To all the members

Name of the Company Daiwabo Information System Co., Ltd. Representative Hirokazu Matsumoto, President and CEO (Code # 9912, Tokyo and Osaka Stock Exchange, 1st Section) Head Office 3-2-5, Hommachi, Chuo-ku, Osaka Contact person Koyama (Yoshio), General Affairs Section (Public Relations) PHONE +81-6-6281-9100

Several NTT East Group companies (NTT service companies and NTT-ME prefectural branch companies), Microsoft Corporation, and Daiwabo Information System Company Join Hands to Promote IT Among Small and Midsize Business

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Several members of the Nippon Telegraph and Telephone East Corporation (abbreviated "NTT East," main office: Shinjuku, Tokyo, president: Satoshi Miura) group of companies, i.e., eleven NTT service companies *1 and seventeen NTT-ME prefectural companies *2 (hereinafter referred to collectively as the "NTT East Group"), Microsoft Corporation (hereinafter called "Microsoft," head office: Shibuya, Tokyo, president: Michael Rawding), and Daiwabo Information System Co., Ltd. (abbreviated "DIS," head office: Osaka City, Osaka-fu, President: Hirokazu Matsumoto) have agreed to cooperate in an effort to promote information technology among small and midsize business. More specifically, NTT East Group, Microsoft, and DIS will cooperate in the aggressive sale of an IT infrastructure package for small and midsize business called "IT Management Innovation Pack." Their goal will be to sell 600 sets within the next year.

1.Reason for Joint Effort

The adoption of IT systems among small and midsize business is lagging behind that of large corporations and it is believed that many of the 4.87 million small and midsize companies throughout Japan have not yet installed a local area network (LAN) (source: Small and Medium Enterprise Agency http://www.chusho.meti.go.jp/faq/faq02.html). Obstacles to the adoption of IT among small and midsize business include the lack of IT personnel and the difficulty of evaluating cost performance. NTT East Group, Microsoft, and DIS will combine their respective strengths to alleviate these obstacles and promote IT among small and midsize business.

2.Overview of Effort and Individual Roles

This joint effort will strive to create a market for a complete package product that includes consulting regarding the adoption of the latest IT equipment, construction of the IT environment, and training and support for the new equipment. The roles of the three participants will be divided as follows: The NTT service companies and NTT prefectural companies will utilize their close relationship with the community and communications know-how to handle the sales and construction aspects of the joint effort. Microsoft will utilize its strong product lineup and technical knowledge to head the technical support and promotional aspects. DIS will utilize its ability to procure various devices and equipment to provide delivery, installation support, and general support for equipment.

3.About IT Management Innovation Pack

The IT Management Innovation Pack is designed to facilitate the introduction and smooth operation of IT systems and it constitutes a package product that includes consulting regarding the adoption of the hardware and software, construction of the IT environment, and training and support at the time of installation. It will target chiefly those small and midsize business that require IT for business purposes. Since it provides the necessary products, equipment setup, and support as a single package, the IT Management Innovation Pack enables small and midsize enterprises that are not already equipped with an IT environment to install a server, LAN, or other IT infrastructure with much less stress.

(1)Product Features

- l Since the package includes the minimum required equipment and materials, IT be introduced without complex configurations or expertise. - l The post-installation training and helpdesk (telephone support) included in the package allow users to have peace of mind without a resident IT expert. - l IT systems catered to the individual company can be achieved using combinations of broadband network, ASP service, application software, etc. - l Business can obtain an IT system at low cost because the package contains the minimum necessary and because of the sales capabilities, technical expertise, and grassroots connection to local communities of NTT East Group. Example: Equipment, installation, and support for a system having 10 PC clients can be purchased for approximately 3 million yen or less.

(2)Market Introduction Timing

Microsoft and DIS began selling the IT Management Innovation Pack in February 2003 and recently joined together with NTT East Group in order to develop a new sales program with closer ties to local communities. The eleven NTT service companies and seventeen NTT-ME prefectural companies will begin offering the product as early as August 2003. *More specifically, NTT-ME Chiba, NTT-ME Saitama, NTT-ME Tochigi, and NTT-ME Nagano will begin carrying the IT Management Innovation Pack in early August 2003. The other companies will begin when they are ready.

*1 *2 NTT Service Tokyo NTT Service Kanagawa NTT Service Chiba NTT Service Ibaraki NTT Service Gunma NTT Service Niigata NTT Service Miyagi NTT Service Fukushima NTT Service Aomori NTT Service Akita NTT Service Hokkaido NTT-ME Tokyo NTT-ME Kanagawa NTT-ME Chiba NTT-ME Saitama NTT-ME Ibaraki NTT-ME Tochigi NTT-ME Gunma NTT-ME Yamanashi NTT-ME Nagano NTT-ME Niigata NTT-ME Tohoku NTT-ME Fukushima NTT-ME Iwate NTT-ME Aomori NTT-ME Yamagata NTT-ME Akita NTT-ME Hokkaido

Direct inquires to Nippon Telegraph and Telephone East Corporation Contact persons: Sotoguchi, Nagano, and Furutate, New Business Planning Group, Corporate Planning Department PHONE +81-3-5359-2119 Email: isp-send@sinoaml.east.ntt.co.jp Microsoft Corporation Contact person: Ishii, Public Relations Department, Corporate Marketing Division PHONE +81-3-4523-3210 Email: mskkpr@micorosoft.com Contact person: Koyama (Yoshio), General Affairs Section (Public Relations), Personnel/General Affairs Department PHONE +81-6-6281-9100 FAX +81-6-6258-9351

Jul. 28, 2003