For Immediate Release
May 24, 1996


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.


Attachment 1

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

March 31, 1995March 31, 1996
Millions
of Yen
Millions
of Yen
Millions
of US$
ASSETS
FIXED ASSETS9,629,4529,729,09991,783
CURRENT ASSETS1,101,6731,385,57813,071
DEFERRED CHANGES161------ ------

TOTAL ASSETS

10,731,28611,114,677104,855

LIABILITIES

LONG-TERM LIABILITIES:

Bond and long-term debt2,960,6642,785,16426,275
Severance payments 2,004,7282,045,94719,301
Others20,66521,146199
Total long-term liabilities 4,986,0584,852,25945,776

CURRENT LIABILITIES:

Current portion of long-term
debt and short-term borrowings
498,854581,1825,482
Accounts payable and accrued liabilities611,528798,5107,533
Others369,680478,2464,511
Total current liabilities1,480,0631,857,94017,527

TOTAL LIABILITIES

6,466,1216,710,19963,303

SHAREHOLDERS' EQUITY

Common stock780,000795,6007,505
Legal capital reserve 2,546,0762,530,47623,872
Legal earned reserve75,71183,529788
Special depreciation reserve23,02634,282323
General reserves786,000786,0007,415
Unappropriated retained earnings54,351174,5911,647

TOTAL SHAREHOLDERS' EQUITY

4,265,1654,404,47841,551

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY

10,731,28611,114,677104,855

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.



Attachment 2

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

Fiscal Year Ended March 31
19951996
Millions
of Yen
Millions
of Yen
Millions
of US$

OPERATING REVENUES

5,875,6826,234,75158,818

OPERATING EXPENSES

5,631,3705,793,63454,656

OPERATING INCOME

244,312441,1174,161

NON-OPERATING REVENUES

82,54576,051717

NON-OPERATING EXPENSES

184,229188,2451,775

RECURRING PROFIT

142,628328,9233,103

EXTRAORDINARY INCOME

------47,465447

EXTRAORDINARY LOSSES

49,944------------

INCOME BEFORE TAXES

92,683376,3883,550

CORPORATION AND INHABITANT TAXES

32,600158,9001,499

NET INCOME

60,083217,4882,051

PER SHARE DATA (in exact)

of Yen of Yen of US$

NET INCOME

3,85113,668128

CASH DIVIDEND

5,0005,00047

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.



Attachment 3

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

(Unit: Million Yen)
ServiceFiscal Year Ended on
Mar. 31, 1995
Fiscal Year Ended on
Mar. 31, 1996
Increase
(Decrease)

Telephone Services

4,539,5644,816,718277,154
Telex Services2,2201,995(225)
Telegram Services88,33894,7506,412
Leased Circuit Services474,816467,648(7,168)
Digital Data Exchange Services42,75642,481(274)
Other Services424,923473,82548,902
Telecommunications Total Revenues5,572,6195,897,419324,799
Related Business Total Revenues303,063337,33234,269
Total Operating Revenues5,875,6826,234,751359,069

Notes: Fractions are rounded down.



Attachment 4

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

March 31, 1995March 31, 1996
Millions
of Yen
Millions
of Yen
Millions
of US$

ASSETS

FIXED ASSETS11,232,39911,651,447109,919
CURRENT ASSETS 1,515,0151,945,82818,356
*DEFERRED CHANGES161------------
TOTAL ASSETS 12,747,57613,597,276128,276

LIABILITIES

LONG-TERM LIABILITIES:

Bond and long-term debt4,092,6494,173,74039,374
Severance payments2,099,8272,150,91420,291
Others191,666179,7041,695
Total long-term liabilities 6,384,1436,504,35961,361

CURRENT LIABILITIES:

Current portion of long-term debt and borrowings 843,499903,7108,525
Accounts payable, and accrued liabilities724,242983,6609,279
Others467,387602,5465,684
Total current liabilities2,035,1292,489,91723,489

MINORITY INTEREST

6,65683,303785

TOTAL LIABILITIES

8,425,9299,077,57985,637

SHAREHOLDERS' EQUITY

Common stock780,000795,6007,505
Legal capital reserve2,546,0762,530,47623,872
Legal earned reserve 75,71183,529788
Retained earnings919,8591,110,16710,473
*Treasury stock-------75-0

TOTAL SHAREHOLDERS' EQUITY

4,321,6464,519,69642,638

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY

12,747,57613,597,276128,276

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.



Attachment 5

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

Fiscal Year Ended March 31
19951996
Millions
of Yen
Millions
of Yen
Millions
of US$

OPERATING REVENUES

7,037,2467,908,57874,609
OPERATING EXPENSES6,642,8667,302,43068,890
OPERATING INCOME394,380606,1475,718
NON-OPERATING REVENUES65,92657,169539
NON-OPERATING EXPENSES261,721277,5772,618
*RECURRING PROFIT198,585385,7403,639
*EXTRAORDINARY INCOME------37,880357
*EXTRAORDINARY LOSSES50,833------------
INCOME BEFORE TAXES147,701423,6203,996
CORPORATION AND INHABITANT TAXES68,386211,6611,996
MINORITY INTEREST3,036-1,267-11
NET INCOME76,278213,2262,011

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.



Attachment 6

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

Chairman

Shigeo Sawada

President

Junichiro Miyazu

Senior Executive Vice Presidents
Yutaka HayashiHidekazu Inoue
Noboru Miyawaki Keiji Tachikawa

Executive Vice Presidents
Toshio HayataShuichi KizukaToshiyuki Mineshima
Toshiharu AokiMasanobu Suzuki
Kazuo AsadaYuji Matsuo
Shigeru IkedaHiroshi Ishihara

Senior Vice Presidents
Norio WadaTadayuki AraiYoshinori Uda
Masamichi TanabeHideyuki TakashimaSeiji Takashima
Masanori YoshiokaHitoshi TajimaSatoshi Miura
Shoichi MakinoYutaka WakuiMichio Takeuchi
Hirofumi ShimadaKiyoshi MitaMichitomo Ueno
Masahiro ShibaoTatsuo Izawa
Ryuji NunotaniHiroshi Ishikawa

Directors and Counselors of the President

Ryuzo Sejima
Masashi Kojima

Statutory Auditors
Satoshi HiroseTadashi Yamamoto
Masayuki KojimaTokuhiko Shiota

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



(Reference)

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

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



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