1. Analysis of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2008 Operating revenues totaled 2,585.3 billion yen, a decline of 38.7 billion yen from the corresponding period in the previous year (down 1.5% from the corresponding period in the previous year). Although voice-related revenues continued to decline, IP-related revenues increased as active marketing of B FLET'S and optical telephone services resulted in further progress in the customer shift to IP services, and system integration revenues also continued to grow. As a result, excluding the approximately 30 billion yen one-time increase in revenue that NTT DoCoMo, Inc. recorded during the corresponding period in the previous fiscal year representing an estimated amount for expired minutes under its "two-month rollover (Nikagetsu Kurikoshi)" plan, operating revenues remained only slightly short of prior-year levels. Operating expenses came to 2,286.0 billion yen, an increase of 21.2 billion yen from the corresponding period in the previous year (up 0.9% from the corresponding period in the previous year). This is due primarily to the fact that, despite efforts to reduce operating expenses, mostly in the fixed-line communications segment, costs linked to increases in handset sales and costs associated with various measures in the mobile communications segment both increased, as did costs associated with increased sales in systems integration. As a result, operating income totaled 299.2 billion yen (down 16.7% from the corresponding period in the previous year), and income before income taxes totaled 312.9 billion yen (down 13.1% from the corresponding period in the previous year), declining 59.9 billion yen and 47.4 billion yen, respectively. Net income increased 4.9 billion yen to 149.6 billion yen (up 3.4% from the corresponding period in the previous year), due in part to a decline in income taxes (recorded as a decline in deferred tax liabilities) resulting from share repurchases by NTT DoCoMo, Inc. Copyright (c) 2007 Nippon telegraph and telephone corporation