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March 24, 2000

Net One Systems., MELCOM SERVICE. and Cisco Systems will jointly establish Network Service and Technologies Co. Ltd., providing integrated technology services related to network usage and operation.

Net One Systems., MELCOM SERVICE. and Cisco Systems will jointly establish Network Service And Technologies Co. Ltd., providing integrated technology services related to network usage and operation.

Net One Systems Co., Ltd., MELCOM SERVICE CO., LTD. (headquarters: Chiyoda-ku, Tokyo, President: Yukio Satake,) and Cisco Systems K.K. (headquarters: Chiyoda-ku, Tokyo, President: Yasuki Kurosawa) have agreed to jointly establish Network Service And Technologies Co., Ltd. (NSAT). NSAT is a company offering technology services and will be chartered on April 3, 2000. With the rapid expansion of the e-business market, there is a great demand for technical services related to network usage and operation. The new company aims to effectively respond to the market needs in a timely manner and promote its business.

NSAT will start with paid-in Capital of 100 million yen. Toru Ishikawa, former Managing Director of Lucent Technologies Japan Ltd. is expected to assume the office of presidency.

Internet has gained acceptance as a social infrastructure in Japan. With the progressive development of next generation Internet technologies and the expanding e-business market, the environment for corporate network usage and operation have become more complex and intricate. At the same time, due to serious shortage of network technology engineers, there is a greatly increasing demand for technical services for network usage and operation. In order to accommodate to the market needs, three companies contribute to NSAT, their practical experiences, technical expertise and know-how, and consultation skills gained through years of doing business in the IT industry. They aim to establish NSAT as the leading company of network service integration.

More specifically, Cisco Systems' information of the most advanced technologies as well as technical assistance service/know-how, Net One's facility for network technology/know-how and technical service, and Melcom's technical skills related to Web computing related server technologies will be utilized to establish NSAT's nationwide technology service web covering 70 offices and 125 locations.

Network operation center will commence business with 65 employees and by the end of the initial year, the plan calls for 100 employees. Initially, there will be approximately 1,000 on-site technology support personnel provided through joint effort of Net One and Melcom Service. Under this organizational framework, the new company will create a nationwide web connected on a 24 hours a day, 365 days a year basis, to provide unbiased technical expertise in technological assistance for network usage and operation.

Besides conventional services as Network Service/Operational Management, NSAT will sequentially offer new services such as (1) Network Utility Service and (2) Virtual Group Networking Service. NSAT will provide integrated technology services that ensures both highly technical and productive usage/operation of networks. The initial year sales forecast is two billion-yen and by year 2004, the sales goal is ten billion-yen.