KCIC is to be the First AIM traded company on the London Stock Exchange Focused on Investing in South Korean Growth Companies

KCIC is to be the First AIM traded company on the London Stock Exchange Focused on Investing in South Korean Growth Companies

October 08, 2007

Intention to Float on AIM & Placing

    SEOUL, South Korea, Oct. 8 /Xinhua-PRNewswire/ -- KCIC
Plc is pleased to announce its intention to seek a
quotation on the London Stock Exchange's AIM market and
proposed placing of shares to raise up to US$100m.  KCIC,
which is an acronym for Korea Commercialisation Investment
Corporation, was established by a management team with
significant strategic investment expertise in Asia. KCIC is
expected to be the first AIM traded company focused on
making investments in small to medium sized South Korean
growth companies.  

    ( Photo: 
http://www.newscom.com/cgi-bin/prnh/20071008/276356-a )
    ( Photo: 
http://www.newscom.com/cgi-bin/prnh/20071008/276356-b )

    Daniel Stewart & Company is acting as the Company's
Nominated Adviser and Broker and marketing will commence
shortly in Hong Kong, Korea, Singapore and the Middle East
before concluding in the UK.  First day dealings on AIM are
expected in mid November.

    The business

    KCIC was established to identify and acquire stakes in
high calibre, profitable South Korean technology companies.
KCIC's management team will be represented on each of its
investee companies' boards and will prepare each business
for either a possible listing on an appropriate stock
exchange or a trade sale with an exit time frame of one to
three years, thus maintaining a stable flow of profit
generation.  The Company will also generate revenues from
the provision of strategic management consulting to select
invested SMEs in order to move investee companies towards
their targeted exit.  Unlike an investment fund, KCIC will
not take any management or performance fees.

    KCIC's management team has exceptionally strong
contacts and support within the South Korean business and
investment community and has identified a broad spectrum of
profitable companies for potential investment to drive
excellent deal flow.  This strategy is reinforced by the
South Korean government which has placed a strong emphasis
on the development of new and emerging technologies by the
nation's SMEs. 

    Veteran management team

    KCIC's veteran management team is led by Thomas Yi,
aged 44.  Thomas has over 20 years experience operating and
investing in Asia, including significant experience in
making and realising investments in Korea.  In 2001, Thomas
was responsible for formulating the mid to long-term
corporate strategy for KTB Network, the first and largest
private equity company in Korea, listed on the Korean Stock
Exchange.  Previously, as head of business development at
Mirae Corporation, Thomas was responsible for raising a
US$60m private placement for Lycos Korea and was also one
of the key members behind raising US$120m for Mirae
Corporation.  Since 2002, Thomas has been Director of the
Australian and Asian operations of London Capital Advisers,
a cross border transaction advisory business, building on
his previous experience in corporate consulting, project
management in mergers and acquisitions, and arranging
private placements for corporate customers.  Thomas also
has experience in OFEX and AIM introductions in the UK.

    Thomas is supported by four Non-Executive Directors:

    Derick D.M. Sohn, aged 51, currently Senior Managing
Director and Head of International Markets for Korea
Technology Investment Corporation ("KTIC"), one
of Korea's oldest venture capital firms. Based on his
experience with Korean and foreign firms, Derick is known
as a cross-boarder investment expert with in-depth
experience of investment banking and corporate financing.

    Jonathan Morley-Kirk, aged 46, whose career has been
largely in Emerging Markets having held director positions
with Midland Bank, Kidder Peabody, SG Warburg's and Brown
Shipley.  Currently, he is an active board member of five
investment funds, managing in excess of US$1.75 billion. 

    Charles Brock, aged 41, with over sixteen years of
experience investing in Asia ex-Japan.  Charles is
currently a consultant for Insinger de Beaufort, assisting
the Corporate Finance Department in building China/ Asian
Business.

    Richard Hargreaves, aged 61, Richard is a former
chairman of the British Venture Capital Association and has
considerable experience as a non-executive director on the
boards of both public and private companies.

    Strategy and investments

    KCIC has committed to invest up to 25% of the expected
US$100m fund at admission in two fast growing profitable
Korean technology companies.  With each subsequent investee
company, KCIC intends to take a significant shareholding,
with target investments of between US$10m and US$15m and a
maximum stake of 20% of fund Net Asset Value in any one
investment.

    KCIC's management team, as highlighted, will only
invest in well managed, profitable and cash generative
businesses with market leading technology underpinned by
solid barriers to entry.

    Its two initial intended investments are detailed
below:

    RFHIC Corporation: a manufacturer of a semi-conductor
based product used in next-generation 3G, Wibro, Wi-Fi and
WiMAX networks. RFHIC was founded in 1999 and has a track
record of profitability and growth. With 130 employees,
RFHIC has a blue chip customer base including Samsung,
Alcatel, Motorola and Nokia. For the years ended 31
December 2005 and 2006 respectively, turnover was US$10.54m
and US$20.15m, with Profit After Tax of US$1.05m and
US$3.61m.

    Sewoo Tech Co Limited: a manufacturer of mobile mini
printers and components. Founded in 2002, Sewoo has built
strong international sales distributions with end-users
including McDonalds, KFC, Burger King, IBM and Harrods.
Based in Seoul with 76 employees, for the years ended 31
December 2005 and 2006 respectively, Sewoo generated
turnover of US$11.35m and US$16.64m, with Profit After Tax
of US$2.07m and US$3.53m. 

    In addition, KCIC has already an identified pipeline of
high quality potential opportunities in place and the Board
believes that there is a growing demand in Korea for equity
finance.

    Thomas Yi, KCIC's CEO commented:

    "South Korea is already the home to global quality
brands such as Samsung and LG and I believe that this is an
exceptional opportunity to invest in exciting new Korean
technology SMEs.  Our target companies are profitable, cash
generative and provide shareholders with the benefits of
medium term upside as we plan to exit each investment
company within 3 years either via flotation or a trade
sale.  We have an excellent pool of quality companies to
choose from further helped by the significant support
provided to South Korean technology SMEs by the South
Korean government. 

    KCIC is well positioned to capitalise on the
significant investment opportunities that exist in Korea
and I look forward to providing further news on our
progress in due course." 


    For more information, please contact:

     Thomas Yi
     KCIC Plc
     Tel:    [phone]

     Shane Dolan 
     Biddicks Financial Public Relations
     Tel:    [phone]
     Mobile: [phone]
     Email:  [e-mail]

     Lindsay Mair or Stewart Dick 
     Daniel Stewart & Company Nominated Adviser &
Broker
     Tel:    [phone]