Hanaro T&I Turns to IBM Korea for Transformation of Call Center Operation

IBM Korea to Deliver Advanced Call Center Services From Newly Opened BTO Delivery Center in Jeonju City

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SEOUL, KOREA - 31 Oct 2006: IBM (NYSE: IBM) announced today that it has entered into a Business Transformation Outsourcing (BTO) contract with Hanaro T&I Inc. to transform and manage its call center operations, streamlining Hanaro T&I's business operations and improving customer service. The service will be delivered out of IBM's first BTO delivery center in Jeonju City, Korea, which was jointly opened today by representatives from IBM Korea, Jeonju City, Jeonju Kijeon College and Hanaro Telecom.

Hanaro T&I is the first customer in IBM Korea's newly opened BTO delivery center in Jeonju City, which will provide advanced call center services. The center will be expanded over time to provide support to other Korean companies to meet the growing demand for process outsourcing and transformation in Korea.

IBM was selected to help transform and manage the call center operation of Hanaro T&I in recognition of its transformation capability and proven experience. IBM Korea will collaborate with Jeonju City, Jeonju Kijeon College and Hanaro Telecom to build call center infrastructure and facilities, providing advanced call center services to improve Hanaro's peak-time service level and enhance client satisfaction.

Hanaro T&I, a wholly owned subsidiary of Hanaro Telecom, which is the second largest telecommunications provider in Korea, was challenged to maintain call center service level in response to increasing call volume and rapid turnover of call center operators. Hanaro T&I runs a call center with close to 2,000 agents providing customer care and technical support services to Hanaro Telecom customers. The center was a consolidation of all the call centers across Hanaro Telecom Group following the merger of its two subsidiaries, Hanaro Customer Service, Inc. and Hanaro Interdesk, Inc. to form Hanaro T&I in 2002.

"As we continue to expand our business, it is important that we maintain a world-class call center operation to deliver differentiated, high quality services for our customers," said Youngwan Cho, President, Hanaro T&I. "We are pleased to engage IBM in this project based on their deep industry expertise, proven experience in call center transformation and world-class global delivery capabilities. With IBM helping transform and manage our call center operation, we will improve client satisfaction and operation efficiency."

Under the industry-academia cooperation model, IBM Korea will be responsible for the development of call center application, knowledge management, online learning and customer satisfaction programs to enhance the agents' performance. Jeonju City and Jeonju Kijeon College will provide support in agent recruitment and basic skills training.

"IBM sees tremendous opportunities for its CRM BTO business in the Korea domestic industry as more Korean companies begin to realize the benefits of process outsourcing and transformation. This engagement will consolidate our position as the trusted business partner for Asian telecommunications carriers," said Randy Walker, General Manager, Managed Business Process Services, Asia Pacific.

The new delivery center is expected to emerge as a hub of advanced call center services for domestic businesses in Korea. It will be supported by 200 agents at the start and will reach its full capacity of 1,000 seats over the next five years. "This is an important establishment to support regional economic development and revitalization. It will also help address local unemployment as we will give priority to local residents during recruitment," said Jeonju City Mayor Song Ha-jin.

The opening of this BTO delivery center in Korea will further augment IBM's vast global delivery network that spans three dozen countries around the globe. In the Asia-Pacific region, IBM has 20 centers delivering BTO services in Japan, Australia, China, India and the Philippines. IBM delivers BTO services to clients across the globe including D&B, Bharti, ACOM, JARC and Kyobo Life.

About IBM

For more information, please visit www.ibm.com

About Hanaro T&I

Hanaro T&I, is a wholly owned subsidiary of Hanaro Telecom, the second largest telecommunications provider in Korea. It was established in January 2002, following the merger of Hanaro Customer Service, Inc. and Hanaro Interdesk, Inc.,bringing together all the call center of Hanaro Telecom. Hanaro Customer Service, founded in October 1998, was responsible for customer care service, including service guide, customer registration and telephone guide. Hanaro Interdesk, set up in March 2000, took care of complaint reporting and technical support services. Hanaro call centers are located in four major cities in Korea -- Seoul, Gyeonggi, Busan and Gwangju -- providing round-the-clock service for customers anywhere in the nation. For more information, please visit: http://www.hanaro.com/eng/company/

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