TOKYO and MOSCOW -- NTT CommunicationsCorporation (NTT Com) and Closed Joint Stock Company TransTeleCom (TTC),Russia's leading backbone telecom operator, have signed a Memorandum ofUnderstanding regarding strategic partnerships for mutual data networkbusiness development. The companies will start exploring mutuallyadvantageous business opportunities such as data/IP network services.

The cooperation's development covers interconnecting MPLS* networks, IPTransit and IPL beginning early next year. The MPLS network interconnectionwill enable both companies to increase network coverage through a seamlessinternational network spanning most of the Asia-Pacific region and Russia.

According to the research consultancy Yankee Group, inter-regionaldependency is growing swiftly: More than 80% of Western European companiesalready have network connectivity to Asia, and 42% of these companies planto increase trans-continental bandwidth capacity by the end of 2006. AmongAsia Pacific companies, of which 76% have network connectivity to Europe,28% will increase trans-continental capacity in 2006.**

"The interconnection enables us to expand our international outreach bytaking advantage of NTT Com's unrivaled coverage of the Asia-Pacificregion," stated Sergey Lipatov, President of TransTeleCom.

NTT Group (NYSE: NTT)