TAIPEI, Taiwan, May 12, 2003 (PRIMEZONE) -- City Networks Inc. (OTCBB:CYNW) announced today it has experienced continued success in the Korean internet equipment market and signed another special service and supply agreement with its most important joint venture partner in Korea, K-Won C&C Co. Ltd (www.k-won.co.kr). K-Won is City Network's most important and profitable business partner in the Internet and system integration market in Korea. K-Won has well established sales channels in Korea, as well as a sound business structure, as it acts as the key agent and supplier to both Korea Telecom and Korea Life Insurance. Through K-Won, City Networks was able to obtain very large orders of both wireless and VDSL equipment from Korea Telecom and Korea Life insurance. In 2003, City Networks estimates that revenues from business through K-Won in the Korean market could reach US$10 million.
Furthermore, City Networks announced that it will begin shipping cable products in March to Korea's third largest cable manufacturer, Hanvit Internet and Broadcast Corporation (www.hanvit.net). Together with Taiwanese manufacturer Castlenet (www.castlenet.com.tw), City Networks plans to vastly expand its business in Korea.
A City Networks spokesperson confirmed today the signing of yet another joint venture agreement with K-won and Kywon Corporation, to jointly research and develop the use of the CDMA public telephones and CDMA data cards for public use. City Networks, together with China Putian, another one of City Networks's key joint venture partners, plans to work on introducing this type of dynamic new product to the vast China market as well. If successful, this business segment is estimated to give City Networks an additional US$3 to 6 million in revenue annually.
About City Networks
City Networks, Inc. designs, manufactures and markets a comprehensive line of broadband and wireless internet access solutions. The Company is positioning to capitalize on what it believes to be vast underdeveloped and overlooked new and emerging growth Internet markets. The company's product line ranges from the City Networks HPNA device for the blooming worldwide residential building and hospitality market to the simple DSL bridge/modem for the home and small business user. Currently, City Networks Home PNA and xDSL broadband access equipment is widely deployed by major telecommunication carriers, ISPs, and System Integrators worldwide.