Japan's KDDI to Establish Affiliate in Guangzhou, China




Tokyo, Japan, January 17, 2003 - KDDI (TSE: 9433), Japan's second largest telecommunications carrier, announced today the establishment of a new affiliate in Guangzhou, China. The new company, to be established in January through KDDI's 100%owned subsidiary, KDDI Hong Kong, will be called KDDI Guangzhou Corporation (KDDI Guangzhou). KDDI Guangzhou will take advantage of expertise in infrastructure and engineering to support needs of area corporations.

KDDI first began customer support operations in China with the opening of its Beijing office as far back as 1983 and has worked to increase customer solutions to the area. In May of 2000 the Company opened the joint venture Shanghai Kaixu in coalition with Shanghai Telecommunications. In October 2001 it established KDDI China in Beijing and in September 2002 KDDI became the first Japanese telecommunications carrier to set up operations in Tianjin City. All of these ventures provide advanced customer support in the Huabei and Huadong areas.

KDDI Hong Kong had previously set up an office in Guangzhou, the central city of the Huanan region, in February 2000. KDDI Guangzhou was established in order to respond to accelerating expansion of Japanese corporations into the area, following China's instatement in the WTO, and the diversification of user needs. KDDI Hong Kong and KDDI Guangzhou will work together to provide a wide range of services. KDDI Guangzhou will also cooperate with sales offices in the Huabei and Huadong areas to improve sales alignment and streamline the provision of network solution services in China's major cities.

KDDI plans to continue to respond to telecommunication network needs, aiming to improve customer satisfaction in China.

Details of KDDI Guangzhou
1) Name of Company: : KDDI Guangzhou Corporation (KDDI Guangzhou)
2) Capital : HKD3,300,000
3) Shareholdings : KDDI Hong Kong 100%
4) Location : Guangzhou, Guangdong
5) President : Gong Zhenguang
6) Date of Establishment : January 17, 2003
7) Major Business : Provision of solution services for corporate customers
Support for domestic and international network establishment



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