2002 Investors' Guide

2002 Investors’ Guide Year Ended March 31, 2002 ■ Profile

Nippon COMSYS Corporation was established in 1951, during Japan’s postwar turmoil, to undertake the rebuilding of the country’s telecommunications infrastructure. That was the year before the establishment of Nippon Telegraph and Telephone Public Corporation, which was later privatized and renamed Nippon Telegraph and Telephone Corporation (NTT). At that time, the primary function of Nippon COMSYS Corporation was to execute telecommunications network construction projects in support of NTT. The Company subsequently made a place for itself in the industry on the basis of its successes in the postwar construction of Japan’s telecommunications infrastructure, and has remained an industry leader to this day. Nippon COMSYS Corporation will continue to expand its business, seeking to contribute to the development of the information society of the future.

■ Contents COMSYS Again Selected as Top IR Firm COMSYS Chosen for Nikkei Five-Year Financial Summary ・・・・・・1 For the second consecutive year, COMSYS has been On March 6, 2002, COMSYS was chosen for Toward Ubiquitous Computing in a Networked Society ・・・・・・2 selected as the firm with the best investor relations inclusion in the Nikkei Stock Average, joining the program in the construction industry. The award was 225 leading firms on the first section of the Medium-Term Management Plan ・・・・・・4 made in October 2001 by the Securities Analysts Tokyo Stock Exchange whose stock prices are 5 Construction Flow for COMSYS’s Telecommunications Equipment ・・・・・・Association of Japan, and is public acknowledgement included in this important indicator. Our Operations: an Overview ・・・・・・6 of the Company’s vigorous information disclosure Featured Technologies・・・・・・9 measures. COMSYS will do its utmost to continue to be Activities to Preserve the Earth’s Environment ・・・・・・10 worthy of this award. Financial Section (Non-Consolidated Basis) ・・・・・・11 1 2 Non-Consolidated Statements of Income (10 Years) ・・・・・・23 Non-Consolidated Balance Sheets (10 Years) ・・・・・・24 Consolidated Subsidiaries and Affiliates ・・・・・・26 ■ Cautionary Statement with Respect to Forward-Looking Statements This Investors’ Guide contains forward-looking statements that reflect management’s views and assumptions in the light of information Group Companies ・・・・・・27 currently available with respect to certain future events, including expected financial position, operating results and business strategies. Comparison of Three Major Telecommunications Construction Companies in Japan These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects,” “plans,” “expects” and similar Non-Consolidated Basis ・・・・・・28 terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events Consolidated Basis ・・・・・・29 and results of such forward-looking assumptions cannot be assured. Any forward-looking statements speak only as of the date of this Investors’ Guide, and COMSYS assumes no duty to update such statements. Stock Price Information ・・・・・・30 Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are Corporate Information ・・・・・・31 not limited to, unanticipated changes in demand for the Company’s principal business, owing to changes in the economic conditions in Brief History of COMSYS・・・・・・32 the Company’s principal markets; the impact of increased competition; uncertainties as to the results of the Company’s research and development efforts and its ability to access and protect certain intellectual property rights; and the impact of regulatory changes and accounting principles and practices. ■ Five-Year Financial Summary

■ Consolidated (Millions of yen) 1998/3 1999/3 2000/3 2001/3 2002/3 ■ Net Sales ■ Operating Income

New Orders Received during the Year 235,923 229,875 228,518 229,211 213,985 Consolidated Consolidated/Non-ConsolidatedConsolidated Consolidated/Non-Consolidated Non-Consolidated Non-Consolidated Net Sales 225,313 220,522 231,750 222,220 231,351 (Million ¥) (Times)(Million ¥) (Times) Operating Income 14,348 14,261 15,559 11,628 10,500 1.45 Income before Income Taxes 14,333 13,522 13,054 9,117 8,913 1.45 1.35 Net Income 8,309 5,625 6,315 4,498 4,107 250,000200,000 17,50014,000 Total Assets 166,067 171,669 188,961 188,250 190,576 1.35 1.25 Shareholders’ Equity 94,654 101,721 115,834 118,055 111,919 150,000 10,500

(Yen) 1.25 1.15

Primary Earnings per Share 66.55 42.97 46.73 33.11 30.39 100,000 7,000 Book Value per Share 725.59 765.74 851.01 869.84 835.04 1.15 1.05

3,500 50,000 1.05 1 ■ Non-Consolidated (Millions of yen) 1998/3 1999/3 2000/3 2001/3 2002/3 New Orders Received during the Year 234,877 228,838 223,789 222,486 200,900 0 0.95 0 0.95 98 99 00 01 02 98 99 00 01 02 Net Sales 224,103 219,764 226,146 215,586 219,206 Operating Income 14,061 13,877 13,626 10,402 8,526 Income before Income Taxes 14,041 12,755 10,781 7,980 6,519 ■ Income before Income Taxes ■ Net Income Net Income 7,611 5,075 5,818 4,283 3,461 Consolidated Consolidated/Non-ConsolidatedConsolidated Consolidated/Non-Consolidated Non-Consolidated Non-Consolidated Total Assets 160,561 166,002 171,802 174,118 159,344 (Million ¥) (Times)(Million ¥) (Times) Shareholders’ Equity 90,101 96,635 110,400 112,529 102,883

(Yen) 1.45 1.45 Primary Earnings per Share 60.96 38.78 42.78 31.27 25.48 15,00012,000 10,0008,000

Book Value per Share 690.68 727.44 804.86 822.32 763.53 1.35 1.35

9,000 6,000 ■ Ratios of Consolidated to Non-Consolidated Performance 1.25 1.25 (Times) 1998/3 1999/3 2000/3 2001/3 2002/3 6,000 4,000 Net Sales 1.01 1.00 1.02 1.03 1.06 1.15 1.15 Operating Income 1.02 1.03 1.14 1.12 1.23 Income before Income Taxes 1.02 1.06 1.21 1.14 1.37 3,000 1.052,000 1.05 Net Income 1.09 1.11 1.09 1.05 1.19 Number of Consolidated Subsidiaries and Affiliates 2 2 8 14 14 0 0.95 0 0.95 98 99 00 01 02 98 99 00 01 02

Investors’ Guide 2002 ■ Toward Ubiquitous Computing in a Networked Society

■ Fostering and Organizing IP Technicians—IT Business Division Launched With the explosion of information technology, various systems using Internet protocol network technology are being developed in the marketplace. The need for design, maintenance, and administration services is growing as a result, as is the need for package outsourcing of these functions. At COMSYS, we have designated the provision of network solutions to these needs as one of our core businesses, and in March 2001 established the IT Business Division. This new division is composed of a Marketing Section, a Systems Solutions Section, an Internet Protocol Section, a Broadband Development Section, and a Comsys IP Network Integration Support Section. Combining the Company’s experience in telecommunications construction project execution, its expertise in the development of application software, and its strength in cutting-edge IP Network technology, we will be providing top flight total solutions service. COMSYS has been placing particular emphasis on the training of IP technicians, with 2 a view to expanding its IP business, and approximately 1,000 employees have obtained various vendor certifications in IP-related areas. These IP technicians will augment their abilities in the course of their business activities, and we believe that this will strengthen the Education and Training Center in Omiya Company’s overall strength.

■ Strengthening our Affiliate Structure ■ Training Schedule (Fiscal Year Ended March 31, 2003) COMSYS employees Partner company employees Total Approximately 70% of the cost of completed projects is composed of subcontracting costs. That Participants Approx. 7,100 Approx. 3,800 Approx. 10,900 is why strengthening the structure of affiliates is an important issue for COMSYS. As many of Total number of personnel/day Approx. 27,400/day Approx. 8,200/day Approx. 35,600/day our affiliates are small firms that specialize in particular areas, we are combining some affiliates and strengthening their structures with the aim of to diversifying technological ■ Main Training Items capabilities, enhancing operational efficiency, and upgrading project supervision. IP technical training, access construction techniques, design, infrastructure construction techniques, In addition, we are identifying those affiliates that efficiently produce high-quality work, “Inside” construction techniques, measurement training, safety training, quality control training, and have instituted a subcontracting system that provides them with an incentive in the form cost estimation training, qualifications acquisition, basic training for new employees, etc. of increased order volume. Further, COMSYS is providing these designated companies with numerous technicians through temporary or permanent transfer, thus promoting the ■ Training Costs Training will generally carry an annual cost from ¥600 to ¥700 million. active transfer of technologies.

