Summary of Business Operation Plan for Fiscal Year Ending March 31, 2005 1. Basic Philosophy of Business Operation Plan for Fiscal Year Ending March 31, 2005 - 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 the total management resources of its corporate Group to respond to changes in the market environment. - To help ensure that universal services are maintained, 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 technologies. (1) Advice, Mediation, etc. a. To all NTT Group companies, NTT will offer management support for such operations as broadband market development and business expansion. NTT will also provide assistance with the development of human resources, which form the core of the NTT Group. b. For the regional companies, NTT will provide the following among other support to ensure the maintenance of high-quality and stable universal services: - Planning and coordination relating to the quality and upgrading of telecommunications networks, - Deployment of control and coordination capabilities when natural disasters and other emergencies occur, and - Efficient fund-raising and formulation of policies for materials procurement. (2) Promotion of Basic Research and Development NTT will concentrate all its energy on research and development in basic technologies to realize next-generation resonant communication network architecture (RENA) and services based on integrated software design, from higher network layers to terminals, required to realize a resonant communication environment. To respond to society's requirements for the development of an advanced information and telecommunications network society, NTT will also actively undertake advanced and basic technologies with an eye on ten years hence and continue to actively disseminate the results of its research and development. 2. Capital Investment Plan for Fiscal Year Ending March 31, 2005 *change from the previous forecasts annouced November 11, 2003 3. Revenues and Expenses Plan for Fiscal Year Ending March 31, 2005(Attachment) *change from the previous forecasts annouced November 11, 2003 Copyright (c) 2004 Nippon telegraph and telephone corporation