@ffice Business Plan

www.affice.com

2www.affice.com

Contents

I. What is a “WebOS”? 3

II. Concept of @ffice 4

III. Change in Computer Environment 7

IV. Differentiation Strategy 8

V. Characteristics of @ffice 9

VI. Benchmarking 10

VII. Business Development Strategy 17

VIII. SWOT Analysis 30

IX. ROI Analysis 31

X. @ffice linked services 38

XI. @ffice related services 39

XII. Structure of @ffice services 40

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What is a “WebOS”?

• Windows Environment• Build personalized environment• Make short-cut icons• Manage Folders• Bookmark• Drag&Drop

• Windows Environment• Build personalized environment• Make short-cut icons• Manage Folders• Bookmark• Drag&Drop

DeskTopDeskTopDeskTopDeskTop

• Environment Restriction• Mobility Restriction• Security Restriction

• Environment Restriction• Mobility Restriction• Security Restriction

• Browser Environment• Build personalized environment on the Web• Make short-cut icons• Manage Folders • Bookmark• Drag&Drop• Diverse Web Services Combination

• Browser Environment• Build personalized environment on the Web• Make short-cut icons• Manage Folders • Bookmark• Drag&Drop• Diverse Web Services Combination

WebOSWebOSWebOSWebOS

Elimination of Restriction!!

WebOS, as a new DeskTop interface on the web, allows the user to execute his tasks anytime anywhere.It also allows the user to have an access to all ASPs (Application Service Providers) needed.

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Concept of @ffice

@ffice can be understood as a millenium portal which integrates an autonomous WebTop within an new internet OS. @ffice is a very convenient interface which can invite and support any ASPs.

@ffice with its web-browser and its simultaneous local desktop functions integrates perfectly all activities the user might desire..

@ffice

ASPApplication Service Providing

WebOS

WebTop

Neo-BrowserUser InterfaceWeb Folder

CommunityWeb-Life

Applications

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Concept of @ffice

WebOSWebOS

Cyber OfficeCyber Office

CyberCyberCommunityCommunity

ASPASP(App. Service Providers)(App. Service Providers)

Web Based DesktopWeb Based DesktopDrag&Drop, Folder Management, Short-CutDrag&Drop, Folder Management, Short-Cut

Personalized OfficePersonalized OfficeSchedule, Business Cards, Mail/Fax, FilesSchedule, Business Cards, Mail/Fax, Files

Personalized CommunityPersonalized CommunityChatting, Bulletin Board, ClubsChatting, Bulletin Board, Clubs

Add-On ServicesAdd-On ServicesValue Added Services: E-Commerce, EntertainmentValue Added Services: E-Commerce, Entertainment

@ffice@ffice

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Concept of @ffice

Main Menu Bar for Web Browser &Windows Set-up

OfficeMenu Bar

Navigation Bar

Short-cut icons(Easy make & delete)

with user’s option

Ad or MessageNet Board

Inner-Window Status Bar

Current Status Bar

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Change in Computer Environment

E-MailE-Mail

DesktopDesktop

Web MailWeb Mail

WebTopWebTop

Elimination of Environment

& Space Restriction

Personalized Service

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Differentiation Strategy

Creative TechnologyCreative Technology

Personalized ServicesPersonalized Services

ExtensionExtension

- Neo-Browser- Drag&Drop Folder Management

- Short-cut icons: easy make & delete- Skin function of Neo-Browser

TrustfulnessTrustfulness

- Modulization in Plug & Play mode- Integrated Value-Added Services

- Minimize Downloading Time- Establish Stability & Personal Security System

Different ContentsDifferent ContentsMeet cultural needs of Netizens

by not only providing information but also realizing their Web Life

Original DesignOriginal DesignSimple but Sophisticate

Interface Design

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It provides the user with diverse functions such as Drag & Popup menu,

easy short-cutsand eventually meet all user-oriented convenience’s aspirations.

Characteristics of @ffice - Convenient User Interface in Window Environment

@ffice, as a simultaneous WebOS and a WebTop,

wants to be also a very convenient and familiar interface

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Characteristics of @ffice - Its Own Browser with Office function

The user can perfectly manage its web-browser functions with

the @ffice’s “Browser Control Option”.It also provides a quick searching function

through an integrated control between URL and searching sites.

@ffice serves itself as a web browser without being installed,

and enables the user an access to its functions anytime and anywhere.

