Jan Nilsson

President

March 8, 2006

4904 (TWSE)

2005 Full Year Result2005 Full Year Result

Investor UpdateInvestor Update

2

Disclaimer

This presentation contains forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may differ materially from those expressed or implied by these forward-looking statements. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation might not occur in the way we expect, or at all. You should not place undue reliance on any forward-looking information.

In preparing the information herein, FET have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to FET or which was otherwise reviewed by FET. Neither FET nor its advisors have made any representation or warranty as to the accuracy or completeness of such information and nor do they assume any undertaking to supplement such information as further information becomes available or in light of changing circumstances. None of FET, nor any of their respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Neither this presentation nor any of its contents may be reproduced to a third party without the prior written consent of FET.

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AgendaAgenda

I.I. 2005 Recap and Financial Performance2005 Recap and Financial Performance

II.II. Market Outlook and Strategic positioningMarket Outlook and Strategic positioning

III.III. 2006 Q1 Outlook2006 Q1 Outlook

IV.IV. Management HighlightsManagement Highlights

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� Arcoa Acquisition

� Prepaid Clamp Down

� Convergent Billing Project

� 3G Launch

� Main Board Listing

� Mobile Number Portability

� 2005 Cash Dividend: $3.1 (Yield: 7.9%**)

2005 Recap2005 RecapWhat Have FET Done in 2005What Have FET Done in 2005

**Note: Dividend yield was based on stock price dividend announced date of March 3, 2006.

27% 22%

38% 39%

36% 40%

0%

20%

40%

60%

80%

100%

2004 2005

High

Mid

Low

Monthly Billing Amount MixMonthly Billing Amount Mix

44234613

20891511

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005

Postpaid Prepaid

60% 51%

21% 27%

19% 22%

0%

20%

40%

60%

80%

100%

2004 2005

High

Mid

Low

Subscriber DevelopmentSubscriber DevelopmentContinue to improve subscriber mixContinue to improve subscriber mix

Prepaid / Postpaid Subs MixPrepaid / Postpaid Subs Mix

FET managed to shift its customer

mix from pre-paid to postpaid. Post-

paid ratio from 68% to 75%

Rate Plan MixRate Plan Mix

From billing and rate plan perspectives, FET also has improved higher mix

in high value segments compared to 2004

Source: Company source; the mix of low refers to <=$350, mid refers to $351-$700 and high refers to >$700

6

NT$ mm

5,297

3,999

6.3%

8.5%

01,0002,0003,0004,0005,0006,0007,000

2004 2005

0%

2%

4%

6%

8%

10%

Data Rev Data % of Service Rev

%

8.5%

4.4%

5.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

FET+KGT TWM+TAT+MBT CHT

Data PerformanceData Performance2005 Data Market Status2005 Data Market Status

Source: Operators’ factsheets or company source as of Jan’05

FET remains leading position in data.FET remains leading position in data.

2005 1H Data % of Service Revenue

#1: FET dominates

44.5% of data rev mkt share

FET YoY Data GrowthFET YoY Data Growth

FET Data Rev FET Data Rev YoYYoY �������� 32.4% 32.4% vs. market vs. market �������� 30.2%30.2%

2005 Data Revenue Share2005 Data Revenue Share

#2: TWM:28.9%

#3: CHT:26.6% FET remains leading position in data.FET remains leading position in data.

2005 Data % of Service Revenue

Market Market AvgAvg= 6.1%= 6.1%

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Fully Consolidated FinancialFully Consolidated Financial2005 Full Year Result by New Consolidated Entities2005 Full Year Result by New Consolidated Entities(1)(1)

Source: Company dataNote: (1) Based on the new regulation, starting from 2005, the consolidated entities add Arcoa, KGEx.com, KGT International Holdings, E. Word

(Holdings) Ltd, Far Eastern Info Service (Holding) Ltd, (2) Not including investment gain/ loss of all subsidiaries(3) Arcoa’s number was for the period of Feb to Dec 2005

ItemUnit: NT$ million, except for margins

Arcoa (3)FET+KGT KGEx ConsolidatedOthers

17,857181- 146- 9617,918(2)�Pre-tax Income

- 96

- 28.8%

-28

1,292

4,896

- 146

4.1%

34

831

831

31,6047831,468�EBITDA

242

36.7%

214

214 71,91267,411�Total Revenue

14,71714,717�Net Income

50.9%52.1%�Service EBITDA Margin %

63,53162,470�Service Revenue

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2005 Q32005 Q3

833

12,715

11,882

71,110

15.2%

14.2%

16,319

$3.66(4)

$2.99(4)

14.6%

21.9%

4,640

9,621

4,981

74,223

11.5%

5.9%

23,339

$4.63(4)

$3.80(4)

12.7%

17.2%

2005 Q42005 Q4

Cash & Cash Equivalents

Total Borrowing

Net Debt

Shareholders’ Equity

Debt/Capitalization(2) Ratio

Gross (%)

Net (%)

Free Cashflows – YTD(3)

Pre-tax EPS

EPS(NT$)

ROA

ROE

Source: Company financials (1) 2005 1-4Q figures are based on audited numbers and fully consolidated entities including Arcoa, KGEx.com, KGT International

Holdings, E. Word (Holdings) Ltd, Far Eastern Info Service (Holding) Ltd…etc.(2) Capitalization = shareholders’ equity + total debt.(3) Free Cashflows = Operating Cash flow – Capex(4) EPS calculated by current outstanding shares of 3,872,663K.

