KDD Establishes Communications
Consulting Company in Shanghai



1997-022July 17, 1997



In order to support the construction of corporate communication networks and related projects in China, KDD (Japan's Global Communications) has established KDD Shanghai Communications Consulting Co., Ltd., in Shanghai with 100% capitalization contributed by KDD. Business operations are slated to start in August 1997. This is the first time that a communications consulting company with 100% capital participation by foreign interests has been established in China.

At present, a rapidly growing number of companies starting businesses in China are seeking to build corporate communication networks such as LANs and WANs, and other types of networks that utilize Internet related technologies including intranet and extranet. As a result, to build a network based on multimedia technology, these companies are increasingly requiring local support for managing the building process, procuring necessary equipment and negotiating with venders.

In order to be in a position to successfully provide such support, KDD has already finalized such ground work as concluding an agreement with the Designing Institute, Ministry of Posts & Telecommunications, the People's Republic of China to act as subcontractor concerning engineering, as well as exchanging memoranda of understanding with the Administrations of Posts and Telecommunications in the cities of Beijing, Shanghai, Guangzhou, Tianjin and Dalian to provide network engineering services in those areas. KDD has thus paved the way for providing customers with comprehensive end-to-end support between China and Japan.

In an attempt to meet the growing needs for consulting on the building of networks based on multimedia technology as well as to strengthen the Company's engineering services in China, KDD has decided to significantly boost support to customers by establishing a Shanghai-based new consulting company based on the company's existing close working relationships with local telecommunications carriers.

In concrete terms, besides joining hands with local telecommunications carriers including the Shanghai Posts and Telecommunications Administration to propose solutions or provide services to customers, the new company will place orders on behalf of customers with local telecommunications carriers and manufacturers for installation and maintenance work at customers' requests, and supervise such work.

The new company is located in Pudong New Area in Shanghai, and during the first fiscal year, will also be establishing offices in Beijing and Guangzhou. The company will eventually build up a network of offices to serve customers in all the main cities of China.

(Reference)


Outline of the New Company

1. Company Name:

KDD Shanghai Communications Consulting Co., Ltd.

2. Head Office:

Tomson Financial Building

710 Dongfang Road, Pudong New Area, Shanghai

People's Republic of China

3. President:

Shigehiro Muraki

(Director, Marketing & Planning Group,

Business Communications Development Department,

Marketing & Sales Headquarters)

4. Capitalization:

US $ 1 million (Approx. 110 million Japanese yen)

5. Shareholders:

KDD (100%)

6. Main Businesses:

* Local support for KDD's customers in China

* Consulting and engineering concerning communications equipment procurement, installation, maintenance, etc.

* Consulting and engineering concerning communications line installation, etc.

* Consulting and engineering concerning computer installation, software development, etc.