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Characteristics of @ffice - A perfect file management

DeskTop functions with an integrated control of Web Storage & Local Storage

- Free file transfer with Drag&Drop menu

- Easy delete & Copy with Popup menu

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Characteristics of @ffice - Web-Life satisfying the cultural needs

It offers services like: Culture

- @ffice Cinema, Gallery @ffice, Web TVHigh-quality information for daily life

- Stock, Investment, law, medicine, etc.

Web-Life - Web mail, Address, Schedule, E-cards

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Characteristics o f @ffice - Harmonious and Sophisticate Design

-Harmonious & Colorful Design to maximize visual effects

-Customized backdrop through Skin functions

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Benchmarking

@ffice itself serves as a On-line Browser.

It realizes multi window

through inner windows inside browser

with its same function as Desktop.

It uses inner Window & Explorer It needs additional browser

It offers an extremely limited functions

(Icon Drag& Popup Menu)

It provides an insufficient popup menu

without Drag & Drop.

Searching, Drag & Drop,

Being connected to files in Local H/W

No support for D&D, Popup menu

- Easy to add menus

- Application programs

in local computer can be used

Only Game and HyperOffice

Diverse Broad Casting

through Net BoardOn construction On construction

WebTop

BroadCasting

Browser

WebTop

Folder Mangement

ApplicationAdd-On

@ffice@fficeLastOne Corp.

POPDeskPOPDeskSimmani Corp.

myWebOSmyWebOSMywWebOs, inc.

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Benchmarking

-All the functions of Web Mail

- Be linked to Web Folder

Memo pad concept :

easy to register

with calendar option

Only Mail Sending function

Linked to diverse services :

Map, Zip Code, etc

Integrated post-it services adding alarm function

Communication Tool for members

Fixed input Form Fixed input Form

Under preparation

Pop memo Services

(No alarm function)

Post-it from Note function

(No alarm function)

Communication Tool for members

Pursue user’s convenience

with free classification

& drag function

Quick to save information in

Web & Local

Inconvenient Interface requiring

multi open windows No classification function

Note as a form of searching engine

Cyber Office

WebMail

Schedule

Address

Post-it

Messenger

BookMark

Memo

@fficeLastOne Corp.

POPDeskSimmani Corp.

myWebOSMywebos, inc.

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Benchmarking

Friendly space for members

& diverse support

Various Chatting Rooms

& Trustful Services

assured by strong police role

Sound meeting culture

with real name system

User’s Optional use

Linked to Winknet

English-Korean Dictionary,

Customized News,

Electronic Business Cards

Original Marketing

with specialized services:

Cyber conference room,

Company Intranet

Add-On Service

Cyber Community

Club

Chatting Room

Web meeting

Use of services offered in only Web Top

Linked to 4 games,

Fortune Teller Service

& Tube music

Limited use of provided services

- Linked to Web-to-Phone

- Insufficient Customized news

& Calculator function

Linked Services

Free Services

Paid Services

@fficeLastOne Corp.

POPDeskSimmani Corp.

myWebOSMywebos, inc.

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Business Development Strategy - Summary

CreativeCreativeDesignDesign

High-QualityHigh-QualityDevelopmentDevelopment

MarketingMarketing

LeadingLeadingConceptConcept

Overseas Markets PenetrationUSA, Europe, Japan

Create synergy effectthrough tasks interaction

With its WebOS

Leading Company

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Business Development Strategy - Marketing Strategy

• Enhance @ffice’s image as a New Internet Culture !

• USPS (Unique Profit Selling Proposition)

• Improve customer’s loyalty toward @ffice brand image

• Build individual - centric Community

• Generate customer value Customer Satisfaction

• Enhance @ffice’s image as a New Internet Culture !

• USPS (Unique Profit Selling Proposition)

• Improve customer’s loyalty toward @ffice brand image

• Build individual - centric Community

• Generate customer value Customer Satisfaction

Advertising

• Early boom-up stage for @ffice brand recognition

• UPSP

• Brand Image (Original brand strategy)

Publicity

• Make issue of New Web Paradigm @ffice

• Active Mass media appealing to improve credit

Sales Promotion

• Differentiated SP through market

classification

• Linked events to On-Line / Off-Line

• Web Promotion

Target-Marketing

• Man - to -Man Marketing toward present & po

tential customers

• Word of Mouth Effect

IMC StrategyNew Integrated

Marketing Communication

IMC StrategyNew Integrated

Marketing Communication

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Business Development Strategy - Marketing Strategy

Item Description

Advertising Mass Media Opening Ads on TV, Radio, Newspaper

Press Release Press Release to monthly magazines such as “PC Week”

Banner Use paid banner ads in other internet sites or exchange free banner ads with them

Promotion Email Promotion Marketing using E-Mail

Advertising Card Offer free services to deliver Millennium Card containing @ffice name, logo which will serve as a PR’s invitation for the user to visit @ffice site and finally subscribe to it.

