SK Telecom and Magnolia Broadband Conduct Final Pre-Deployment Field Testing of Mobile Transmit Diversity Technology

Magnolia Broadband, Inc., a fabless semiconductor company and innovator of antenna diversity radio frequency (RF) solutions for the wireless industry, announced today that they are conducting the final field testing of Magnolia's Mobile Transmit Diversity solution, DiversityPlus(TM), with SK Telecom (NYSE: SKM), Korea's leading wireless telecommunications services provider in Seoul, South Korea. This is the evaluation before SK Telecom deploys Magnolia's DiversityPlus handset-based chipset solution in their commercial network.

The commercial deployment of Magnolia's DiversityPlus chips in dual antenna cell phones will enable wireless carriers to significantly serve more subscribers within the same wireless infrastructure, eliminating the need for additional cell towers, while boosting coverage, data throughput and battery life. Additional benefits for carriers and consumers will be improved quality of service, include more reliable connections, fewer "dead zones," improved quality of service and a substantial lowering in the amount of energy cell phones emit.

"As we expand our customer base, we have identified the need to improve our data capacity and coverage in order to continue to offer the best quality of service to our customers," said Dr. Myung Sung Lee, Chief Technology Officer and Executive Vice President of SK Telecom.

Magnolia Broadband and SK Telecom have been working closely to test the Mobile Transmit Diversity technology over the past two years in some of the most challenging commercial networks, i.e. the greater Seoul area. By deploying Magnolia's DiversityPlus technology, SK Telecom will be able to meet their growing needs for voice and data capacity, while improving the quality of service to their customers.

"We are pleased to work closely with SK Telecom and we look forward to commercial deployment of our technology in the Korean marketplace," said Osmo Hautanen, CEO of Magnolia. "SK Telecom's continued support is a significant endorsement of our technology and it is great to be working with a clear leader and pace setter in the wireless industry."

DiversityPlus(TM) is a family of RF chipset products designed around Magnolia's unique algorithms for CDMA, UMTS and WiMAX mobile terminals. By combining transmit and receive RF signals from two antennas in a unique way, the wireless operators increase their network capacity and significantly improve coverage and data rates to the individual subscriber.

About SK Telecom

Established in 1984 as Korea Mobile Telecommunications Service Co. and renamed in 1997, SK Telecom Co., Ltd. is Korea's leading information and communications company and a rapidly emerging player in the global telecom industry. SK Telecom merged with Shinsaegi Telecom in January 2002 and the subscriber base is now more than 18 million. In January 1996, the company launched the world's first commercial CDMA cellular phone service in Korea. In October 2000, SK Telecom introduced the world's first cdma2000 commercial service in Korea and has expanded that service to 81 major cities as of August 2001. Already this service is able to provide 153.6 Kbps high-speed data service and support various multimedia contents. In June 2001, SK Telecom began the world's first commercial service that offers motion pictures through a wireless handset without the need for peripheral devices, taking its cdma2000 1x network to a new level of usage. In January 2002, SK Telecom opened up a new year of mobile communication by providing the world's first synchronized commercial IMT-2000 (cdma2000 1xEVDO) Service in Incheon City on January 28, 2002.

About Magnolia Broadband

Magnolia is an innovative developer of semiconductors for the wireless industry and the first company to provide mobile transmit diversity antenna technology, DiversityPlus(TM) using a unique RF (Radio Frequency) chipset. With DiversityPlus(TM) technology, wireless carriers are able to increase up to twice as many subscribers within the same wireless infrastructure while boosting phone coverage, data rates and battery performance without any changes to their infrastructure or related wireless air interface standards.

DiversityPlus(TM) technology benefits all wireless protocols and is currently being commercialized for CDMA2000, UMTS/WCDMA and WiMAX standards. Since its inception in 2001, Magnolia has raised more than $30 million in capital from notable investors, which include Draper Fisher Jurvetson Gotham, ECentury Capital Partners, Intel Capital, SCP Private Equity Partners, Selway Partners and Silverstar Holdings. Magnolia has filed numerous patents related to its core technology. For more information, go to www.magnoliabroadband.com.

DiversityPlus(TM) is a trademark of Magnolia Broadband, Inc.

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