corporation info

1. IPTV Specialized Global Company
CORPORATE PRESENTATION
1H 2009
Disclaimer
Forward-looking statements in the presentation reflect Celrun’s current views with respect to future events and financial
performance, and are subject to certain risks and uncertainties, which could cause actual results to differ materially from those
anticipated. Although Celrun believes the expectations reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be attained. Celrun undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Language English

2. Company Brief
1. Capital & Shareholders Structure
2. Core Competencies
3. Corporate Milestones
4. Major Affiliates & Subsidiaries
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.

3. Company Brief
Capital & Shareholders Structure
■ KOSPI Listed Company ■ Issued Stock summary
• Ticker 013240 • 1st Half end stock price : KRW 2,900(1H 09) VS KRW
2,110(2H 08)
• Par Value per share : KRW 500
■ Capital & Market Capitalization
• BPS : KRW 1,398 in 1H 09 VS KRW 1,244 in 2H 08
• Capital: KRW 15.7 billion
• Outstanding shares issued : 31,436,176 common shares
• Market Capitalization : KRW 85 billions(As of end of 1H 2009)
■ Shareholders Structure (As of end of 1H 09 )
1
1.8%
16.2%
1.7%
2.0%
6.2%
72.2%
Dprotech CelrunSN TG Energy Shinhan PE Affiliate person Individuals
1 Dprotech of which major shareholder being Young Min Kim, current CEO of Celrun is major shareholder of Celrun Co., Ltd.
Note: Percentile indicated in regard to shareholder structure above is only for illustrative purpose and may not be precise.
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
3

4. Company Brief
Core Competencies
■ Celrun‟s Unique Business Model Comparative Advantage over other STB makers
• Commercialization of Head-end solution with various patents
including DRM/CAS for IPTV/VOD first time in Korea
• Offer STB and Head-end solution as package deal → Increase
dependence on vendor dramatically → Carry out project in
partnership
• Full spectrum of product portfolio from IPTV/VOD STB to hybrid Capability to establish business and strategic relationship for successful
STB that allows satellite/Cable/Terrestrial signal?? implementation and operation with business partners
• Launch of IPTV-enabled PC utilizing Trigem‟s H/W platform first
in the world → Proposal to IPTV operators → Accommodation of Only Company with technology and Know-how from STB
IPTV PC by IPTV operators in near future manufacturing to system integration in Korea
Products lineups for state-of-the-art multiple media platform such as
IPTV/Satellite/Cable etc.
■ 2008 Sales Breakdown :
In-house solution
Products Amount(KRW „000) % Commercially In-house end-to-
development
proven reliability end solution
capability
IP STB 70,442 53.8%
IPTV PC 10,500 8.0% Price Competiveness secured by consolidation of procurement and
VOD server 6,303 4.8% production activities with TG
DMB/PMP 4,451 3.4%
Intellectual Property
Technological Technological
Satellite STB 2,537 1.9% Protection for vital
technologies ownership Breakthrough
Others 36,612 28.0%
Total 130,845 100.00% Continuous R&D Efforts
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
4

5. Company Brief
Major Milestone
TG USA Haansoft
Woori Solar
Subsidiary Acquisition
Subsidiary
Completed
Skylife CAS Development &
HD STB Supply Contract Conversion of
OnTown (KRW 9.7 bil) TG Enregy AR
Subsidiary
into Equity
KRW 33.6 bil Haansoft
Supply Contract Share Purchase
With OpenSat Lds Conversion of
Cash Dividend Decision Agreement
Hantle System AR
into Equity Early Redemption of
Acquired &TV KRW 30 bil CB
Communications & KRW 15 bil
stakes rights offering
2008 2009
Hybrid STB LG Dacom
Supply Contract IPTV STB
with Opensat(EU) Supply Agreement
Educational IPTV
Hybrid STB STB Supply Contract
Supply Contract with Keysco
with Freetech(US) (KRW 13 bil )
Selection as preferred negotiator
for Skylife CAS provision
Hanaro Telecom
Call Option Exercised
Among other things in the year 2008, management attention was focused on 1) straighten out group matters
COMMENT including addition of subsidiaries and corporate governance reformation and 2) marketing efforts in order to
diversify source of sales revenues, expected to be recorded as sales in the year 2009.
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
5

