NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION:NewsRelease

Attachment 1

SUMMARY OF RESULTS

During the fiscal year ended March 31, 2003, the Japanese economy continued to face severe conditions with personal consumption and investment remaining sluggish amidst continuing deflation and a tense international situation.

In the information and communications sector, the market structure dramatically changed with the wider adoption of broadband Internet access. In the regional communications market, the rapid shift from fixed lines to mobile and IP communications continued. With the spread and expansion of broadband access, telecommunications companies competed for subscriptions by lowering ADSL rates, IP telephones increased in number, and electric power companies continued to enter the fiber optics broadband-access business. In these ways, the business environment grew more severe.

Under this tight business environment and rapidly changing market structure, Nippon Telegraph and Telephone East Corporation (NTT East) remains committed to its basic business principles of operating as a customer-oriented company maximizing customer value, and faithfully and promptly responding to their needs. The company strives to develop new revenue sources and to reinforce its financial base by promoting innovation to become a dynamic and vigorous company with an open and flat administrative structure. In these ways, NTT East dedicates itself to shifting its business orientation from telephone-based businesses to information-sharing businesses. The company also strives to make a positive contribution to the Japanese government's "e-Japan Priority Policy Program," which has been designated as a national priority program.

In the rapidly expanding broadband market, NTT East endeavored to expand access services tailored to customer needs and to gradually expand the coverage areas of all existing FLET'S access services ("FLET'S ISDN," "FLET'S ADSL," and "B FLET'S"). In addition to reducing rates and augmenting service menu options for FLET'S ADSL, the company actively endeavored to offer still higher transmission speeds for this service and to expand its market share.

To respond to diversifying customer needs in the field of broadband access and make possible the construction of networks that suit customers' geographical scope, NTT East received approval ^* from the Minister of Public Management, Home Affairs, Posts and Telecommunications to offer wide-area connection for FLET'S services (single-point access to the regional IP networks throughout the entire NTT East service area). The service has been launched in the greater Tokyo area (including Tokyo, Kanagawa Chiba, and Saitama Prefectures).

*	NTT East is required to obtain Minister approval before offering new services that make use of the facilities, technology, and personnel it administers for the sake of providing local telecommunications services.

Moreover, to provide sophisticated network services for the coming broadband era, IPv6 (next-generation Internet protocol) trial services were launched targeting B FLET'S customers. With the growing needs of content holders distributing live image, sound, and other data, NTT East is constructing a new low-cost distribution system using P2P communication technology. As a first foray in this area, NTT East started verification tests on a large-capacity system to distribute Internet radio programs via broadband through a tie-up with Nippon Broadcasting System, Inc. Based on an alliance with Microsoft Corporation, NTT East started next-generation streaming distribution tests using Windows Media^TM 9 Series (WM9), a next-generation digital platform which utilizes IPv6 technology to play, distribute, and produce digital content, and protect related copyrights.

In the corporate customer segment, NTT East developed its "total solutions business" under the concept of "team marketing solutions" to accurately respond to increasingly sophisticated and diverse customer needs by collaborating with customers to construct advanced, efficient telecommunications networks positively employing cutting-edge data center technologies and to provide business-user fiber access services, such as Mega Data Netz, Super Wide LAN, and Metro Ether.

NTT East opened an "E-Frontier" showroom, mainly to introduce solutions for national and local electronic government initiatives and for educational IT applications. In response to the Japanese government's "e-Japan Priority Policy Program," NTT East is actively providing a variety of solutions, including systems for electronic applications, bidding, and voting. The company's marketing framework for business related to e-Japan has also been strengthened. An e-Japan Promotion Department has been set up within the Business Communications Headquarters at NTT East, and e-Japan Promotion Offices have been created in the Business Communications Departments at each branch.

NTT East established a new subsidiary, NTT BroadbandPlatform, Inc. (NTT-BP), to provide high-speed IP services utilizing wireless LAN technologies in response to the diversification of broadband access lines, in an effort to better utilize NTT East's accumulated technologies and know-how and to promote information-sharing businesses. NTT East purchased an equity interest in JSAT Corporation, a telecommunications and broadcasting services company, and transferred its satellite assets to JSAT to provide stable telecommunications services, especially to distant islands.

In management rationalization efforts, NTT East devoted itself to implementing radical structural reforms to reinforce its management foundations in response to the rapidly changing business environment and to advance its shift from telephone-based businesses to information-sharing businesses. Specific measures included the introduction of more diverse employment formats and compensation systems and the outsourcing of work to "outsourcing subsidiaries" so that NTT East can concentrate on the core areas of strategic planning, group management, and responsibility of providing customer services. Under this new approach, a total of 51 "NTT Service Prefecture Co., Ltd.^*1" (which are responsible for sales and customer reception work), "NTT-ME Prefecture Co., Ltd.^*1" (which are responsible for facilities operations), and "NTT Business Associe Prefecture Co., Ltd.^*1" (which are responsible for shared support functions) have begun operations, and the transition to this new administrative operating structure^*2 has been completed.

To promote further structural reforms, NTT East is working to clarify the business mission of each Group company, to eliminate overlap in work and mission within the Group, and to increase the Group's overall strength and maximize its synergy in the IP and broadband markets. As part of these efforts, the business mission of NTT-ME Co., Ltd. was narrowed to Type 2 telecommunications targeting corporations.

To promote the autonomy and improvement of functions of the subsidiaries newly established under the structural reforms and to further enhance efficiency, some marketing planning operations and corporate marketing activities of the NTT East branches were transferred to "NTT Service Prefecture Co., Ltd.^*1" Operations related to facility construction and services were transferred from the Leased Circuit Services Center, the Engineering and Technology Support Center, and the Network Operation Center to "NTT-ME Prefecture Co., Ltd.^*1" Regarding shared support functions, the accounting operations of NTT East's Business Communications Headquarters and others were transferred to the "NTT Business Associe Prefecture Co., Ltd.^*1" These revisions to the structure of the NTT East Group were announced in November 2002, and preparations were made for implementation in April 2003.

*1.

These are the common corporate names of three sets of 17 firms established at the prefectural level, all using their respective prefecture names in their corporate names.

*2.

Along with the initiation of this new administrative operating structure, on May 1, 2002, some 27,000 NTT East employees retired and were re-hired by these 51 outsourcing subsidiaries (an additional 18,000 employees were reassigned to the outsourcing subsidiaries from existing NTT East subsidiaries). Moreover, in April 2003, some 4,000 NTT East employees retired and were re-hired by the outsourcing subsidiaries (an additional 3,000 employees or so were reassigned to the outsourcing subsidiaries from existing NTT East subsidiaries).

In the area of environmental preservation, NTT East is promoting various programs in accordance with the "NTT East's Global Environmental Charter" announced in December 1999. These include the conservation of paper resources, the prevention of global warming, waste reduction, and other programs and initiatives for the reduction of the environmental burden. NTT East is committed to fulfilling its corporate responsibility for the protection of the global environment through such measures as the implementation of life-cycle assessment (LCA) in the field of information and telecommunications, the introduction of the "Dynamic Eco" label for environmentally friendly communications equipment, the full-scale introduction of environmental accounting, and the publication of the NTT East Environmental Report 2002.

Pursuant to the above activities, NTT East's business results for the fiscal year ended March 31, 2003 were as follows. Operating revenues amounted to 2,352.2 billion yen (down 8.6% from the previous year). Recurring profit amounted to 63.3 billion yen (up 743.2% from the previous year). Net profit came to 3.0 billion yen (compared to a net loss of 186.7 billion yen in the previous year).