Attachment 1 SUMMARY OF RESULTS

Attachment 1

SUMMARY OF RESULTS

During the fiscal year ended March 31, 2004, there were signs of a recovery in the Japanese economy. While employment conditions remained to be severe, consumer spending recovered, corporate earnings improved, and exports and capital investment increased.

In the information and communications sectors, the broadband services market grew significantly, particularly the high-speed, high-volume optical access services, which herald the arrival of the broadband age. More subscribers joined the ranks of ADSL service users as connection speeds continued to rise, but the fight for customers through lower prices has intensified. Though demand in the optical access services market increased, competition for market share became more intense, with power companies and other players entering the market. The demand for IP telephone services grew, and as many providers have begun to offer IP telephone services, NTT East's operating environment has become even more severe.

Against this backdrop, we have used the motto "a company truly led by the customer" as a guiding principle in daily operations, and have sought to improve management efficiency through structural reforms as we actively develop our broadband services as a new revenue source and a means of establishing a stronger financial base. In addition, we are actively working on the e-Japan Strategy II announced in July 2003 by the Japanese government's IT Strategy Headquarters.

There were several major actions taken by us this fiscal year.

We upgraded services in response to customer needs and worked to lower prices in the fast-expanding broadband market. The maximum download speed of ADSL services was increased to 24 Mbps in July 2003, and to 40 Mbps in December 2003. Corporate data-transfer services were provided with a broad selection of speeds, and we introduced the "Flat Ether" service for flat-rate intra-prefectural communications, which enables customers to construct an economical network for communications to other business bases.

In responding to the demand for IP telephone services, we introduced the "Corporate IP Telephone Service" and a fixed-line telephone or public telephone to IP telephone service (numbers starting with 050). We also decided to launch a new fixed-line to mobile telephone service in April 2004 that offers lower call rates than those offered by the mobile telephone carriers.

To expand the range and depth of broadband content, we have formed alliances with other companies in Japan and abroad, delivering online entertainment such as "DisneyBB on FLET'S," and offering trial subscriptions to the "Game on FLET'S" online gaming service, as well as live distribution of appearances of movie stars promoting new movie releases.

To improve customer convenience, we have expanded the service areas of the "B FLET'S New Family Type" and "Inter-Prefecture IP Communications Network Services." We have also introduced a 24-hour, year-round repair service for FLET'S users called "Advanced Support" and the "FLET'S .Net" service, which enables communications using the next-generation Internet protocol, IPv6.

We lowered the monthly fees for B FLET'S New Family Type and Mansion Type, and ran a special B FLET'S campaign with an incentive of a 50% discount on the installation fee, and a FLET'S ADSL campaign that waived monthly fees for a certain period. We also actively worked toward usage trials and utilization of leading technologies for copyright protection and high-volume data distribution.

To meet the needs of our high-usage corporate customers, we developed our total solutions business concept called "Team M@rketing Solutions," which makes full use of our optical access services for business users and the most advanced data center technology to meet the quickly evolving and diverse needs of our customers. In addition, the e-Japan Promotion Department of the Business Communications Headquarters, and the e-Japan Promotion Office of the Business Communications Department at each branch have been the focus of our efforts to provide solutions for the e-Japan Strategy II plan, such as electronic application systems, electronic bidding systems, and electronic voting systems.

In the sphere of new business development, we established an environmental service company NTT-GP Eco Communications, Inc., in April 2003 as a joint venture with NTT Facilities, Inc., and Ebara Corporation.

As part of our structural reform efforts, we streamlined management structures in April 2003 by moving portions of certain operations to prefectural outsourcing subsidiaries* established for this purpose. The operations transferred included portions of branch market planning and branch corporate marketing operations as well as construction and service administration operations from the headquarters cost center. Certain headquarters cost center functions were merged with headquarters staff administration as part of the reorganization. Along with these changes, NTT-ME was given the new mission of handling services for corporations.

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

We also recognize that ensuring compliance is vitally important to the continuation of a business, and in November 2002, the NTT Group adopted the NTT Group Corporate Ethics Charter, developed under the leadership of Nippon Telegraph and Telephone Corporation. This charter formed the basis of increased efforts to reinforce corporate ethics, including company-wide ethics education, with a special focus on protecting personal information.

Our efforts to protect the environment were based on the NTT East's Global Environmental Charter established in December 1999, which includes measures covering paper resources, global warming, hazardous waste, and other measures to continue to reduce the burden on the environment. In addition to performing an information and communications life-cycle assessment, we developed and introduced environmentally friendly steel-tube telephone polls, called eco-polls. All branch offices have now received ISO 14001 certification, and we are working hard to promote environmental protection through various means such as collecting and using information supplied by our Environmental Information Distribution System and publishing the NTT East Environmental Report 2003.

As a result of these developments, NTT East's business results for the fiscal year ended March 31, 2004 were as follows. Operating revenues were 2,267.1 billion yen (year-on-year decrease of 3.6%), recurring profit was 97.8 billion yen (year-on-year increase of 54.5%), and net profit was 57.9 billion yen (net profit for the last year was 3 billion yen).