Investors’ Guide 2002 ■ Expanding our Business Domain The development of new businesses is an important issue under our COMSYS-21 plan, ■ Acquisition of Main Vendor Qualifications which sets forth the new goal of becoming a comprehensive engineering firm for the (Unit: Persons) Annual 21st century. Since being established in July 2000, the Company’s Business Development Qualifications Name 2001/3 2002/3 Increase Department has undertaken various projects such as the “LAN Convenience Store” service to Microsoft Certified Engineer (MCSE) 1 1 0 assist small office-home office users and small and medium sized businesses in building LANs Microsoft Certified Engineer (MCSE+INTERNET) 1 1 0 Microsoft and WANs using the Internet and environment-related projects operating in the fields of Microsoft Certified Engineer (Professional) 0 19 19 wind power and solar power. Microsoft Certified Engineer (MCP) 445 511 66 Cisco Certified Engineer (CCNA) 234 452 218 To further expand its new business development projects, in December 2001 the Cisco Cisco Certified Engineer (CCDA) 8 28 20 Company instituted an internal venture system, which asks each employee throughout Cisco Certified Engineer (CCNP) 0 38 38 the Company for new businesses ideas in the key fields of IP, IT, health, benefits, and the envi- Oracle Master (SILVER) 32 45 13 ronment. This supports the vigorous establishment of new businesses. The Business Oracle Oracle Master (GOLD) 6 9 3 Development Department has established a new business home page and the New Oracle Master (PLATINUM) 1 4 3 3 hp HP Certified Engineer (HP-UX System Administration) 0 2 2 Business Mail Magazine for employees, establishing a new business development system in Notes (CLP) 11 11 0 which all employees participate regardless of division or position. Notes Notes (CLS) 2 4 2 The government’s e-Japan Strategy speaks of the goal of becoming the world’s Total 741 1,125 384 preeminent IT nation within five years, through the construction of an ultra-high-speed Internet infrastructure, the quick realization of continuous connection Internet service, the estab- ■ New Business Development System Enabling Universal Employee Participation

lishment of regulations for e-commerce, the realization of e-government, and, through Staff human development suited to the new era, the establishment of an environment that is based on

market principles and allows the fullest possible expression of the power of the private sector. Employees can participate · Announcement of launch of Mail Magazine using their home computers · Call for participation (e-mail to employees) Proposals and In addition to IT, we at COMSYS are also concerned with the environment and the aging participation Registration system (by theme) society, and are striving to evolve quickly into a comprehensive engineering firm for the IT- Registration system BREEZY Home page Mail Magazine Forum room Internal venture system revolution era that can make a substantial contribution to a better society in the 21st century. COMSYS (Company newsletter) MALIONET (Intranets)

Business Development Department

Investors’ Guide 2002 ■ Medium-Term Management Plan

As a comprehensive engineering firm for the high-order information society, Nippon COMSYS Corporation pursues its business ■ Performance Indicators within the context of a corporate philosophy that strives to support social progress. COMSYS launched its COMSYS-21 medium-term 2002/3 2007/3 Percent (Performance) (Planned) change management plan in fiscal 2001, ended March 31, 2002, when the Company marked its 50th anniversary. This is the initial NTT Projects 1,323 1,100 0.83 strategy of our next 50 years. Net sales (¥100 million) Other Business 870 2,000 2.30 Throughout the world, humankind is literally entering an IT-revolution era. The telecommunications market, in particular, Total 2,192 3,100 1.41 has advanced from its 20th century emphasis on telephony to become centered on Internet protocol communications. Recurring Profit (¥100 million) 93 160 1.72 Changes are diverse and rapid, making for intense cost competition. Recurring Profit Margin (%) 4.3 5.2 — The Company is striving to respond to these market conditions with the cooperation of its affiliates, while pursuing the Number of Employees 3,542 3,240 0.91 goals of its medium-term management plan through the five innovations described below. ■ Telecommunications Construction Market

NTT and NTT DoCoMo Type 1 carriers (fixed + mobile) ■ FIVE INNOVATIONS Public & private sector demand (including some IT and software related demand) (¥100 million) 1. Man Power Innovation Dynamic deployment and right-sizing of the workforce—training, integration, and proper organization of IP technicians 4 Operational personnel will be organized into a pool to facilitate support, and IP technological capabilities will be strengthened as called for in the COINS Project. Marketing personnel will be reorganized according to their skills and market needs, and the administrative sector will be slimmed down.

2. Motivation Power Innovation Shifting to a winning personnel and remuneration structure The Company will implement a wage structure corresponding to the Company’s performance, a regional wage structure that reflects actual competitive conditions, an annual salary system for all management-level employees, reforms of the personnel system to include an ability-based grade system, and a re-evaluation of the wage structure.

3. Collaboration Power Innovation ■ Sales Targets Enhancing project-execution capabilities by strengthening the affiliate structure, and optimizing subcontracting expenses NTT and NTT DoCoMo IT business (including some software related sales) Architecture Ecosystems Systems engineering (including some IT related sales) This will involve concentrating capabilities by reorganizing the Companies of the Group, fostering superior subsidiaries, affiliates, and Information systems Overseas associates through directed subcontracting, and reducing subcontracting costs through enhanced and strengthened subcontracting control. (¥100 million)

4. Business Spec Innovation Broad-ranging enhancement of administrative efficiency Efficiency gains will be enhanced through the establishment of a computerized work-site administrative support system. Together with this, Group administration will be concentrated through joint administration and outsourcing.

5. Corporate Ability Innovation Expanding our sphere of operations The Company will strengthen its involvement in wind and solar power generation projects, as well as its involvement in “total business solutions.” We will also press forward in joint businesses with firms in other industries, as well as expanding the scope of new businesses.

Investors’ Guide 2002 ■ Construction Flow for COMSYS’s Telecommunications Equipment

BS/CS Radio Broadcasting System

Regional network for prefectual Data Center and municipal governments Broadcasting Station Land Station Building of infrastructure Server/HUB/Router LAN/WAN WDM Equipment Call Center Broadcast Satellite/Communications Satellite Broadcasts CTI Home User Business Users Ground Wave Broadcast Solar Power Facility ATM Switch

Cable Broadcasting System Building of VPN for business users Land Station ―IP-VPN� Submarine Optical Fiber Cable Internet-ready condominium/hotel ―Internet VPN� WDM Equipment ―Wide area Ethernet Cable Television Firm 5

Mobile Telephony Switching Station

Switch Home User Radio Base Station Home User FWA Telephone Switch FAX PC Microwave Transmitter

Wire-link Communication System Mobile Telecommunication System Internet Provider Relay Station

Switch Local Swich Bldg. Radio Telephony System Junction Swich Bldg. Toll on Trank Bldg. Mobile Telephone PDC Internet Cafe Swich W-CDMA(FOMA) Router Router Server CDMA2000 Toll on Trank Bldg. Core Router Hotspot Server Junction Swich Bldg. Local Swich Bldg. Cable Feeder Point Core Router Router Swich Home User ADSL・FTTH Router

Optical Fiber Cable Cable Feeder Point

Investors’ Guide 2002 ■ Our Operations: an Overview

Communications Infrastructure Projects

As the high-order information society continues to advance, the focus of communications is shifting from voice to digital data. For this reason, ■ “Outside” Projects Japan needs to develop an Internet-provider network, beginning with ■ Cable Engineering Works Project high-speed broadband access facilities. Since its founding in 1951, reliable (installation of communications cables) COMSYS is engaged in the design, installation, technological expertise has kept COMSYS in the forefront of the and testing of communications cable networks in telecommunications construction industry, and the Company has played a various locations, including cable systems linking the significant role in the building of Japan’s communications infrastructure. In various NTT buildings and linking the facilities of other common carriers, and cable systems within this era, with the IT revolution progressing at an accelerating pace, intelligent buildings. The Company is also linking COMSYS is pursuing leading-edge technology and demonstrating an family homes to various services using telephone lines. More than telephone lines, the Company is eagerness to take on these new challenges. At the same time, we engaged in the building of optical-fiber, cable are contributing to the growth of the communications society. television, Internet-protocol, and other communications networks.

■ Cable-Tunnel Construction Project 6 (underground tunnel construction) ■ Conduit Line Construction Project This shows the laying of high-capacity underground by the Open-Cut Method communications cables. Such projects are complex, as Digging directly from the surface, COMSYS urban areas lay not only communications cables installs CC BOX and Information BOX facilities. underground, but also gas lines, water lines, and various Because telephone poles are eliminated, these other infrastructure. COMSYS’s high technological facilities are more resistant to natural disaster, level allows the Company to carry out high-level and contribute to urban beautification. projects, and has executed approximately one-third of all such communications tunnel projects in Japan.

