Presentation of Performance for the First HalfFiscal Year Ending March 31, 2007
November 21, 2006

Hirofumi Shimada
President and Representative Director

— Contents —I. Overview of Performance for the First Half of the Fiscal Year Ending March 31, 2007,
and Revisions to Forecasts of Performance for the Fiscal Year
1. First Half Performance Highlights

3

2. Revisions to Forecasts of Performance (Net Sales and Operating Income)4[Reference] Highlights of Revisions to Forecasts of Performance for the Fiscal Year

5

II. Initiatives to Increase Sales
1. Trends and Future Directions in the NTT Group Business6

2. Basic Concept for Preventing the Group’s Business from Peaking Out

7

3. The NTT Group’s Business Activities

8

4. DoCoMo Peripheral Business9

5. NGN (Next Generation Networks) Related Activities

10

6. Support for NTT’s One-Stop Service

11

7. Growth of Non-NTT Businesses

12

8. The Development of NCC Business13

9. Fundamental Strategy for “Commercialization of Installation Capacity”

14

III. Initiatives to Increase Productivity
1. Measures to Strengthen Business Front Line15

2. Defining COMSYS-Style Kaizen (Improvement)

16

3. Strengthening Contracting System in the Access Field

17

4. Strengthening Systems through the Application of CHD Functions

18

IV. Measures and Policies on Returns to Shareholders

19I-1. First Half Performance Highlights

S Year-on-year growth in both revenue and profit S(Unit: ¥100 million)

Orders Received

Net Sales

Operating Income

Recurring Profit

Net Income

Performance

1,706

Year-on-year

Main reasons for increase/decrease+199(13.2% growth)

+242

1,433

(20.3% growth)

78+29

Operating Margin: 5.5%

Up 1.3 percentage points

87+27

Recurring Profit Margin: 6.1%

Up 1.0 percentage points

63+29Net Profit Margin: 4.4%

Up 1.5 percentage points

3• Major growth in MNP-related projects• An increase in the volume of opticaltechnology projects• Sales growth• Gain on sales of fixed assets• Gain on sales of investment securities

I-2. Revisions to Forecasts of Performance(Net Sales and Operating Income)Significant increases in comparison to the first half of last fiscal year,
and over plans announced at the beginning of the fiscal year
MNP projects (NTT DoCoMo and NCC) show year-on-year growth, as do optical technology projects.
DoCoMo and NCC projects front-loaded in the first half more than planned; targeting further increases inorders received to maintain growth momentum.

[First Half Performance]
Unit: ¥100 million[Full-Year Forecast] 3,250

1,433Net Sales+100+76+93
1,340

3,150+176

3,074+242+149

Performance in Previous Year

Initial Plan

Performance this Year

Operating Income

Unit: ¥100 million( ): Operating Margin

Upward revisions

1,191+1078 (5.5%)

Performance in Previous Year

Initial Plan

Current Plan

180 (5.5%)+768 (5.1%)+10170 (5.4%)+17165 (5.3%)+29+1949 (4.2%)

Performance in Previous Year

Initial Plan

Performance in Previous Year

Performance this Year

4

Initial Plan

Current Plan[Reference]
Highlights of Revisions to Forecasts of Performance for the Fiscal YearS Upward revisions based on continuation of the strong performance seen in the first half S(Unit: ¥100 million)

Orders Received

Net Sales

Operating Income

Recurring Profit

Net Income

Current plan

3,250

Year-on-year

Main reasons for increase/decrease+150(4.8% growth)

+176

3,250

(5.7% growth)

180+17

Operating Margin: 5.5%

Up 0.2 percentage points

200+13

Recurring Profit Margin: 6.2%

Up 0.1 percentage points

120+20Net Profit Margin: 3.7%

Up 0.4 percentage points

5• Major growth in MNP-related projects• An increase in the volume of opticaltechnology projects• Sales growth• Last fiscal year:
Amortization of other consolidation adjustments(Kokusai Densetsu), ¥200 million
Other exchange gains on foreign currency transactions,¥200 million• Gain on sales of fixed assets• Gain on sales of investment securities• Withdrawal from Densetsu Welfare Pension Fund

II-1. Trends and Future Directions in the NTT Group Business
B FLET’S

ADSL

ISDN
First generation (Analog)

Third generation (FOMA)

Second generation (PDC)Net Sales (Unit: ¥100 million)

MobileIncreased construction
for number portability
Rapid increase in
tower construction

AccessD60, D70

Conversion of
conventional
telephone lines
to optical cable
Removal ofconventional
telephone lines

Shield projects

CC BOX

B FLET’S
New nodes

Intra-office

Linking regional
relay stations
with optical cableCompletion ofdigitization
NTT’s mobile
communications
network commences
operations

Privatizationof NTT

Introduction ofcomprehensive
project execution
systemInfrastructure
Reorganization ofNTT and establishmentof holding company

CHD management
integration

0’77

’80

’83

’86

’89

’92

’95

6’98

’01

’04

’07

’10

II-2. Basic Concept for Preventing the Group’s Business from Peaking Out
1. Prevent the NTT market from shrinking by opening up new areas of business.

