NTT Submits 2005 Biz Plan

TOKYO -- Nippon Telegraph and Telephone Corporation (NTT) today submitted its business operation plan for the fiscal year ending March 31, 2005 to the Minister of Public Management, Home Affairs, Post and Telecommunications for approval.

Business Operation Plan for Fiscal Year Ending March 31,2005

In the building of an advanced information and telecommunications network society, information and communications are expected to make a substantial contribution to invigorating and raising the efficiency of socioeconomic activities, enhancing lifestyle convenience, and so on. Today, the public and private sectors in Japan are working together to make such a society a reality. The information and telecommunications market has been changing dramatically with the intensification of competition resulting from the shift from voice communications to data communications, the rapid expansion of broadband services, and the diversification and upgrading of mobile phone services.

To help ensure that universal services are maintained amid this information and communications environment, NTT intends to provide all necessary advice, mediation, and other assistance to Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation ("the regional companies"). It will also endeavor to promote research and development in telecommunications technology in order to respond to society's requirements for the development of an advanced information and telecommunications network society.

In addition, NTT intends to foster active Group management for the sound development of the entire Group by realizing its "Vision for a New Optical Generation" while utilizing its research and development capabilities and the total management resources of its corporate Group to respond to changes in the market environment.

In the management of business operations for the fiscal year ending March 31, 2005, NTT will aim to improve the management efficiency of its Group operations, including those of the regional companies; to develop new businesses for enhancing the information-sharing industry, including expanding the broadband market; and to continue to strengthen research and development that will contribute to the advancement of telecommunications. In this way, NTT will seek to ensure the stable development of Group operations in the future, and to return the fruits of these efforts to customers, shareholders, and the community at large.

Based on this thinking, under the business operation plan for the fiscal year ending March 31, 2005, NTT will conduct its business management by giving priority to the following activities, and will do so in a flexible manner so as to respond to changes in the operating environment.

NTT Group