Hyundai Electronics Signs Agreement to Export 6 Million Mobile Phone Units to the U.S.

Valued at $1.2 billion, this contract is the largest ever transacted by any Korean mobile telephone handset manufacturer. “Hyundai Electronics is excited to have this opportunity to supply product to AudioVox, currently the second largest distributor of CDMA handsets in the U.S.,” said Young Hwan Kim, president and chief executive officer with Hyundai Electronics. “This agreement validates the quality and reliability of Hyundai Electronics state-of-the art technology. AudioVox plans to distribute Hyundai mobile telephone handsets to many of its valued customers, including PrimeCo, Bell Atlantic Mobile, AirTouch, GTE, U.S. Unwired, MCI Worldcom, and others.” Hyundai Electronics has been a supplier of digital and PCS (personal communications service) handsets to AudioVox since 1998. In 1999 alone, AudioVox purchased more than 1 million units of Hyundai PCX-1000 model handsets. The contract with AudioVox is expected to boost Hyundai Electronics market share in the U.S. mobile phone market to 16 percent this year, up from 7 percent last year. Hyundai began exporting CDMA mobile telephone handsets to the U.S. in 1998, with total sales of 500,000 units that year. In 1999, Hyundai exported a total of 2.5 million units, and expects that figure to rise to 8 million this year. In contrast to Hyundai previous handset exports, which primarily consisted of low- and mid-priced products, new product innovations are shifting Hyundai production to high-performance, higher-end products. Hyundai exports to AudioVox will include the Tri-mode Phone, capable of communicating in three modes: analog, 800 MHz digital, and 1.9GHz PCS. Hyundai also plans to export an enhanced mobile telephone mobile with web-access capability to support convenient e-mail and web-browsing applications. In addition, Hyundai recently announced its sale of PCS Base Station Equipment to AirTouch. Hyundai Electronics Telecommunication Division continues to focus on innovations to further diversify its products and to advance its goal of assuming a leadership position in the telecommunications industry. About Hyundai Electronics Industries Co., Ltd. Hyundai Electronics began offering wireless communications solutions in 1995 when it developed one of the first wireless handsets utilizing code division multiple access (CDMA) technology for cellular and personal communications services (PCS). Today, service providers and those responsible for private networks look to Hyundai as a partner to provide CDMA handset and network solutions for mobile voice and data, wireless office, and wireless local loop for traditional and packet networks. Hyundai Electronics America (HEA) was established in San Jose, California in 1996. The Telecommunications Division provides Sales and Technical Support to customers in the Americas for CDMA wireless handsets and networks, as well as digital subscriber line (DSL) equipment for high-speed Internet access. ISO 9001 certified production takes place at Hyundai Electronics Industries Co., Ltd.’s (HEI) large-scale production facility in Ichon, Korea.