TOKYO -- Jupiter Telecommunications Co., Ltd. (J:COM, JASDAQ code: 4817), the largest multiple system operator (MSO) in Japan based on the number of customers served, announced its basic agreement with the administration of Sumida Ward, Tokyo, the largest shareholder of Sakura Cable TV Co., Ltd. (Sakura Cable TV) and Sakura Cable TV regarding the transfer of certain shares of Sakura Cable TV. According to a memorandum of understanding entered into among J:COM, Sumida Ward and Sakura Cable TV today, the majority of the shares of Sakura Cable TV owned by the Sumida Ward will be transferred to J:COM, subject to approval at the March 2006 Sumida Ward Council meeting. By acquiring the majority of the 7,300 ordinary shares (representing 46.3% of the total voting rights) and 600 preferred shares owned by Sumida Ward, J:COM will become the largest shareholder of Sakura Cable TV. At the same time, J:COM is also considering the purchase of certain shares held by other shareholders in order to acquire the majority of the voting rights and to participate in the management of Sakura Cable TV.

Sakura Cable TV currently provides services in the Sumida Ward, in the eastern part of the city of Tokyo, and its service areas currently pass approximately 105,000 serviceable households, or "homes passed".

"As one of the core components of our growth strategy, J:COM has been actively pursuing additional investment in strategic assets, including in other cable television operators," said Tomoyuki Moriizumi, President & CEO of J:COM. "While its service area is geographically separate from J:COM's current footprint, the investment in Sakura Cable TV is advantageous for J:COM because of the area's high population density and the availability of the fully-upgraded cable network. With a relatively small additional investment, we expect to expand our reach and to grow subscriber totals in the area."

Jupiter Telecommunications Co. Ltd. (J:COM)