For Immediate Release
May 24, 1996

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NTT Announces Financial Results
for Fiscal Year Ended March 31, 1996

Nippon Telegraph and Telephone Corporation (NTT) announced today the non-consolidated financial results for its fiscal year which ended March 31, 1996. Operating revenues increased 6.1 percent over the previous fiscal year to 6.23 trillion yen, recurring profit climbed 130.6% to 328.9 billion yen, and net income soared 262.0% to 217.4 billion yen.

On a consolidated basis, the group posted operating revenues of 7,908.5 billion yen, a 12.4 percent increase from the previous fiscal year, recurring profit of 385.7 billion yen, a 94.2 percent increase, and net income of 213.2 billion yen, a 179.5 percent increase.

The Japanese economy showed bright signs including stable personal consumption and investment in the public and private sectors, both of which had been decreasing in recent years, but the pace of recovery was extremely slow due to weak overall economic performance.

The ongoing development of multimedia involved a variety of industries and prospects for new services and businesses became favorable due to the spread of high-quality, low-priced personal computers, fax machines, etc. in homes as well as corporations. Also, the demand for high-reliability, high-quality information networks rose worldwide, aided by the continuing development of borderless economies and the increased introduction of foreign capital to maintain and expand communications infrastructure in Latin America and Asia.

Against this background, business conditions improved for U.S. and European companies in the information-communications sector, and international competition intensified. At the same time, the business environment surrounding telecommunications carriers changed substantially, as seen in the launch of NTT's personal handy-phone service (PHS) and increased penetration of cellular telephones.

NTT, under its continuing effort to provide low-priced, high-quality telecommunications services, engaged in a broad range of activities to respond to the rapid development of multimedia and the globalization of information communications.

In the previous fiscal year, the corporation strengthened telecommunications infrastructure and offered access to digital network services, such as INS-Net, for most customers in Japan by the end of the year. In the just-finished fiscal year, NTT accelerated these undertakings and expanded access to optical fiber cable. Also, the company prepared to offer a low-priced Open Computer Network by early 1997, to respond to a rapidly increasing demand for computer communications services such as the Internet.

NTT enhanced R&D capabilities to develop new utilization technologies and international standards of technology and specifications for high-quality multimedia services. Moreover, NTT developed and tested new multimedia services by conducting "Joint Utilization Tests of Multimedia Communications" in collaboration with domestic and foreign corporations and academic organizations. As part of this, new corporations were established to pursue commercialization of these services.

NTT released Phoenix, a low-priced multimedia videoconferencing system using personal computers, which was developed with PictureTel Corporation of the United States. In addition, NTT, AT&T and Sony Corporation established NTT FAN Inc. to offer on-line services using technology from General Magic, Inc.

NTT was active in Asia, playing particularly important roles in the telecommunications markets of Thailand and the Philippines, and rivaling the positions of Western telecommunications carriers operating in the region. NTT began installing a domestic telephone network in Indonesia in October 1995 and won a bid for the construction of a domestic telephone network in India this March. Overall, sales efforts in the region were very successful. NTT also established PHS International Ltd. with Cable & Wireless PLC of the United Kingdom in October 1995 to develop the PHS market overseas.

NTT actively opened its network to other carriers, with a view to developing services, providing lower-price services and contributing to the development of information communications in the emerging era of multimedia. The corporation announced procedures and other details for opening its network. To facilitate smooth, rapid processing of interconnection applications, NTT produced and widely distributed pamphlets on procedures for interconnection with carriers.

NTT negotiated with other carriers, themselves important users of NTT's network, regarding access charges that reflect appropriate costs. This was part of NTT's larger effort to grow the telecommunications market, to expand competition in regional markets and to promote competition in all business areas. In addition, NTT reorganized its system for sales to other carriers by announcing a new communications network connection interface and estimated charges for each stage of network access.

NTT actively pursued sales of information communications systems, including construction of in-house LAN mainly for manufacturing and service companies. Sales of new services were launched, such as Catch Phone II for enhanced call-waiting; Free Dial Super Discount, which discounts aggregate long-distance charges for free-dial services offered by a single company; and Telehodai, a monthly flat rate for calls made during midnight/early morning hours for personal computer communications.

To shrink international price spreads and strengthen competitiveness, the charge for leased circuit services was reduced and optional discounts were introduced in September 1995. Moreover, in March the company substantially reduced the charge for maximum long distance calls of over 160 km from 180 yen to 140 yen per three minutes.

