Equity Acquisition of a German telephone company CONOS Corporate Network & Services A.G.

CONOS is a German telephone company established in 1994. Since its foundation, the company has set up more than 40 access points in major German cities to provide domestic and international telephone services between corporate customers.

KDD Deutschland began Globridge, a resale-type international leased circuit service, in March 1996, FaxBIRD, a store-and-forward facsimile service, in April the same year, and KDDnet, an Internet connection service, in September 1997. After it applied for a telecommunications carrier license in Germany in January this year, the company has been making preparations to provide full-fledged telephone services.

The equity acquisition of KDD-CONOS will allow KDD Deutschland to interconnect KDD-CONOS' domestic network in Germany with KDD Group's global network that interconnects such countries as Germany, U.K., France, Japan, and the United States, and provide lower-priced domestic and international telephone services in Germany.

KDD America (United States) and KDD Europe (U.K.) have already obtained both resale-based and facilities-based telecommunications licenses. These and other KDD Group companies will cooperate with one another to aggressively expand telecommunications businesses around the world.

(Reference)

[KDD Deutschland GmbH]
1. Name of company: KDD Deutschland GmbH
2. Main office: Dusseldorf, Germany
3. Established: April 1, 1992
4. Capital: 13,048,000 DM (approximately 953 million yen)
5. Shareholders: wholly-owned by KDD Europe Ltd.
6. President: Tokuji Mitsui

[KDD-CONOS]
1. Name of company: KDD-CONOS A.G. (unlisted corporation)
2. Main office: Bonn, Germany
3. Established: December 23, 1994
4. Capital: 273,450 DM (approximately 20 million yen)
5. Shareholders: KDD Deutschland: 51%, local stockholder: 49%
6. Board of Directors: Thomas Zeitelberger, Rolf Diederichs