Interconnection for International IP-VPN Service between CNC and KDDI

Interconnection for International IP-VPN Service
between CNC and KDDI

Tokyo, Japan, February 5, 2003 - KDDI (TSE: 9433), Japan's second largest telecommunications carrier, has reached agreement to the interconnection for International IP-VPN service and concluded the agreement with China Netcom Corporation Ltd. (CNC). KDDI will start providing the service early the next fiscal year^*.
* The Japanese fiscal year starts April.

KDDI started its International IP-VPN service in January 2001 and currently covers 51 countries for this service. It is expected that International IP-VPN service will have more demand between Japan and China since Japanese companies have accelerated its business development in China.

CNC is an affiliate company of China Network Communications Group which was established by reorganization of former China Telecom and provides domestic and international telecommunications services(telephone, data, Internet, etc.) in China.
KDDI will enhance the quality of KDDI's IP-VPN service between Japan and China and in China by the interconnection with CNC and will serve corporate customers having its business locations in both countries with a higher quality service at a lower price.

More detailed information on International IP-VPN with CNC such as its service commencement date and service price will be notified after it is ready for service.

Details of CNC

1) Name of Company : China Netcom Corporation Ltd. (CNC)

2) Capital : CNY300,000,000

3) )Location : Beijing of China

4) President : Tian Suoning

5) Date of Establishment : August 6, 1999

6) Major Business : domestic and international telecommunications services, data services, Internet services