5. CONSOLIDATED FINANCIAL STATEMENTS (6) Shareholders' Equity Stock Split and Implementation of Unit Share System With the implementation 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"), on January 5, 2009, share certificates of listed companies were converted to electronic form. The introduction of the electronic share certificate system required that fractional shares be eliminated. In order to provide for a smooth transition away from the fractional share system, the board of directors, at their meeting held May 13, 2008, resolved that, subject to approval of the introduction of the unit share system at the 23rd general shareholders meeting and the approval of the Minister of Internal Affairs and Communications, on the day immediately preceding the implementation date of the electronic share certificate system, one share of common stock be split into 100 shares, and the number of shares constituting one unit 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. The effective date of the stock split was determined when the implementation date of the Settlement Streamlining Law was set as January 5, 2009. Accordingly, on January 4, 2009, NTT effected the split of one share of its common stock into 100 shares, pursuant to the foregoing resolution. Shareholders' Equity per Share at March 31 and December 31, 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 the year ending March 31, 2009, respectively. Earnings (Loss) per Share for the nine months ended December 31, 2007 and 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 the year ending March 31, 2009, 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. Based on this resolution, NTT acquired 341,307 shares of its common stock for a total purchase price of 169,767 million yen from July through December, 2008. As described above, following the stock split that took effect on January 4, 2009, the maximum total number of shares to be repurchased pursuant to the resolution of the board of directors (11,210,607) was adjusted to a number calculated by first subtracting the number of shares acquired up to the day prior to the stock split (341,307) from 450,000, multiplying the remainder by 100 (yielding 10,869,300), and then adding the number of shares acquired up to the day prior to the stock split (341,307). In January 2009, NTT has repurchased 6,386,800 of its common stock after the stock split at 30,233 million yen and concluded its repurchase of its common stock authorized by the board of directors' resolution. Dividends Cash dividends paid Significant Changes in Shareholders' Equity None Copyright (c) 2009 Nippon telegraph and telephone corporation