Re: Amendments to Business Results for Fiscal Year Ending March 2000 (April 1999 - March 2000)

The business estimates for Semi-annual term and whole term for the fiscal year ending March 2000 (April 1, 1999 - March 31, 2000) are amended as follows:

(1) Semi-annual term business estimates for the fiscal year ending March 2000 (April 1, 1999 - September 30, 1999)

(Unit: million yen)

Sales Ordinary Income Net Income At the time of announcement of the settlement for fiscal year ending March 1999 (A) May 21, 1999 182,000 2,000 1,000 Revised estimates (B) 212,000 11,000 1,200 Amounts of increase and decrease (B-A) 30,000 9,000 200 Rate of change (%) 16.5 450.0 20.0 Performance in the previous semi-annual term 144,089 5,114 2,166

(2) Whole term business estimates for fiscal year ending March 2000 (April 1, 1999 - March 31, 2000)

(Unit: million yen)

Sales Ordinary Income Net Income At the time of announcement of the settlement for fiscal year ending March 1999 (A) May 21, 1999 366,000 5,000 2,500 Revised estimates (B) 406,000 12,000 2,500 Amounts of increase and decrease (B-A) 40,000 7,000 0 Rate of change (%) 10.9 140.0 0.0 Performance in the previous semi-annual term 313,160 9,425 7,269

(3) Reasons for amendments

The previous semi-annual term business estimates for the fiscal year ending March 2000 are amended from sales of 182,000 million yen, ordinary income of 2,000 million yen, and net income of 1,000 million yeto 212,000 million yen, 11,000 million yen, and 1,200 million yen, respectively. These amendments are made to reflect posting some items such as revenue from the sales of transmission capacity including submarine cables as well as reserve for revaluation loss from the shares of the wholly-owned affiliate with respect to SPJ, a KDD's consolidated subsidiary, shares, earmarked to allow for the petition under Section 11 of the Federal Bankruptcy Reform Act filed by ICO, in which SPJ has a stake.

By the above-mentioned posting, the previous whole term business estimates for the fiscal year ending March 2000 are also amended from sales of 366,000 million yen, ordinary income of 5,000 million yen, and net income of 2,500 million to 406,000 million yen, 12,000 million yen, and 2,500 million yen, respectively.