2. Growth and expansion driven by the non-NTT business.

3. Striving for ceaseless growth in productivity through COMSYS-Style Kaizen (improvement).

4. Strengthening systems through the application of CHD functions.

Growth inRevenue and Profits7

II-3. The NTT Group’s Business Activities
Prevent the NTT market from shrinking by opening up new areas of business.

S Full-scale response to the increase in B FLET’S projects
S Bolstering advisory activities in connection with thescrapping of obsolescent facilities
S Expanding agency business
S Expanding work domain through NGN (next generationnetworks) projects
S Responding to needs for one-stop residential service8II-4. DoCoMo Peripheral Business
Expanding the scope of operations using expertise gained in existing businesses
Peripheral Business
Autonomous marketingof inbuilding mobile
communication systems (IMCS)
Materials-related
operations
Demand for goods

Information systems/
Corporate operations

Facilities yet to be introduced• Selection• Negotiation, consulting

Software development

Maintenance projects
Installation,
replacement,and repair of antennae

Research operations
Radio interferometry

Existing BusinessResearch anddevelopment

Facilities
planning

Negotiation

Consulting

DesignConstruction

Testing

Inspection

MaintenanceFull turnkey
R & D facilities projects
R & D related operations• Facilities projects utilizing
various new methods• Participation in testing(WiMAX, etc.)

NOC operations
NOC: Network Operation CenterOperations

Switching-center vendor operations
Microcircuit disposal
NTT (East/West/Com)• Disposal of analog TV relay facilities• Disposal of analog satellite facilities• Change in island circuit frequency band(From 4GHz to 6GHz)Large-scale server projects• Basic installation, including operating system• Settings• Test operation• Comprehensive testing

9Repair and maintenance
operations
Wireless base stations• Scheduled inspections• Repairs• OtherSwitching center• Support for repair
and maintenance operations

II-5. NGN (Next Generation Networks) Related Activities
Response to next generation networks as a communications construction company
FY2004

FY2005Market Trends

Carriers
NGN Declaration

FY2006

FY2007

December field trials

November road map
Outage of NTT East’s and West’s
optical IP telephone services

FY2008FY2009Full-scale implementation¥5 trillion* (Over 3 years)

FY2010Targets
30 million users for
optical services and NGN(Reference) NGN: Next Generation Network* November 11, 2004: In-house announcement of NTT Group medium-term management strategy＜＞

COMSYS’s Scenario

Incubation ＞＜Startup of inspection business＞＜

Catching up with and passing vendors

Fostering IP coreengineers

Architecture

Design, construction, testing, troubleshooting

Training
business

Comprehensive network
inspection business

Expansion of core business

Operation business

Mentoring employees
Providing training forother companies

Dispatch of personnel toNTT’s research laboratories

Working to win orders for full turnkey NGN projects,
including design, construction, and testing,from NTT and other customers.

Working to win orders foroutsourcing of maintenancefrom NTT

Obtaining Cisco Training Partner certification

COMSYS’s Initiatives

Training
business

Advancing toward CCIE and CCNP certification

Cisco Gold Partner Contract (Scheduled for February 2007)¥0.3
billion¥20
billionComprehensive network
inspection business¥0.6billion¥30billion
Expansion ofcore business

Expanding orders based on the results of field trials
Operation business

CCIE

11persons

17persons

25persons70persons10

II-6. Support for NTT’s One-Stop Service
COMSYS brings its strengths to bear on providing one-stop consulting, design, installation,
and after-sale service for today’s increasingly complex and sophisticated family networks.
Home Network Image

Responding to Needs for One-Stop Service

Networking the Home[Consulting and Sales]• Consulting on network connectionof various home devices• Consulting on residential wiring• Diversification of residential wiring(Optical, LAN, wireless, PLC, etc.)
Home server

VCAST

Broadband router

ONU[After-Sale Service]• Diagnosis and repair 24 hours
a day, 365 days a year
(This is available only during
working hours for the time being)

STB

11

[Design, Installation,and Setup]• Reliable performance byspecialist engineers• Various agency businesses

II-7. Growth of Non-NTT Businesses
CC Boxes and other generalcivil engineering projects

NCC infrastructure

Net Sales (Unit: ¥100 million)

1,233

1,350

1,600

666

650
630
600

Creating a new business model forthe government sector business
400

Up

4+3

Non-NTT
Construction
business
IT solutions business(Network integration,systems integration,maintenance)

%NCC

410

350

307
310260

U0’96’98’00’02’040%

Fiscal 2006 medium-term management plan

CHD management
integration

NTT became aholding company

2p+2006(H18.03)COMSYS nonconsolidated figures

12’07

’08

(H19.03)(H20.03)
CHD consolidated figures’092010(H21.03)(H22.03)

II-8. The Development of NCC BusinessHolding the top share of NCC projects
Orders-received targets for the fiscal year ending March 31, 2007
[Performance in Previous Year][Current Plan]

