Hyundai Spins Off Monitors Business Unit

Seoul, Korea, Aug.17, 2000 – Hyundai Electronics Industries Co., Ltd. announced that it has spun off its Monitors business unit in order to enable that business entity to further specialize in multimedia products. Named Hyundai Image Quest, the new venture will produce not only its existing display monitors but also notebook computers and web terminals for Internet access. Mr. Hong Ki Kim, a former vice president of Hyundai Electronics Industries, is the newly elected president and chief executive officer of Hyundai Image Quest. The company is operating with a paid-in capital of 30 billion won and a debt-to equity ratio of 110 percent. Hyundai Image Quest employs a total of 800 people (300 Koreans and 500 Chinese) in its three plants, two located in Korea and one located in Tianjin, China. By focusing on the production of value-added information technology (IT) products such as web terminals, Hyundai Image Quest is expected to generate sales of 600 billion won next year, 800 billion won in 2002, and 1 trillion won in the year 2004. The company will establish global production and marketing bases by spinning off the Monitors units of overseas subsidiaries of Hyundai, expanding the Monitors production facility in China, and securing production facilities in the U.S. and Europe. By focusing on free cash flow management and strategic alliances with venture companies specializing in the IT industry, the management of Hyundai Image Quest is seeking to increase the new venture’s corporate value. The new company is expected to be registered in the KOSDAQ market by 2001.