Division

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Key-Marketing Concept

Trustful services provided by best staffs of @ffice!Experience yourself a technology realizing future-oriented new paradigm!

Basic Message

My site! It gives whatever I want!My site! I create my own paradise on it!

Ensure popularity through easy environment for users.

Information & Community, now they means only basic !

My site! It satisfies all my cultural desires!

Be exposed to Mass Media as often as possible in order to create a customer’s sympathy for @ffice

Business Development Strategy - Marketing Strategy

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Division Usable Media Key Message, Tone & Manner

Mass MediaTV, Radio, Bus, Subway, Daily,

Cultural/ Current Affaire Magazine (eg. City Life) Approach to people who are eager for better internet services

by using simple but strong concept & brand image!

Web Banner Ad.Use paid ads in major web sites

& free exchange ads between cooperative partners

- Emphasize on original characteristics of @ffice creating a new web paradigm

- Lead Netizens to visit more often & to feel at easy with @ffice

IT magazines enable, How PC, PC week, IT bizAds, sophisticate enough to stimulate users to visit the site immediately

& to feel they belong to intellectual class by doing so!

Division Usable Media Key Message, Tone & Manner

Broad casting systemsMain TV news on KBS, SBS, MBC,

IT news on EBS 1. Make issue of @ffice as a representative internet venture company

2. Raise a potential crisis to be left behind a new paradigm without @ffice

Daily,Web sites

Press Release on major dailies& their web sites

Be exposed to mass media as often as possible to ensure trustfulness by using people’s interest in an explosive increase of internet users & internet survival

IT magazine,Weekly/ Monthly

magazine

Most of IT magazine:enable, How PC, PC week, IT biz, etc.

- Focus on competitive edge of @ffice’s staffs & excellency of local technology- Draw people’s attention by introducing interesting anecdotes related with staffs

Business Development Strategy – Detailed Marketing Strategy

Advertising

Publicity

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Business Development Strategy – Detailed Marketing Strategy

Item Marketing Target Contents

E-mail PromotionNetizens using E-mail as a main tool to get information

(eg. Salaried employees)

1. Update information continuously for early visitors by sending e-mail 2. Improve early- stage recognition degree: Make an alliance with

E-mail service providers in order not to be considered as a Spam Mail

Advertising CardVisitors to @ffice are able to

send @ffice card to their friends

& business partners PR effects - Trustful site recommended by friends or acquaints

Gift First visitor to @ffice & loyal customers

- Cost reduction - Gifts sponsored by content providers - High-class and fresh gifts to attract young Netizens

(Tickets to Club Med/PIC, Concert tickets) - Gifts by mileage bonus program

Required to cope with possible problems related with customer’s misconception about @ffice, caused by previously launched services by Netffice and Dreamwiz.

- Make utmost use of mass media stressing originality of @ffice service which quickly responds to users’ demands - @ffice is an unique & perfect WebOS who can respond to all exigencies of the Korean user

Sales Promotion & Target Marketing

Measures regarding first-come competitors & @ffice Market Positioning

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Business Development Strategy - Marketing Strategy on stage by stage

1st Stage (2000.1.14 ~ 2000.2.29)

2nd Stage(2000.3.1 ~ 2000.7.31)

3rd Stage for(2000.8.1 ~ )

Beta Test PeriodAttract customers,

& Launch Service officially

Maintenance, Development & Management

of service

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Business Development Strategy – Launching Strategy

  1st stage 2nd stage

Summary

Realize WebTop, Cyber Office necessary to provide “Web enabled personal workspace” and deliver basic concept & characteristics of @ffice to users

Provide Total Solution for Personal Computing Environment in order to offer an Integrated WepTop Service and various additional service for Comfortable Web-Life

Service RangeWebTopCyber OfficeNetBoard

Cyber CommunityWeb-Life

Add-On ServiceCommunication Service, Internet Gallery, Web Radio, Web TV, Shopping Mall, Virus Elimination, Web FAX , etc.

