Financial Overview

( in millions of won )

-	FY2007	FY2006	Rate of change
Sales	1,674,378	1,582,264	5.8%
Operating income	68,736	88,311	(22.6%)
Net income	120,951	82,868	46.0%

Domestic Business

Wonju City of Gangwon-Do, which is located in the northern part of South Korea, announced on Dec. 20, 2007 that it will create an auto parts industrial complex in the city, positioning the automotive business as its strategic industry. The city will build this industrial park on 420,000 square meters of land adjacent to the Company's existing steering plant. The construction work will start in the first half of 2009 and is scheduled to be completed by the end of 2011. The planned amount of investment in this project is 62.5 billion won. The new Wonju complex is expected to become the nation's largest automotive industrial park, as the majority of more than 70 cooperative businesses are planning to transfer production there. (From a press release on Dec. 20, 2007)

The Company showcased its products at GM Tech World Show that took place at GM-Daewoo's Pupyeong plant on Apr. 17 and 18, 2007. This program is intended to allow suppliers to introduce its products to procurement staff and engineers of GM, who will visit each company's booth to evaluate each product. GM will select optimal suppliers from the participants, which are capable to offer high technology at low cost. In 2007, the Company and seven other companies gained approval to take part in the exhibition. The Company started supplying its core products to GM in 2001, when no other Korean manufacture has ever won business from the major carmaker. For the four straight years since 2003, the Company received from GM excellent supplier awards in four areas: quality, service, technology, and product prices. (From a press release on Apr. 20, 2007)

Overseas Business

From Dec. 13 through 14, 2007, the management team of the Company visited Guangzhou Province, China and discussed the company's project to establish a plant in Guangzhou with the executive officers of Guangzhou Automobile Group Co., Ltd. and Guangzhou Automobile Group Component Co., Ltd. The Company currently operates four production facilities in China, namely in Beijing, Tianjin, Suzhou, and Harbin. It, however, does not have any plant in the southern part of the country yet. In collaboration with the Guangzhou Automobile Group, the company plans to manufacture and sell brakes, steering, and suspension systems in Gunaghzou City. (From a press release on Jan. 3, 2008)

R&D Structure

Facility	Location	Area of development
Giheung System Research Center	Yong-in, Gyeonggi-do	- Countermeasure for hybrid technology - Development of integrated safety system - Development of driver support system - Development of key electronics technology
Pyeongtaek Testing & Evaluation Center	Pyeongtaek, Gyeonggi-do	- Development of vehicle and rig test/evaluation technology - Development of materials - NVH (Noise & Vibration, Harshness) - Manufacturing techniques - CMMI

-The Company established Mando (Beijing) Automotive Components R&D Center Co.,Ltd. in Beijing, China in June, 2006. It also conducts development activities at Mando R&D Shanghai Branch in Shanghai, China.