KDD's Overseas Subsidiaries Launch Telephone Services in U.S., U.K., and Germany

The services are priced competitivley against the services offered by the other carriers in the United States, U.K, and Germany. In particular, each KDD subsidiary will offer the lowest rate for calls to Japan in their respective country to quickly attract customers, particularly Japanese overseas operations.

KDD Group will become the first Asian telecommunications carrier to provide telephone services in these countries.

Launching the telephone services in the United States, U.K., and Germany is an outcome of KDD's positive policy to quickly respond to a business opportunity promped by the world-wide deregulation including the WTO Basic Telecommunications Agreement that took effect in February this year. KDD America, KDD Europe, and KDD TELECOMET Deutschland will gradually deploy a series of new services including corporate services, residential services, wholesale services for tele-communications service providers, prepaid card call services, and calling card call services.

Provided below are brief descriptions of the services to be provided by the KDD susidiaries.

(1) KDD America Inc.

On June 1, KDD America will start "Route KDD America" in New York City. This service, designed for corporate customers, connects the customers' premises to KDD America's access point by leased circuits. On July 1, the company will launch "KDD Talk" in the 48 contiguous states. This service, intended to serve residentials, uses local networks of regional telephone companies. The rate for a three-minute call to Japan using "Route KDD America" or "KDD Talk" is approximately 80% less than AT&T's standard rate. KDD America also plans to introduce an international telephone wholesale service for telecommunications carriers by the second quarter of fiscal year 1998.

(2) KDD Europe

On June 1, KDD Europe will start "KDD Call Direct" in London. This service, targeting corporate customers, connects the customers' premises to KDD Europe's access point by leased circuits. Another move to be made on the same day is launching "KDD Call 127" throughout U.K. Users can access this service via British Telecom's network just by dialing "127" before the telephone number. The rate for a three-minute call to Japan using "KDD Call Direct" or "KDD Call 127" is approximately 70% less than BT's standard rate. At the same time, KDD Europe will launch an international telephone wholesale service for telecommunications carriers. Among its first customers for the wholesale service will be Swiftcall, with whom KDD Europe concluded a business cooperation agreement in January this year.

(3) KDD TELECOMET Deutschland

On June 1, KDD TELECOMET Deutschland will start "KDD Call", a telephone service designed for corporate customers, in all of Germany in conjunction with KDD CONOS, whose majority share was acquired by KDD TELECOMET Deutschland in May this year. KDD TELECOMET Deutschland also plans to begin a telephone service targeting residentials via Deutsche Telecom's network by the third quarter of this fiscal year. The rate for a three-minute call to Japan using "KDD Call" is approximately 50% less than Deutsche Telecom's standard rate. The telephone service for residentials is to be offered for comparably low rates. On the same day the company will also begin to provide the international telephone wholesale service with KDD CONOS, and plans to gradually increase sales to other telecom carriers.

The KDD subsidiaries also plan to launch prepaid card service and calling card call service targeting foreign travelers and students in their respective countries by the end of the year and by the beginning of next year, respectively.

As part of the KDD Global Network project, KDD's overseas subsidiaries, working in unison as KDD Group, today provide telecommunications and telecommunications-related services that satisfy a variety of needs. These services include international leased circuit service, facsimile service, Internet connection service, housing service, and terminal facility sales and maintenance service.

Following KDD America, KDD Europe, and KDD TELECOMET Deutschland, other KDD subsidiaries are preparing to apply for telecommunications business licenses in countries such as France and Australia where telephone markets are opened. KDD Group will continue to expand its overseas telecommunications business.

(Reference 1)

Profile of KDD Subsidiaries' Services

	KDD America		KDD Europe		KDD TELECOMET Deutschland
	corporate customers	Residentials	corporate customers	Residentials	corporate customers	Residentials
Service Startup	June, 1 1998	July,1 1998	June, 1 1998	June, 1 1998	June, 1 1998	3rd quarter of FY 1998
Service type	Domestic long-distance / international calls		Domestic(local & long-distance) / international calls		Domestic long-distance / international calls
Service area	To be gradually expanded, starting with NYC	48 states (except for Alasca and Hawaii)	To be gradually expanded, starting with London	All of UK	All of Germany	All of Germany (scheduled)
Access format	Tie-line access	Public network access	Tie-line access	Public network access	Public network access	Public network access
Rate comparison*	Approximately 80% less (compared to AT&T's standard rates)		Approximately 70% less (compared to BT's standard rate)		50% less (compared to Telecom's standard rates)	undecided
Usage method (Residentials)	Same as other domestic U.S. carriers' services		Dial "127" first"		Same as other domestic German carriers' service

* For a 3-minute call to Japan

(Reference 2)

KDD Group's Services

		KDD America	KDD Europe	KDD TELECOMET Deutschland	KDD France	KDD TELECOMET Hong Kong	KDD TELECOMET Singapore	KDD Australia
Telephone	corporate customers	Route KDD America June, 1998	KDD Call Direct June, 1998	KDD Call June, 1998	Preparing license application	Telephone market not deregulated		Conducting research on telecommunications business
	residentials	KDD Talk July, 1998	KDD Call 127 June, 1998	undecided 3Q of FY 1998
	Wholesale type	2Q of FY 1998	June, 1998	June, 1998
Leased circuit service		March, 1996	March, 1996	March, 1996	February, 1997	July, 1997	September, 1997
Store-and-forward FAX service		October, 1994	November, 1993	April, 1996	June, 1997	September, 1994	-
Internet connection service		November, 1996	May, 1997	September, 1997	-	May, 1997	-

Note: KDD Australia was established on April 1 this year to conduct research on telecommunications services and other businesses.