: "We believe that there is a unique synergy between our two organizations. With export driven international experience on our side, and the largest mobile carrier in Korea on the SK Telecom side, this alliance will create both a new force in the global market, and a new business model in the international mobile communication industry".

The alliance means that Pantech - through its affiliates, Pantech & Curitel Communications, Inc. and Pantech Co., Ltd. - will deliver over 30 million handsets per annum, furthering its ambition of becoming one of the world's top five handset manufacturers.

The total value of the transaction amounts to approximately KRW 300 billion, at KRW 66,050 per share. SK Telecom currently holds 89.1%, or 6,747,421 shares, of SK Teletech. The sale, by SK Telecom, of 60% of the shareholding of SK Teletech to Pantech & Curitel leaves SK Telecom in control of 29.1%, or 2,205,421 shares, of SK Teletech.

SK Telecom is scheduled to complete the transfer of the acquired shareholding to Pantech & Curitel within the first half of 2005. Pantech & Curitel will eventually assume overall management control of SK Teletech. However, SK Telecom will maintain its shares of SK Teletech for at least the next four years to reserve certain management rights.

The strategic alliance between Pantech & Curitel and SK Telecom will involve a number of shared principles and objectives. The two companies will jointly develop futuristic, strategically targeted handsets through cooperative efforts in R&D, investment and product distribution.

Pantech & Curitel and SK Telecom will also work together on expansion into global markets, through shared market intelligence and product information. In addition, the two companies - while respecting existing business relationships with other entities - will seek to create economies of scale through integrated purchases.

Another key element of the alliance is that Pantech & Curitel will be in a position to utilize the SKY brand, which is regarded as a high tier handset offering among local customers.

About Pantech & Curitel Communications, Inc.:
Pantech & Curitel Communications, Inc. is one of the leading handset manufacturers in Korea and the world. Since 1983, the company, which is listed on the Korea Stock Exchange, has been designing and manufacturing mobile phones for the Korean and global markets and has built up a worldwide reputation for excellence and innovation in the mobile communications sector. In 2004, Pantech & Curitel Communications, Inc. was responsible for the launch of the world's first 3 mega-pixel CMOS camera phone and the world's first 2 mega-pixel camera phone. Last year, the company also successfully developed the world's first mobile phone fitted with Zigbee, the short distance wireless technology. For more information, visit www.curitel.com.

About Pantech:
Pantech, through its affiliates - Pantech Co., Ltd. and Pantech & Curitel Communications, Inc. - is one of the world's leading providers of mobile communications solutions. Both affiliates are collectively better known as 'Pantech'. Pantech Co., Ltd. was set up in 1991 as a pager manufacturer within a rapidly expanding market. In August 1997, Pantech Co., Ltd. was listed on the Korea Stock Exchange and moved into the development and production of CDMA and GSM handsets. Pantech & Curitel Communications, Inc., which is also publicly traded on the Korea Stock Exchange, has been developing industry leading Analog, CDMA, and GSM/GPRS products since the 1980s. Pantech, through its affiliates, has been responsible for a number of breakthrough innovations in the mobile technology sector, including the introduction in 2004 of the world's first fingerprint recognition camera phone, as well as award winning camcorder and MP3 phones. Pantech collectively has more than 3,500 employees and a total of 15 regional sales offices worldwide. For more information on Pantech, please visit www.pantech.com or www.curitel.com.