Attachment 1

Summary of Results for Fiscal Year Ended March 31, 2005

During the fiscal year ended March 31, 2005, the economy continued to show signs of a steady recovery. Personal consumption showed a gradual increase and capital investment increased. Toward the end of the fiscal year, however, the economic recovery eased as personal consumption turned flat.

In the information and communications sector, demand for broadband services has been growing rapidly, ADSL speed has continued to rise, and intense competition for customers has led to lower rates. In the second half of the fiscal year, demand for optical access services expanded on a large scale. In the fixed-line market, competitive conditions became even more severe as other telecommunications carriers entered the basic service fees market by providing direct subscriber telephone services using dry copper lines.

Within this business environment, Nippon Telegraph and Telephone East Corporation (NTT East) has worked hard to develop new sources of revenue and build a strong financial base while keeping business operations focused on the vision of being "a truly customer-oriented company." NTT East has positioned this fiscal term as the critical year for gearing up its recently launched "Hikari" optic network and has implemented an internal reorganization in order to further boost its sales and service-development capabilities and to accelerate decision making. In addition, NTT East has worked actively to develop a wide range of new IP/broadband services and to provide high value-added content.

The main actions implemented during this fiscal year may be summarized as follows.

First, in the broadband market, NTT East worked to further upgrade and expand its services to respond to its customers' diverse needs, while continuing to lower rates. Specifically, in August 2004, NTT East began offering faster transfer speeds through "FLET'S ADSL More III," with maximum download speeds of approximately 47 Mbps and maximum upload speeds of approximately 5 Mbps. In November 2004, we introduced the 1 Gbps B FLET'S "Hyper Family Type," which provides services to multiple subscribers via a fiber optic network with maximum download and upload speeds of 100 Mbps.

In addition, NTT East began providing a high quality IP Telephony Service (Hikari Denwa) which uses fiber access to provide low-priced voice transmissions with the same quality as fixed telephone lines, first to condominium complexes in September 2004, and then to single-family dwellings in February 2005. While actively expanding our service areas, NTT East also added a menu of services for small and medium-sized enterprises in April 2005, so that our existing corporate IP telephone services can be used by a wider range of corporate customers.

Meanwhile, NTT East began providing an IP-based video phone terminal called "FLET'S PHONE VP1000" operated by a user-friendly touch screen, for added customer convenience. We also launched the "FLET'S SPOT" service which provides high-speed, flat-rate wireless Internet access at speeds up to 54 Mbps using wireless LAN access points near major train stations, hotels, and other key locations in the Tokyo metropolitan area.

In broadband content, NTT East expanded the menu of the "DisneyBB on FLET'S" which allows users to have fun together with Disney characters. It also expanded its offerings of high value-added content for the broadband environment through business alliances including launching the new "Try To Golfers'BB on FLET'S" service which gives users a virtual experience of actual golf courses.

NTT East has also taken a number of steps to promote sales. We have worked to lower rates by instituting toll-free calls between "Corporate IP Telephone Service" subscribers for intraprefectual in addition to interprefectual calls, reduced the monthly access rates for B FLET'S services, and extended campaigns that waive the monthly fees for FLET'S and other services for a limited period of time.

With respect to phone rates, in April 2004, NTT East launched a new fixed-line to mobile telephone service which allows users to dial the NTT East access code 0036 and receive lower rates than those set by mobile carriers. Considering the recent changes in the competitive environment of the telecommunications market, and in anticipation of the coming era of optical IP services, which will usher in a system of flat basic charges and call rates, NTT East introduced the "Ichiritsu" fee reduction plan in January 2005, and lowered subscription fees (facilities and equipment charges) in March 2005.

In the corporate services sector, NTT East implemented a review of its headquarters in July 2004 in order to construct business units for each business group based on operations by industry and business category and to realize a corporate system that will enable it to provide total services from service development to sales. Under NTT East's "Team M@rketing Solutions," a business concept for tackling issues and developing new businesses in partnership with its corporate customers, NTT East has been working actively to provide new services for business users, including data centers and corporate optic access services such as "Mega Data Netz," "Super Wide LAN," and "Metro Ether," while simultaneously moving forward with its "total solutions" business designed to meet the increasingly diverse and sophisticated needs of its customers, by taking advantage of the bilateral-contract system under the amended Telecommunications Business Law, revised in April 2004. In addition, active efforts are under way in the e-Japan Strategic Sales Promotion Division of the Corporate Business Headquarters, as well as the e-Japan Strategic Sales Promotion Office of the Business Communications Department of each branch, to respond to opportunities presented by the e-Japan Priority Plans of local governments within the NTT East area.

As for business management structure, we have established three new units--the Consumer Business Headquarters, Corporate Business Headquarters, and Network Business Headquarters--and implemented a reorganization of NTT East corporate headquarters by streamlining and consolidating administrative departments to increase the speed of decision making, including relationships with branch offices. In addition, the NTT East Group has been working actively to expand its business domain, as seen in the development of a new IT home consulting business offered through partnerships with the prefectural outsourcing subsidiaries* established under the group's structural reform program.

* Prefectural outsourcing subsidiaries: Companies set up at the prefecture level named NTT Service [prefecture name] Corporation, NTT ME [prefecture or region name] Corporation, or NTT Business Associe [prefecture name] Co., Ltd.

We also recognize that ensuring compliance is vitally important to the continued existence of any business, and have pursued this through upgrading management systems and providing thorough employee education. In anticipation of the full-scale enforcement of the Personal Information Protection Act this April, NTT East formulated and released a policy on the protection of personal information, and established a Personal Information Protection Promotion Office. NTT East will continue to diligently promote the appropriate handling of personal information.

In its efforts to protect the environment and in accordance with "NTT East's Global Environment Charter" enacted in December 1999, NTT East has continued to advance environmental management and worked to reduce burden on the environment, for example, by developing eco-steel telephone poles with superior durability and corrosion prevention properties, taking measures to counter global warming, reducing paper resources and waste materials, continuously implementing information and communications life-cycle assessments (LCA), and most recently, by publishing the NTT East Environmental Report 2004.

Furthermore, NTT East provided support to the victims of the October 2004 Niigata Chuetsu Earthquake by making an all-out effort to quickly restore telecommunications facilities and resume communications services. In addition, NTT East strove to ensure means of communication by setting up public telephones and operating the "171" disaster message service, and did not charge basic fees to customers who suffered equipment damage or were otherwise unable to use their telephones. NTT East also provided free Dial Q2 services to broadcasters and public organizations in order to assist the collection of contributions to the victims of the Sumatra earthquake and tsunami.

As a consequence of these developments, NTT East's business results for the fiscal year ended March 31, 2005 were as follows. Operating revenue totaled 2,180.9 billion yen (a decrease of 3.8% from the previous year), recurring profit amounted to 97.6 billion yen (a decrease of 0.2% from the previous year), and net profit totaled 58.1 billion yen (an increase of 0.2% from the previous year).


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