Source: EarthLink Press Release

EarthLink (Nasdaq:ELNK) today confirmed the announcement by SK Telecom (NYSE:SKM) that the South Korean company will invest up to $270 million in Helio, their wireless voice and data services joint venture.

"We are very pleased that with SK Telecom’s funding, Helio will be able to move forward with its innovative business plan without the need for further investment by EarthLink, while continuing to allow our company to have a substantial ownership interest in Helio’s future," said Rolla P. Huff, EarthLink President and CEO.  "We believe this is good news for EarthLink shareholders and is consistent with our statements over the past two months."

Helio ended August with 130,000 subscribers, and expects to end the year with between 200,000 and 250,000 subscribers and revenue of $140 – $170 million.  Helio expects a full year net loss of $340 - $360 million.

Helio continues to carve out a unique space in the wireless market.  Through the introduction of arguably the most complete messaging device on the market in Ocean, and the market’s thinnest folder in Fin, over a dozen industry firsts in one year, and market-driving advanced 3G mobile services, Helio lets people stay in touch more than ever.  Built for consumers who have mobile at the center of their lives, Helio continues to post growth and usage metrics of its core services far above industry averages in most areas.

EarthLink and SK Telecom are currently in discussions to amend their existing agreements to reflect the additional investment by SK Telecom and their future governance of Helio. The amendments are not yet completed and further details will not be released until the agreements are finalized.