Earthlink, SK Telecom Form Service Provider Venture "

ATLANTA -(Dow Jones)- EarthLink Inc. (ELNK) and SK Telecom Co. (SKM) agreed to form a venture to sell wireless voice and data services in the U.S.

In a press release Wednesday, EarthLink and SK Telecom said they will capitalize the new company with an initial $440 million investment during the next three years. Each party will own 50% of the venture, SK-EarthLink.

EarthLink and SK Telecom expects the initial capitalization will satisfy funding requirements until SK-EarthLink can generate sufficient free cash flow to fund continuing operations.

EarthLink and SK Telecom said the proposed venture could generate net subscribers of about 3 million and revenue of about $2 billion by 2009.

The venture marks SK Telecom's first partnership to enter the U.S., as the mobile communications concern seeks to increase its worldwide subscriber base. SK Telecom has more than 18 million customers and more than 50% of the mobile services market in South Korea.

Internet service provider EarthLink said the venture will sell SK Telecom's wireless voice and data products and services in the U.S. EarthLink has more than 5 million subscribers.

EarthLink founder and director Sky Dayton agreed to serve as chief executive of SK-EarthLink. EarthLink and SK Telecom, Seoul, will each name three directors to the venture.

EarthLink plans and host a conference call starting at 8:30 a.m. EST. The company and SK Telecom also intend to make a presentation and take questions at a press conference that starts at noon in New York.

Company Web sites: http://www.earthlink.net;

http://www.sktelecom.com

-Eamon Beltran; Dow Jones Newswires; 201-938-5400; AskNewswires@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 26th January 2005