■ “Inside” Projects

■ Switching System and Transmission Equipment Projects ■ Electric Power Equipment Projects COMSYS is engaged in the installation of switching systems and transmission equip- To enable communications facilities to function smoothly, an infrastructure of power ment, together with the installation, connection, and maintenance of cables, generation facilities, battery-charging equipment, converters, cable connections, connectors, and other peripherals. We are building systems and facilities that allow and maintenance services is necessary. COMSYS is engaged in the construction and the error-free switching and long-distance transmission of the information that expansion of this infrastructure, and is building electric power systems suited to supply comes through telecommunications providers. the communications facilities and equipment of telecommunications firms.

Investors’ Guide 2002 Mobile Communications Projects

The Company executes all phases of the construction of mobile telephone base stations, from selection of locations and negotiations of property rights, to the design, execution, and testing of the stations them- selves. Because base stations must be designed to suit and constructed in a wide variety of environments, a high degree of technological expertise and specialized knowledge is required. For this reason, COMSYS is ideally suited to operate in the field of mobile telecommunications projects. COMSYS has also achieved a number of successes in the construction of third-generation mobile telephone facilities.

Antenna on a building roof for ■ Aiming a Microwave Antenna a mobile telecommunication The correct aiming of microwave antennae to ensure the efficient system (in a city) transmission and reception of microwave signals is an important element of our telecommunications infrastructure. A key to winning these important contracts is the trust born of experience and a reputation for the ability to produce high-quality work.

Base station for a mobile telecommunication system (in a suburb)

■ A Mobile Telephone Base Station ■ Test Operation of Switching Equipment In the suburbs, mobile telephone antennae are usually free- COMSYS has a comprehensive contract for the design and ■ A Steel Tower for a Mobile Telecommunications System standing towers. In cities, they are usually located on the construction of this mobile telephone facility, which will include COMSYS has built the best track record in the industry for the construction of roofs of high-rise buildings. Over and above the construction of backward-compatible mobile telephone equipment, third gener- steel towers for mobile telecommunications systems. We are bringing our base stations, COMSYS offers integrated services that include ation mobile telephone-capable switching systems and transmitter technology and experience to bear in the execution of tower projects in a number the installation of electric power sources, transmitter equipment, equipment, as well as electric power facilities. of locations, including the roofs of the NTT Building and other high-rises. and other related facilities and equipment.

Investors’ Guide 2002 Architecture Business Information Systems

Using the technological expertise in civil engineering and construction that COMSYS has accumulated in the COMSYS is engaged in the development of commercial course of its cable tunnel construction activities, the Company is engaged in the construction of commu- systems, and has built a strong track record through nications antenna towers for mobile telephony and the design and construction of office buildings and the development of many business applications, condominiums. In addition, the Company is engaged in design and construction activities in such environment- networks, and database solutions. The Company related areas as wind power and solar power. has also developed many applications and control Recent years have seen growing demand for the construction of intelligent buildings that fully utilize systems for various types of infrastructure for the NTT information technology, and in the past few years demand has grown for new condominiums furnished with Group and other telecommunications firms, offering complete home LANs to serve as platforms for home security systems and Internet access. Therefore, COMSYS total solutions service packages encompassing every- is shifting its emphasis from the construction of radio facilities to the construction and maintenance of residential thing from design to maintenance and administration. buildings. COMSYS has already gained experience in the building of small-scale LANs through its LAN Last year the company launched its highly COMSYS personnel preview a satellite-broadcast program with the clients who ordered it. Convenience Store operations, but the Company’s greatest strength is that it possesses not only expertise lauded LAN Convenience Store service, which in construction technology, but also high-level information technology skills. This strength is highly provides LAN and WAN construction support to small office, home office (SOHO) operators, Internet service regarded by those in the industry who select contractors for these projects. providers, and small and medium-sized businesses using the Internet. Until now, as the scope of a business With the advance of computerization, this strength will be a significant asset to COMSYS in the com- service contract became smaller, it became relatively more expensive. We have thoroughly reevaluated our 8 petition to win contracts. Demand is forecast in connection with the refurbishment of office buildings business flow with a view to eliminating that drawback, and have achieved cost reductions by building constructed during the high-growth period, and we therefore expect our architecture business to expand. systems that can be administered through the Internet and offering service package contracts. This has given birth to a new service that allows the client to build a network as easily as shopping at a convenience store. Other information systems businesses include the production of interactive programming for digital satellite broadcasts, which allow viewers to interact with broadcast stations. The Company will be watching the rapid progress of IT for opportunities to employ its high level of technological expertise in crafting proposals for new services.

Wind power facilities in Hokkaido

■ A screen shot from one of the Company’s digital satellite broadcast programs. Digital technology greatly increases the number of channels available, leading to forecasts of expanded demand for programming. COMSYS is positioning itself to The Mio Castello Kouhoku ILVIALE Condominiums, take advantage of the business opportunity this represents. a COMSYS project

Investors’ Guide 2002 ■ Featured Technologies

New Technologies—The Tuned Rotary-Mass Damper The Keybox Key Control System

In 1999, our Technology Research & Development Center began the develop- Jointly with a control equipment development firm, COMSYS has developed a key control system ment of a tuned rotary-mass damper jointly with the Shimazaki Research that provides real-time, unitary control, and commenced marketing this system in January Laboratory of Tokai University’s Engineering Department. This effort was a 2002. This system uses a non-contact integrated circuit to control access to the key locker resounding success. Field tests are complete, and we are now at the stage of through the user’s identification card. Each key is attached to a key holder that has a non-contact readying the product for market. IC attached, which passes data on key check-out and return to a computer, allowing unitary key Dampers are installed in buildings, bridges, and towers to reduce the control. This provides real-time information on who is using what key at any given moment, as well

effects of earthquakes and high winds. This joint development project produced Vibration Mode [Dangerous Sway] as a historical record of who has used keys in the past. Further, this data can be accessed from a very simple yet epoch-making device, which uses a rotating cylindrical remote sites using the Internet. Strong vibration: weight within another cylinder to absorb vibration energy. an exciter adds to the vibration In this joint project, COMSYS was primarily responsible for the control software. Because the The Technology Research & Development Center commenced actual A damper system will reduce labor costs at facilities that are open 24 hours a day, we are marketing it to security device testing from August 2001, assuming the devices would be used with companies, power and gas utility companies, commercial building and parking lot maintenance expressway panel lamps to help prevent metal fatigue and burnt out light companies, hospitals, and hotels. Displacement bulbs. After the devices were installed, one-tenth of sudden vibration and one fourth of continuous vibration was absorbed, an extremely high damping ratio. 9 Data developed during testing was compiled and published in the Journal of Structural Engineering, and received a high scholarly evaluation. Because of its simple design it will have an extremely low construction cost of about one-fifth that of previous devices, and will cause little concern with regard to breakage. For these reasons, we have had a large number of inquiries from concerned firms. The Technology Research & Development Center will be preparing a pamphlet and a video introducing the tuned

rotary-mass damper, which it will distribute to prefectural and municipal Free vibration: Instantaneously cuts governments, and to highway and expressway public corporations. the wire loading on the plumb bob

Graph A: Results of free vibration test Graph B: Results of strong vibration test 15 30

Without damper Without damper 10 With damper With damper

5 20

-5 10 Displacement (mm) Displacement (mm)

-10 Passing the user’s ID in front of the integrated circuit card unlocks the key locker, allowing -15 0 removal of keys. 0 10 20 30 40 50 60 0.80 0.90 1.00 1.10 1.20 Time (sec) Comparison of vibration values

Investors’ Guide 2002 ■ Activities to Preserve the Earth’s Environment

COMSYS recognizes environmental problems to be one of its most important management issues, and gives environmental business a prominent place in its operations. In June 2001 the Company acquired ISO-14001 ■ COMSYS’s Environmental Goals certification, demonstrating our compliance with international environmental standards. Based on our estab- 1. Reducing electricity consumption lished basic policy on the environment and our action guidelines, we are cooperating with regional societies s to protect the global economy. To reduce electricity consumption in our major buildings to 3 percent below its 1999 level by 2002.

