KDD (Japan's Global Communications) has reached an agreement with GE Information Services, Inc. (GEIS: a wholly owned subsidiary of the General Electric Company of the United States) enter into a business alliance to provide Electronic Data Interchange (EDI) Services in Japan.

GEIS boasts the world's largest EDI network and more than 20 years of experience in providing EDI services. Based on this agreement, to prepare itself for domestic and international EDI services, KDD will establish the interconnection with GEIS' global EDI network using the special EDI software called "EDISWITCH" developed by GEIS. KDD plans to launch the service this fiscal year.

EDI enables efficient and fast commercial transactions such as purchasing and sales, even between companies in different industries, by electronically exchanging data for purchase orders or acceptance of order, settlement of accounts, etc., in the standardized format. In particular, electronic data interchange services using EDIFACT*, the international standard format, have become quickly widespread in Europe, the United States, and Asia.

* Electronic Data Interchange For Administration Commerce and Transport:

A global standard format for EDI established by the United Nations. In Japan today, each one of the various industries and corporate groups is engaged in electronic data interchange based on its unique format.

EDISWITCH is a core system that realizes advanced data exchange in EDI services, securing transmission and reception of data, data conversion between different data formats, etc., in a highly safe and reliable environment. It has been installed in over thirty countries around the world, and GEIS itself is providing EDI services in many countries on its worldwide EDI network established using EDISWITCH.

Noticing an increase in the demand particularly for EDI based on Internet Protocols (IP), KDD has decided to provide EDI services that can be used within its Business IP Service, an IP network that offers superior safety, reliability, and quality. KDD also plans to enable conversion between the various EDI formats and EDIFACT and data transactions with GEIS' existing EDI users.

(Reference 2)

Profile of GEIS

A wholly owned subsidiary of the General Electric Company of the Untied States, GEIS is an information service company that boasts the world's largest computer network. Besides EDI services, the company provides essential services for companies to improve productivity, such as purchasing and inventory control.

1. Name of company: GE Information Services, Inc.

2. Location: Rockville, Maryland, United States

3. Establishment: 1965

4. CEO: Harvey F. Seegers

5. Sales: US$79 million (1996)

6. Employees: 2,600

7. Principal operations:

- EDI service

- Services relating to marketing and productivity improvement in business

- Purchasing, inventory, and distribution and shipping control service

- Electronic mail service