6. Company Brief
Major Affiliates & Subsidiaries
■ Business network of Celrun
As of end of 2008, Celrun currently directly or indirectly has stakes in a total of 26 subsidiaries and affiliates including Trigem, CelrunSN
and TG Energy. Through synergy out of these affiliates and subsidiaries, current management of Celrun seeks to achieve strategic goal of
Celrun and its affiliates and subsidiaries as a group.
(unit : KRW bil)
Company Name Listing Capital Sales in1H ’09 Main Business Operation
Celrun KOSPI 15.7 34.7 IPTV/VOD solution & Set-top-box(STB)
TG Computer Non-listed 94.4 360 PC/Navigation/PMP
Haansoft KOSDAQ 12.2 12.9 Software Bundle / Thinkfree
Celrun SN KOSDAQ 14.1 7.4 Digitial Contents / Optic Communication
TG Energy KOSDAQ 12.8 2.2 ILM / Dye-sentisized Solar Cell
Dprotech Non-listed 13.2 1.6 Development of IPTV Head-end solution
IDCTech Non-listed 3 2.8 Kiosk manufacturing & distribution
OnTown Non-listed 0.03 0.7 Digital Contents / wholly owned by CelrunSN
TG USA, TG Japan,
Including overseas entities of Trigem currently
TG GmbH, TG Non-listed N/A N/A
under liquidation process
Philippines, etc
GROUP NETWORK
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
6

7. Highlights
1. Outstanding Reference on IPTV
2. Synergy Maximization as Celrun
Group
3. Blue Print for Overseas Market
Expansion
4. Product portfolio – Part 1(H/W)
5. Product portfolio – Part 2 (S/W)
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.

8. Highlights
Outstanding Reference on IPTV/VOD STB
KT (Korea)
Local IPTV/VOD Market Weather Map
High and low-priced STB passed rigorous KT Bench-mark testing(BMT)
- Function : SD/HD VOD, Multicasting, Internet, Display Phone, Game
- Sales : 6,700 (Head-end S/W)
UPS (Japan)
Successfully developed and commercialized TD700 model for United
Power System (UPS) in Japan in 2001
- Function : VOD, T-commerce, VoIP, Home Security
- Sales : 100,000+
Target subscriber Target Subscriber Target Subscriber
1.2 mil 1.2 mil 0.5 mil
Leopalace21 (Japan)
Delivered 350K units with MPEG1/2, IPTV VOD, internet browsing
Streaming
Samsung 25%
functions for Leopalace21 BB service since October 2001
Progressive D&P
Progressive D&P
- Function : VOD, Multicasting, Internet, VoIP, etc. Celrun 80% Celrun 90%
Humax 25%
- Sales : 500,000+
Dasan Network 25%
Maginet (Korea, Singapore)
D&P
Mirinet 12.5%
Celrun and MagiNet delivered Hotel VOD system together in many 5
Maverick 12.5% Hyundai digital
star hotels located in Asia tech 20% Gaonmedia 10%
- Function : VOD, Multicasting, Internet, etc
STB Vendor Accumulative STB Vendor Accumulative
- Sales : 50,000+ STB Vendor Accumulative
Unit Delivery % Unit Delivery % Unit Delivery %
Hanarotelecom (Korea)
†Source: Company estimate
Exclusive STB vendor for HanaTV, Hanarotelecom TV portal service
for 2 years since service commemoration (March 2006 ~ March
-2008)
■ IPTV/VOD STB Unit Accumulative Delivery :
Function : HD VOD, HDTV, Karaoke, Game
- Sales : Over 1,000,000 units
Over 2 Million Units
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
8

9. Highlights
Synergy Maximization as Celrun Group
■ Group matters straightened out
• B2B Group: Represented by Celrun and Consisted of Celrun SN, Dprotech, IDC Tech
• B2C Group: With Trigem at the center together with TG Service, TG Energy and Overseas TG subsidiaries
• Collaboration on business feasible enough to create synergy between members of Celrun Group and Efficiency Improvement through integration of
procurement and manufacturing by TGK
B2B Group B2C Group
Collaboration
on Business
Enhance mutual Development
cooperation on
business capable of TG Overseas
driving synergy Subsidiaries
Procurement/
Manufacturing
Integration
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
9

10. Highlights
Blue-Print for Overseas Market Expansion
Overseas subsidiaries
Major domestic/overseas partners & buyers
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
10