2. Reducing office paper use ■ Basic Policy on the Environment Nippon COMSYS Corporation, as a comprehensive telecommunications engineering firm, is continuously sTo reduce paper consumption in our major buildings to 10 percent below its 1999 level by 2002. engaged in the protection of the global environment, and is contributing to the building of a future in which men and nature live in harmony. 3. Increasing paper recycling sTo increase paper recycling in our major buildings to 70 percent by 2002. ■ Action Guideline 1. To reduce the burden on the environment represented by our business activities, we will include envi- 4. Reducing and recycling industrial waste 10 ronmental concerns and establish environmental goals for each of our construction projects, sTo achieve thorough sorting of industrial waste by expanding the role of on-site construction offices while conducting continuous improvement of our environmental management systems. in sorting, and thereby to enable reductions in industrial-waste generation, as well as increased 2. We will comply with all environmental statutes and regulations. recycling of industrial waste. 3. To prevent pollution, we will in all our operations reduce and recycle industrial waste and, in our office 5. Promoting concern for the environment in facilities design operations, we will practice resource and energy conservation and promoting green procurement. sTo increase proposals for the use of facilities with less environmental impact. 4. We will achieve an enhanced awareness of environmental issues on the part of all our employees and everyone concerned with our construction projects, and will establish strong, cooperative rela- 6. Promoting green procurement practices tionships with regional societies. sTo expand green procurement of office consumables and supplies. ■ COMSYS’s Environmental Management System 7. Reducing the Company’s vehicle use

sTo reduce the Company’s vehicle ownership to 20 percent below its 1999 level by 2002. sTo reduce the Company’s vehicle leasing to 5 percent below its 1999 level by 2002.

8. Improving methods of handling soil excavated in telephone pole installation

sTo improve procedures for handing soil excavated in telephone pole installation.

Investors’ Guide 2002 ■ Financial Section (Non-Consolidated Basis) Contents

Performance Operating Results ・・・・・・12 Performance by Business Category ・・・・・・13 NTT Construction ・・・・・・14 Domestic Construction and Engineering ・・・・・・15 Overseas Construction, Information Systems ・・・・・・16 Key Financial Indicators Profitability ・・・・・・17 Efficiency ・・・・・・18 11 Stability ・・・・・・19 Per Share Data・・・・・・20 Per Employee Data ・・・・・・21 Other Data ・・・・・・22 Non-Consolidated Statements of Income (10 Years) ・・・・・・23 Non-Consolidated Balance Sheets (10 Years) ・・・・・・24 Consolidated Subsidiaries and Affiliates・・・・・・26 Group Companies ・・・・・・27 Comparison of Three Major Telecommunications Construction Companies in Japan Non-Consolidated Basis・・・・・・28 Consolidated Basis・・・・・・29

Investors’ Guide 2002 ■ Performance

Operating Results

■ New Orders Received during the ■Year Net Sales ■ Gross Profits/Operating Income ■ Income before Income Taxes ■ Net Income Gross Profits Operating Income

(Million ¥) (Million ¥) (Million ¥) (Million ¥) (Million ¥)

200,000 200,000 28,000 12,000 6,400

250,000 250,000 35,000 15,000 8,000

150,000 150,000 21,000 9,000 4,800

100,000 100,000 14,000 6,000 3,200 12

50,000 50,000 7,000 3,000 1,600

0 0 0 0 0 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02

(Millions of yen) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 New Orders Received during the Year 128,073 135,762 143,034 186,180 225,147 234,877 228,838 223,789 222,486 200,900 Net Sales 125,771 136,037 152,213 180,629 220,590 224,103 219,764 226,146 215,586 219,206 Contract Backlog at End of Fiscal Year 57,029 56,754 47,575 53,126 57,683 68,457 77,531 75,174 78,705 60,399 Gross Profits 13,658 16,632 18,018 21,965 27,890 27,838 26,491 26,599 23,804 23,043 Operating Income 3,929 5,698 7,042 8,544 13,582 14,061 13,877 13,626 10,402 8,526 Income before Income Taxes 4,071 5,759 7,127 8,092 13,397 14,041 12,755 10,781 7,980 6,519 Net Income 1,631 2,419 3,637 3,742 6,267 7,611 5,075 5,818 4,283 3,461

Note: For the purpose of supporting an affiliate in Thailand, a portion of construction orders received in FY March 2000 was assigned to the said company. As a result, our contract backlog at the end of FY March 2001 decreased by ¥3,369 million.

Investors’ Guide 2002 ■ Orders Received by Business Category ■ Orders Received by Business Category (Millions of yen) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 “Outside” Projects Overseas Construction Information Systems (Million ¥) “Inside” Projects Domestic Construction and Engineering NTT Group Construction

“Outside” Projects 47,118 51,940 55,723 71,123 78,976 74,038 69,221 58,183 48,737 41,447 250,000200,000 “Inside” Projects 42,882 49,264 50,414 60,060 78,164 81,457 73,810 74,856 77,894 80,208 Subtotal 90,000 101,204 106,137 131,183 157,140 155,495 143,031 133,039 126,631 121,655 150,000

100,000 Overseas Construction 7,504 1,982 4,059 8,780 11,468 9,362 4,044 4,027 824 2,970

Domestic Construction and Engineering 18,948 20,732 18,869 31,196 41,058 53,792 63,845 68,609 78,672 62,305 50,000 Information Systems 11,621 11,844 13,969 15,021 15,481 16,228 17,918 18,114 16,359 13,970 0 Total 128,073 135,762 143,034 186,180 225,147 234,877 228,838 223,789 222,486 200,900 93 94 95 96 97 98 99 00 01 02

■ Net Sales by Business Category ■ Net Sales by Business Category “Outside” Projects Overseas Construction Information Systems 13 (Millions of yen) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 (Million ¥) “Inside” Projects Domestic Construction and Engineering NTT Group Construction “Outside” Projects 49,096 50,484 58,646 70,494 79,306 75,658 68,562 63,254 54,520 48,085 250,000200,000 “Inside” Projects 40,765 48,813 52,407 59,119 80,081 74,339 74,385 77,714 74,647 84,171 150,000 Subtotal 89,861 99,297 111,053 129,613 159,387 149,997 142,947 140,968 129,167 132,256

100,000 Overseas Construction 3,738 4,274 8,729 6,697 8,925 10,545 7,850 3,007 1,314 2,500 Domestic Construction and Engineering 19,467 20,944 19,392 28,706 37,415 47,476 52,411 64,560 68,973 69,927 50,000

Information Systems 12,705 11,522 13,039 15,613 14,863 16,085 16,556 17,611 16,132 14,523 0 Total 125,771 136,037 152,213 180,629 220,590 224,103 219,764 226,146 215,586 219,206 93 94 95 96 97 98 99 00 01 02

Contract Backlog at End of the Year, by Business Category ■ Contract Backlog at End of the Year, by Business Category ■ “Outside” Projects Overseas Construction Information Systems (Millions of yen) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 (Million ¥) “Inside” Projects Domestic Construction and Engineering NTT Group Construction “Outside” Projects 27,310 28,766 25,843 26,472 26,142 24,522 25,181 20,110 14,327 7,689 80,00064,000 “Inside” Projects 7,820 8,271 6,278 7,219 5,302 12,420 11,845 8,987 12,234 8,271 48,000 Subtotal 35,130 37,037 32,121 33,691 31,444 36,942 37,026 29,097 26,561 15,960 32,000 Overseas Construction 10,993 8,701 4,031 6,114 8,657 7,474 3,668 4,688 829 1,299 Domestic Construction and Engineering 8,942 8,730 8,207 10,697 14,340 20,656 32,090 36,139 45,838 38,216 16,000 Information Systems 1,964 2,286 3,216 2,624 3,242 3,385 4,747 5,250 5,477 4,924 0 Total 57,029 56,754 47,575 53,126 57,683 68,457 77,531 75,174 78,705 60,399 93 94 95 96 97 98 99 00 01 02

Note: For the purpose of supporting an affiliate in Thailand, a portion of construction orders received in FY March 2000 was assigned to the said company. As a result, our contract backlog at the end of FY March 2001 decreased by ¥3,369 million. Investors’ Guide 2002 NTT Construction

■ Total Sales of NTT Construction/Percentage of Total Sales ■ Total Subscribers of Mobile Telephones■ The NTT DoCoMo Group Subscribers■ Number of Subscribers by Carriers “Inside” Projects NTT Construction’s Percentage of Total Sales PHS Subscribers Fixed Telephones NTT DoCoMo Group As of March 31, 2002 “Outside” Projects Total Mobile Telephone Subscribers NTT DoCoMo Share

(Million ¥) (Ten thousand)(%) (Ten thousand) (%)

J-PHONE Group

132,000 5,600 3,2001,223 48 TU-KA 17.7% Group 7,000 389 5.6% 165,000 75 4,000 60 99,000 4,200 2,400 36 NTT DoCoMo 60 Group au Group 1,221 4,078 66,000 2,800 1,600 17.7% 24 59.0% 45

14 30 (Ten thousand)

33,000 1,400 800 12

0 0 0 0 0 93 94 95 96 97 98 99 00 0198 0299 00 01 0298 99 00 01 02

(Ten thousand, except where noted) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Total Subscribers of Mobile Telephones 171 213 433 1,020 2,087 3,152 4,153 5,114 6,094 6,912 The NTT DoCoMo Group 102 132 220 493 1,096 1,798 2,389 2,936 3,603 4,078 Share of NTT DoCoMo (%) 59.6 62.0 50.8 48.3 52.5 57.0 57.5 57.4 59.1 59.0 PHS Subscribers — — — 151 603 673 578 571 584 569 Fixed Telephones 5,760 5,878 5,988 6,104 6,146 6,038 5,847 5,545 5,209 5,074