NTT reorganized sales counters, concentrated maintenance centers and directory assistance centers, and transferred telecommunications facilities inspection work to NTT group companies. Furthermore, NTT completed the Customer Service Total System (CUSTOM) this January to upgrade customer services and improve operational efficiency.

Following the sale of shares in a subsidiary, NTT Data Communications Systems Corporation, NTT capitalized a portion of its additional paid-in capital and effected a stock split distribution to its shareholders in November 1995, thereby distributing the benefits of the sale to NTT shareholders.

Within this environment, the NTT Group strove to enhance its competitiveness and management base. The group actively invested in multimedia in the prospect for the future and strengthened its profitability by developing new services and systems as well as promoting sales. NTT Personal Communications Network companies began operations and PHS entered commercial service. NTT Data Communications Systems Corporation was listed on the second section of the Tokyo Stock Exchange.

NTT actively undertook R&D and investment as part of constructing a sophisticated telecommunications network for the 21st century, while also providing reliable, high-quality telecommunications services as a foundation for social and economic activity. The corporation recognizes the importance of pursuing shareholders' interests over the long term, while enhancing the business and improving financial performance.

NTT pays appropriate dividends while carefully monitoring internal reserves. Based on this basic policy, NTT will provide a year-end dividend of 2,500 yen per share which, combined with the interim dividend of 2,500 yen, brings the annual dividend to 5,000 yen, unchanged from the previous fiscal year.

In the current fiscal year, internal reserves for business development will be used for R&D and capital expenditure, targeting construction of telecommunications networks and improved financial performance.

NTT's non-consolidated operating revenues, recurring profit and net income based on Japanese accounting principles for the fiscal year ending March 31, 1997, are forecasted to be 6,263 billion yen, 234 billion yen and 158 billion yen, respectively. Also, NTT's consolidated operating revenues, recurring profit and net income based on the principles for the same fiscal year are expected to be 8,321 billion yen, 276 billion yen, and 116 billion yen, respectively.

All the financial information stated in this release was prepared on the basis of accounting principles generally accepted in Japan.

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Attachment 1

NIPPON TELEGRAPH AND TELEPHONE CORPORATION
NON-CONSOLIDATED BALANCE SHEET
(Based on Japanese Accounting Principles)

	March 31, 1995	March 31, 1996
	Millions of Yen	Millions of Yen	Millions of US$
ASSETS
FIXED ASSETS	9,629,452	9,729,099	91,783
CURRENT ASSETS	1,101,673	1,385,578	13,071
DEFERRED CHANGES	161	------	------
TOTAL ASSETS	10,731,286	11,114,677	104,855
LIABILITIES
LONG-TERM LIABILITIES:
Bond and long-term debt	2,960,664	2,785,164	26,275
Severance payments	2,004,728	2,045,947	19,301
Others	20,665	21,146	199
Total long-term liabilities	4,986,058	4,852,259	45,776
CURRENT LIABILITIES:
Current portion of long-term debt and short-term borrowings	498,854	581,182	5,482
Accounts payable and accrued liabilities	611,528	798,510	7,533
Others	369,680	478,246	4,511
Total current liabilities	1,480,063	1,857,940	17,527
TOTAL LIABILITIES	6,466,121	6,710,199	63,303
SHAREHOLDERS' EQUITY
Common stock	780,000	795,600	7,505
Legal capital reserve	2,546,076	2,530,476	23,872
Legal earned reserve	75,711	83,529	788
Special depreciation reserve	23,026	34,282	323
General reserves	786,000	786,000	7,415
Unappropriated retained earnings	54,351	174,591	1,647
TOTAL SHAREHOLDERS' EQUITY	4,265,165	4,404,478	41,551
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	10,731,286	11,114,677	104,855

Note: Yen amounts have been translated, for convenience only, at 106 yen= US$1.00, the approximate exchange rate on March 31, 1996. Fractions are rounded down.

