KDD Europe

KDD Europe and the Swiftcall Group of Companies Conclude Arrangements for International Telephone Services

1998-002

January 12, 1998

January 8, 1998 -- KDD Europe Limited, KDD's wholly-owned subsidiary (main office, London; Toshio Takahashi, Managing Director) will in February 1998 commence carrying international telecommunications traffic from the U.K. to destinations around the world under a recently obtained U.K. telecommunications license. KDD Europe has entered into arrangements with the Swiftcall Group of companies, (main office, London: Andrew Fray, Group Managing Director) a leading reseller of international telephone services, to carry Swiftcall's international traffic

The business arrangement with Swiftcall includes the following:

1. A contract under which KDD will carry international telephone traffic of Swiftcall;

2. An option by KDD Europe to purchase up to 20% of Swiftcall's common stock upon the initial public offering of the company's shares within two years;

3. Possible joint business projects between the companies in Europe;

4. Network engineering and technical support services provided by KDD-Europe to Swiftcall.

KDD, KDD Europe's parent company, is Japan's largest international telecommunications carrier.

Swiftcall primarily serves the consumer market in the U.K. offering residential, business and calling card services, and has experienced rapid growth in recent years. Swiftcall is licensed for resale in U.K., U.S. and Ireland and plans to expand its sales and marketing activities in Europe.

KDD Europe obtained a license to operate in the U.K. as a telecommunications reseller in May 1997 and a U.K. license to operate as a facilities-based telecommunications carrier in September 1997. Under authority of these licenses KDD Europe now has the ability to own and operate facilities such as undersea telecommunications cables and to carry international telephone traffic originating in the U.K. Starting in February 1998. KDD Europe will complete installation of these facilities in the U.K., which will carry international telephone traffic for Swiftcall and other KDD Europe customers to destinations around the world.

Within the KDD Group, KDD America, KDD's wholly-owned U.S. subsidiary, has also obtained a U.S. license as a facilities-based telecommunications operator to carry international telecommunications traffic originating in the U.S. (except the U.S.-Japan route). The KDD Group plans significantly to expand the geographical scope and scale of its international telecommunications services now made possible as a result of the licenses issued to its overseas subsidiaries.

Swiftcall group of companies:

Foundation date : 1993

Number of employees : approximately 300

Representative : Andrew Fray, Group Managing Director

Turnover : 24 million pounds(FY96)

Main business : Resale for international telephone services including residential, business and calling card services.

1.	A contract under which KDD will carry international telephone traffic of Swiftcall;
2.	An option by KDD Europe to purchase up to 20% of Swiftcall's common stock upon the initial public offering of the company's shares within two years;
3.	Possible joint business projects between the companies in Europe;
4.	Network engineering and technical support services provided by KDD-Europe to Swiftcall.

Foundation date :	1993
Number of employees :	approximately 300
Representative :	Andrew Fray, Group Managing Director
Turnover :	24 million pounds(FY96)
Main business :	Resale for international telephone services including residential, business and calling card services.