(100 millions of yen, except where noted) 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 2003/3 (Forecast) Planned Construction 19,911 18,870 17,279 14,598 13,116 9,350 10,000 East Japan 48.0 54.0 69.0 Completion of Optical Fiber Cable Installation (%) 16.0 19.0 23.0 36.0 West Japan 37.0 42.0 53.0 Investment in Optical Fiber Cable 2,310 2,100 2,440 2,400 1,900 1,900 2,600

Investors’ Guide 2002 Domestic Construction and Engineering

■ Total Sales of Domestic Construction and Engineering/Percentage in Total Sales ■ Domestic Construction and Engineering Orders Received by Major Client Sales of Domestic Construction and Engineering As of March 31, 2002 Percentage of Domestic Construction and Engineering in Total Sales

(Million ¥) (%)

Manufacturers 5% Others 17% 60,000 32 General Contractors 22%

75,000 40NTT Group Government Agencies 45,000 24 15% 17%

New Common Carriers 24% 30,000 16

15,000 8

0 0 93 94 95 96 97 98 99 00 01 02

Investors’ Guide 2002 Overseas Construction Information Systems

■ Total Sales of Overseas Construction/Percentage in Total Sales ■ Total Sales of Information Systems/Percentage in Total Sales Sales of Overseas Construction Percentage of Overseas Construction in Total Sales Sales of Information Systems Percentage of Information Systems in Total Sales

(Million ¥) (%) (Million ¥) (%)

10,000 16,000 6.0 10.0

12,500 20,000 7.5 12.5 7,500 12,000 4.5 7.5

5,000 8,000 3.0 5.0

2.5 16 2,500 4,000 1.5

0 0 0 0 93 94 95 96 97 98 99 00 01 02 93 94 95 96 97 98 99 00 01 02

■ Major Overseas Projects Completed ■ Net Sales of Information Service Industry in Japan Nigeria Ibadan new local line project Source: Ministry of Economy, Trade and Industry, Research and Statistics Department, Iraq Installation of telephone lines for 17 local exchanges “Preliminary Report on the Survey of Selected Service Industries.”

Egypt Supply and installation of telecommunication cable network in Ismailia and Suez (¥100 Million) Thailand Installation of digital exchange equipment Taiwan Installation of highway traffic control system Sri Lanka Installation of local telephone lines in the Badulla and Anuradhapura regions Nepal Installation of microwave telecommunications system (inside and remote) 112,000 Thailand Fifth local cable network installation for TOT in Bangkok and provinces Kuwait Installation of digital loop coil system in Farwaniah Exchange Tanzania Rehabilitation of telecommunications network in Dar es Salaam 140,000 Thailand Seventh local cable network for TelecomAsia and TT&T 84,000 Philippines Supply and installation of local cable network for Major Telecom Inc. in Mindanao Philippines Supply and installation of OSP equipment and optical fiber cable for ICC in Manila Philippines Installation of trunk lines and local network for GLOBE Telecom PHASE-2 in Manila and the provinces Thailand The telephone expansion project to overcome short-term line shortage / B.E.1996-1998 for TOT (800K) 56,000 Philippines Supply contract for OSP & optical fiber cable (BAYANTEL 40K) Philippines Turnkey backhaul fiber optic network construction for DCI in Philippines

■ Overseas Projects in Progress (As of June 2002) 28,000 Philippines Supply and installation of local cable and junction network for GLOBE Telecom PHASE-4 in Manila and the provinces Thailand Optic Fiber Transmission Network Expansion Project for TOT Thailand 100,000 Telephone Line Expansion Project in the North-East, North, South and Central Regions for TOT 0 93 94 95 96 97 98 99 00 01 02

Investors’ Guide 2002 ■ Key Financial Indicators

Profitability

■ Gross Profit Margin/Operating Margin■ Pre-Tax Profit Margin ■ Net Profit Margin ■ Return on Equity (ROE) ■ Return on Total Assets (ROA) Gross Profit Margin Operating Margin

(%) (%) (%) (%) (%)

10.4 5.6 2.8 8.8 4.0

13.0 7.0 3.5 11.0 5.0

7.8 4.2 2.1 6.6 3.0

5.2 2.8 1.4 4.4 2.0

2.6 1.4 0.7 2.2 1.0

0 0 0 0 0 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02

(%) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Gross Profit Margin 10.86 12.23 11.84 12.16 12.64 12.42 12.05 11.76 11.04 10.51 Operating Margin 3.12 4.19 4.63 4.73 6.16 6.27 6.31 6.03 4.82 3.89 Pre-Tax Profit Margin 3.24 4.23 4.68 4.48 6.07 6.27 5.80 4.77 3.70 2.97 Net Profit Margin 1.30 1.78 2.39 2.07 2.84 3.40 2.31 2.57 1.99 1.58 Return on Equity (ROE) 5.35 6.78 7.56 6.47 10.08 9.81 5.44 5.62 3.84 3.21 Return on Total Assets (ROA) 2.06 2.52 3.28 2.93 4.28 4.84 3.11 3.44 2.48 2.08

Net Income Return on Equity (ROE) = x100 Shareholders’ Equity (Average of two year-ends)

Net Income Return on Total Assets (ROA) = x100 Total Assets (Average of two year-ends)

Investors’ Guide 2002 Efficiency

■ Total Assets/Shareholders’ Equity ■ Modified Working Capital ■ Turnover of Total Assets ■ Turnover of Property and Equipment Total Assets Shareholders’ Equity

(Million ¥) (Million ¥) (Times) (Times) 2.0

140,000 48,000 1.6 7.2

175,000 60,000 9.0

105,000 36,000 1.2 5.4

70,000 24,000 0.8 3.6

35,000 12,000 0.4 1.8

0 0 0.0 0 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02

(Millions of yen, except where noted) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Total Assets 86,382 105,450 116,617 138,610 154,246 160,561 166,002 171,802 174,118 159,344 Shareholders’ Equity 31,556 39,821 56,395 59,277 65,096 90,101 96,635 110,400 112,529 102,883 Modified Working Capital 26,902 27,267 47,603 44,693 42,971 57,799 48,544 53,279 56,274 50,085 Turnover of Total Assets (times) 1.59 1.42 1.37 1.42 1.51 1.42 1.35 1.34 1.25 1.31 Turnover of Property and Equipment (times) 10.81 9.50 9.08 8.50 8.64 8.40 7.59 6.80 6.05 6.52

Modified Working Capital = (Current Assets - Accumulated Cost of Construction in Progress) - (Current Liabilities - Advances Received on Construction in Progress) Net Sales Turnover of Total Assets = Total Assets (Average of two year-ends)

Net Sales Turnover of Property and Equipment = Property and Equipment (Average of two year-ends)

Investors’ Guide 2002 Stability

■ Equity Ratio ■ Current Ratio/Quick Ratio ■ Fixed Assets-to-Equity Capital Ratio/Ratio ■of InterestFixed Coverage Assets-to-Equity Capital and Long-Term Liabilities Current Ratio Quick Ratio Fixed Assets-to-Equity Capital Ratio Ratio of Fixed Assets-to-Equity Capital and Long-Term Liabilities (%) (%) (%) (Times)

200 60 48 2,000

250 75 60 2,500

150 45 36 1,500

100 30 24 1,000

50 15 12 500

0 0 0 0 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02

(%, except where noted) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Equity Ratio 36.53 37.76 48.36 42.77 42.20 56.12 58.21 64.26 64.63 64.57 Current Ratio 241.72 180.71 309.57 208.28 181.05 230.90 199.13 220.44 226.67 206.85 Quick Ratio 233.85 176.79 304.01 204.80 178.57 228.28 195.03 211.22 218.81 195.23 Fixed Assets-to-Equity Capital Ratio 65.44 61.79 46.94 57.64 59.89 47.28 50.97 51.01 49.25 49.32 Ratio of Fixed Assets-to-Equity Capital and Long-Term Liabilities 35.18 38.03 29.59 37.11 40.25 37.76 43.59 45.61 44.59 46.30 Interest Coverage (times) 7.46 9.57 16.09 308.80 2,017.57 2,114.00 1,318.91 2,012.14 399.54 314.64

