KDDI Corp. and Okinawa Cellular Telephone Co. will launch a 144kbps high-speed CDMA2000 1x third-generation cellular phone service simultaneously in major cities across Japan from April 1, 2002. Five new CDMA2000 1x (hereafter, CDMA2000) mobile handsets will also be released, including the “A3012CA”, which has a GPS service and is equipped with a 350,000-pixel high-quality camera. CDMA2000 is recognized by the International Telecommunication Union (ITU) to be an IMT-2000 third-generation cellular communications system. Initially, 2GHz bands were required for accreditation, but the ITU later determined that frequency bands other than 2GHz, such as 800MHz bands, were acceptable in IMT-2000 systems. Overseas, six countries—including the U.S. and South Korea—and 11 companies have already begun CDMA2000 services, and 12 countries—including China, Australia and New Zealand—and 29 companies are considering commercialization. Third Generation Cellular Phones (CDMA2000 1x).

KDDI and its “au” wireless service pioneered the development of 64kbps packet telecommunications networks across Japan, and will create a more enjoyable wireless Internet environment with data transmissions of up to 144kbps. The service will give users of the EZweb wireless Internet service, various internet service providers and users of local area network (LAN) connections download transmission speeds of up to 144kbps and upload transmission speeds of up to 64kbps. From April 1, CDMA2000 services will cover 33 municipalities—including Tokyo, Osaka, Nagoya and 12 other major cities in Japan—and 477 regional communities. KDDI plans to expand services gradually to other parts so that, by the end of 2002, 90 percent of the population will be within the CDMA2000 service area. Since CDMA2000 handsets can still offer conventional services such as voice communications and64kbps data transmission even outside those areas offering 144kbps data transmission, customers can use their phones anywhere in the country without worrying about the area they are in. In April 2002, KDDI plans to launch five new CDMA2000 handsets. These new models are compatible with the GPS ‘eznavigation’ personal positioning service, with ‘ezplus,’ which can run Java™applications and with WAP 2.0, allowing users access to unofficial i-mode sites. As with the A3012CA GPS handset, which is equipped with a 350,000-pixel high-quality CMOS camera, all these handsets meet customer needs for compact, lightweight, handsets with extended life cycles and low prices. In the future, KDDI plans to upgrade the Movie handset, which is compatible with the ‘ezmovie’ moving image distribution system, aiming to provide users with richer content, alternative uses and a variety of business solutions.

* Transmission speed is on a best effort basis and may be reduced depending on circuit congestion. * The transmission speed and built-in functions for EZweb vary according to each handset. * Java and other trademarks related to Java in the U.S. and other countries are the trademarks or registered trademarks of Sun Microsystems, Inc.

1. Call charges > Customers using 144kbps CDMA2000-compatible handsets for EZweb or internet provider connections can also register for the optional ‘high-speed packet service.’

> Customers using eznavigation, ezmovie and ezplus and other EZweb services can also register for ‘EZwebmulti,’ an EZweb service specifically for the GPS Keitai and Movie Keitai.

> There is a reduced packet transmission charge (reduced rate time at 0.1 yen/packet) for high-capacity data transmission on ‘EZwebmulti.’

> Customers with CDMA2000-compatible handsets may continue to use the additional services and fee plans offered by cdmaOne that are not described above.

1.1. Ezweb charges Ezwebmulti 300Y/month Ezweb@mail 200Y/month (Kanto, Chubu), 300Y/month elsewhere

1.2. High Speed Packet Service Charge….600Y/month Service -- CDMA2000 coverage areas -- Download -- 144kbps Upload ---- 64kbps

1.3. Packet Transmission Fees ranges from 0.27Y/packet, peak to 01.Y/packet for large-volume off-peak, with large-bucket monthly discounts available.

2. CDMA2000 Cellular Phones 5 new models, 3 with GPS Built-in Model Vendor GPS Java WAP Basic Internet Camera A3012CA Casio X X X X A3011SA Sanyo X X X A3011T Toshiba X X X A1011ST Sanyo X A1012K Kyocera X

Product Name A3012CA A3011SA A3013T A1011ST A1012K Vendor Casio Sanyo Toshiba Sanyo Kyocera Size 48x94x25mm 48x95x23mm 47x93x25mm 45x93x24mm 47x96x23mm Weight 106g 97g 105g 99g 93g Talk Time 140m 140m 130m 150m 140m Standby Time 230hours 250hour 200hours 230hours 220hours Recharge Time 120m 115m 100m 110m 100m Inbox 200kb 256kb 100kb 200kb 256kb Outbox 60kb 10kb 200kb 57kb 128kb Data Storage 12.8MB 1.5MB 1MB 800kb 800kb