Korea Thrunet to Introduce Enterprise Resource Planning System.

SEOUL, South Korea, and NEW YORK, July 26 /PRNewswire/ --

Korea Thrunet Co., Ltd. (Nasdaq: KOREA) ("Thrunet"), Korea's largest cable modem broadband Internet-access services provider and a major provider of enterprise network services, announced today that the Company will implement an Enterprise Resource Planning (ERP) system beginning in the second half of fiscal 2001. The ERP system is an integrated information system designed to enhance a company's competitiveness by more efficient management of all human resources and physical assets.

Thrunet will utilize Oracle Korea Ltd.'s ("Oracle") ERP product, 'Oracle E-Business Suite', while Korea Samis, Inc, a subsidiary of the Korean accounting/consulting firm Samil, will consult on implementation of the ERP system within the Company. Samil is also a member firm of PriceWaterhouseCoopers. For the successful launch of its ERP system, Thrunet has formed a task force team. After the completion of its business analysis and system design by the end of July, the Company expects to finish testing and the implementation by 2001 year end and the system to be fully in place in the beginning of 2002.

One of the major advantages of using an ERP system is the enhanced ability to control and manage assets as well as better monitor financial and operating performances of the Company. Up until now, Thrunet has been using various Management Information Systems (MIS) relating to its accounting, asset management and customer relation functions, which were operating completely independent of each other. Following the full implementation of the ERP system, the Company expects to be able to control and manage unified information from sales and purchase orders that can be shared on the front-end, all the way through to managerial accounting functions on the back-end.

The Company noted that the biggest reason for choosing Oracle's ERP product is its modularity and expandability. Unlike other ERP packages, Oracle's ERP system allows Thrunet to purchase and implement one module at a time, and other modules thereafter, when needed, with full interfaceability. This means that Thrunet does not have to revise the entire ERP system to introduce a new module.

Charles Rim, Senior Vice President and Chief Financial Officer, commented, "As the Company has experienced tremendous organic growth since its inception, the need for an integrated and unified Information System to help monitor and assess operating performance and asset management has grown enormously. By implementing the ERP system, we can enhance our productivity by eliminating unnecessary and redundant business processes, and increase our organizational efficiency through integrated and unified communication of information. We will also be able to effectively address the rapid change of the market and our customers' needs by having immediate access to necessary data and information on time."

Founded in July 1996, Korea Thrunet Co., Ltd. is a major provider of broadband Internet access services and enterprise network services in Korea. The first to offer broadband Internet services in Korea, with 1,050,807 paying end-users at the end of June 2001, Korea Thrunet currently passes over 8.3 million homes. Thrunet service features "always-on " Internet access at speeds up to 100 times faster than traditional dial-up Internet access. On the enterprise network side, Korea Thrunet provides dedicated leased line services to more than corporate 310 customers, with major Korean telecommunications companies such as SK Telecom and Shinsegi Telecomm accounting for a substantial majority of enterprise network revenues.

This release may contain forward-looking statements that are subject to risks and uncertainties. Important factors which could cause actual result to differ materially from those in the forward-looking statements, include but are not limited to: the Company's short operating history which makes it difficult to predict its future results of operations; the Company's history of operating losses and expected future losses which could impede its ability to address the risks and difficulties encountered by companies in new and rapidly evolving markets; the Company's future operating results could fluctuate which may cause volatility or a decline in the price of the Company's stock; the possibility that the Company may not be able to price its services above the overall cost of bandwidth causing its financial results to suffer; and other factors detailed in the Company's filings with the Securities and Exchange Commission.

Corporate Headquarters: Korea Thrunet's principal offices are located

at 1337-20, Seocho-2 dong, Seocho-ku, Seoul, Korea 137-751.

Phone: 822-3488-8058 Fax: 822-3488-8511

http://www.thrunet.com

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