Current Assets - Accumulated Cost of Construction in Progress Property, Equipment, Investments and Other Assets Current Ratio = x100 Ratio of Fixed Assets-to-Equity Capital and Long-Term Liabilities = x100 Current Liabilities - Advances Received on Construction in Progress Shareholders’ Equity + Long-Term Liabilities

Cash, Time Deposits, Marketable Securities and Trade Accounts Receivable Operating Income + Interest and Dividend Income Quick Ratio = x100 Interest Coverage = Current Liabilities - Advances Received on Construction in Progress Interest Expenses

Property, Equipment, Investments and Other Assets Fixed Assets-to-Equity Capital Ratio = x100 Shareholders’ Equity

Investors’ Guide 2002 Per Share Data

■ Primary Earnings per Share (EPS) ■ Book Value per Share (BPS) ■ Cash Dividends per Share/Payout Ratio ■ Common Stock Issued Cash Dividends per Share Payout Ratio

(¥) (¥) (¥) (%) (Thousand shares)

52 800 12112,000 32

65 1,000 140,000 15 40 39 600 92484,000

26 400 6 56,00016

13 200 3 28,0008

0 0 0 0 0 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02

(Yen, except where noted) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Primary Earnings per Share (EPS) 22.78 26.62 37.69 32.91 54.27 60.96 38.78 42.78 31.27 25.48 Book Value per Share (BPS) 430.19 428.19 539.09 514.90 562.23 690.68 727.44 804.86 822.32 763.53 Cash Dividends per Share 6.00 7.25 8.00 9.75 11.75 14.25 10.00 10.00 12.00 10.00 Payout Ratio (%) 26.99 27.87 23.01 30.00 21.71 24.20 25.96 23.54 38.23 39.08 Common Stock Issued (thousand shares) 73,353 93,000 104,612 115,123 115,781 130,453 132,841 137,166 136,842 135,264

Note: Primary Earnings per Share is based on the weighted average number of shares outstanding in the respective fiscal years. The others are based on the number of shares outstanding at the end of the respective fiscal years.

Investors’ Guide 2002 Per Employee Data

■ Net Sales per Employee ■ Pre-Tax Profit per Employee ■ Net Income per Employee ■ Number of Employees at Fiscal Year-End

(Thousand ¥) (Thousand ¥) (Thousand ¥) (Persons)

52,000 3,200 2,000 3,200

65,000 4,000 2,500 4,000

39,000 2,400 1,500 2,400

26,000 1,600 1,000 1,600

13,000 800 500 800

0 0 0 0 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02

(Thousands of yen, except where noted) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Net Sales per Employee 34,820 36,836 40,241 46,656 57,528 59,921 59,906 61,344 58,936 61,592 Pre-Tax Profit per Employee 1,127 1,560 1,884 2,090 3,493 3,754 3,477 2,924 2,181 1,832 Net Income per Employee 452 655 962 967 1,634 2,035 1,383 1,578 1,171 972 Number of Employees at Fiscal Year-End (persons) 3,683 3,703 3,862 3,881 3,788 3,692 3,645 3,728 3,588 3,530

Net Sales Net Sales per Employee = Number of Employees (Average of two year-ends)

Income before Income Taxes Pre-Tax Profit per Employee= Number of Employees (Average of two year-ends)

Net Income Net Income per Employee = Number of Employees (Average of two year-ends)

Investors’ Guide 2002 Other Data

■ Capital Expenditure ■ Research and Development Expenditure ■ Depreciation Charged against Property ■ Percentage of Stock Held by Foreigners and Equipment

(Million ¥) (Million ¥) (Million ¥) (%)

5,600 560 1,280 20

7,000 700 1,600 25

4,200 420 960 15

2,800 280 640 10

1,400 140 320 5

0 0 0 0 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02 98 99 00 01 02

(Millions of yen, except where noted) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Capital Expenditure 3,250 4,118 2,879 10,491 3,246 2,555 5,041 6,528 1,037 3,529 Research and Development Expenditure 500 500 500 650 650 670 660 601 418 416 Depreciation Charged against Property and Equipment 943 914 1,063 1,321 1,468 1,503 1,377 1,188 1,099 1,238 Percentage of Stock Held by Foreigners (%) 7.46 9.84 13.78 15.80 15.77 15.80 13.46 20.14 14.83 25.50

Investors’ Guide 2002 ■ Non-Consolidated Statements of Income (10 Years)

(Millions of yen) 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Net Sales: Construction contracts 113,066 124,515 139,174 165,016 205,727 208,018 203,208 208,535 199,454 204,683 Other 12,705 11,522 13,039 15,613 14,863 16,085 16,556 17,611 16,132 14,523 125,771 136,037 152,213 180,629 220,590 224,103 219,764 226,146 215,586 219,206 Cost of Sales: Construction contracts 100,634 109,084 122,707 145,238 179,917 182,819 179,419 184,300 176,949 182,437 Other 11,479 10,321 11,488 13,426 12,783 13,446 13,854 15,247 14,833 13,726 112,113 119,405 134,195 158,664 192,700 196,265 193,273 199,547 191,782 196,163 Gross profits 13,658 16,632 18,018 21,965 27,890 27,838 26,491 26,599 23,804 23,043

Selling, General and Administrative Expenses 9,729 10,934 10,976 13,421 14,308 13,777 12,614 12,973 13,402 14,517 Operating income 3,929 5,698 7,042 8,544 13,582 14,061 13,877 13,626 10,402 8,526 23

Other Income (Expenses): Interest and dividend income 981 993 1,053 720 541 737 631 461 785 284 Interest expenses (658) (699) (503) (30) (7) (7) (11) (7) (28) (28) Other, net (181) (233) (465) (1,142) (719) (750) (1,742) (3,299) (3,179) (2,263) 142 61 85 (452) (185) (20) (1,122) (2,845) (2,422) (2,007) Income before Income Taxes 4,071 5,759 7,127 8,092 13,397 14,041 12,755 10,781 7,980 6,519 Income Taxes 2,440 3,340 3,490 4,350 7,130 6,430 7,680 4,963 3,697 3,058 Net Income 1,631 2,419 3,637 3,742 6,267 7,611 5,075 5,818 4,283 3,461

Investors’ Guide 2002 ■ Non-Consolidated Balance Sheets (10 Years)

(Millions of yen) ASSETS 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Current Assets: Cash and time deposits 16,631 21,649 29,434 25,852 21,171 26,871 21,366 18,746 18,039 34,079 Marketable securities 5,680 11,931 12,041 17,013 15,411 17,106 11,886 15,818 14,730 880 Notes and accounts receivable-trade 22,080 26,146 27,581 41,671 58,091 56,817 62,258 58,876 64,442 56,553 Inventories: Accumulated cost of construction in progress 19,848 19,796 18,924 16,978 18,375 15,707 19,235 17,967 17,995 11,641 Other 666 546 421 247 276 262 168 124 101 72 Other current assets 887 854 915 1,292 1,169 1,025 1,955 4,062 3,512 5,484 Less: Allowance for doubtful receivables (59) (76) (74) (105) (131) (128) (117) (111) (123) (110) Total current assets 65,733 80,846 89,242 102,948 114,362 117,660 116,751 115,482 118,696 108,599 Investments and Other Assets: Investment securities: 24 Subsidiaries and affiliates 969 969 1,041 1,087 1,053 1,490 1,906 2,214 1,683 1,876 Other 2,369 2,524 2,526 2,263 4,985 6,293 7,435 7,442 4,077 3,618 Long-term loans receivable: Subsidiaries and affiliates 500 340 748 522 356 219 1,606 786 717 234 Other 1,627 1,660 1,570 2,403 2,769 3,032 3,172 3,242 3,434 3,389 Other assets 2,426 3,259 2,938 3,083 3,597 4,464 4,372 7,012 11,019 11,303 Less: Allowance for doubtful receivables (15) (14) (15) (6) (20) (18) (23) (83) (1,099) (1,289) Total investments and other assets 7,876 8,738 8,808 9,352 12,740 15,480 18,468 20,613 19,831 19,131 Property and Equipment: Land 7,771 9,711 10,092 14,696 16,320 16,452 17,821 22,157 22,160 16,846 Buildings and structures 4,928 5,339 7,244 10,400 10,523 10,554 13,275 14,958 15,071 19,116 Machinery and equipment 5,054 5,109 5,812 6,855 7,709 7,887 8,207 6,184 5,969 6,064 Construction in progress 34 999 702 — 21 1,513 1,828 2,034 2,649 — Less: Accumulated depreciation (5,014) (5,292) (6,186) (7,137) (8,326) (9,283) (10,348) (9,626) (10,258) (10,412) Total property and equipment 12,773 15,866 17,664 24,814 26,247 27,123 30,783 35,707 35,591 31,614 Deferred Charges: Discount on notes payable — — 903 1,496 897 298 — — — — Total deferred charges — — 903 1,496 897 298 — — — — 86,382 105,450 116,617 138,610 154,246 160,561 166,002 171,802 174,118 159,344