11. Highlights
Product Lineups (H/W)
■ VOD/IPTV STB Introduction
• VOD/IPTV STB with Progressive download & play technology – Overcomes Existing problems of Bandwidth Issues which optimize Telco‟s
CAPEX Efficiency
• Hybrid STB that blends Satellite and IP, Terrestrial and IP – Selling point for existing platform market not only IPTV markets
• IPTV PC that combine Celrun‟s IPTV Solution / Technology and Trigem‟s Computer Hardware – Ultimate Substitute Product for High-end STB
with Telco‟s IPTV solution embedded
• MMP that allows DivX play – As a B2C product for early adapter only, attempt to secure marketability by utilizing Trigem‟s distribution networks
PRODUCT HIGHLIGHTS
Hybrid STB: Terrestrial +IP /
MMP: Multimedia Player
Satellite + IP / Audio IP STB
Buffer & Play IPTV STB VOD only STB
Business Partner providing
Progressive Download & Play
end-to end solutions including
IPTV STB
H/E, CAS solutions
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
11

12. Highlights
Product Lineups(S/W)
■ H/E Solution
• Celrun developed end-to-end Head-end solutions by in-house Research & Development center which earns successful IPTV commercialization
reference and know-how by launching Celrun TV of which stake subsequently were sold to SK Broadband & TV(previously Hanara Media)
• Celrun‟s CAS were successfully delivered to Skylife for simulcrypt with NDS – the only commercialization reference amongst locally developed
CAS that meets up government policy toward CAS.
H/E solution workflow H/E solution detailed composition
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
12

13. Industry Overview
1. IPTV/VOD Market Outlook
2. IPTV STB M/S in Korea
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.

14. Industry Overview
IPTV/VOD Market Outlook
■ World IPTV Market Outlook
Global IPTV subscribers reached 11 million in 2007 and are expected to reach 62 million subscribers by 2012 with US$ 1.8 billion IPTV revenue in 2007
and US$ 17.5 billion by 2012.
■ Korea IPTV Market Outlook
In Korea, IPTV Subscribers in 2007 reached 1.13 million and in 2012 are expected to increase up to 3.48 million while IPTV Revenue in 2007 US$ 31.75
million and US$ 314.17 million in 2012.
World IPTV Market Outlook Korea IPTV Market Outlook
IPTV Subscribers (thousand people)
IPTV Subscribers (thousand people)
IPTV 수익 (million USD)
IPTV 수익 (million USD)
Source : Ovum (2008) Source : Ovum (2008)
■ IPTV growth trend ■ Group classification according to IPTV growth rate
Fast Developing Group Developing Group Slow Developing Group
IPTV industry growth trend is most likely to occur
worldwide, however, given infrastructure status for Australia, China, Denmark,
Austria, Baltic States, Belgium, Canada, Finland, Germany, Greece, Brazil, India, Indonesia,
each country and market situation, different growth Czech, Greece, France, Hongkong, Hungary, Ireland, Israel, Italy, Malaysia, Mexico, Philippines,
trend is foreseeable in different countries. Table to the Korea, Norway, Portugal, Singapore, Japan, Netherland, New Zealand, South Africa, Thailand, Turkey,
Sweden, Swiss, Taiwan Poland, Russia, Slovakia, Spain, Ukraine Vietnam
right supports just that point, according to recent UK, USA
research paper released by Ovum.
Characteristics per each Group
Countries with existing IPTV Geographic coverage,
Inadequate Communication
marketing and thus less CAPEX High CAPEX requirement,
and time consuming Infrastructure
time consuming
※ Grouping Criteria : IPTV Revenue Level for each countries, broadband status, Competitive status on
Digital TV platform
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
14

