5. CONSOLIDATED FINANCIAL STATEMENTS (6) Shareholders' Equity Stock Split and Implementation of Unit Share System With the scheduled implementation in January 2009 of the "Law for partial amendments to the Law concerning Book-Entry Transfer of Corporate Bonds and Other Securities for the Purpose of Streamlining the Settlement of Trades of Stocks and Other Securities (Law No. 88 of 2004)" ("Settlement Streamlining Law"), share certificates of listed companies are to take electronic form. With the introduction of the electronic share certificate system, fractional shares will need to be eliminated. In conjunction with this process, in order to ensure that the transition away from the fractional share system will be smooth, the board of directors, at their meeting held May 13, 2008, has resolved that, subject to approval at the 23rd general shareholders meeting to be held on June 25, 2008, of the introduction of unit share system, and the approval of the Minister of Internal Affairs and Communications, on the day immediately preceding the day on which the electronic share certificate system will be introduced, one share of common stock will be split into 100 shares, and the number of shares constituting one unit will be set at 100. This resolution was approved at the 23rd general shareholders meeting and by the Minister of Internal Affairs and Communications on June 25, 2008. Shareholders' Equity per Share at March 31 and June 30, 2008 would be as follows, if such share split was assumed to have taken place at the beginning of the year ended March 31, 2008 and at the beginning of the three months ended June 30, 2008, respectively. Earnings (Loss) per Share for the three months ended June 30, 2007 and 2008 would be as follows, if such share split was assumed to have taken place at the beginning of the three months ended June 30, 2007 and 2008, respectively. Acquisition of treasury stock On May 13, 2008, the board of directors resolved that NTT may acquire up to 450,000 outstanding shares of its common stock at an amount in total not exceeding 200 billion yen from May 14, 2008 through March 24, 2009. The board of directors, at their meeting held May 13, 2008, have resolved that, on the day immediately preceding the day on which the electronic share certificate system will be introduced, they will introduce a unit share system whereby one share of common stock will be split into 100 shares, and the number of shares constituting one unit will be set at 100. After the share split, the maximum number of shares to be repurchased will be a number calculated by first subtracting the number of shares acquired before the share split from 450,000 shares, multiplying the remainder by 100, and then adding the number of shares acquired before the share split. Dividends Cash dividends paid for the three months ended June 30, 2008 was as follows: Significant Changes in Shareholders' Equity None Copyright (c) 2008 Nippon telegraph and telephone corporation