HFR broadband access solutions enable telecom operators to offer full range of revenue generating services in a simple and smart manner. HFR is currently providing all three broadband solutions - FTTH, FTTB+LAN, and FTTB+VDSL, allowing telecom operators to deliver ultra-high speed Internet (100M, 500M, and 1Gbps) to users in different housing types.

About HFR (www.hfrnet.com) HFR has been actively responding to the Cloud RAN market under LTE environment. We expect that our front-haul solution will become representative product in global equipment market. Also, HFR has been leading the high-speed internet equipment with the development for Giga Internet service area. Based on its competitive solutions in the wire and wireless communications fields, HFR is determined to become Korea’s leading network equipment company. For more information, visit www.hfrnet.com.

As of September, 2014, Korea has the second highest penetration rate of FTTH/FTTB+LAN (% of household) at 69.8%. The nation has 19.1 million Internet subscribers in total, including 5.6 million FTTH and 7.23 million FTTB+LAN subscribers. SK (SK Broadband/SK Telecom) has 4.7 million Internet subscribers, and 3.2 million of them are subscribing to FTTH and FTTB+LAN. The company is currently providing a triple- play service that combines ultra-high speed Internet, IPTV, and VoIP through these FTTH and FTTB+LAN networks. Comparison of the HFR FTTH/FTTB family features Vnet2324K GPON ONU 24 VDSL2 ports 1 GPON port 1RU H5216G GPON ONU 16xFE/500M/GE 1 GPON port 1RU H5224G GPON ONU 24xFE/500M/GE 2 GPON ports 1RU HT7004G GPON OLT 4 GPON ports 4xGE 1RU HT7000G GPON OLT 32 GPON ports 16xGE, 2x10GE 6RU HFR Portfolio Type Downlink Uplink Height 16xGE 2x10GE On Oct. 30, SK launched 1Gbps and 500Mbps Internet access services for UTP and fiber subscribers. HFR has been providing SK with FTTH and FTTB+LAN solutions (GPON OLT/ ONU/ONT) since 2009, and it supplied about 40% of FTTH equipments to SK.

Central Office MDF CPE 500Mbps Home Home Home ... GPON ONU (2-Pair Ethernet Switch) 1-pair 4-pair UTP (Cat5/5e/6) 2-pair 2-pair POTS Splitter 500Mbps 4-pair 1Gbps 100 Mbps Bundled telephone lines MDF 1-pair (Phone line) Home Home Home ... POTS 1Gbps 2.5G: 1.25G MDU (Multi-Dwelling Unit: Apartment complexes or condominiums) Single home FTTB+VDSL FTTH NxUTP4P(CAT5) FTTB+LAN 100Mbps 100M/500M/1Gbps100M/500M/1Gbps 2-pair GPON ONU (VDSL2 DSLAM) GPON OLT GPON ONT VDSL2 RG HFR HT7000G GPON OLT GPON ONU HFR H5224G HFR H5216G HFR’s Broadband Solutions Brief Case Study: SK Broadband HFR HT7004G HFR Vnet2324K - 1 2 SK Total: 4.7 M (Q3 2014) FTTH (1.3 M) LAN (1.9 M) XDSL (0.3M) HFC (1.2M) 27.7% 7.3% 39.4% 25.7% UAE South Korea Hong Kong Japan Singapore Taiwan Lithuania Sweden Lativia Norway Russia Bulgaria Slovakia Denmark Portugal China Slovenia Estonia Finland Malaysia USA n Household Penetration of FTTH/FTTB+LAN by Country Source: IDATE for FTTH Council Europe February 2014 FTTB + LAN subscribersFTTH subscribers