Cheil Communications releases Annual financial results for 2006 Billings hit record 1,848.7 billion Korean won on overseas growth Seoul, January 16, 2007 : Cheil Communications Inc., one of the world's top 20 advertising and marketing communications agencies, has announced its financial results for the fourth quarter and full year ended December 31, 2006. Earnings exceeded expectations in the fourth quarter due to strong growth in overseas operations, increased new media billings and the successful execution of broad-ranging marketing activities for Samsung Electronics surrounding the Asian Games Doha 2006. Total billings for the fourth quarter rose 3.6% year-on-year to 637.3 billion Korean won. Net profit for the quarter grew strongly to 30.4 billion Korean won, up 50.4% from the same quarter last year. For the full year 2006, billings rose 9.0% to 1,848.7 billion Korean won, the highest level ever recorded by a South Korean advertising agency. Net profit in 2006 rose 33.6% to 70.4 billion Korean won. Oversees billings led Cheil's performance in the fourth quarter, increasing 5.9% to 392.1 billion Korean won. Earnings overseas continued to be boosted by the expansion of Cheil’s global network, which now spans 31 offices in 24 countries. In Korea, Cheil's billings remained stable despite weakness in the domestic advertising industry. Domestic billings reached 245.3 billion Korean won in the fourth quarter, up 0.1%, as Cheil acquired several new clients, including South Korea's Government Information Agency and food beverage maker Binggrae. Billings for new media marketing continued to grow strongly in the fourth quarter. Cheil's Internet advertising billings increased 224.4% to 20.3 billion Korean won, while cable television billings rose 49.5 percent to 16.4 billion Korean won. Head office billings for the four traditional media television, radio, newspapers and magazines were down 11.4 percent to 255.5 billion Korean won. Mr. Dong-Man Bai, president and CEO of Cheil Communications Inc., said the fourth-quarter results capped off a record-breaking year for the company despite weak growth in the South Korean economy. 'Cheil's performance in the fourth quarter of 2006 was outstanding and finishes out a breakthrough year. The consistent growth in Cheil's overseas billings reflects our steady transformation into a leading marketing communications agency with a truly global reach. In 2007, we must continue to build on this momentum by developing our marketing capabilities abroad and developing a diverse domestic client base,' Mr. Bai said. Cheil also announced plans to pay out an increased dividend in the first quarter of 2007 as part of its policy of shareholder-oriented financial management. A dividend of 7,000 Korean won per share, up from 5,000 Korean won per share in 2005, will be approved at Cheil’s Annual General Meeting in late February and paid out in late March. The dividend is equivalent to 43% of Cheil's net income for 2006.