KDDI Announces the Merger of Four Subsidiaries, Launch of ‘KDDI Network & Soluti

KDDI has announced the impending merger of four subsidiaries to form KDDI Network & Solutions Inc., to strengthen management efficiency and improve response times for corporate customers requiring broad and comprehensive solutions. The new company is expected to become a pillar of the corporate fixed communications business for the KDDI group. K-Solutions Inc., KCOM Corporation, OSI Plus Corporation, and KDDI Msat, Inc. will be merged into the new company on October 1, 2004, to strengthen the KDDI Group base and enable greater corporate-wide deployment in the communications service market where the Group expects an intensification of competition in the future.

Outline of KDDI Network & Solutions Inc.

Capital 3,380 million yen
Ownership KDDI 100%
Sales 98 billion yen (anticipated through FY04, ending 03/2005)
Operating income* 2.5 billion yen (anticipated through FY04, ending 03/2005)
Number of employees** 456
Business -Sale of communication services, consulting
-Providing network solutions
-Designing, development, manufacture, sale, operation and
maintenance of telecommunications systems and
information and communications networks
Address Bunkyo-ku, Tokyo

* Aggregation of anticipated FY2004 sales of the four present companies
** Aggregation of employees through 07/2004 of the four present companies

About KDDI Corporation

KDDI is a diversified telecommunication operator formed by the merger of DDI, KDD and IDO in 2000, and is the only domestic company that provides both mobile communication service and broadband service. The number of subscribers to the mobile phone services under the au and TuKa brands is over 21 million, and fixed-line subscribers (MyLine) is approximately 9 million. The 73 KDDI group companies had approximately 13,000 staffs and sales in FY2004/3 was 2,846.1 billion yen. At KDDI, aggressive improvement of communication environment in preparation for the coming ubiquitous network society is underway and KDDI is aiming to become a “ubiquitous solution company” which provides high value-added solutions.