Overview of 1H FY3/05 Resultsand Future Group Management Policies
November 30, 2004

Hirofumi Shimada
President and Representative Director

— Contents —1. Overview of 1H FY3/05 Results• • • • • • • • • • • • • • • • • • • • • • • • • • •3

2. FY3/05 Earnings Plan• • • • • • • • • • • • • • • • • • • • • • • • • • •5

3. One Year Achievements of COMSYS Holdings• • • • • • • • • • • • • • • • • • • • • • • • • • •6

4. Management Policies• • • • • • • • • • • • • • • • • • • • • • • • • • •7

5. Specific Activities• • • • • • • • • • • • • • • • • • • • • • • • • • •86. Conclusion• • • • • • • • • • • • • • • • • • • • • • • • • • •92

1. Overview of 1H FY3/05 Results(1) Year-on-year growth

Assessment: Achieved stronger-than-expected earnings

Net sales up ¥8.9 billion year-on-year

Operating income up ¥3 billion year-on-year

q Growth in NTT construction business in 1H

q COMSYS Holdings integration effects

w Increase in net sales due to shortening construction timew Cost reductions resulting from management improvement
measures at each company
e Earnings improvement at operating companiesr Increase in net sales(Unit: ¥100 million)

1H FY3/04 results— simple totals

1H FY3/05 results— simple totals

Orders Received

1,338

1,371

33

+2.5%

Net Sales

1,038

1,127

89+8.6%

Amount change Percent change

Operating Income (Operating Margin)

1.3 (0.1%)

31.6 (2.8%)

30.3

24 times

Recurring Profit (Recurring Profit Margin)

3.8 (0.4%)

42.8 (3.8%)

39.0

11 times3(2) Reasons for strong 1H results
q Increase in percent of 1H progress against full-year net sales plan
w Earnings improvement at operating companies
e Cost reductions(Unit: ¥100 million)

Initial plan

1H results
Amount change Percent change

Orders Received

1,300

1,343

43+3.3%

Net Sales

1,100

1,117

17+1.5%

Operating Income (Operating Margin)

13 (1.2%)

31 (2.8%)18

2.4 times

Recurring Profit (Recurring Profit Margin)

21 (1.9%)42 (3.8%)21

2.0 times

42. FY3/05 Earnings Plan

Despite strong results in 1H, challenges remain and FY3/05 plans are unchanged
Management in pursuit of profits through sweeping reform of work practices
S Slump in orders received in local non-NTT business
S Increase in percent of 1H progress against full-year net sales plan
S Forward-looking investment and business reform expenses in IT business segment(Unit: ¥100 million)

Orders Received
NTT and DoCoMo businesses
Non-NTT business
Net Sales
NTT and DoCoMo businesses
Non-NTT business
Operating Income(Operating Margin)
Recurring Profit(Recurring Profit Margin)COMSYS Holdings
Full-year plans

q FY3/05 plans(simple totals)

w FY3/04 results(simple totals)

2,750
1,490
1,260
2,800
1,540
1,260
110
3.9%
120
4.3%

2,790
1,515
1,275
2,830
1,558
1,272
110
3.9%
120
4.2%

2,702
1,565
1,137
2,762
1,520
1,241
98
3.5%
104
3.8%

5Difference(q – w)
88-50
138
68
38
31
120.4%
160.4%

3. One Year Achievements of COMSYS Holdings(1) Expand NTT access business through business integration

Expand net sales(2) Reorganize shared operations

Reduce personneland other costs

S Establish COMSYS Shared Services Corporation

Improve earnings at
operating companies(3) Merger and elimination of operating companies(4) Use finances efficiently

Major achievements
going forward

S Lower debt through group finance
S Record structural reform reserve
S Early adoption of impairment accounting

Improve
operating income
and recurring profit(5) Integrate internal systems (operations from April 2005)
S Reduce indirect operations using the COMFORCE construction operations support system
S Use computer systems for shared operations, including for consolidated accounting
6

4. Management Policies(1) Assume central role in achieving
NTT’s medium-term business strategy(2) Expand non-NTT business, including the expansion of the scopeof business activities through the use of COMSYS Holdings(3) Secure profits based on management
reform (Business Process Reengineering, BPR)

7

5. Specific Activities

Secure profits based on changes in work practices
Maximize the effectsof COMSYS Holdings
S Business reorganization
S Leverage finances toincrease operating income
S Expand range ofbusiness activities

Pursue profits in mature markets

Expand orders in growth markets(Mainly NTT and DoCoMo businesses)(Mainly non-NTT business)

S Strengthen on-site capabilities

S Enhance sales capabilities

S Seek maximum efficiency

S Brand COMSYS products(e.g., IP telephone)

S Expand business domain
S Secure strategic personnel

86. Conclusion

S Contribute to enhancing the ubiquitous broadband society
as a leader in building information communications infrastructure.

S Use IT to support corporate management reformand contribute to the business development of our customers.

S Use IT to contribute to creating affluent local communities.

9