[NTT WEST]Attachment 1 SUMMARY OF RESULTS@0211 - Telecommunications and ICT Services and Solutions

Attachment 1

SUMMARY OF RESULTS

During the six months ended September 30, 2002, the Japanese economy remained in a severe condition, under the shadow of uncertainty over the future of the U.S. economy and the poor performance of the Japanese stock market, despite some signs of a rebound with an easing of the deterioration of capital spending as personal consumption and corporate earnings leveled off.

Against this backdrop, telecommunications markets saw growing customer demand for more advanced, diversified services as the Internet has become an integral part of daily life. A growing number of customers shop and view moving images on the Internet, rather than simply sending e-mail, and access these services while away from their homes as well. Meanwhile, the competitive environment is evolving rapidly from conventional narrowband access services like dial-up connections to broadband services that feature unlimited Internet connections made possible by such protocols as ADSL (asymmetric digital subscriber line) and optical lines. The markets have found severe competition both in facilities/equipment and services.

In response to these unexpectedly faster changes in market structure, the Nippon Telegraph and Telephone West Corporation (NTT West) has paid the utmost attention to increasing earnings through a drastic review of its operations for management reforms, and providing services which fit better to customer needs. It hopes that these measures will help the Company reach the goal set at its establishment of achieving a balanced budget by the fiscal year ending March 31, 2003, and a stable surplus thereafter.

With regard to the drastic review of its operations for management reforms, the Company implemented a structural reform on May 1, 2002, designed to increase its cost competitiveness and accelerate the decision-making process, while refining its established reputation as a "sound, safe and reliable" provider of "advanced engineering and services."

This reform inaugurated a new corporate setup wherein NTT West specializes in the basic operations necessary to fulfill its responsibility to serve its customers, in addition to planning, strategy formulation and service development, while outsourcing other operations --including day-to-day customer services, facilities operations, SOHO and mass marketing, and common operations -- to newly-established group companies. By fully leveraging this new group structure, the Company will increase its cost competitiveness, and expand the scale and sphere of business for the NTT West Group.

To increase profitability through services that meet customer needs, the Company has endeavored to bolster its earnings from IP business by meeting the challenges the advent of a full-scale broadband era has posed and providing optical line services which are the keys for increasing its market share , to develop new revenue sources. In concrete terms, the Company has developed and introduced new services under two strategic goals: creating broadband markets, and differentiating its services from competitors' by moving from competition in lower prices to that in the quality of value-added services . In addition, since the Company recognizes that information technology plays an essential role in offering solutions to managerial challenges and increasing corporate value amid the growing importance of strengthening and amplifying the core business, the Company has offered a broad range of solutions businesses -- from consulting in solutions to problems with upstream business to the building, maintenance and operational management of telecommunications systems -- in order to flexibly meet various customer demands, and has taken active steps designed to increase customer convenience.

To these ends, we are:

(1) Extending existing services to wider areas

In August 2001, the Company launched "B-FLET'S," a flat-rate Internet access service via fiber-optic subscriber lines, in selected major cities it serves. In response to customer demand for broadband access, the service has been expanded to cover all the centers with larger population.

(2) Introducing new services

To the current lineup of the four types -- Business, Basic, Family and Condominium -- of "B-FLET'S" service, the Company has added "FAMILY 100," which gives home subscribers access to lines at connection speeds of up to 100 Mbps.

In addition to the launch of "FLET'S SPOT," a wireless LAN service providing existing subscribers to the FLET'S series with roaming high-speed, flat-rate Internet and other access services, in August 2002 the Company started to offer "FLET'S COMMUNICATION" to subscribers in Osaka Prefecture. Providing multifaceted communications through images, voice, and text, this service was extended to all areas served by its FLET'S series the following October.

The Company has also added "FLET'S ADSL MORE" to its existing two Plans for "FLET'S ADSL (1.5M and 8M)." The new service, featuring connection speeds of up to approximately 12Mbps (downstream), was launched in November 2002.

In June 2002, NTT Solmare Corporation -- a subsidiary specializing in content distribution over broadband networks -- kicked off a download service for large-volume contents like video and music for subscribers who use PDAs (personal digital assistants) and other mobile information terminals outdoors. The new service is provided via "Foobio terminals" connected to optical networks and installed at train stations and CD stores.

(3) Exploring the solutions business

In promoting the solutions business, the Company is offering different solutions to different sectors under its "prosol Series" brand, which includes "D prosol" risk management solutions and "G prosol," a total solution for local governments. In addition,the Company offers the lineup of total solutions which are: "C prosol," a total solution for optimizing non-physical distribution (commercial transaction cycles) that helps businesses in any sector introduce IT quickly and inexpensively; and "E prosol," a total learning solution for grades 1-12 that supports education through the sharing and active use of educational information, thereby creating opportunities for independent learning.

(4) Increasing convenience for customers

To achieve customer satisfaction, it is now possible for all subscribers to INS-Net services to switch to fixed-line telephone services without having to change their current phone number.

In response to the congestion that occurred in July 2002 in Osaka Prefecture and part of Hyogo Prefecture due to the large number of automated uncompleted spam calls from specific lines, the Company on August 1, 2002 filed an application with the Minister of Public Management, Home Affairs, Posts and Telecommunications to revise provisions in its telephone and ISDN service contracts, which was approved the following day. To provide stable, quality services, the Company made it clear in the revised provisions that it will: suspend the use of a subscriber line where a number of uncompleted calls are placed intentionally and the Company deems this could cause congestion; terminate the contract for the line when a similar incident is repeated via the same subscriber line; and reject a re-application for a new contract if the applicant in question is likely to commit a similar act.

As a result of the above efforts, the principal marketing results as of September 30, 2002 were: the number of subscriber telephone lines installed stood at 25.52 million; for INS-Net services, the number of INS-Net 64 lines installed totaled 4.87 million; and for leased-circuit services, the number of high-speed digital transmission lines came to 260 thousand.

During the first six months of the fiscal year that ends March 31, 2003, the Company recorded operating revenues of 1,103.4 billion yen, ordinary profit of 11.0 billion yen, and net profit of 14.0 billion yen.

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