Establishment of Joint Venture for Solution Related Business with SPT

[Notification] June 9, 1999

KDD singed in Shanghai today a joint venture agreement to establish a joint venture for solution related business, "Shanghai KDD Communications Engineering Co., Ltd. (provisional name)" with Shanghai Post and Telecommunication Administration (SPT).

KDD and SPT, maintaining a close relationship in particular through the KDD Shanghai Liaison Office (established in 1986), have so far achieved in no small way satisfactory results including joint consulting regarding communications for local business customers. With the joint venture, both the organizations are now poised for establishing an ever-more effective customer support system, making the most of their technology and know-how.

Shanghai KDD Communications Engineering Co., Ltd., with the commencement of service scheduled for this July, is planning to provide customers mainly located in Shanghai with a variety of solution services, ranging from consulting for the network construction to engineering and systems integration, and further to procurement and maintenance of the network equipment.

In addition, combination of its solution services with the SPT's Internet related services will make it possible for the company to provide a comprehensive customer support, thus coping with a rapidly expanding Internet business market in China.

Outline of the company:
(1) Company name: ... Shanghai KDD Communications Engineering Co., Ltd.
(2) Capital: US$ 700 thousand
(3) Composition of capital: SPT 51% (US$ 357 thousand)
KDD 49% (US$ 343 thousand)
(4) Location: Shanghai, China
(5) President (expected): Shunichi Karasawa
(Present Director for KDD Shanghai Liaison Office)
(6) Principal business: 1. Consulting, engineering and systems integration relating to construction of business communications networks
2. Procurement and maintenance of equipment for business communications
3. Internet related businesses

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