KDD WinStar is capitalized at 1 billion yen as of its service inauguration, invested by KDD with 550 million yen (55%), by WinStar with 350 million yen (35%) through WinStar International, its wholly-owned U.S. subsidiary, and by Sumitomo Corporation with 100 million yen (10%).

In September last year, the Ministry of Posts and Telecommunications unveiled its basic concept regarding technical conditions including frequency allocation to the FWA, with a view to facilitate competition in the local telecommunications market and to enable wireless-based broadband information interchange such as multi-media communications and others with great potential demand. Based on this concept, the three companies have been conducting a customer survey for a joint business opportunity and, considering that the FWA would provide faster means for implementing circuits and changing transmission speeds compared with wired access lines while giving more economical service options due to lower costs in establishing links, and that such characteristics have gained eager expectations from the customers, they found enough feasibility to justify the establishment of a new corporation.

KDD WinStar, making the best use of the advanced wireless technology provided by KDD and business experience and operational expertise accumulated by WinStar as one of the largest FWA operators in the U.S.A., will furnish economical high-speed wireless access using "Point-to-Point System" or "Point-to-Multipoint System"(Note) mainly for business customers with large-volume data transmission needs including Internet service providers, while accommodating varied customer needs, such as establishing domestic and/or global networks, through integrated offering with KDD's telecommunication services.

(Note)
Point-to-Point System: A system enabling wireless access from a base station to a single user at a speed up to 156Mbps.

Point-to-Multipoint System: A system enabling wireless access from a base station to multiple users at a speed up to 10Mbps.

Company Name	KDD WinStar Corporation
Location	2-3-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo
Representative	Yasuhiko Ito, President (planned)
Established Date	December 28, 1998
Capital (as of service inauguration)	1 billion yen (Invested by KDD:55%; WinStar:35%; and Sumitomo Corp.:10%)
Principal Business	Type I Telecommunications Business Telecommunication services such as establishing/providing the FWA for access lines to customers.
Planned Frequency	22GHz (Point-to-Point System), 38GHz (Point-to-Multipoint System)
Date of Service Inauguration	May 1999 (planned)
No. of Employees	Approx. 50 (as of service inauguration)
Expected Sales	Approx. 1 billion yen (as of three years after service inauguration)

Company Name	WinStar Communications, Inc.
Location	New York, NY, U.S.A.
Representative	William J. Rouhana, Jr., Chairman & CEO
Established Year	1993
No. of Employees	Approx. 2,600 (as of end-September 1998)
Principal Business	Providing wireless access services in approx. 30 major U.S. markets Planned business in Europe and South America.
No. of Implemented Circuits	Approx. 257,000 circuits (as of end-September 1998)