Organization of KDD Corporation after the Merger

Kokusai Denshin Denwa Co., Ltd. (KDD) and Teleway Corporation (Teleway), as a result of the planned merger on December 1, 1998, will consolidate their organizations as to all of their administrative, sales and marketing, and technical functions, effective immediately at the merger. The organization of KDD Corporation after the merger is outlined as follows:

1. Basic Concepts:
(1) To structure a consolidated domestic and international telecommunications business as to each of the administrative, sales and marketing, and technical functions; and
(2) To provide customers with global support, both in Japan and in abroad, through their offices in 74 domestic locations and 35 overseas locations.

2. Outline of Organization:
(1) Administrative Function:
For the purpose of facilitating quick decision making, "Administrative Headquarters" will be established, which consists of Corporate Affairs Department, Personnel Department, International Affairs Department, Finance & Accounting Department, Affiliated Business Development Department, and Telecommunications Business Development Department.

(2) Sales and Marketing Function:
"Marketing & Sales Headquarters" will be expanded and reinforced to actively promote sales and marketing activities in such areas as telephone and leased line services, multimedia-related services, and SI business with a consolidated structure for domestic and international services.

In order to strengthen sales and marketing activities in Tokyo Metropolitan Area, Osaka Area and Tokai Area, Tokyo Regional Office, Osaka Regional Office and Nagoya Regional Office will be established respectively along with 9 district offices in charge of districts such as Hokkaido, Tohoku, etc. and 61 offices and branches in Tokyo and all the prefectures, which will enable to extend sales and marketing activities throughout the whole nation.

(3) Technical Function:
"Network Headquarters" will be expanded and reinforced to develop formation of high-quality, low-cost global optical fiber cable networks spreading over domestic and overseas points with attaining an organic integration of domestic optical cable networks and international submarine optical cable networks.

3. Effective Date:
December 1, 1998

4. Organization Chart:
See a organization chart below.