3. QUALITATIVE INFORMATION RELATING TO CONSOLIDATED RESULTS FORECASTS Although, as a result of governmental initiatives, there are indications of improvements in parts of the Japanese economy, such barometers as the employment situation, capital investment and residential housing are yet to bottom out, and the situation continues to be one where the future remains unpredictable. Because of such factors as the drop in consumer confidence, a delay in restoration of capital investment arising out of a drop in corporate profitability, and the increasingly fierce competition among businesses, NTT Group forecasts that the market environment in which it finds itself will continue to be increasingly difficult. In light of this market environment, NTT Group has revised its results forecast. Because of decreased sales of mobile handsets by the mobile communications business and other factors, the forecast for operating revenues was lowered by 130.0 billion yen from the initial forecast of 10,170.0 billion yen. On the other hand, since operating expenses will decrease due to a reduction in the cost of mobile handsets by the mobile communications business and other cost reducing efforts across the whole NTT Group, the forecast for operating income has remained the same as in the initial forecast, at 1,110.0 billion yen. Furthermore, there is no change in the forecast to income before income taxes and net income attributable to NTT. For assumptions used in these results forecasts and other related matters, please see "Assumptions and other related matters concerning the above estimated results". Copyright (c) 2009 Nippon telegraph and telephone corporation