3. Qualitative Information Relating to Consolidated Results Forecasts As the financial instability originating in the United States capital markets spreads, having an impact in a variety of ways, the deceleration of the Japanese domestic economy has increased in a burst. Because of such factors as the drop in consumer confidence and corporate profitability, as well as the increasingly fierce competition among businesses, NTT Group finds itself in an increasingly difficult market environment. In light of this market environment, NTT Group has revised its results forecasts. Because of decreased sales of mobile handsets and other factors, the forecast for operating revenues was lowered by 170.0 billion yen from the initial forecast to 10,580.0 billion yen. On the other hand, since operating expenses will decrease due to the reduction in the cost of mobile terminals, the forecast for operating income has remained the same as in the initial forecast, at 1,160.0 billion yen. While income before income taxes will decrease because of the recording of impairment losses for marketable securities resulting from the slumping equities markets, NTT Group's income tax expenses will decrease due to the consolidation of the NTT DOCOMO companies into a single entity. For this reason, projections for net income have been revised upwards by 60.0 billion yen over the initial plan, to 560.0 billion yen. For the assumptions used in these results forecasts and other related matters, please see "Assumptions and other related matters concerning the above estimated results". Copyright (c) 2008 Nippon telegraph and telephone corporation