TransTeleComNTT Communications


JOINT ANNOUNCEMENT
NTT Communications Corporation
Closed Joint Stock Company TransTeleCom
February 27, 2007

NTT Com and TransTelecom to Jointly Establish New Undersea Optic Cable System between Japan and Russian Federation

TOKYO, JAPAN and MOSCOW, RUSSIA---NTT Communications Corporation (NTT Com), a global ICT solution provider, and Closed Joint Stock Company TransTeleCom (TTC), Russia's leading backbone telecom operator, today signed a Memorandum of Understanding (MoU) by which the two companies will jointly establish a 500 km high-capacity undersea fiber-optic cable "the Hokkaido-Sakhalin Cable System (HSCS)" that will transmit data at up to 640 Gigabits per second between Ishikari, Hokkaido in Japan and Nevelsk, Sakhalin in Russia, based around Dense Wavelength Division Multiplexing (DWDM) technology. The project will be completed by the end of 2007.

By connecting the HSCS and TTC's 50,000 km transcontinental optical route following that of the Siberian railway and now providing a seamless connection between Europe and Asia, the two companies will realize the shortest uninterrupted link from Tokyo and other parts of Asia to Russia and Europe.

The new route will also function as a rerouting network for the existing route that connects Japan and Europe via the Indian Ocean, providing extra backup in the event of a probable disaster like an earthquake.

The proposed agreement comes in the wake of strong demand for data communications services from multinational companies expanding their business into Russia.

NTT Com and TTC signed a comprehensive agreement last October to interconnect the two companies' MPLS networks, IP Transit and International Private Line. The MPLS network interconnection enabled the companies to increase their network coverage through a seamless international network spanning most of the Asia-Pacific region and Russia. For more information, please visit http://www.ntt.com/release_e/news06/0010/1023.html.

NTT Com's Executive Vice-President Osamu Inoue stated: "The signing of this memorandum is an indication of closer regional interaction between Japan and Russia and will greatly assist in the rapid development of multinational companies' businesses in Japan, Russia, other parts of Asia, and Europe."

Commenting on the MoU, TransTeleCom's President Sergey Lipatov stated that "Building Sakhalin-Hokkaido Cable System is an integrated part of our strategy for Asia Pacific region. Put to operation this project will allow Asian carriers and operators to access the shortest possible telecommunications route to Europe, and a redundancy ring with increased level of network latency. Thus the cooperation between TTC and NTT Com offers a new level of quality for transit of large data amounts between Europe and Asia Pacific"


About NTT Com

NTT Communications Corporation (NTT Com) provides information and communications technology (ICT) solutions worldwide with dedicated professionals stationed in 20 countries. Renowned as an IPv6 technology pioneer and managed service expert, NTT Com offers diverse high-quality IP, Web-based, and managed network solutions combining network management, security, ubiquitous, Web portals/engines, and global services. Its world-class Tier 1 Internet backbone and secure closed networks with over 98,000 MPLS ports connect more than 200 countries. The company earned non-consolidated revenues exceeding one trillion yen (about US$1.2 billion) in fiscal 2005 ended March 31, 2006. NTT Com started as a long-distance phone company in 1999 after the reorganization of the NTT Group, and is the wholly-owned subsidiary of NTT, one of the world's largest telecommunications companies. NTT is listed in Japan, London and New York stock exchanges. Please visit www.ntt.com.

About TransTeleCom

The "TransTeleCom Company" CJS was established in 1997 with 100% of its chartered capital held by "Russian Railways" Joint-stock Corp. The Company TransTeleCom is the leading fiber optic communication network operator in Russia with more than 50000 km of communications lines. It has 950 links in all of the regions of Russian Federation and connects two continents ? Europe and Asia.
Today the TransTeleCom Company is a major national telecom operator. It is a dynamically growing company, which permanently expands its innovative communication services with quick response to ever increasing market demands. TransTeleCom Company has a full range of licenses in the communication sector and implements ready-to-use telecom solutions.
The TransTeleCom Company works actively at both operators' and corporate markets. Up to today, the company has implemented large telecom projects for industrial and commercial structures, major financial and insurance companies, as well as for public organizations. You can reach TransTeleCom via http://transtk.ru/www/nsf/esite.nsf/ .
NTT Communications Corporation
For more information, please contact.

TransTeleCom Company
(Mr.) Ilia S. Fabrichnikov
PR Department
Head of Mass Media Relations
tel: +7-495-784-6670 ext. 7371
mob: +7-916-618-6375