4. Consolidated Statements of Cash Flows [Notes] Significant Matters Pertaining to the Preparation of Consolidated Financial Statements The consolidated financial statements of NTT have been prepared in conformity with accounting principles generally accepted in the United States of America (Accounting Principles Board Opinions, Statements of Financial Accounting Standards, etc). 1. Application of New Accounting Standard Accounting for Certain Financial Instruments with Characteristics of Liabilities and Equity Effective April 1, 2004, NTT Group adopted Statement of Financial Accounting Standards No. 150 ("SFAS 150"), "Accounting for Certain Financial Instruments with Characteristics of Liabilities and Equity." This statement changes the accounting for certain financial instruments with characteristics of both liabilities and equity that, under previous guidance, could be classified as equity, by now requiring those instruments to be classified as liabilities (or assets in some circumstances) in the balance sheet. Further, SFAS 150 requires disclosure regarding the terms of those instruments and settlement alternatives. The adoption of SFAS 150 did not have an impact on the results of operations or the financial position of NTT Group. 2. Subsequent Events On August 4, 2004, NTT DoCoMo, Inc. decided to effect a tender offer for repurchase of its own shares. Class of shares to be repurchased Common Stock Tender offer period   From August  5, 2004   to      August 25, 2004 Purchase price 183,000yen per share Number of shares planned to be purchased 1,912,568 shares Amount of funds necessary for purchase(including fees ) 350,094,944 thousand yen [Reference] Details of "Cost of services," "Cost of equipment sold," "Cost of system integration" and "Selling, general and administrative expenses" Copyright (c) 2004 Nippon telegraph and telephone corporation