1. Analysis of Consolidated Business Results for the Nine Months Ended December 31, 2007 Operating revenues totaled 7,844.2 billion yen, a decline of 85.9 billion yen, or 1.1%, from the corresponding period in the previous year. While revenues attributable to System Integration, or IP and Packet transmission charge such as B FLET'S and third generation FOMA increased, revenues from voice related services decreased causing an overall decrease. Operating expenses were 6,969.9 billion yen, an increase of 6.5 billion yen, or 0.1%, from the corresponding period in the previous year. While there was an increase resulting from a review conducted over depreciation this fiscal year, as expenses in cellular transmission segment were cut back, the size of the increase from the same period of the preceding year was much smaller when compared to the increase observed in NTT's semi-annual financial results. As a result, consolidated operating income totaled 874.4 billion yen down 92.4 billion yen, or 9.6%, from the corresponding period in the previous year and consolidated net income before income taxes totaled 884.7 billion yen down 83.8 billion yen, or 8.7%, from the corresponding period in the previous year. Copyright (c) 2008 Nippon telegraph and telephone corporation