For Immediate Release
November 22, 1996

NTT Announces First-Half Results for Fiscal Year Ending March 31, 1997

Nippon Telegraph and Telephone Corporation (NTT) announced today its non-consolidated financial results based on Japanese accounting principles for the period from April 1 to September 30, 1996. Operating revenue was 3,155.7 billion yen, a 4.2 percent increase from the same period last fiscal year. Recurring profit was 207.7 billion yen, a 63.9 percent increase, and net income was 110.2 billion yen, a 11.1 percent increase.

The Japanese economy in the reporting period grew at a slow rate due to such factors as sluggish personal consumption, although private-sector capital investment and housing construction showed signs of recovery.

The worldwide information communications industry saw continued globalization due to technological innovation and the internationalization of corporate activities, based on which telecommunications carriers around the world advanced overseas to compete, as well as to collaborate. At the same time, new information communications services involving broadcasting and computers were actively developed and introduced.

In Japan, the environment surrounding telecommunications carriers changed dramatically as a result of increasing competition in the telecommunications market due to the rapid penetration of cellular telephones and personal handy-phone system (PHS) services, as well as computer communications such as the Internet.

NTT drew closer to commercializing its "Open Computer Network (OCN)" services for computer communications. The development and commercialization of other new services also progressed through "Joint Utilization Tests of Multimedia Communications" conducted in cooperation with other companies and research organizations. In addition, NTT continued to install optical access networks needed for advanced communications infrastructure, capable of, for example, high-speed transmission of high-volume video data for multimedia. Furthermore, the company actively acquired equipment needed to respond to a rapid increase in the demand for digital network services, such as those for the INS-Net service.

NTT enhanced its services and strengthen its competitiveness. It collaborated with Microsoft Corporation to provide information communications systems combining LAN with INS-Net services for small and medium-size companies. Also, NTT launched "Voice Warp" service featuring enhanced call-forwarding, and "Super Telewise" service for discounts on cumulative phone charges of telephone lines in multiple locations, but owned by a single company.

Overseas, NTT continued the construction of telephone networks in Thailand, the Philippines and Indonesia. In addition, NTT was engaged in a project to construct telephone networks in India, in which the company was selected to take part in March, as well as the promotion of PHS services and the development of a basic plan for the construction of a multimedia city in Malaysia.

In launching a new nationwide operator service system in June, NTT raised the efficiency of its directory assistance service by closing or consolidating several directory assistance centers. In addition, the head office's internal structure was downsized and administrative departments were trimmed in July.

NTT actively opened its network to other carriers with a view to stimulating the market and promoting competition. The Interconnection Promotion Department was opened in May as a system for rapidly responding to a broad scope of requests from carriers for interconnection.

NTT also announced today the results of major services. The corporation added 540,000 ordinary subscriber lines, a 36.6 percent decrease from the same period last fiscal year, resulting in a total of 61.31 million subscriber lines as of the end of September 1996. NTT sold 206,000 lines for INS-Net 64 service, a 192.7 percent increase over the same period last fiscal year.

The number of high-speed digital circuits increased by 23,000, marking a 122.2 percent increase over the previous fiscal year.

NTT also announced that an interim cash dividend of 2,500 yen per share will be paid to shareholders on record as of the close of September 30, 1996. The interim dividend is scheduled to be paid on December 13, 1996.

NTT's non-consolidated operating revenue, recurring profit and net income based on Japanese accounting principles for the current fiscal year ending March 31, 1997, are forecasted to be 6,347 billion yen, 349 billion yen and 205 billion yen, respectively. The annual cash dividend for the fiscal year ending March 31, 1997, is forecasted to be 5,000 yen per share, including the above mentioned interim dividend of 2,500 yen per share.

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

Attachment 1

(Based on Japanese Accounting Principles)

March 31, 1996 September 30, 1996
Millions of Yen Millions of Yen Millions of US$
FIXED ASSETS 9,729,099 9,676,108 87,172
CURRENT ASSETS 1,385,578 1,228,618 11,068
TOTAL ASSETS 11,114,677 10,904,726 98,240
Bond and long-term debt 2,785,164 2,628,381 23,679
Severance payments 2,045,947 2,103,508 18,950
Others 21,146 20,966 188
Total long-term liabilities 4,852,259 4,752,857 42,818
Current portion of long-term debt and short-term borrowings 581,182 541,656 4,879
Accounts payable and accrued liabilities 798,510 683,083 6,153
Others 478,246 452,359 4,075
Total current liabilities 1,857,940 1,677,099 15,109
TOTAL LIABILITIES 6,710,199 6,429,957 57,927
Common stock 795,600 795,600 7,167
Legal capital reserve 2,530,476 2,530,476 22,797
Legal earned reserve 83,529 87,525 788
Special depreciation reserve 34,282 53,191 479
General reserves 786,000 810,000 7,297
Unappropriated retained earnings 174,591 197,976 1,783
TOTAL SHAREHOLDERS' EQUITY 4,404,478 4,474,769 40,313
Yen amounts have been translated, for convenience only, at ¥111= US$1.00,
the approximate exchange rate on September 30, 1996. Fractions are rounded down

Attachment 2

(Based on Japanese Accounting Principles)

Six Months Ended September 30
1995 1996
Millions of Yen Millions of Yen Millions of US$
OPERATING REVENUES 3,028,486 3,155,797 28,430
OPERATING EXPENSES 2,851,038 2,910,383 26,219
OPERATING INCOME 177,447 245,414 2,210
NON-OPERATING REVENUES 36,991 41,146 370
NON-OPERATING EXPENSES 87,663 78,815 710
RECURRING PROFIT 126,775 207,745 1,871
EXTRAORDINARY INCOME 47,465 ------ ------
INCOME BEFORE TAXES 174,241 207,745 1,871
NET INCOME 99,241 110,245 993
Yen amounts have been translated, for convenience only, at ¥111= US$1.00,
the approximate exchange rate on September 30, 1996. Fractions are rounded down.

Attachment 3

Business Results (Non-consolidated Operating Revenues)

(Unit: Million Yen)

Service Six Months Ended on
Sep. 30, 1995
Six Months Ended on
Sep. 30, 1996
Fiscal Year Ended on
Mar. 31, 1996
Telephone Services 2,362,090 2,425,530 63,439 4,816,718
Telex Services 1,061 939 (121) 1,995
Telegram Services 43,981 45,444 1,463 94,750
Leased Circuit Services 238,696 247,320 8,623 467,648
Digital Data Exchange Services 21,367 21,581 213 42,481
Other Services 223,624 253,230 29,605 473,825
Total Revenues
2,890,823 2,994,047 103,224 5,897,419
Related Business
Total Revenues
137,662 161,750 24,087 337,332
Total Operating 3,028,486 3,155,797 127,311 6,234,751
Notes: Fractions are rounded down.