Internet Phone, Virtual Conference room, Company Intranet, Cyber Theater, etc

Marketing/Promotion Strategy

- Marketing Strategy to for brand-new product focusing on original brand image- Pre-Launching Boom-up stage through an various PR activities

- Customer Retain by stressing high quality service- Consortium with Value-Added Service providers

Marketing/Promotion Action Plan

Launching CeremonyEmail PromotionAdvertising (TV, Radio)Stage for Attracting new customers

Word of mouth strategyAdvertising (subway station, Bus)Compensation EventRetain current customers and attract potential customers

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Business Development Strategy – Profit generating method I

• WebOS Solution Sales

⇒ Suggestion of options ⇒ Versioning Strategy ⇒ WebOS Modeling suitable to each industrial sector

• WebOS Solution Sales

⇒ Suggestion of options ⇒ Versioning Strategy ⇒ WebOS Modeling suitable to each industrial sector

• ASP Business through Soft Bank

⇒ Ensure profits by providing information developed by @ffice itself⇒Share profits with contents providers through alliance

• ASP Business through Soft Bank

⇒ Ensure profits by providing information developed by @ffice itself⇒Share profits with contents providers through alliance

• Ensure profits by attracting ads

⇒ Ads on Netboard ⇒ Ads through registration to @ffice channel ⇒ Ads through icon

• Ensure profits by attracting ads

⇒ Ads on Netboard ⇒ Ads through registration to @ffice channel ⇒ Ads through icon

Module Selling

Service Bank

Profit from Ads

Extend free services by generating values

Let people know that @ffice shares its profits

with customers!

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Business Development Strategy – Profit Generating Method II

- Execute research to complete an optimum WebOS Model according to industrial sector

- Offer consulting services using analytic database on cases

- Give Know-How about introduction, application & usage of WebOs in each industrial sector

- Offer diverse versions by analyzing & synthesizing each module

- Offer the most appropriate version considering client’s need and taste - Customized Service

- Autonomy of modules – Offer Only-One module with its distinguished strength

- Combination of modules – Offer options by combining variables

- Optimizing the option – Offer a distinguished service by optimizing each option

Module Selling

Option Offering

Versioning Strategy

WebOS Modeling in industrial sector

WebOS Solution Sales

WebOS Solution Sales

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Business Development Strategy – Profit Generating Method III

-Secure contents through strategic alliance with service providers in related fields

-Operate profit-sharing program with CP of @ffice

-Maximize PR effect through a joint marketing and start diverse joint business

- Provide information through application developed by @ffice itself

- Develop a business suitable to characteristics of each application

- Extend service range starting from Web Radio, @ffice Gallery, Web-TV, @ffice cinemaService Bank

Own developed information

Alliance with contents providers

ASP business throughservice bank

ASP business throughservice bank

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Business Development Strategy - Profit Generating Method IV

- Make company icon showing its service on screen of @ffice WebTop

- @ffice is expected to improve its service quality & differentiate it through icon-making

- The most effective PR effects among other ads services in @ffice

- Prospective recommended sites

- Increased value added of @ffice - by screening services providers on registration to the channel

- Individual PR activities of each company - by showing CI of service providers

- Netboard as a way of company PR - Netboard as a information collector about events & ads on On-Line

- Netboard possible to transform into Rich Media with strong message sending function

Profit

Ads on Netboard

@ffice channel Ads

Ads using icon

Secure profit by attracting ads

Secure profit by attracting ads

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Business Development Strategy – Ways to generate synergy effect

Users

Service quality improvement

of @ffice

Strategic Alliance with ASPs

ServiceBank

• Shopping• Stock• Auction• Game

ModuleSelling

@ffice City@ffice Land

etc.

