Acquisition by KDD Europe of Swiftcall of U.K.

Swiftcall is a resale provider of international telephone services on credit cards and prepaid cards, targeting mainly residential customers. Since its foundation in 1993, the company has grown quickly to reach a customer base of some 300,000 in the U.K. and Ireland with an annual turnover of 26 million pounds sterling (approx. 5.7 billion yen).

KDD Europe had been preparing for providing Swiftcall with U.K.-originated international telephone services since January, 1998. The acquisition will integrate the Swiftcall services into the services comprehensively provided by KDD group companies concurrently with the start of direct international telephone services scheduled for June 1.

KDD Europe will provide Swiftcall's subsidiary with international telephone services on a wholesale basis to help the new company offer low cost international telephone services to existing Swiftcall customers. At the same time KDD Europe will enter into economical domestic/international telephone services, including "KDD Call Direct" designed for corporate customers, as well as "KDD Call 127" aimed at private and residential customers.

Besides KDD Europe, other KDD Group companies, KDD America and KDD TELECOMET Deutschland will launch on June 1 domestic/international telephone services respectively in the U.S. and Germany as the first Asian telecommunications carriers advancing into markets in these countries.

(Reference)

[Profile of New Company]

1.	Full Company Name	Swiftcall Ltd
2.	Main Office	London, U.K.
3.	Staff	Approx. 200
4.	President	Mr. Toshio Takahashi
5.	Capital	7 Million pounds(approx. 1.5 billion yen)
6.	Service Overview	Resale of World-wide International Telephone Services on Credit Cards and Prepaid Cards