We recently established the "Direct Internet Corporation" under joint management by Japan Telecom Co., Ltd., Sony Music Entertainment(Japan)Inc., Tomen Corp. and Parallel Technology Inc. The new corporation will sell equipment and software to deliver image and data information directly to personal computers utilizing a satellite, and is going to offer high-speed satellite personal computer communication services as early as next spring. In consequence, we have been able to enter into a new information communication business through the corporation, following the system integration business including LAN and WAN, and CATV and mobile equipment communication-related business which have achieved brilliant results.

The information communication network utilizing computers is rapidly expanding throughout the world as seen by the diffusion of the Internet. However, the conventional information infrastructure utilizing telephone circuits has certain limits in speedily disposing of great deals of data, and has brought about a circumstance that users are not always completely satisfied. Direct Internet Corporation established by our company under joint management is going to implement an epoch-making business which has no precedent in Japan, enabling high-speed bulk delivery of information including Internet, but also offering massive amounts of data and images delivered via the network operation center in the United States directly to users in multiple places by satellite. With this characteristic as its weapon, the corporation plans to expand its service area not only in Japan but also to the entire Asia-Oceanian region and respond to the expectations of users in need of massive amounts of data especially animated images.

Our aims in establishing Direct Internet Corporation at this time are as follows:

(1) We plan to launch an the information communication service business utilizing a satellite which is a new infrastructure in the area of information communication, and also expand our service area beyond Japan to cover the entire Asia-Oceanian region utilizing the 22 overseas bases we have in Asia and the USA. With such a widearea of business operation, we can further accelerate globalization in the area of our information communication.

(2) As a prominent LAN vendor in Japan, we have manufactured and sold various kinds of LAN products (ATM routers, hubs, repeaters, etc.), and also provided public agencies and leading corporations with a number of LAN and WAN systems in collaboration with LAN vendors in the USA, but it has been our aim to construct intranets and provide image services and customized application software in order to advance our business portfolio. In the future, we will establish a foothold to provide full turnkey services for our information transmission system-related endeavors by cooperating with software companies through the business of Direct Internet Corporation.

(3) In CATV business, we have engaged in management as an operator of CATV systems and also invested in many CATV companies and handled their design and construction projects. However, in recent CATV, contents services and Internet services have become the key to business operation, and our company has endeavored to construct CATV-LANs with cable modems as their core. We are also being required to propose ideas for new contents in order to gain customers. To meet such market needs, the new corporation's high-speed satellite personal computer communication service business will provide our company with new power to upgrade our capacity to propose new ideas.

As described above, regarding all business related to information communication in the future, the capability to provide users with software is becoming key, and the high-speed satellite personal computer communication services by Direct Internet Corporation to provide rich information from such countries as the USA will be extremely valuable to our company. Thus, it is expected that our company will make great strides in our business related to information transmission systems.

In the future, our company will attempt to develop Direct Internet Corporation into a leading information communication service company in the Asia-Oceanian region, by cooperating with Japan Telecom Co., Ltd, which has a conception of an open data network (ODN), Sony Music Entertainment(Japan)Inc. which has a rich stock of image software, Tomen Corp. with a powerful sales network around the world, and so on.

(For your reference)

Outline of Direct Internet Corporation

1.	Trade Name: DIRECT INTERNET CORPORATION
2.	Address: 1-7-5 Ginza, Chuo-ku, Tokyo, Japan
3.	CEO: Naoto Kudo, President (assigned from our company)
4.	Capital: 300 million yen
5.	Stockholders: Hitachi Cable, Ltd. (32%, Head Stockholder), Japan Telecom Co., Ltd., Sony Music Entertainment(Japan)Inc., Tomen Corp, Parallel Technology Inc.
6.	Date of Establishment: November 7, 1996