Highly recognized Company

All the company hoping

strategic alliance with @ffice

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SWOT Analysis

Strengths Weaknesses

Opportunities Threats• Increasing internet users popularity

• Expended internet infrastructure & Technological progress

• Change of Market Environment (DeskTop → WebTop)

• Prevail the market with an advanced concept of service on WebTop environm

ent

• Target potential customer (All internet users desire @ffice)

• Explore Overseas markets (Global Marketing)

• New concept to meet demands of Knowledge Industrial society in 21st century

Integrated Service to offer an optimum Web environment

• Service usable Anytime, Anywhere in WebTop environment

• Easy to make an alliance with other service providers due to extension & compa

tibility of its technology

• Services with free membership system

• Diversify services through strategic alliance with contents providers

• Recruit high qualified man-powers in R & D and marketing field

• for @ffice project

• Errors in integrated services

: Potential recognition discordance caused by insufficient content

s

• Similar services already launched by internet company

: Pre-acquisition of members, Advantageous marketing effect for

first comers

• Short capital for Project

• Weak brand image of LasT One

•Same products from competitors (Metooism)

- myLAS, Netffice, Dreamwiz

• Foreign big software company (SUN, MS) with

integrated service with web and office program

• Huge early investment cost (Marketing/R&D)

• Security on Data and System

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ROI Analysis – Expected cost

Windows NT 4.0 (3copy) 540

Fix S/W purchasing RDBMS 7,548 Oracle 8i Enterprise Edition 25user

ed Fixed facilities lease Mail Server 9,000 Post Office(Limitless)

Operation faclility SVR 34,128 Compaq Prolian 7000 × 3 EA

H/W Purchasing storage facility 2,015 Compaq Smart Array 3200 × 3 EA

Cost lease assistant storage facility 15,000 Hard 9GB ×20 pieces

DAT & Media (24GB× 10pieces)

Computer 17 EA / extra facilities 5,100

Server management & usage × 12 month 500

Promotion Cost 100,000

AE (PM) 1person × 12 months × 3.0 mio Won 3,600

Va Planner 5 persons × 12 months × 2 mio Won 12,000

ria Programmer 7persons × 12 months × 1.8 mio Won 15,120

ble Designer 4persons × 12 months × 1.5 mio Won 7,200 37,920

Varible facilities Opearaton Facility Fixed facility × 80 % 54,585

Cost Telephone, electricity, etc 300

Transportation, Meals, etc 1,000

Marketing(Ads) cost

Sub Total

Other cost

Total Cost (Fixed + Variable) = 274,836

Exclusive line(T3)

Development Facility

Man-power

Utilities

181,031

Sub Total 93,805

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ROI Analysis – Base for an expected subscriber number

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

97.5. 97.12. 98.12. 99.2. 99.12.

subscribernumber

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

97.5. 97.12. 98.12. 99.2. 99.12.

subscribernumber

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

Feb. April June August Oct.0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

Feb. April June August Oct.

Subscriber numbers of Hanmail Numbers ofLocal internet user

According to the current trend of increasing numbers of local internet users, we expect the numbers will easily surpass 13 mio around the second half of the year 2000.

Daum Communication Corp. , one of local internet mail service providers shows its increasing rate of subscribers as the charter above.

Considering that even the simple mail service can retain subscribers in such a dramatically increasing rate, we are confident that @ffice can reach approximately 3 mio subscribers within the year 2000 with its more overall and sophisticate services.

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ROI Analysis – Expected Sales Target

Expected Sales Target

Division Period Investment Sales TargetSubscribers Target ComparisonIntroduction Q1 50,000

Growth Q2 2.5 mio 500,000Maturity Q3 5.5 mio 1.7 mio Introduce global marketing

Business Expension Q4 8.5 mio 3 mioSales Total 16.5 mio

2.3 mio

Periodical detailed sales target

Division

Month 1 2 3 4 5 6 7 8 9 10 11 12

Sales (0.1 mio) - - 2 3 7 13 15 17 23 25 27 33

Accumulated Sales (0.1 mio) - - 2 5 12 25 40 57 80 105 132 165

Subscribers (10,000) - - 5 15 30 50 75 135 170 210 250 300

Q1 Q2 Q3 Q4

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ROI Analysis – Cost/Benefit Effect

NetBoard (Ads/ Media Service )

Break Even Point

Profit

Cost(Loss)

Variation Rate

BEP Sales(2 mio Won)

1.8 mio

2.5 mio

Cost

VC 0.7 mio

FC 1.8 mio

45°

Standard Sales (8 mio)

Subscriber to paid services (Supplementary addtion /Paid module)

Package program/Office solution sales

Sales Target : 8 mio

Subscriber Target : 1.7 mio pers.3rd Stage BEP Sales Target : 2 mio Won

5.8 mio (Profit)

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ROI Analysis – Expected Sales Trend for next 3 years

0

500

1000

1500

2000

2500

3000

2000 2001 2002

Subscriber Target(10,000)Sales (100,000Won)Net profit (100,000Won)0

500

1000

1500

2000

2500

3000

2000 2001 2002

Subscriber Target(10,000)Sales (100,000Won)Net profit (100,000Won)

Year 2000 2001 2002

Sales 16.5 mio 75.0 mio 240.0 mio

Net Profit 5.5 mio 34.0 mio 109.0 mio

Target Subscribernumber

3 mio pers. 10.5 mio pers. 18 mio pers.