310 (+50)

260

Important activities

Working for further increases
in orders received

This fiscal year’s increase in orders received

123KDDIFixed communications
Weight in orders received (40%)

Vigorous
123 growth, centered on FTTHTokyo ElectricSoftbankau

Mobile communications
Weight in orders received (50%)

Strong12 response to 3G and area expansion
Responses
tailored to the direction of business trends
12Softbank Mobile
Will com

Expandinghigh-speed broadband services
12e-Mobile

Strong12 response to area growth nationwide

Manufacturers and vendors

Focused12 response to next generation networks

Weight in orders received (10%)

13II-9. Fundamental Strategy for“Commercializationof Installation Capacity”

The COMSYS Group: A communications construction SIerCOMSYS Group is a systems integrator with core technologies in network design and construction.
APLComsys(telecom construction SIer)

Equipment

NW service

Red Ocean

NW design

NW construction

Maintenance[Current strengths]

BlueOcean

Vender SIer
Soft SIer
Carrier SIer
Legend:Specialty field

Can provide

Rely on other companies

Weakness

NI
In the future, we will challenge fields related to NI, one of our areas of strength.
14

III-1. Measures to Strengthen Business Front Line

SProductivity improvement throughCOMSYS-Style Kaizen (improvement)
SStrengthening contracting systems
in the access fieldSStrengthening systems throughthe application of CHD functions
15

III-2. Defining COMSYS-Style Kaizen (Improvement)

S Kaizen efforts to improve outdoor workand moving construction sites

S The four main areas of wastein construction operations

16• Transit time
• Waiting• Redoing work
• Duplication of effort

III-3. Strengthening Contracting System in the Access Field
Reorganization of subcontractors in the Tokyo metropolitan area access field
Consolidating from 10 companies mixed in 11 areas to 6 companies in 5 areas• Quick handling of B FLET’S projects, which are expanding rapidly in the Tokyo
metropolitan area, and productivity increases• Improved customer service through centralization of customer contact points by region• Cost reductions through consolidation

Productivity of the Group overall/ up 10%
Reduction of overhead costs/ ¥70 million/first year

Moving forward with molding construction bases (technostations) into business units• Look at income and expenditure bytechnostation unit
• Shift of human resources to technostations• Transfer of authority to technostations• Make jobs viewable by technostation unit
• Promote competition among technostations

Job rectification through information technology
Moving forward with visibility of work sites• Introducing a data flow system• Introducing a real-time management system

November, 2006:
Nationwide implementation17

III-4. Strengthening Systems through the Application of CHD Functions
Established inSeptember 2003

Management
integration
Reorganizationof existing
subcontractors

COMSYS Holdings Corporation
SANCOMSan Access Co., Ltd.

Nippon COMSYSTOSYSMergerCOMSYS Shinetsu Engineering Co., Ltd.
Merger

Ibaraki Denden
Kensetsu Co., Ltd.

Alstar Co., Ltd.

SANNETCOM Co., Ltd.

MergerShoji Tsushin Co., Ltd.

Kokusai Densetsu Co., Ltd.

Tokyo Tsuken Co., Ltd.

TOSYS UNITEC Co., Ltd.

Nitto Tsuken Co., Ltd.

Tokyo
metropolitan
Kokusai Densetsu Co., Ltd. Shoji Tsushin Co., Ltd.
areareorganization
TokushimaTsushin
Tsushin Densetsu Co., Ltd.
Kensetsu Co., Ltd.

Reorganization
into groupcompanies (100%)

Unique Link Systems Inc.
* Expanding the IP telephony business through capital participation(Supplementing technological capabilities)

Capitalparticipation
alliances

Sumihei Computer System Co., Ltd. (80% subsidiary)* Expanding business in the IT solutions field

Tamura Taiko Holdings, Inc.
Nakayo Telecommunications, Inc.

* Expanding business inthe IT field throughbusiness alliances

Transfer of NTT businessBusinessreorganization

Mutual support in regional businessTransfer of NCC business
Joint operations and other business integration

Contributing to the reorganization of the industry through the adoption of the pure holding company framework
September 2006

18

IV. Measures and Policies on Returns to Shareholders
Nippon COMSYSCOMSYS Holdings¥2(Unit: ¥)20

Consolidated payout ratio

Sharetransfer <15>
payments

The 50th anniversaryof the founding of COMSYSDividends

10

<10>

<12>

<12>

<10> Commemoration<10>Special¥2

¥2

38.2%
26.0%

(Increase in dividends)

71.0%

<12>

<15>

<17>

<15>Special¥3

Total return ratio
30%

39.1%

26.1%

23.5%

25.7%
21.5%

20.1%

19.4%
Initial plan

Current plan

0
99.3

00.3

01.3

02.3

03.3

04.3

05.3

06.3

07.3 (Fiscal Year)0

Acquisition andretirement of treasury stock

6.6

6.8

10

6.8

1220

(Acquisition of treasury stock)

16.8
Retirement of treasury stock(Unit: ¥100 million)

19