1996-016                                                      July 25, 1996

KDD is to carry out revisions to its organizational structure, which will include the setting up of a Administrative Headquarters to control Corporate Affairs, Personnel, and Procurement & Premises Management. Also included in the revisions, among other moves, will be amplifications to its Global Multimedia Business Department, which oversees multimedia-related operations such as the Internet and cable television (CATV). The revisions in question are to coincide with the regular personnel relocation to take place on July 31.
�@�@�@ 1. The Institution of Administrative Headquarters

In order to accelerate decision-making processes, a new Administrative Headquarters is to be set up, which will incorporate the existing Corporate Affairs Department, Personnel Department, and Procurement & Premises Management Department.
At the same time, in line with advancing deregulation and the growth of KDD's overseas developments, steps are to be taken to reinforce the company's legal management. This will take the form of newly instituting the office of Legal Affairs, which is to be amplificated of the Legal Affairs Group housed within the present Corporate Affairs Department.

2. Expansion of the Global Multimedia Business Department

For swift and positive advances in areas where there is the promise of ample future growth, such as the Internet, CATV and related KDD multimedia services, as well as associated undertakings, KDD is to integrate the departments concerned into the Global Multimedia Business Department.
This move will ensure that multimedia-related services progress under a consistent structure that embraces all stages, from planning, system design and development, all the way through to facility operating and maintenance and business development.
A general outline of the business operations to be subject to integration is as follows:
(1) Operations related to basic policy, matters of provision, etc. for the Internet Gateway Service, Frame Relay, ATM and similar other services, as well as fresh multimedia-related services.
(2) Operations related to new increased provisions etc. of terminal facilities and the communications systems for the services outlined above etc.

3. The Osaka Regional Office

Telephone-related operations will cease to be handled by the Osaka Regional Office. Also to be terminated in line with this will be the Office of Sales Promotion, which covers the combined functions of the Osaka Regional Office Telephonic Operations Sector. Following these moves, a new General Affairs and Planning Department is to be set up.
In addition to overseeing Osaka Regional Office-related Corporate Affairs, Personnel, Corporate Accounts, Procurement & Premises Management, and other such functions, the General Affairs and Planning Department will also be responsible for such associated business as information collection, surveys, and the like. This move is aimed at reinforcing newly instituted related projects in the West Japan region.

4. In order to ensure a more lateral organizational structure, as well as a greater overall operating efficiency, the Network Management Center and the Telecommunications Software Center, internal organizations of the Network Operations Department and the Switching System Engineering Department respectively, will be abolished. In the main, the functions of these sectors will be integrated into their respective departments.
Further, operations concerned with the electric power and air conditioning for the Transmission Systems Engineering Department, as well as the operations of the Network System Engineering Department Office of Product Designing and the Service Systems Department Engineering Operations Center are each to be transferred to the KDD Network Systems Co., Ltd. (KDD-NS) to be set up on July 29. As a result, the Office of Product Designing and the Engineering Operations Center are to be abolished.