March 1, 2010 Nippon Telegraph and Telephone Corporation (NTT) Summary of Business Operation Plan for Fiscal Year Ending March 31, 2011 1.  Basic Philosophy of Business Operation Plan for Fiscal Year Ending March 31, 2011 - Under the NTT Group's "Road to Service Creation Business Group" announced in May 2008, NTT will help enrich communication environments for individuals and communities, make corporate activities more efficient, and create new services and business opportunities through ubiquitous broadband networks that provide customers with not only "fast and convenient" but also "safe and secure" connections "anytime, anywhere and with anyone or anything." - In the fiscal year ending March 31, 2011, among other initiatives, NTT will strengthen R&D activities for the advancement of the NGN which serves as the foundation of NTT's efforts to achieve the "Road to Service Creation Business Group." 2.  Revenues and Expenses Plan for Fiscal Year Ending March 31, 2011 (billions of yen) Item Amount Total Revenues Operating Revenues Basic Research and Development Revenues Commissioned Research Revenues License of Research Results and Other Sources NTT Group Management Revenue and Other Sources Dividend Received Non-Operating Revenues 424 (3)* 377   (2)* 124 (3)* 11   0* 5 1* 19 0* 218   0* 47   (1)* Total Expenses Operating Expenses Non-Operating Expenses 207 (4)* 163   (3)* 44   (1)* Recurring Profit 217 1* * Change from the previous forecast announced on November 9, 2009 3.  Capital Investment Plan for Fiscal Year Ending March 31, 2011 (billions of yen) Item Investment Required 1.R&D Facilities 2.Other Facilities 34 (3)* 4   0* Total 38 (3)* * Change from the previous forecast announced on November 9, 2009 4.  Sources and Applications of Funds Plan for Fiscal Year Ending March 31, 2011 (billions of yen) Item Amount Sources: Including: Long-Term Loans and Bonds 1,036 296 Applications: Including: Repayment of Long-Term Loans and Bonds 1,036 411 Copyright (c) 2010 Nippon telegraph and telephone corporation