Source: Earthlink Press Release

EarthLink (Nasdaq:ELNK) today announced that it has entered into an agreement under which SK Telecom (NYSE:SKM) may invest up to $270 million in equity contributions to Helio (http://www.helio.com), the joint venture for wireless voice and data services that the two companies formed in 2005.

"This new agreement enables EarthLink to retain a substantial ownership position in Helio without investing any more cash into the joint venture, and these changes should result in our prior investment having real future value as the joint venture continues to grow," said Rolla P. Huff, EarthLink President and CEO. "Helio is a fast growing wireless social networking business and the investment from SK Telecom will enable the company to continue executing on its mission to deliver innovative products and services to the wireless Internet marketplace."

Initially, subject to regulatory approvals, SK Telecom will make a $70 million equity contribution to Helio, with additional funding to follow thereafter. Additionally, with this new agreement, EarthLink and SK Telecom cancelled the $30 million notes each company purchased in the joint venture in July 2007 and Helio issued each company a new $30 million convertible note, which can be converted to equity at the same valuation as SK Telecom’s initial $70 million investment.

While EarthLink is not investing more in the joint venture at this time, the company retains the right to make additional investments in Helio. If SK Telecom invests the full $270 million on the same terms as the initial $70 million, and assuming no other outside investments are made into Helio, EarthLink’s ownership position will decrease to approximately 22%.

Helio’s governance agreements have been amended to reflect the different level of capital contributions. With this additional investment, SK Telecom will take operating control of the joint venture and EarthLink will lose one seat on Helio’s board of directors.