February 28, 2000

 
FOR IMMEDIATE RELEASE

Japan Satellite Systems Inc.
NTT Communications Corporation
 

Japan Satellite Systems Inc. and NTT Communications
Reach a Formal Agreement on Investment

 
Japan Satellite Systems Inc. (JSAT) and NTT Communications Corporation (NTT Com) today announced that they have reached a formal agreement on NTT Com's investment in JSAT and the transfer of NTT Com satellite assets to JSAT. The announcement follows a basic agreement, which both firms reached July 6, 1999, to jointly explore new business horizons concerning the aforementioned matters. Details of the investment and assets transfer are as follows:

NTT Com will invest 31.45 billion yen in JSAT. JSAT will issue 62,900 new shares (approximately 18.6%), with a 50,000 yen face value, to NTT Com in the manner of a third party.

Also, NTT Com will transfer its assets, which include satellites* (NTT Com's property in N-STAR a & b satellites) and other equipment worth approximately 31.5 billion yen to JSAT.

The investment and transfer of assets is scheduled to be completed by the end of March 2000.

*: Jointly owned by NTT Communications, NTT Mobile Communications Network, NTT East and NTT West.


[Attachment]
1: JSAT Shareholders

 
Present
shareholdings
After capital increase
(number of shares*2)
ITOCHU Corporation
28.47%
23.177% (78,375)
Mitsui & Co., Ltd.
24.48%
19.924% (67,375)
Sumitomo Corporation
23.48%
19.111% (64,625 )
ITX Corporation
23.48%
19.111% (64,625 )
NTT Communications
 -
18.601% (62,900)
Others*1
0.09%
0.076% (254.5)
 
  
Total number of shares: 338,154.5
Capital: approx. 43.3 billion yen (planned)
*1: Shares for employee stock ownership and full-time board members
*2: JSAT conducted a reverse stock split by halving the number of its shares on Jan. 25, 2000. The numbers represent company shares after the stock split.

2: Outline of Companies

Company
Japan Satellite Systems Inc.
NTT Communications Corporation
Headquarters
1-26-5 Toranomon, Minato-ku, Tokyo
1-1-6 Uchisaiwai-cho, Chiyoda-ku,Tokyo
President & CEO
Takuya Yoshida
Masanobu Suzuki
Capital
27.5 billion yen
72 billion yen
Satellites
(including joint ownership)
JCSAT-1B (150 degrees E Long.)
JCSAT-2 (154 degrees E Long.)
JCSAT-3 (128 degrees E Long.)
JCSAT-4A (124 degrees E Long.)
JCSAT-R (backup)
JCSAT-110 (launch planned for 110 degrees E Long.)
N-STAR a (132 degrees E Long.)
N-STAR b (136 degrees E Long.)

 
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