Billings increase 1.0% as overseas subsidiaries drive growth Seoul, July 24, 2007: Cheil Communications Inc. (KE:030000), one of the world's top 20 advertising and marketing communications agencies, has announced its financial results for the second quarter ended June 30, 2007. Earnings for the quarter were steady as the slow recovery in the South Korean advertising market was offset by strong business growth by Cheil's overseas subsidiaries. Total billings for the second quarter increased 1.0% year-on-year to 506.2 billion Korean won. Net income for the quarter dipped to 15.5 billion Korean won, down 21.4% from the same quarter last year. Cheil's domestic performance was solid for the quarter after registering double-digit growth during the same period last year. Domestic billings rose 1.5% to 256.1 billion Korean won as Cheil executed major campaigns for KTF's 3G mobile service 'Show' and Samsung Life Insurance. Cheil also picked up several new domestic accounts - including Mr. Pizza, SK Engineering Construction, and Woomi Construction #8211 boosting billings by 25 billion Korean won for the quarter. Cheil's overseas billings reflected a decision by key client Samsung Electronics to transfer its marketing spend from headquarters to its global subsidiaries. Cheil's total overseas billings increased 0.4% to 250.1 billion Korean won for the quarter, while billings at overseas subsidiaries rose 31.1 percent to 148.2 billion Korean won. Overseas billings were driven by major global advertising campaigns for Samsung Electronics' cutting edge mobile handsets and flat panel TVs. By media, billings for the four traditional media - TV, radio, newspapers, and magazines - was down 1.8% year-on-year to 158.8 billion Korean won. New media billings continued to grow rapidly with cable television expanding 37.7% to 17.5 billion Korean won while internet grew 37.5% to 7.7 billion Korean won. Mr. Nack-Hoi Kim, president and CEO of Cheil Communications Inc., said he expected billings to pick up significantly in the second half of 2007. 'We see robust growth in the second half as key clients begin to roll out new global marketing campaigns and new clients look to expand domestic advertising activities,' Mr. Kim said. 'Looking ahead, we expect marketing activities supporting Samsung Electronics' role as an official sponsor of the Beijing 2008 Olympic Games will gather momentum into next year.' Cheil's key global activities and highlights for the quarter included: #8226 Won turnkey project worth approximately 150 billion Korean won to provide full event and marketing support for the World City Expo 2009 Incheon, Korea. Cheil was bidding as part of a consortium with POSCO Engineering Construction. #8226 Established continuing education program focused on global strategy in coordination with the Wharton School of Pennsylvania University in the U.S. #8226 Won three awards in the 17th Annual Astrid Awards, including the Grand Award for Annual Reports Corporate for the Samsung Annual Report 2005.