(NT$ mm unless otherwise stated) 2005 Q22005 Q2

12,593

17,190

4,597

67,414

20.3%

5.4%

12,245

$2.47(4)

$2.02(4)

14.5%

22.4%

2005 Q12005 Q1

9,910

18,227

8,317

75,422

19.5%

8.9%

6,838

$1.20(4)

$0.98(4)

13.9%

20.9%

Fully Consolidated FinancialFully Consolidated Financial2005 Full Year Financial Stats2005 Full Year Financial Stats(1)(1)

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Fully Consolidated Financial AchievementFully Consolidated Financial Achievement2005 Result vs. 2005 Forecast2005 Result vs. 2005 Forecast

Source: 2005 Audited financial report(1) EPS based on current outstanding shares of 3,872,663,049.

ItemUnit: NT$ Million, except for EPS

Achievement%

104.6%68,78171,912�Total Revenue

$4.55$4.63�Pre-tax EPS(2)

$3.79$3.80�EPS(2)

100.1%14,69514,717�Net Income

102.1%17,48417,857�Pre-tax Income

above 50%+50.0%50.9%�Service EBITDA Margin %

97.9%32,28231,604�EBITDA

64,268 98.9%63,531�Service Revenue

2005(1) 2005Forecast

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AgendaAgenda

I.I. 2005 Recap and Financial Performance2005 Recap and Financial Performance

II.II. Market Outlook and Strategic positioningMarket Outlook and Strategic positioning

III.III. 2006 Q1 Outlook2006 Q1 Outlook

IV.IV. Management HighlightsManagement Highlights

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3G Update3G Update

2005 end : 77,266 users

2006 : 800,000+ users

� FET, TWM, CHT all launched in Q3’05 and VIBO launched Dec’05

� Operators pushing for 3G SIM alone program

� Total 3G Subscriber in the market : 634K

� Total # of Handsets sold in the market: 105K (16.6%)

� FET 3G ARPU over $1,300 (30% higher than current 2G ARPU)

� FET 3G data 16% vs. current 2G data 8.5%

Competitive Competitive

TariffTariff

Compelling Compelling

ServicesServices

Attractive Attractive

PromotionPromotion

SatisfactorySatisfactory

CoverageCoverage

TrendyTrendy

HandsetHandset

Effective Effective

CommunicationCommunication2005 Sep: 25,583 users

2006 Feb : 118,493 users

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Gross Adds MarketGross Adds MarketIncreasing Postpaid GA MarketIncreasing Postpaid GA Market

102 104 101 97 101 101 103 109 105 103 121 135 137

72 80 82 80 88 90 94 106 99 92 87103 107

79 81 80 74 76 84 8698 92 83 87

94 9723 25 32 26 28 28 29

32 35 3841

36 3618 27

0

50

100

150

200

250

300

350

400

450

Jan-

05

Feb-

05

Mar-

05

Apr-

05

May-

05

Jun-

05

Jul-

05

Aug-

05

Sep-

05

Oct-

05

Nov-

05

Dec-

05

Jan-

06

Unit:'000

FET Consolidated TWM Consolidated CHT APBW VIBO

� Operator promotion offers driving up the market since Nov 05. +20% increase in gross adds.

� FET continues to lead the GA market with 33% share, followed by TWM (27%) & CHT (24%)

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� FET will continue to take leading role in strengthening its channel controllability

���� FET + Arcoa stores will reach 770 in 2006

� Arcoa will downsize retail to increase profitability, however, will deploy shop sign stores to maximize handset sales & gross adds for FET

� Prepaid card back to convenient store and operators will work exclusively with certain CVS

���� Vertical channel partnership will be formed in the prepaid market

96 60

307

22

290 40015

258

10

60 46

0

100

200

300

400

500

600

700

800

900

FET TWM CHT VIBO APBW

Retail+Copart Franchise Arcoa Retail

644

Distribution ChannelsDistribution ChannelsNew Landscape in 2006New Landscape in 2006

2005 Year End Operator Outlets2005 Year End Operator Outlets

Note: Non-branded stores and shop sign stores that are

doing business with Synnex are estimated at 850.

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On-net benefit

Green-

fielders

Big Community Brands

Single-rate

APBW

TAT

MBT

KG

TCCCHT

VIBO

Big On-net

Big On-net

On-net free

One Rate

FET

Market Rate Plan EvolutionMarket Rate Plan EvolutionSince Dec 2005Since Dec 2005

� VIBO started to launch one net rate =off-net rate� TWM reacted to protect MBT/TAT � APBW joins to prevent subscriber churn

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A Leading Full Service Provider forA Leading Full Service Provider for

Electronic Communication,Electronic Communication,

Information,Information,

Entertainment, andEntertainment, and

TransactionTransaction

2006 Strategic Positioning2006 Strategic Positioning

� FET continues having its technical base in wireless but do not exclude possibility to provide services over alternative access technologies.

