4. Financial Results and Forecasts (NTT Consolidated, NTT (Holding)) Notes :   On July 1, 2007, the NTT Kosei-Nenkin-Kikin ("NTT Plan") received permission to be relieved of the obligations related to past services to disburse NTT Plan benefits covering the substitutional portion. Under U.S. GAAP, on a consolidated basis, gain or loss on transfer of such portion will be recognized when the entire transfer of [benefit obligations and] related plan assets has been completed. The impact* this transfer of the substitutional portion will have on consolidated earnings is expected to be affected by factors such as changes in depreciation methods used by NTT's major subsidiaries (which may result in an increase in operating expenses). Accordingly, NTT plans to modify its full-year forecasted results at the semi-annual period ending September 30, 2007. * As of March 31, 2007, based on preliminary calculations, the impact on consolidated earnings was approximately 340 billion yen (decrease in operating expenses). The estimated impact on gain or loss and future consolidated result of operation of NTT's major subsidiaries resulting from the transfer of substitutional portion are as follows: - NTT East and NTT West (JPN-GAAP) Based on preliminary calculations, the impact on earnings as of March 31, 2007 was approximately 130 billion yen and 140 billion yen [(decrease in operating expenses)] for NTT East and NTT West, respectively, and they plan to reflect such impact in their interim reports (for the semi-annual period ending September 30, 2007). Review of forecasts for full-year results is also scheduled for mid-term, taking into account the effect of changes in depreciation methods expected to occur in relation to renewal plans for major machinery and equipment. - NTT Communications and NTT DATA (JPN-GAAP) Based on preliminary calculations, the impact on earnings as of March 31, 2007 was approximately 10 billion yen and 18 billion yen [(decrease in operating expenses)] for NTT Communications and NTT DATA, respectively, and they plan to reflect such impact in their interim reports (for the semi-annual period ending September 30, 2007). However, they have not revised their forecasts for full-year results. - NTT DoCoMo (U.S. GAAP) Gain or loss on transfer of such substitutional portion will be recognized when the entire transfer of [benefit obligations and] related plan assets has been completed. However, the timing of recognition is yet to be determined, and since the impact of the transfer is unknown, NTT DoCoMo has not revised its forecasts for its full-year results. * As of March 31, 2007, based on preliminary calculations, the impact on consolidated earnings for NTT DoCoMo was approximately 25 billion yen (decrease in operating expenses). 4. Financial Results and Forecasts (NTT East, NTT West) Notes : 1 Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the 1st Quarter ended Jun. 30, 2007 include monthly charges, call charges and interconnection charges of 174.6 billion yen, 33.3 billion yen and 38.1 billion yen for NTT East, and 171.1 billion yen, 31.6 billion yen, and 40.5 billion yen for NTT West, respectively.   2 Operating Revenues from IP services of NTT East and NTT West for the 1st Quarter ended Jun. 30, 2007 include B FLET'S and Optical IP telephone (Hikari Phone) (including monthly charges, call charges and connection device charges) of 43.9 billion yen and 11.0 billion yen for NTT East, and 36.8 billion and 8.1 billion for NTT West, respectively.     - B FLET'S includes FLET'S Hikari Premium and FLET'S Hikari Mytown provided by NTT West. 4. Financial Results and Forecasts (NTT Communications, NTT DATA, NTT DoCoMo) Note : Operating Revenues from Voice Transmission (excluding IP) of NTT Communications for the 1st Quarter ended Jun. 30, 2007 include revenues from telephone subscriber lines (61.6 billion yen). Operating Revenues from IP services include revenues from OCN (36.1 billion yen), IP-VPN (17.1 billion yen) and e-VLAN (12.5 billion yen). Operating Revenue from Data Transmission Services (excluding IP) include Frame Relay / Cell Relay (3.9 billion yen) and Operating Revenues from Leased Circuit include revenues from conventional leased circuits (1.9 billion yen) and high-speed digital (11.9 billion yen). Copyright (c) 2007 Nippon telegraph and telephone corporation