Korea Telecom Hitel Co., Ltd. and Playboy.com Partner to Launch Korean Site
Slated for Q4 2001
NEW YORK, Aug. 6 /PRNewswire/ -- Playboy.com, Inc., the wholly owned
subsidiary of Playboy Enterprises, Inc. (NYSE: PLA), today announced it has
signed a two-year agreement with Korea Telecom Hitel Co., Ltd. ("Hitel") to
develop its second international web site, which will mark Playboy's entry
into the Korean marketplace. The site is expected to launch in Q4 2001.
Like top-ranking U.S.-based flagship site Playboy.com, the Korean site
will target the entertainment and lifestyle interests of young men. It will
feature original editorial content catering to local interests and
sensibilities, as well as draw from Playboy's extensive international
content including exclusive pictorials, streaming video features and live
event coverage. A strong emphasis will be placed on video content, due to
the proliferation and wide availability of streaming video technology in the
Korean market. The new site will benefit from traffic generated by the more
than 5,000 online information services and 2,320 online communities operated
by Hitel.
The Korean site will operate under the same multiple revenue stream model
that Playboy.com does, starting with advertising and the subscription-based
Playboy Cyber Club, and then adding the Playboy Store, Playboy Auctions and
other e-commerce initiatives. The base of operations will be Seoul, South
Korea.
"As a globally recognized and respected brand, Playboy is uniquely
positioned to deliver a high quality lifestyle and entertainment online
destination for men," commented Larry Lux, President, Playboy.com, Inc.
"With nearly 4 million unique visitors a month, Playboy.com continues to
attract a steady stream of men 18-34, and we are excited to be bringing this
rich experience to a new international market."
"This venture enables Playboy.com to partner with a true pioneer in the
Korean Internet and telecom space. Hitel's competitive advantage in the
space will prove a tremendous asset to us, and enable us to deliver a
robust, Playboy-branded content site to a Korean-language audience," added
Lux.
Hitel is the Internet arm of Korea's largest fixed line provider and
second largest cellular operator, Korean Telecom. Hitel was one of the first
movers in the quickly developing Korean Internet market and has continued to
hold a leading position since its founding in December of 1991.
"As a leading Internet service in Korea, we constantly strive to bring our
millions of users a comprehensive online experience. We are excited to
extend our product offering by bringing this world renowned men's brand to
our audience," added Hyun Jeong Shim, Chief Operating Officer/Director,
Hitel.
About Playboy.com
Playboy.com, a wholly-owned subsidiary of Playboy Enterprises, Inc.
(NYSE: PLA), an international multimedia entertainment company; is the #1
lifestyle and entertainment destination Web site for men. Playboy.com
operates Playboy-branded Web sites targeting the entertainment and lifestyle
interests of young men, including: Playboy.com ( http://www.playboy.com ), an
advertising and e-commerce-supported Web site that offers a range of
entertainment, information and e-commerce; Playboy Cyber Club
( http://cyber.playboy.com ), a members-only subscription site featuring
premium Playboy content and exclusive online events; the Playboy Store
( http://www.playboystore.com ), which sells Playboy-branded products; and
Playboy Auctions ( http://auctions.playboy.com ), which auctions
Playboy-branded merchandise and admission to exclusive Playboy events and
allows fans to auction their own Playboy memorabilia and collectibles.
Playboy.com also operates SpiceTV.com ( http://www.SpiceTV.com ), a site
featuring premium adult entertainment under the Spice brand. Playboy.com
has added an Internet Gaming division, which currently operates
PlayboySportsBook.com, an online fixed odds sports wagering site.
This release contains "forward-looking statements" as to expectations,
beliefs, plans, objectives and future financial performance, and assumptions
underlying or concerning the foregoing. Such forward-looking statements
involve risks and uncertainties which could cause actual results or outcomes
to differ materially from those expressed in the forward-looking statements.
The following are some of the important factors that could cause actual
results or outcomes to differ materially from those discussed in the
forward-looking statements: (1) government actions or initiatives, including
(a) attempts to limit or otherwise regulate the sale of adult-oriented
materials, including print, video and online materials or businesses such as
casino gaming, (b) regulation of the advertisement of tobacco products, or
(c) substantive changes in postal regulations or rates, (2) further
increases in paper prices, (3) changes in distribution technology and/or
unforeseen delays in the implementation of such technology by the cable and
satellite industries that might affect the company's plans and assumptions
regarding carriage of its program services, (4) increased competition for
advertisers from other publications and media or any significant decrease in
spending by advertisers generally or with respect to the adult male market,
(5) increased competition for transponders and channel space, and any
decline in the company's access to, and acceptance by, cable and DTH
systems, (6) the effects of the consolidation taking place nationally in the
single-copy magazine distribution system, (7) marketing issues facing direct
marketing stamp sheet agents, (8) new competition in the adult cable
television market, (9) uncertainty of market acceptance of the Internet as a
medium for information, entertainment, e-commerce and advertising, an
increasingly competitive environment for advertising sales, the impact of
competition from other content and merchandise providers, as well as the
Company's reliance on third parties for technology and distribution for its
online business, and (10) potential adverse effects of unresolved Year 2000
problems including external key suppliers.
SOURCE Playboy.com, Inc.
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Related links:
http://auctions.playboy.com
/Web site: http://www.playboy.com
CONTACT:
Investors, Martha Lindeman for Playboy.com,
+1-312-373-2430, or Media, Laura Sigman of Playboy.com,
+1-212-261-5019, or Leah Karliner of Playboy Enterprises,
+1-212-261-5000
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