Investors’ Guide 2002 (Millions of yen) LIABILITIES AND SHAREHOLDERS’ EQUITY 1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 Current Liabilities: Short-term bank loans 1,850 830 480 440 440 — — — — — Current portion of convertible bonds — — — 393 — — — — — 9,312 Current portion of notes and notes with warrants — 12,491 — 7,016 9,867 7,755 7,373 — — — Accounts payable: Trade 11,277 12,493 12,578 21,675 29,108 26,898 32,939 35,473 39,232 30,077 Other 805 980 1,607 2,774 2,228 2,398 1,863 4,216 2,670 2,521 Advances received on construction in progress 8,711 6,963 4,435 5,257 4,372 3,586 4,038 4,088 5,406 2,863 Income taxes payable 1,671 2,772 2,490 3,649 6,195 3,535 3,748 2,160 576 2,986 Employees’ savings deposits 1,588 1,831 2,066 — — — — — — — Warrants — — 1,204 2,396 2,351 1,291 917 — — — Other current liabilities 1,792 2,386 2,290 2,934 2,827 2,277 2,132 2,387 1,949 1,977 25 Total current liabilities 27,694 40,746 27,150 46,534 57,388 47,740 53,010 48,324 49,833 49,736 Long-Term Liabilities: Notes and notes with warrants 19,506 16,883 24,638 24,995 15,128 7,373 — — — — Convertible bonds 1,004 859 444 — 10,000 9,418 9,409 9,312 9,312 — Accrued severance indemnities 6,117 6,188 6,399 6,663 6,161 5,876 5,356 379 2,444 2,561 Provision for losses from overseas investments — — — — — — 1,592 1,442 — — Allowance for losses arising from guarantees of loans — — — — — — — — — 1,680 Deferred tax liabilities for unrealized gains on land revaluation— — — — — — — — — 2,484 Other long-term liabilities 505 953 1,591 1,141 473 53 — 1,945 — — Total long-term liabilities 27,132 24,883 33,072 32,799 31,762 22,720 16,357 13,078 11,756 6,725 Shareholders’ Equity: Common stock 6,846 10,025 16,869 16,895 17,250 26,592 27,983 31,141 31,141 31,141 Additional paid-in capital 4,092 7,259 14,096 14,122 14,521 24,904 26,666 30,736 30,736 30,736 Legal reserve 923 974 1,049 1,141 1,271 1,511 1,686 1,834 1,983 2,093 Unrealized loss on land revaluation — — — — — — — — — (8,633) Retained earnings 19,695 21,563 24,381 27,119 32,054 37,094 40,300 46,689 48,716 48,697 Unrealized gain on securities — — — — — — — — (47) (187) Treasury stock, at cost — — — — — — — — — (964) Total shareholders’ equity 31,556 39,821 56,395 59,277 65,096 90,101 96,635 110,400 112,529 102,883 86,382 105,450 116,617 138,610 154,246 160,561 166,002 171,802 174,118 159,344

Investors’ Guide 2002 ■ Consolidated Subsidiaries and Affiliates

As of March 31, 2002 Fiscal year ended December 31, 2001 Paid-in Percentage Number Principal Business Orders Received Net Sales Net Income* Company Name Location Capital Owned of Employees Millions of yen % Persons Millions of yen

OT Engineering Co., Ltd.** Tokyo, Japan 120 “Outside” construction 98.0 118 4,122 4,135 72

Tsuken Kiko Co., Ltd. Tokyo, Japan 30 “Outside” construction 100.0 34 1,055 1,114 –0

COMSYS Techno Co., Ltd. Tokyo, Japan 50 Software development 100.0 105 2,529 2,618 67

COMSYS Tec Co., Ltd. Tokyo, Japan 90 “Outside” construction 83.6 157 5,300 5,596 –116

Tokyo Tsuken Co., Ltd. Tokyo, Japan 54 “Inside” construction 39.2 197 14,994 14,191 656

26 Nitto Tsuken Co., Ltd. Tokyo, Japan 60 “Inside” construction 33.3 211 11,585 11,078 140

Design, manufacturing, and sales Taiei Seisakusho Co., Ltd. Kanagawa, Japan 60 49.7 118 4,881 4,895 45 of telecommunications equipment

Telecommunications materiel sales COMSYS Tusan Co., Ltd. Tokyo, Japan 60 100.0 119 11,626 11,626 13 and leasing

COMSYS Business Service Co., Ltd. Tokyo, Japan 304 “Inside” construction and maintenance 100.0 96 4,174 4,176 121

COMSYS Net Corporation Tokyo, Japan 50 “Inside” construction 100.0 52 2,763 2,991 88

COMSYS Tohoku Techno Co., Ltd. Miyagi, Japan 50 Software development 100.0 40 921 918 5

COMSYS Shinetsu Engineering Co., Ltd. Nagano, Japan 30 “Outside” construction 100.0 30 1,353 1,377 22

COMSYS Kansai Engineering Co., Ltd. Osaka, Japan 15 “Outside” construction 68.0 24 1,312 1,907 –9

COMSYS Kyusyu Engineering Co., Ltd. Fukuoka, Japan 15 “Outside” construction 100.0 34 1,487 1,771 4

*Net income figures are prior to the application of deferred tax accounting. **OT Engineering Co., Ltd. was incorporated at 1st January 2002 by merging Okoshi Denken Co., Ltd. (a survivor as a legal entity), Tokyo Denwa Shisetsu Co., Ltd. and COMSYS Kanto Kita Engineering Co., Ltd.

Investors’ Guide 2002 ■ Group Companies

The COMSYS Group At present, the COMSYS Group consists of 35 companies, including Nippon COMSYS. Of these, 20 are involved in “outside” projects, 6 are involved in “inside” projects, 2 are software development firms, 4 are overseas subsidiaries, and 3 are in other fields. To allow us to respond to the rapid changes brought by the diversification of projected needs and the intensification of competition in this era of information technology, we are striving throughout the entire group to take cost competition to new levels, and to manifest our ability to coor- dinate diverse capabilities. All the companies of the COMSYS Group are engaged in continual strategic reorganization, while at the same time increasing the efficiency of our project execution through adjustment of the division of responsibilities and territories. In addition, while fostering the multifaceted technological expertise required by the IT era, the COMSYS group always strives to grow.

Business Category Location Company Name Business Category Location Company Name Business Category Location Company Name 1 “Outside” Projects Saitama Jinwa Co., Ltd. w “Outside” Projects Nagano CRT Co., Ltd. s Software Miyagi COMSYS Tohoku Techno Co., Ltd. 2 “Outside” Projects Tokyo OT Engineering Co., Ltd. e “Outside” Projects Nagano Odanaka Tsushin Co., Ltd. d Software Tokyo COMSYS Techno Co., Ltd. 3 “Outside” Projects Tokyo COMSYS Tec Co., Ltd. r “Outside” Projects Osaka COMSYS Kansai Engineering Co., Ltd. f IT Tokyo Emport Co., Ltd 4 “Outside” Projects Tokyo Tsuken Kiko Co., Ltd. t “Outside” Projects Osaka Shin Osaka Tsuken Co., Ltd. g Manufacturer Kanagawa Taiei Seisakusho Co., Ltd. 5 “Outside” Projects Tokyo Nippo Kensetsu Kogyo Co., Ltd. y “Outside” Projects Tokushima Tokushima Tsushin Kensetsu Co., Ltd. h Leasing Tokyo COMSYS Tsusan Co., Ltd. 6 “Outside” Projects Tokyo Kokusai Densetsu Co., Ltd. u “Outside” Projects Fukuoka COMSYS Kyushu Engineering Co., Ltd. 7 “Outside” Projects Tokyo Nisshin Denwa Setsubi Co., Ltd. i “Outside” Projects Okinawa Ryukyu Tsushin Koji Co., Ltd. — Overseas Affiliates — 8 “Outside” Projects Tokyo SE Technical Co., Ltd. o “Inside” Projects Tokyo COMSYS Business Service Co., Ltd. “Outside” Projects Philippines COMSYS Philippines, Inc. 9 “Outside” Projects Kanagawa Tsushin Densetsu Co., Ltd. p “Inside” Projects Tokyo COMSYS Net Corporation “Outside” Projects Malaysia CMC Engineering SDN. BHD. 0 “Outside” Projects Kanagawa Asahi Tsushin Co., Ltd. [ “Inside” Projects Tokyo Tokyo Tsuken Co., Ltd. “Outside” Projects Thailand Thai COMSYS & Jackson Co., Ltd. - “Outside” Projects Kanagawa Sanyo Co., Ltd. ] “Inside” Projects Tokyo Nitto Tsuken Co., Ltd. “Outside” Projects Thailand COMSYS Thailand Co., Ltd. = “Outside” Projects Nagano COMSYS Shinetsu Engineering Co., Ltd. \ “Inside” Projects Ishikawa Kanazawa Tushin Industries LLC q “Outside” Projects Nagano Nihonkai Tsushin Kensetsu Co., Ltd. a “Inside” Projects Osaka Yashiro Tsushin Kensetsu Co., Ltd. Investors’ Guide 2002 ■ Comparison of Three Major Telecommunications Construction Companies in Japan

