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August 11, 2001 11:46am
Playboy.com Announces Plans for Web Site in Korea
Source: Playboy.com, Inc.
by: Company Press Release

(NEW YORK, NY) -- Playboy.com, Inc., the wholly owned subsidiary of Playboy Enterprises, Inc. (NYSE: PLA - news), 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 - news), 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.

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