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Attachment 2

NIPPON TELEGRAPH AND TELEPHONE CORPORATION
NON-CONSOLIDATED STATEMENTS OF INCOME
(Based on Japanese Accounting Principles)

	Fiscal Year Ended March 31
	1995	1996
	Millions of Yen	Millions of Yen	Millions of US$
OPERATING REVENUES	5,875,682	6,234,751	58,818
OPERATING EXPENSES	5,631,370	5,793,634	54,656
OPERATING INCOME	244,312	441,117	4,161
NON-OPERATING REVENUES	82,545	76,051	717
NON-OPERATING EXPENSES	184,229	188,245	1,775
RECURRING PROFIT	142,628	328,923	3,103
EXTRAORDINARY INCOME	------	47,465	447
EXTRAORDINARY LOSSES	49,944	------	------
INCOME BEFORE TAXES	92,683	376,388	3,550
CORPORATION AND INHABITANT TAXES	32,600	158,900	1,499
NET INCOME	60,083	217,488	2,051
PER SHARE DATA (in exact)	of Yen	of Yen	of US$
NET INCOME	3,851	13,668	128
CASH DIVIDEND	5,000	5,000	47

Note: Yen amounts have been translated, for convenience only, at 106 yen= US$1.00, the approximate exchange rate on March 31, 1996. Fractions are rounded down.

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Attachment 3

Business Results (Non-consolidated Operating Revenues)
(Based on Japanese Accounting Principles)

(Unit: Million Yen)

Service	Fiscal Year Ended on Mar. 31, 1995	Fiscal Year Ended on Mar. 31, 1996	Increase (Decrease)
Telephone Services	4,539,564	4,816,718	277,154
Telex Services	2,220	1,995	(225)
Telegram Services	88,338	94,750	6,412
Leased Circuit Services	474,816	467,648	(7,168)
Digital Data Exchange Services	42,756	42,481	(274)
Other Services	424,923	473,825	48,902
Telecommunications Total Revenues	5,572,619	5,897,419	324,799
Related Business Total Revenues	303,063	337,332	34,269
Total Operating Revenues	5,875,682	6,234,751	359,069

Notes: Fractions are rounded down.

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Attachment 4

NIPPON TELEGRAPH AND TELEPHONE CORPORATION
CONSOLIDATED BALANCE SHEET
(Based on Japanese Accounting Principles)

	March 31, 1995	March 31, 1996
	Millions of Yen	Millions of Yen	Millions of US$
ASSETS
FIXED ASSETS	11,232,399	11,651,447	109,919
CURRENT ASSETS	1,515,015	1,945,828	18,356
*DEFERRED CHANGES	161	------	------
TOTAL ASSETS	12,747,576	13,597,276	128,276
LIABILITIES
LONG-TERM LIABILITIES:
Bond and long-term debt	4,092,649	4,173,740	39,374
Severance payments	2,099,827	2,150,914	20,291
Others	191,666	179,704	1,695
Total long-term liabilities	6,384,143	6,504,359	61,361
CURRENT LIABILITIES:
Current portion of long-term debt and borrowings	843,499	903,710	8,525
Accounts payable, and accrued liabilities	724,242	983,660	9,279
Others	467,387	602,546	5,684
Total current liabilities	2,035,129	2,489,917	23,489
MINORITY INTEREST	6,656	83,303	785
TOTAL LIABILITIES	8,425,929	9,077,579	85,637
SHAREHOLDERS' EQUITY
Common stock	780,000	795,600	7,505
Legal capital reserve	2,546,076	2,530,476	23,872
Legal earned reserve	75,711	83,529	788
Retained earnings	919,859	1,110,167	10,473
*Treasury stock	------	-75	-0
TOTAL SHAREHOLDERS' EQUITY	4,321,646	4,519,696	42,638
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	12,747,576	13,597,276	128,276

Note: Yen amounts have been translated, for convenience only, at106 yen= US$1.00 the approximate exchange rate on March 31, 1996. Fractions are rounded down. *Figures revised on May 29, 1996.

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Attachment 5

NIPPON TELEGRAPH AND TELEPHONE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Based on Japanese Accounting Principles)

	Fiscal Year Ended March 31
	1995	1996
	Millions of Yen	Millions of Yen	Millions of US$
OPERATING REVENUES	7,037,246	7,908,578	74,609
OPERATING EXPENSES	6,642,866	7,302,430	68,890
OPERATING INCOME	394,380	606,147	5,718
NON-OPERATING REVENUES	65,926	57,169	539
NON-OPERATING EXPENSES	261,721	277,577	2,618
*RECURRING PROFIT	198,585	385,740	3,639
*EXTRAORDINARY INCOME	------	37,880	357
*EXTRAORDINARY LOSSES	50,833	------	------
INCOME BEFORE TAXES	147,701	423,620	3,996
CORPORATION AND INHABITANT TAXES	68,386	211,661	1,996
MINORITY INTEREST	3,036	-1,267	-11
NET INCOME	76,278	213,226	2,011

Note: Yen amounts have been translated, for convenience only, at 106 yen= US$1.00, the approximate exchange rate on March 31, 1996. Fractions are rounded down. *Figures revised on May 29, 1996.