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ROI Analysis, 4 years statement of profits and losts

Titleturn over 318,480 100(%) 16,500,000 100(%) 75,000,000 100(%) 240,000,000 100(%)

sale of products 150,000 1(%) 2,250,000 3(%) 12,000,000 5(%)revenue of ads 2,100,000 13(%) 15,000,000 20(%) 60,000,000 25(%)services offered 318,480 100(%) 13,250,000 86(%) 57,750,000 77(%) 168,000,000 70(%)

pare value 234780 74(%) 10,230,000 62(%) 37,500,000 50(%) 108,000,000 45(%)pare value of products sale 3,600,000 22(%) 7,500,000 10(%) 12,000,000 5(%)

pare value of servces offered 234,780 74(%) 6,600,000 40(%) 30000000 40(%) 96000000 40(%)total profits 83,700 26(%) 6,270,000 38(%) 37,500,000 50(%) 132,000,000 55(%)

sales and costs of adm 59,947 19(%) 1,650,000 10(%) 5,250,000 7(%) 12,000,000 5(%)marketing profit 23,753 7(%) 4,620,000 28(%) 32,250,000 43(%) 120,000,000 50(%)

non market. Profit 45 0.01(%) 0 0(%) 0 0(%) 0 0(%)non market. Costs 4,365 0.99(%) 0 0(%) 0 0(%) 0 0(%)

current profits 19,433 6(%) 4,620,000 28(%) 32,250,000 43(%) 120,000,000 50(%)exceptional losts 0 0(%) 0 0(%) 0 0(%) 0 0(%)

exceptional profits 0 0(%) 0 0(%) 0 0(%) 0 0(%)net profits before tax 19,424 6(%) 4,620,000 28(%) 32,250,000 43(%) 120,000,000 50(%)

corporate tax 3,109 1(%) 739,200 4(%) 5,160,000 7(%) 19,200,000 8(%)current net profits 16,323 5(%) 4,956,000 24(%) 25,200,000 36(%) 81,600,000 42(%)

net sale profits ratiocurrent sale profits ratio

Lastone, inc. (2000/2/2)

36(%)43(%)

42(%)50(%)

2002

5(%)6(%)

24(%)28(%)

1999 2000 2001

Unit: 1000 Won

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ROI Analysis – Prevision for 4 years of the balance sheet

Titlenon fixed assets 194,757 49(%) 7,475,422 70(%) 28,875,422 65(%) 88,575,422 70(%)

fixed assets 207,036 51(%) 3,200,000 30(%) 15,500,000 35(%) 37,900,000 30(%)~ investments 21,800 1,500,000 14(%) 6,000,000 14(%) 10,000,000 8(%)

~ tangible assets 121,763 1,100,000 10(%) 5,000,000 11(%) 17,000,000 13(%)~ intangible assets 63,373 600,000 6(%) 4,500,000 10(%) 10,900,000 9(%)

total assets 401,793 100(%) 10,675,422 100(%) 44,375,422 100(%) 126,475,422 100(%)non fixed debts 182,371 45(%) 500,000 5(%) 1,500,000 3(%) 2,000,000 2(%)

fixed debts 0 0(%) 0 0 0 0 0 0total debts 182,371 45(%) 500,000 5(%) 1,500,000 3(%) 2,000,000 2(%)

capital 200,000 50(%) 5,200,000 49(%) 6,700,000 15(%) 6,700,000 5(%)excess capitals 0 0(%) 0 6,000,000 14(%) 6,000,000 5(%)excess of profits 19,422 5(%) 4,975,422 46(%) 30,175,422 68(%) 111,775,422 88(%)

total capitals 219,422 55(%) 10,175,422 95(%) 42,875,422 97(%) 124,475,422 98(%)debts and total capitals 401,793 100(%) 10,675,422 100(%) 44,375,422 100(%) 126,475,422 100(%)

unfixed ratedebts ratio

Lastone, Inc. (2000/2/2)* 2001, first quarter, forcast to enter Kosdak

* 2000, mid-February companiny move* 2000, first quarter, forcast of capital increase

