1.Brand Name

KDDI has long been providing facility housing services at a number of sites, among which Otemachi Building has become a major peering point for ISPs, and will further expand its domestic data centers under the brand "dotsquare" to deliver enhanced services flexible and scalable to meet customer needs by fully utilizing its proven expertise in facility housing and application services as well as in operation and maintenance.

2.Deployment of New Sites in Japan
	As described below, KDDI will start operation of a new site in the Odaiba area, Tokyo in November and will open a new large-scale site specially designed for data centers in the Shibuya area in the beginning of fiscal 2002. These make a total of approximately 20,000 square meter data centers at 27 sites in 13 cities nationwide as of the end of fiscal 2000, to be expanded to some 40,000 gross square meters at 28 sites in 13 cities by the beginning of fiscal 2002.
	[Outline of the new sites in Japan] Odaiba Area Shibuya Area Location Aomi, Koto-ku,Tokyo Meguro-ku, Tokyo Cumulative Area (square meters) 2,200 4,600 15,000 Outline of Building Located in Telecom Center 14 floors and 1 basement In-service Nov. 2000 April, 2001 beginning of fiscal 2002

3.Deployment of New Sites Overseas

In close cooperation with TELEHOUSE and other local subsidiaries overseas with some 66,000 square meter floor spaces at 11 locations in 6 cities, KDDI currently fosters customer's global business development and will start operation of its sites in Germany (Frankfurt, Munich, and Hamburg) and Hong Kong from the end of November. These represent a total of approximately 83,000 gross square meters utilized by the KDDI Group at the end of the current fiscal year.

4.Service Line-up
	The following services are to be provided under "dotsquare":
	(1)	Collocation Service
		Open space collocation, Cage collocation, Rack collocation will be available under redundant, highly reliable power supply and air conditioning as well as security monitoring by dedicated staff.
	(2)	Operation Service
		The service delivers operation and monitoring, staffed with operators with high-level IP skills and experiences.
	(3)	Hosting Service
		Server capacity, mail accounts, and the Internet bandwidth will be made available by proficient server operation and maintenance.
	(4)	Application Service (phased implementation from fiscal 2001)
		Services to support customers with e-business, such as credit card transactions, small sum transactions, interface to call centers, and mobile applications, will be phased in.
	Also, "dotsquare" can be delivered "Circuit Services" in combination with DION and ANDROMEGA NW Services, and "Professional Services" which is a solution service to meet specific requirements of customers establishing telecommunications networks.