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Attachment 6

NTT's New Board of Directors
(subject to shareholders' approval)

Chairman

Shigeo Sawada

President

Junichiro Miyazu

Senior Executive Vice Presidents

Yutaka Hayashi	Hidekazu Inoue
Noboru Miyawaki	Keiji Tachikawa

Executive Vice Presidents

Toshio Hayata	Shuichi Kizuka	Toshiyuki Mineshima
Toshiharu Aoki	Masanobu Suzuki
Kazuo Asada	Yuji Matsuo
Shigeru Ikeda	Hiroshi Ishihara

Senior Vice Presidents

Norio Wada	Tadayuki Arai	Yoshinori Uda
Masamichi Tanabe	Hideyuki Takashima	Seiji Takashima
Masanori Yoshioka	Hitoshi Tajima	Satoshi Miura
Shoichi Makino	Yutaka Wakui	Michio Takeuchi
Hirofumi Shimada	Kiyoshi Mita	Michitomo Ueno
Masahiro Shibao	Tatsuo Izawa
Ryuji Nunotani	Hiroshi Ishikawa

Directors and Counselors of the President

Ryuzo Sejima
Masashi Kojima

Statutory Auditors

Satoshi Hirose	Tadashi Yamamoto
Masayuki Kojima	Tokuhiko Shiota

Note:The first six members of this list are nominated for positions with representative authority.

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(Reference)

The consolidated financial results cover NTT and 39 subsidiaries, broken down into two categories.

Firms included in consolidated results of fiscal year ended on March 31, 1995 (30 companies):

NTT Data Communications Systems Corporation

NTT Mobile Communications Network Inc.

NTT Hokkaido Mobile Communications Network Inc.

NTT Tohoku Mobile Communications Network Inc.

NTT Tokai Mobile Communications Network Inc.

NTT Hokuriku Mobile Communications Network Inc.

NTT Kansai Mobile Communications Network Inc.

NTT Chugoku Mobile Communications Network Inc.

NTT Shikoku Mobile Communications Network Inc.

NTT Kyushu Mobile Communications Network Inc.

NTT Hokkaido Estate Co., Ltd.

NTT Urban Development Co., Ltd.

NTT Tokai Real Estate Corporation

NTT Kansai Building Co., Ltd.

NTT Cred Co., Ltd.

NTT Kyushu Real Estate Corporation

NTT Power and Building Facilities Inc.

NTT Telecom Engineering Hokkaido Co., Ltd.

NTT Telecom Engineering Tohoku Co., Ltd.

NTT Telecom Engineering Kanto Co., Ltd.

NTT Telecom Engineering Tokyo Co., Ltd.

NTT Telecom Engineering Shinetsu Co., Ltd.

NTT Telecom Engineering Tokai Co., Ltd.

NTT Telecom Engineering Hokuriku Co., Ltd.

NTT Telecom Engineering Kansai Co., Ltd.

NTT Telecom Engineering Chugoku Co., Ltd.

NTT Telecom Engineering Shikoku Co., Ltd.

NTT Telecom Engineering Kyushu Co., Ltd.

NTT-Do Co., Ltd.

NTT Teleca Corporation

Firms newly included in NTT's consolidated results, beginning with the fiscal year ended on March 31, 1996 (nine companies):

NTT Hokkaido Personal Communications Network Inc.

NTT Tohoku Personal Communications Network Inc.

NTT Central Personal Communications Network Inc.

NTT Tokai Personal Communications Network Inc.

NTT Hokuriku Personal Communications Network Inc.

NTT Kansai Personal Communications Network Inc.

NTT Chugoku Personal Communications Network Inc.

NTT Shikoku Personal Communications Network Inc.

NTT Kyushu Personal Communications Network Inc.

NTT NEWS RELEASE