� FET will develop controlling interest along the entire value chain from, but not including, content production to end user.

�� With the convergence of services in the media and telecom With the convergence of services in the media and telecom industry, FET expands its scope and vision to become industry, FET expands its scope and vision to become ------------

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2003/2004

� Innovative, premium, Executive brand status, Niche

2004/2005 2005/2006

Brand and ImageBrand and ImageFrom Niche to the Broadest SegmentFrom Niche to the Broadest Segment

� Innovative, premium, technology brand thatsimplifies complexities, amplifies possibilities

� FET – consumer’s favorite personal technology brand, designs new ways to communicate and share experiences that make life simpler, smarter, cooler, more fun!

Supported by – “Product Leadership”real, compelling, hybrid branded,

culture defining

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� Continue to develop ODM handsets for FET data services� Develop special CI adjusted devices for new business initiatives� Widen product portfolio on accessories and companion products to enhance

variety

DevicesDevices2006 Plans and Directions2006 Plans and Directions

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� Do not expect 3G be a rapid uptake, thus apply a practical roll-out plan

� Focus on 3G service development, rather than 3G network coverage development

� 3G island coverage priorities from now

1. In-building, university/college campus, military sites

2. Highways & suburban cities, core expansion

3. East coast coverage

� IMS platform

� Start HSDPA Trial

3,6302,730Site counts

75.7%62.8%Population coverage

73.8%

Current

85.1%Traffic percentage

Y2006 (900)Target

3G3G2006 Strategy2006 Strategy

Current Current

ExpansionExpansion

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AgendaAgenda

I.I. 2005 Recap and Financial Performance2005 Recap and Financial Performance

II.II. Market Outlook and Strategic positioningMarket Outlook and Strategic positioning

III.III. 2006 Q1 Outlook2006 Q1 Outlook

IV.IV. Management HighlightsManagement Highlights

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2006 Q1 Consolidated Financial Forecast2006 Q1 Consolidated Financial Forecast2006 Q1 Forecast vs. 2005 Q1 Actual2006 Q1 Forecast vs. 2005 Q1 Actual

Source: 2005 Audited financial report. Based on the new regulation, starting from 2005, the consolidated entities add Arcoa, KGEx.com, KGT International Holdings, E. Word (Holdings) Ltd, Far Eastern Info Service (Holding) Ltd…etc.

(1) Consolidated entity Arcoa’s number only for the period of Feb to Mar 2005(2) EPS based on current outstanding shares of 3,872,663,049

ItemUnit: NT$ Million, except for EPS

YoY %

+ 3.2%17,42617,981�Total Revenue

- 13.3%$0.98$0.85�EPS(2)

- 11.2%4,6294,108�Pre-tax Income

52.0%48.4%�Service EBITDA Margin %

- 5.5%7,8757,441�EBITDA

15,371 + 3.1%15,848�Service Revenue

2005 Q1Actual (1)

2006 Q1Forecast

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� Revenue expect to rise slightly above economic growth,

considering risks are:

� Competitors continues aggressive market moves;

� Fixed line incoming minutes and ILD usage drops due to VoIP

and fixed line competition;

� Government pressure in lower pricing

� Data Revenue expect to increase 40% YoY

� Profitability expect to be stable

� Capex in 2006 : 10-12% of Service Revenue

OutlookOutlook2006 Business Outlook2006 Business Outlook

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AgendaAgenda

I.I. 2005 Recap and Financial Performance2005 Recap and Financial Performance

II.II. Market Outlook and Strategic positioningMarket Outlook and Strategic positioning

III.III. 2006 Q1 Outlook2006 Q1 Outlook

IV.IV. Management HighlightsManagement Highlights

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� Continue to Focus on Taiwan and Expand Business Scope along the Entire Value Chain excluding Content Production

� Move FET towards being an Iconic Brand

� Continue to Grow Controllability in Distribution Channel while Widening the Product Portfolio in Stores to Preempt the Convergent Trend on Products & Services

� Be a Leading Full Service Provider for Electronic Communication, Information, Entertainment and Transaction at Different Places in Consumer’s Daily Life

� Base on Core Technology in Wireless but Open to Alternative Access Technologies to Provide Convergent Services

� Maintain Profitability & Dividend Payout at +80% ����2005 Cash Dividend: NT$3.1 (Payout at 82%)

� Planning to Establish Audit Committee for Pursuing Excellent Corporate Governance

Management HighlightsManagement HighlightsSummarySummary

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Q & AQ & A

Websites Email

Investor Relations

IR@fareastone.com.tw

Investor Relations

IR@fareastone.com.tw

http://www.fareastone.com.tw

http://www.fetnet.net

http://www.fareastone.com.tw

http://www.fetnet.net

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