I would like to present here a brief introduction to "NTTis... 2010 Winter Edition," and to take this opportunity to thank all shareholders for your continued support.

In the first half of the fiscal year ending March 31, 2011, NTT Group continued to direct its efforts towards an expansion of broadband and ubiquitous services pursuant to its "Road to Service Creation Business Group" Medium-Term Management Strategy, adopted in May 2008.
In the fixed-line communications field, NTT Group continued to further strengthen and expand the distribution of FLET'S Hikari. In response to the increase in the number of portable gaming consoles, tablet devices and other equipment in the market, NTT Group worked to promote the use of wireless LAN through FLET'S Hikari by providing a rental service for the mobile Wi-Fi router^*1 "Hikari Portable" to subscribers using FLET'S Hikari. In addition, in providing support services, NTT Group directed its efforts toward expanding its customer support by, among other things, enhancing on-site support and remote support for corporate customers not only for FLET'S Hikari, but also for connected IT devices.

In the mobile communications field, NTT Group enhanced its handset lineup, including the “Xperia™” smartphones, to meet various customer needs.  NTT Group also launched the “docomo market,” a web portal which introduces recommended content and applications in a simple manner, and the “sp-mode” service, which enables users to use mail service on smartphones with the same “i-mode” mail address as conventional handsets, as services for smartphones, and worked to expand the smartphone market.  In addition, to expand data communication usage, NTT Group’s efforts were directed toward a discount campaign for its flat-rate data plans and provision of mobile Wi-Fi router devices.

In the solutions field, NTT Group worked to provide high value-added solutions tailored to customers’ industries and business categories by expanding its cloud services focused on BizXaaS and BizCITY, as well as structuring and providing systems to customers.

With regards to the upper-layer services, NTT Group made efforts to expand its service content, such as its video content and e-Learning.  As for Hikari TV, NTT Group commenced provision of 3D compliant content and launched “Hikari TV Shopping,” an interactive service having the advantage of IPTV characteristics that enable viewers to select and order products from a TV screen using a remote control.

In addition, in terms of e-Learning, NTT Group commenced the Virtual English School, which enables users to study via a 3D virtual space on a network and combines the advantages of both the online and real world.

In its global businesses, with the goals of expanding its service lineup and securing know-how and customers by entering into capital alliances with overseas companies, NTT Group worked to strengthen its service platforms by establishing overseas bases to strengthen marketing directed at Japanese companies operating abroad, in addition to constructing new overseas data centers. Through alliances with overseas subsidiaries and local companies, NTT Group expanded its content distribution business for mobile phones.

NTT Group will continue its efforts and improve upon them in accordance with its medium-term management strategy.
NTT Group will also work to steadily expand its globally-advanced broadband and ubiquitous service platform and promote service creation utilizing this platform by expanding the LTE^*2 service, "Xi™," which will be launched this month, as well as, among other things, promoting fiber-optic deployment to small and medium-sized multi-unit dwellings and expanding the FLET'S Hikari coverage area by utilizing IRU^*3.

Moreover, NTT Group will actively expand its global businesses with its solution businesses for corporate users and its mobile businesses for consumers as the two key pillars. As a result of its efforts to steadily increase the number of its overseas subsidiaries, including Dimension Data Holdings plc (Dimension Data), which has become a wholly-owned subsidiary after a tender offer made in October 2010, NTT Group has been organizing a system for providing end-to-end, one-stop services from customers’ system to applications.  Going forward, NTT Group will integrate the strengths of its group companies and work to provide comprehensive ICT services.
Lastly, NTT Group has been participating in the planning and implementation of ICT use by local governments across Japan in the fields of e-government, education, healthcare and others, and has contributed to enhancement of services. NTT Group will continue to make efforts to actively promote ICT use.

With regards to dividends to shareholders for the fiscal year ending March 31, 2011, dividends of ¥120 per share for the full year are planned, and the interim dividend was determined to be ¥60 per share.  Also, in regards to the cancellation of treasury stock, pursuant to the basic policy on cancellation of treasury stock announced in May 2010, approximately 125 million shares held as treasury stock were cancelled on November 15, 2010.

I would like to conclude this message by thanking our shareholders in advance for your further understanding and support.

December 2010