KDDI Corporation
Chubu Electric Power Co., Inc.

January 25, 2008

Resolutions were passed at meetings of the Boards of Directors of KDDI Corporation (hereafter "KDDI") and Chubu Electric Power Company, Inc. (hereafter Chubu Electric) held on January 25, 2008, agreeing on the conclusion of a share transfer agreement for a partial transfer of shares in Chubu Telecommunications Co., Inc. (hereafter CTC) from Chubu Electric to KDDI on April 1, 2008. The details of this agreement are presented below.
With this share transfer, CTC will become a subsidiary of KDDI.

1. Reason for Share Transfer

KDDI and Chubu Electric are committed to using their combined management resources to create a more solid foundation for their telecommunications business in the Chubu Region, enabling the provision of highly convenient telecommunications services that are responsive to customer needs. KDDI believes that the share transfer will enable the company to use the operating base established by CTC (customer base, infrastructure, etc.) to further extend its telecommunications business in the Chubu Region. Chubu Electric is confident that the expansion of CTC will enable it to make an even greater ongoing contribution to the Chubu Region in the field of telecommunications.

2. Details of Share Transfer

KDDI will acquire 1,660,709 shares in CTC held by Chubu Electric (80.5% of the company's total shares).
On the day of the share transfer, rights and obligations in respect of telecommunications lines used in CTC's business operations will be transferred from CTC to Chubu Electric through spin-off.

3. Outline of CTC

(1) Business name	Chubu Telecommunications Co., Inc.
(2) Representative	Yoku Mukaiyama, President and Director
(3) Headquarter location	2-5 Sakae 2-Chome, Naka-ku, Nagoya, Aichi Prefecture
(4) Date established	June 3, 1986
(5) Primary business	Telecommunications
(6) Fiscal term	March 31
(7) Number of employees	568 (As of March 31, 2007)
(8) Main business locations	Nagoya headquarters, Nagoya branch, Okazaki branch, etc.
(9) Capital (million yen)	38,816
(10) Total shares issued and outstanding	2,062,992.6
(11) Major shareholders and holding ratio	Chubu Electric (100%)

Fiscal term	March 2006	March 2007
Operating revenues (million yen)	32,035	40,279
Operating income (million yen)	1,637	-1,058
Ordinary income (million yen)	346	-2,003
Net income (million yen)	451	-1,954
Total assets (million yen)	144,297	134,814
Net assets (million yen)	86,694	84,739
Dividend per share	No dividend payments.

4. Parties to sale and purchase of shares

	Acquisition	Transfer
(1) Business name	KDDI Corporation	Chubu Electric Power Company, Incorporated
(2) Representative	Tadashi Onodera, President and Chairman	Toshio Mita, President and Director
(3) Headquarters	3-2 Nishi-Shinjuku 2-Chome, Shinjuku-ku, Tokyo	1, Higashi-shincho, Higashi-ku, Nagoya, Aichi Prefecture
(4) Primary business	Telecommunications	Electric power
(5) Relationship	Mutual business relationship

5. Number of shares to be sold/purchased, purchase price, and ownership following sale/purchase

	KDDI	Ownership	Chubu Electric	Ownership
Shareholdings prior to sale/purchase (Number of voting rights)	0 shares (0)	0%	2,062,992.6 shares (2,062,992)	100%
Number of shares to be sold/purchased (Number of voting rights)	1,660,709 shares (1,660,709)	—	1,660,709 shares (1,660,709)	—
Shareholdings following sale/purchase (Number of voting rights)	1,660,709 shares (1,660,709)	80.5%	402,283.6 shares (402,283)	19.5%

(2) Purchase price
37,932 million yen
The purchase price has been agreed upon based on an evaluation by a third party.
The final purchase price will be adjusted and fixed at the time of purchase based on the financial status of CTC and other considerations.

6. Schedule

January 25, 2008	Resolution of Board of Directors of KDDI, resolution of Board of Directors of Chubu Electric, conclusion of share transfer agreement
April 1, 2008	Sale of shares (closing)

7. Future outlook

Both companies project that this share transfer will have a minimal effect on results for the next operating period.