This is an UNOFFICIAL English-language translation of the original Japanese-language version.
To the extent that there are discrepancies between this translation and the original version, the originalversion shall be definitive.

-1-<Submitted Document>

Extraordinary Report<Submit to>

Director of Kanto Financial Bureau<Submitting Date>

July 27, 2006

<Corporate Name>

Nihon Tsushin Kabushiki Kaisha<English Name>Japan Communications Inc.

<Name of Representative Person><Location of Head Office><Phone No.>
<Name of the Administrative Coordinator><Nearest Coordinating Channel><Phone No.>
<Name of the Administrative Coordinator><Location for Publishment>

Representative Director-President: Frank Seiji Sanda
6-25-3 Minami Ohi, Shinagawa-ku, Tokyo
03-5767-9100 (Main Number)Managing Director-CFO: Naohisa Fukuda
6-25-3 Minami Ohi, Shinagawa-ku, Tokyo
03-5767-9100 (Main Number)Managing Director-CFO: Naohisa Fukuda
Osaka Securities Exchange Co., Ltd.
(1-8-16 Kitahama, Chuo-ku, Osaka)

1 <Reason for Submission>
A resolution to issue stock options was passed by the Board of Directors at their meeting of May 25,
2006, and the total amount of remuneration by stock options for Directors and Auditors was subsequently
approved at the 10th Ordinary General Shareholders Meeting of June 29, 2006. This Extraordinary Reportis thus hereby submitted in accordance with in Article 24-5, Paragraph 4 of the Securities Transaction
Law and Article 19, Paragraph 2, Item 2-2 of the Ordinance of Cabinet Office concerning the Disclosureof Corporate Information.
2 <Report Contents>(1)

Name of the securities
The 9th share purchase warrant of Japan Communications Inc. (hereafter “the Company”)(2)

Number of securities to issue
Maximum of 2,000(3)Issue priceWithout compensation(4)Total amount of shares to issue
Undetermined(to be determined on the day before day of issuance)(5)

Kind and number of the shares to be issued upon the exercise of share purchase warrants
Kind:

Common shares of the Company

Number:Maximum of 2,000 shares-2-After the share purchase warrants are issued, if the Company splits or annexes its shares,
the shares to be issued upon the exercise of share purchase warrants shall be adjusted by
the formula below.
The adjustment is only for the number of shares for which share purchase warrants havenot been exercised before the time of adjustment. Adjustments resulting in fractional
shares shall be rounded down.

Number of shares after adjustment = Number of shares before adjustment × split/annex
ratio

(6)

The amount to be paid upon the exercise of share purchase warrants
The amount or a formula to be paid upon the exercise of the share purchase warrants shallbe the amount based on the issue price per share (“Exercise Price”) multiplied by thenumber of exercised share purchase warrants.
The Exercise Price shall be the Closing Price (including the quotation) of the commonshares of the Company on the Hercules Market of Osaka Securities Exchange on the day
before the Issue Date of share purchase warrants (excluding a day when no trading occurs).
After share purchase warrants are issued, if the Company splits or annexes its shares, theExercise Price shall be adjusted by the following formula rounded up to the nearest yen.
The Exercise Priceafter adjustment(7)

The Exercise Price＝ before adjustment

×１
split/annex ratio

The exercise term for share purchase warrants
From August 10, 2006 until August 10, 2011
（If the last date of the above term is a bank holiday, the prior business day of the bankshall be the last date.）(8)

Exercise conditions of share purchase warrants
Exercise conditions of share purchase warrants such as; succession, possibility of exercise
after resignation, the reason for forfeiture of rights, shall be determined in the “stock option
agreement of the Company” to be executed between persons entitled to share purchasewarrant and the Company. The content of the agreement shall hereby be entrusted by theBoard of Directors to the Representative Director.

(9)

Item regarding stated capital in case of the shares are issued upon the exercise of share-3-purchase warrants
The amount multiplied by 0.5 of the Issue Price (less than 1 JPY shall be rounded up) shallbe credited to the stated capital.

(10)

Acquisition of the share purchase warrants by transfer.
Acquisition of the share purchase warrants by transfer requires the approval of the Board ofDirectors.

（11） The number of persons and details of counterparty inducing acquisition applications.
8 Directors, 4 Auditors, 3 members of management board, and 10 employees of theCompany. 25 persons in total.

（12） In the case that the party applying for share purchase warrants is a director, accountingadvisor, operating officer, auditor or employee of a company with a relationship with thesubmitting company, the following are details of said relationship as stipulated in each itemof Article3-3, Paragraph 2 of the Cabinet OrdinanceNot applicable.

（13） Contents of the agreement between the counterparty of inducement and the submittingcompany.
（Issuance date of the share purchase warrant）
August 10, 2006
(No issuance of the securities of the share purchase warrant)
The securities of the share purchase warrant shall be issued only upon a request by
the holders of the share purchase warrant.

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