15. Industry Overview
IPTV/VOD STB Market Share in Korea
■ Currently in Korea, three major Telcos serve IPTV/VOD market as of 1H 2009. Namely, these Telcos are SK Broadband(Previously
Hanaro Telecom), KT(Korea Telecom), and LG Dacom.
공급수량†† M/S
Units
Shipments
1,200,000 60.0%
50.9% Celrun position strengthened
1,000,000 50.0% • M/S of approximately 51% at 2008 year end
• Virtually monopolistic position with Broad & TV
800,000 40.0%
• Supply contract with myLGtv at 2008 year end
600,000
25.4%
30.0%
expects to contribute more M/S gains
• 2009 onward, due to government aggressive IPTV
400,000 20.0% policy, Educational IPTV market is expected to
10.2% 10.2%
vitalized other than Telco IPTV market
200,000
0.3% 0 0
1.5% 1.5%
10.0%
• Overseas market revitalization most likely to occur
- 0.0%
2010 and afterward with current economic situation
Hyundai Dasan LG
셀런
Celrun 현대디지털텍
Digital Tech 삼성전자
Samsung 휴맥스
Humax 다산네트워크
Networks 미리넷
Millinet 메버릭
Maveric 엘지전자
Electronics 가온미디어
Gaon Media
VOD/IPTV STB M/S Status based on accumulative shipments in 2008
IPTV Service Accum. Subscribers VOD/IPTV Type Vendor Policy Vendor Shipments†† M/S Remarks
Progressive 1st vendor Celrun 1,000,000 50.9%
Broad & TV 800,000 †
download & play 2nd vendor Hyundai Digitaltech 5,000 0.3%
Samsung 200,000 10.2%
Streaming Dual vendor
Humax 200,000 10.2%
QOOK TV
800,000† 1st vendor Dasan Networks 500,000 25.4%
(Previoulsy MegaTV) Progressive 2nd vendor Millinet -
download & play
3rd vendor Maverick -
Progressive 1st vendor LG Electronics 30,000 1.5%
myLGtv 50,000†
download & play 2nd vendor Gaon Media 30,000 1.5%
† Company Estimates 1,965,000
†† Estimates including inventory
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
15

16. Strategic Approach
1. Business Model Paradigm Shift
2. Marketing & Sales Shift
3. Next Growth Engine Pursuit
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.

17. Strategic Approach
Business Model Paradigm Shift
■ Major efforts were exerted on 1) re-grouping of existing business under B2C group and B2B group and 2)integration of procurement
and manufacturing in order to maximize efficiency. As a result, navigation business was transferred to relevant subsidiary and enhanced
main business, end-to-end H/E solution and STB specialty company.
Existing Business Model Enhance Existing BM
(B2B & B2C in mingle)
Existing Business Model Enhanced
(B2B only)
Hybrid STB
(Export only)
B2B B2C CAS for Satellite B2B
(Simulcrypt)
IPTV/V
OD STB
Choice &
Focus Hybrid H/E
STB Celrun Solution
Navigation
MMP CAS
(Conditiona
l Access
System)
PMP
Transfer of business to relevant
subsidiaries
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
17

18. Strategic Approach
Marketing & Sales Shift
■ Attempts to focus on 2nd or 3rd Tier Telcos instead of 1st Tier Telcos, and aggressive expansion into open market. Marketing activities
focusing on establishment of long term partnership by Head-end solution provision not only STB shipments
Major partners & buyers in Korea
Overseas major partners & buyers
Cavalier
Alliance
Gold Line
Opensat
SKB
KT
LG Dacom
ONSE Leopalace21 &TV
United Power Communications
USEN
NEO Index
Mcom
TIT
TransAct
M2B
MITV
Maginet
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
18

19. Strategic Approach
Next Growth Engine Pursuit
■ To avoid sales dependency on hardware and to tap into software business, esp. CAS business which deems to be of indefinite
growth potential, Celrun will continue to find ways to expand business in CAS for next growth engine.
■ By developing and successfully implemeting in-house developed CAS simulcrypt with world CAS market leader NDS which
currently in place for Skylife known worldwide for its complex service structure, Celrun expects this simulscrypt implementation as
a turning point for aggressive oversea market tapping
World & Domestic CAS Market Estimates
Classification 2009 Market Size(E) 2012 Market Size(E) CAGR
World CAS Market Approx. KRW 1.2 tril Approx. KRW 1.6 tril 5.9%
Domestic CAS Market Approx. KRW 100 bil Approx. KRW 270 bil 22.0%
World CAS Market in 2008 & Market Share Domestic CAS Market in 2008 & Market Share
9% 4%
8% 10%
33%
5%
13%
16%
73%
29%
NDS Nagravision Motorola Irdeto Scientific Atlanta Others NDS CONAX Irdeto Others
CELRUN HAS BEEN A TRUE LEADER IN NOT ONLY PRODUCT DEVELOPMENT
BUT ALSO IN PROVISION OF TOTAL SOLUTION FOR IPTV STP.
19