March 1, 2004
Nippon Telegraph and Telephone West Corporation (NTT West)

Summary of the Business Operation Plan
for the Fiscal Year Ending March 31, 2005

1. Basic Concept of the Business Operation Plan for Fiscal Year Ending March 31, 2005

The information and telecommunications market is undergoing drastic transformations that affect the structure of the market itself. The regional communications market is feeling the impact of the contraction in the conventional fixed-line telephone market as consumers switch from fixed to mobile communications and from voice transmission to Internet and data communication, while IP telephony is expected to expand rapidly. Meanwhile, the broadband market, the growth leader in telecommunications, has become the scene of intense competition for greater market penetration among ADSL and optical providers.

In this intensely competitive environment, NTT West will continue to provide stable, high-quality universal services. While it has identified the fiscal year ending March 31, 2005 as critical to its strategy to achieve a dramatic expansion of its broadband businesses based on its Fiber-optic IP Connection Service, NTT West will create new broadband services and technologies to offer high-value-added services that cater to diverse modes of use, as well as engage in the development of solutions businesses - the latest addition being security services - as the company endeavors to realize a resonant communications environment.

With these programs, NTT West will strive to ensure earnings, while carrying out such management innovation programs as increasing business efficiency and trimming costs, with a view to achieving stable profitability by generating a similar level of profit to the previous year.

<Specific Programs>
(1) Promotion of the broadband business
- We will achieve full-scale expansion in the broadband market based on our Fiber-optic IP Connection Service by strengthening the sales structure for broadband access lines.
- Through alliances within the NTT Group and with content providers, we will aggressively provide applications, etc. that take advantage of our Fiber-optic IP Connection Service.
- We will strengthen broadband-based solution businesses such as total security services.

(2) Pinpointed, efficient capital expenditures
- We will make efficient investments designed to enrich our broadband services and assure the quality and reliability of our existing services.

2. Principal Services Plan

2. Principal Services Plan

3. Improvements and Advances in Telecommunications Equipment

3. Improvements and Advances in Telecommunications Equipment

4. Capital Investment Plan
4. Capital Investment Plan

5. Revenue and Expense Plan (Attached)
5. Revenue and Expense Plan (Attached)
<Reference> <Reference>

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