1999 2000 2001 2002

107(%)45(%) 45(%)

1,495(%) 1,925(%)4(%) 2(%)

4,428(%)

Unit: 1000 Won

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@ffice linked services

Target ServicesTarget Services

Complex shopping mallPersonal Gift Service

Reservation service for cultural goods

ShoppingShopping

Internet PhoneMessage Sending ServiceInternet Chatting Service

CommunicationCommunication

Fax ServiceDigital sign/ Business CardVirtual Conference Room

Company Intranet

Internet OfficeInternet Office

Web TVWeb Radio

customized news

Mass MediaMass Media

Cyber CinemaCyber GalleryCyber Writer's

CultureCulture

On-line GameWeb Game

Fortune TellerCyber Comics

On-line JukeBox

EntertainmentEntertainment

Digital ShopElectronic Payment System

ElectronicsElectronics

StockWeatherTravel

JobInvestmentGift/Event

Additional InfoServiceAdditional InfoService

On-line Virus cureDictionary/Translation Service

Surfing Translated Japanese Web site

Map searchingSurvey

Value-added serviceValue-added service

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@ffice Service Structure

My@ffice

Login

@ffice WebsiteFirst Page

My @ffice

About @ffice

Membership

Intro Simulation

Member subscription

@ffice First Visitor

Web First GateWeb First Gate

Net Board

Web Mail

File

Address

Memo pad

Post-it

Schedule

Basic ComponentBasic Component

Free ComponentFree Component

Paid ComponentPaid Component

Service BankService Bank

Package

Basic Package

Student Package

Business Package

Web Top

Popup Menu

Short-cut icon

Drag & Drop

Browser

URL input

Skin function

Browser management

@ffice Channel

Bookmark

Community

Chatting Room

Web meeting

Club

Shopping

Discussion

Information

Complex Shopping Mall

Book Store

Car

Computer

Agricultural products

Help

Guide

Bulletin Board

FAQ

@ffice information

Set-up

Personal information

@ffice set up

Homepage Wizard,Messanger,@ffice City

Service Selection

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@ffice Service Structure

Basic ComponentBasic Component

Map Searching ServiceMap Searching Service

Dictionary/Translation ServiceDictionary/Translation Service

Virus CureVirus Cure

Gift/Event InformationGift/Event Information

Free ComponentFree Component

Electronic CommerceElectronic CommerceOn-Line educationOn-Line educationInternet banking serviceInternet banking service

Paid ComponentPaid Component

Service BankService Bank

Package

Basic PackageStudent Package(Undergraduate/

Graduate)

Business Package

Web Office

Web Mail System

Inner-Window

Net Board

My Home Wizard

Services selectively installed in My @ffice

based on individual choice

Services selectively installed in My @ffice

based on individual choice

Member’s choice on Package programMember’s choice on Package program

Company intranet/Conference roomCompany intranet/Conference room

Web TVWeb TV

Web radioWeb radio

@ffice Cinema@ffice Cinema

@ffice Gallery@ffice Gallery

Reservation service for cultural goodsReservation service for cultural goods

E-business cardE-business card

E-albumE-album

E-magazineE-magazine

Customized newsCustomized news

Memories findingMemories finding

SurveySurvey

41www.affice.com

@ffice Service Structure

MemberMember

Personal Data- Basic Data- Additional Data- Components related Data (Schedule/task/ Individual module data)- Behavior Pattern Data

Personal Data- Basic Data- Additional Data- Components related Data (Schedule/task/ Individual module data)- Behavior Pattern Data

Operational Data- Current status of service- Current status of usage in each component- Conclusion of analysis on customer demand

@ffice internal management data- Basic Data- Data on events- feedback management data (survey, survey on customer demands)- real time data on customer demand

Business Partner Data- Basic Data- Developed module data (SPEC/function/etc)- Shared data on members

Data BaseData Base

Web OfficeWeb Office

Cooperated companyCooperated company

Web Mail SystemWeb Mail System

Net BoardNet Board

My Home WizardMy Home Wizard

Payment SystemPayment System

Free ComponentFree Component

Paid ComponentPaid Component

Registration

Components

SystemData warehouseData warehouse

Divers StatisticsData mart

Decision-making support system

(DSS)Decision-making support system

(DSS)

System Concept

Inner-WindowInner-Window