HICEL is a Korean company that produces backlight sheets for LCD displays. It has three main business divisions: BLS (backlight sheet) business, Sidus SL business focused on kids' sports and leisure, and Build-A-Bear franchise stores. For its BLS business, HICEL expects sales to grow along with increasing demand for LCD TVs and monitors. It aims to expand its market share among LCD manufacturers. The Sidus SL division runs programs for kids aged 4-13 including sports training courses and camps. It plans to open more kids sports centers nationwide by 2008. The Build-A-Bear stores follow the franchise model of the US company and HICEL plans further expansion in Korea.

1. Introduction of HICEL Creating a Better Future

3. Shareholders Overview 1. Company Overview Shares 92,765,444 Institutional Investors & Individuals 67.09% Treasury Stock 1.60% Largest Shareholders 31.31% CEO Mr. Jong-Sun, Yoon Establishment Sep. 1998 Location 1027-3, Eyon-Hansan Industrial Park, Cheongbuk-Myon, Pyeongtaek city, Kyoungki-do, Korea Business LCD Parts & Kids Sports Business Capital KRW46.3B(Approximately U$38.6M) Employees 255 Web Site www.hicel.com

4. 2. History Sep. 1998 Established Hi-Industry Co., Ltd /Started business of Back Light Sheet for TFT-LCD Mar. 1999 Cooperation Enterprise registered with Samsung Electronics Feb. 2000 Cooperation Enterprise registered with LG. PHILIPS LCD Co., Ltd (Twins Club) Nov. 2000 Started Ultra-Precision Machining business 1998 - 2000 May 2001 Launched for Lens Mold & Display Module business Mar. 2002 Company name changed into HICEL Co., Ltd Jul. 2002 Expansion of Manufacturing Capacity of Back Light Sheets (5M Sheets/Month) 2001 - 2002 2003 - 2004 Jan. 2003 Listed on KOSDAQ Mar. 2003 Signed supply contract agreement for image sensor module with Samsung Oct. 2003 Mass-produced color Back Light Units (Seongnam area, monthly 800,000pcs) Nov. 2004 Expansion of mass-production for color Back Light Unit (Seongnam, monthly 2M) Jan. 2005 Expanded of M/P Capacity for BLS for LCD·PDP (Pyeongtaek monthly 7M sheets) Mar. 2005 Patent registered of Front Light Unit for Reflective type LCD Oct. 2005 Merged with N2A Co., Ltd Dec. 2005 Patent registered of both side luminous Back Lighting Module & mobile device built-in Jul. 2006 Maroos Co., Ltd incorporated into HICEL 2005 - 2006 2007 - Present Feb. 2007 Pyeongtaek(head office) and Seonganm(branch office) are unified. May 2007 Signed Merging contract with Sidus SL/Paid-in Capital Increase Jan. 2008 Capital Increase (Public Offering) Mar. 2008 Acquired Hyundai Life Boat Co., Ltd (Quota 100%)

5. 3. Management CEO & President Jong-sun Yoon Queensland Univ., Brisbane, Australia (MBA) Macquarie Univ., Sydney, Australia Director of planning and management (Good TV Co., Ltd) President of Ubiqouss, Sydney, Australia Direct of Planning and Administration (ONSE Telecom) Overseas Cooperation Div...(Korea Telecom) Name Title Career Yang-Gon Jin Chairman Yonsei Univ.(Master of Economics) KD Oil Inc./Director Hyundai Lifeboat Co.,Ltd/Chairman Sang-woo Nam COO Yonsei Graduate School Hyundai Engineering and Construction President of DW Controls Co., Ltd Gyung-hwa Ryu VP Seoul National Univ.(Mechanical Design) LG Electronics Co., Ltd Wooyoung Co., Ltd Gi-young Park Auditor Seoul National Univ.(Economics) CGF Executive director of Arthur Andersen Co., Ltd Senior Research Engineer of KIET Auditor General of Good TV Co., Ltd

12. 3. Products & Technology Reflector It reflects the light which is gotten out of the rear side of LDP. It uses the white foaming PET as the material and enhance the luminance making the multi-layer air and prevents the optical spot. Protector When the user sees the monitor, it diffuses the light weaker in order for the screen to be natural, stabilizes the color coordination, protects the structure of prism sheet & BLU from the outside shock and prevents the contamination which is caused by the foreign material inflow. Diffuser It diffuses the uniform light from LGP to the screen, enlarges the view angle transmitting the light to the front direction of Prism Sheet & Pane, reduces the diffusion of bright dot, line and spot on the LGP. Prism It is a film for enhance LCD luminance. LCD gets the light to use a source of illumination(CCFL or LED), because LCD can not light by itself. This light is distributed a gross area through LGP and is changed the Surface light source of uniform brightness by using diffuser sheet. In this process, light efficiency come out from a early source of Illumination is raised less and less. It is changed side light into front light and is concentrated the emitted light to enhance luminance by using Prism sheet.

13. Precision Cutting Use various molds according to product specification. Establishment of small quantity batch production. When cut Roll, Sheet and piece, the allowable tolerance is within (±0.15mm). Mass production, High-speed and Precision printing. Reduce the time (within a week) by making and developing the Design and printing plate itself. Combination and Preparation of Ink & Additive. Ink Preparation Technology Light Control/ Pattern Design Printing Technology 3. Products & Technology Design & Drawings Design & Drawing for a wooden pattern and Mold has been developed by our highly skilled technicians using the latest technologies and experienced knowledge.

15. Sales trend of latest 3 yrs Quarterly sales trend of latest 3 yrs (USD M) (USD K) 5. Sales 2006 2007 32.6 Q1 Q2 Q3 Q4 2008(E) 38.5 7.3 6.7 8.5 9.4 8.2 8.6 8.0 7.8 Drastic increase in 2008 2007 2008(E) 2006 9.4 9.5 9.9 9.6 Operating Profit 720 780 992 247 Q1 Q2 Q3 Q4 300 570 -92 199 2007 2008(E) 2.2% 31.9 18.1% (USD M)

18. 6. Business Prospect (3years) (USD K) Item 2008(E) 2009(E) 2010(E) 1Q 2Q 3Q(E) 4Q(E) Total Revenue 7,515 8,637 6,693 10,943 33,788 34,764 36,509 Cost 6,243 7,368 5,230 9,049 27,890 28,694 30,130 Gross Profit 1,272 1,269 1,463 1,894 5,898 6,070 6,379 Selling & Administrative Expenses 765 625 773 783 2,946 3,025 3,092 Operating Profit 507 644 690 1,111 2,952 3,045 3,287

25. 4. Business Plan in 2008 (3years) (USD K) -1,683 1,428 -255 4,301 4,046 Total 452 1,579 2,031 4,739 6,770 Total 2009(E) 2010(E) 2008(E) item 1Q 2Q 3Q(E) 4Q(E) Total Revenue 1,050 1,033 1,074 889 9,852 Cost 1,293 1,348 967 693 6,627 Gross profit -243 -315 107 196 3,225 Selling & Administrative Expenses 376 438 437 177 1,594 Operating Profit -619 -753 -330 19 1,631

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