For Immediate Release
December 12, 1997

NTT-WN Signs Agreementc For China-U.S. Undersea Fiber-Optic Cable Network

NTT Worldwide Network Corporation (NTT-WN: Satoshi Fujita, President & CEO) together with other consortium members signed on December 11 (Washington D.C. time) a Construction and Maintenance Agreement for the construction of an undersea fiber-optic cable network between China and the United States. NTT President Jun-Ichiro Miyazu witnessed the signing ceremony.

Preceding this Agreement, Memorandum of Understanding was signed on March 30, 1997, in Beijing, China.

The China-U.S. Undersea Cable Network will cover total length of approximately 30,000 km in a ring topology of four fiber pairs, and connect Japan, the United States, China, Korea and Taiwan. The cable has a capacity of 80Gbps, equal to 967,680 circuits of 64 kbps each, enabling the simultaneous transfer of approximately 4 million telephone connections of 16 kbps each.

This is the largest network of its kind in the world, aiming at meeting the growing demand for international telecommunications among Asia-Pacific countries. The network incorporates the latest technologies - for example, the ability to instantly re-route communications in case of emergency.

Outlines of the China-U.S. Cable Network Project

1. Consortium
Members who hold voting rights (14 total): NTT Worldwide Network Corp., AT&T, China Telecom, Hong Kong Telecom, Kokusai Denshin Denwa, Korea Telecom, Chungwa Telecom, MCI Communications Corp., SBC Communications Inc., Singapore Telecom, Spring Corp., Telekom Malaysia, Teleglobe USA*, Telstra Corp.
*Note: US subsidiary of a Canadian international telecommunications carrier.

The above consortium members have an equal stake and joint financial responsibility for network oversight, maintenance and administration.

2. Construction Cost: Approximately US$1.1 billion
3. Commencement of Service: End of 1999 (planned)
4. Landing Stations: Okinawa (NTT Worldwide Network Corp.)
Chikura (KDD)
Chongming (China Telecom)
Shantou (China Telecom)
Pusan (Korean Telecom)
Tanguisson (AT&T)
Fangshan (Chunghwa Telecom)
Bandon (AT&T)
San Luis Obispo (AT&T)

5. Construction Plans
Construction of the China-U.S. Undersea Cable Network will begin once the necessary permits have been obtained and the Network is expected to be ready for service by the end of 1999.