Non-Consolidated Basis

■ Net Sales ■ Operating Income ■ Income before Income Taxes■ Net Income ■ Net Income per Share ■ Return on Equity (ROE)

Nippon COMSYS DAIMEI TELECOM ENGINEERINGNippon COMSYS DAIMEI TELECOM ENGINEERINGNippon COMSYS DAIMEI TELECOM ENGINEERINGNippon COMSYS DAIMEI TELECOM ENGINEERINGNippon COMSYS DAIMEI TELECOM ENGINEERINGNippon COMSYS DAIMEI TELECOM ENGINEERING KYOWA EXEO KYOWA EXEO KYOWA EXEO KYOWA EXEO KYOWA EXEO KYOWA EXEO

(Million ¥) (Million ¥) (Million ¥) (Million ¥) (¥) (%)

196,000 12,000 12,000 6,400 56.00 10.4

245,000 15,000 15,000 8,000 70.00 13.0

147,000 9,000 9,000 4,800 42.00 7.8

98,000 6,000 6,000 3,200 28.00 5.2

49,000 3,000 3,000 1,600 14.00 2.6

28 0 0 0 0 0 0 98 99 00 01 0298 99 00 01 0298 99 00 01 0298 99 00 01 0298 99 00 01 0298 99 00 01 02

■ Net Sales (Millions of yen) ■ Net Income (Millions of yen) 1998/3 1999/3 2000/3 2001/3 2002/3 1998/3 1999/3 2000/3 2001/3 2002/3 Nippon COMSYS 224,103 219,764 226,146 215,586 219,206 Nippon COMSYS 7,611 5,075 5,818 4,283 3,461 KYOWA EXEO 210,454 218,564 204,989 190,317 190,687 KYOWA EXEO 4,002 3,611 1,850 3,331 2,330 DAIMEI TELECOM ENGINEERING* 91,207 51,984 101,959 98,195 86,929 DAIMEI TELECOM ENGINEERING* 1,332 904 2,297 1,325 707

■ Operating Income (Millions of yen) ■ Net Income per Share (Yen) 1998/3 1999/3 2000/3 2001/3 2002/3 1998/3 1999/3 2000/3 2001/3 2002/3 Nippon COMSYS 14,061 13,877 13,626 10,402 8,526 Nippon COMSYS 60.96 38.78 42.78 31.27 25.48 KYOWA EXEO 9,108 11,028 10,318 7,507 7,207 KYOWA EXEO 37.47 33.80 17.32 31.17 19.92 DAIMEI TELECOM ENGINEERING* 3,228 2,958 5,512 3,455 3,637 DAIMEI TELECOM ENGINEERING* 34.84 23.64 56.52 30.96 16.95

■ Income before Income Taxes (Millions of yen) ■ Return on Equity (ROE) (%) 1998/3 1999/3 2000/3 2001/3 2002/3 1998/3 1999/3 2000/3 2001/3 2002/3 Nippon COMSYS 14,041 12,755 10,781 7,980 6,519 Nippon COMSYS 9.8 5.4 5.6 3.8 3.2 KYOWA EXEO 7,732 8,609 3,951 6,604 4,385 KYOWA EXEO 9.1 7.6 3.7 6.5 4.2 DAIMEI TELECOM ENGINEERING* 3,262 2,554 4,250 2,570 1,353 DAIMEI TELECOM ENGINEERING* 7.0 4.6 9.8 4.8 2.6

*DAIMEI TELECOM ENGINEERING changed the end of its fiscal year from September to March as of fiscal 1998. Accordingly, the company’s fiscal year that ended in March 1999 is a period of only six months. (Source: Company business reports)

Investors’ Guide 2002 Consolidated Basis

■ Net Sales ■ Operating Income ■ Income before Income Taxes■ Net Income ■ Net Income per Share ■ Return on Equity (ROE)

(Million ¥) (Million ¥) (Million ¥) (Million ¥) (¥) (%)

196,000 16,000 16,000 8,000 56.00 10.4

245,000 20,000 20,000 10,000 70.00 13.0

147,000 12,000 12,000 6,000 42.00 7.8

98,000 8,000 8,000 4,000 28.00 5.2

49,000 4,000 4,000 2,000 14.00 2.6

29 0 0 0 0 0 0 98 99 00 01 0298 99 00 01 0298 99 00 01 0298 99 00 01 0298 99 00 01 0298 99 00 01 02

■ Net Sales (Millions of yen) ■ Net Income (Millions of yen) 1998/3 1999/3 2000/3 2001/3 2002/3 1998/3 1999/3 2000/3 2001/3 2002/3 Nippon COMSYS 225,313 220,522 231,750 222,220 231,351 Nippon COMSYS 8,309 5,625 6,315 4,498 4,107 KYOWA EXEO 219,549 228,420 216,499 203,069 203,336 KYOWA EXEO 4,069 4,224 2,530 3,622 2,989 DAIMEI TELECOM ENGINEERING* 94,654 54,122 109,999 109,703 98,587 DAIMEI TELECOM ENGINEERING* 1,366 1,015 2,590 1,559 232

■ Operating Income (Millions of yen) ■ Net Income per Share (Yen) 1998/3 1999/3 2000/3 2001/3 2002/3 1998/3 1999/3 2000/3 2001/3 2002/3 Nippon COMSYS 14,348 14,261 15,559 11,628 10,500 Nippon COMSYS 66.55 42.97 46.73 33.11 30.39 KYOWA EXEO 9,876 12,688 11,841 8,304 8,308 KYOWA EXEO 38.09 39.53 23.68 34.00 25.56 DAIMEI TELECOM ENGINEERING* 3,332 3,068 6,564 4,443 3,880 DAIMEI TELECOM ENGINEERING* 35.94 26.56 63.83 36.48 5.58

■ Income before Income Taxes (Millions of yen) ■ Return on Equity (ROE) (%) 1998/3 1999/3 2000/3 2001/3 2002/3 1998/3 1999/3 2000/3 2001/3 2002/3 Nippon COMSYS 14,333 13,522 13,054 9,117 8,913 Nippon COMSYS 10.2 5.7 5.8 3.8 3.6 KYOWA EXEO 8,471 10,277 5,509 7,897 5,949 KYOWA EXEO 8.9 8.6 4.9 6.7 5.1 DAIMEI TELECOM ENGINEERING* 3,353 2,746 4,863 3,368 920 DAIMEI TELECOM ENGINEERING* 6.8 5.0 10.6 5.4 0.8

Investors’ Guide 2002 ■ Stock Price Information

■ Common Stock Price Range ■ Trading Volume

(¥) (Thousand shares)

2,400 280,000

3,000 350,000 1,800 210,000

1,200 140,000

600 70,000

0 0 93 94 95 96 97 98 99 00 01 0293 94 95 96 97 98 99 00 01 02

1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 988 1,620 High Price 1,570 1,450 1,560 2,020 1,710 2,700 2,370 2,095 *1,130 *1,280 Common Stock Price Range (¥) 460 1,170 Low Price 930 980 1,190 1,240 1,281 1,420 1,636 580 * 901 *1,180 Trading Volume (thousand shares) 105,119 343,329 116,184 92,776 128,401 144,820 85,708 96,361 94,043 230,769

Notes 1. The numbers above are based on Tokyo Stock Exchange First Section figures. 2. Stock price data marked with an asterisk reflect conditions after a stock split.

Investors’ Guide 2002 ■ Corporate Information

Corporate Profile As of March 31, 2002 Investor Information As of March 31, 2002

Trade Name Nippon COMSYS Corporation Information-Related Business Fiscal Year-End March 31, 2002 Address 17-1, Higashigotanda 2-chome n Development, commissioning and sales of all types of software Annual Shareholders’ Meeting June 27, 2002 Shinagawa-ku, Tokyo 141-8647, Japan n Dispatch of data processing engineers Common Stock Authorized : Telephone 81(3)3448-7000 n Planning, design, construction and maintenance of intelligent 249,341,000 shares Facsimile 81(3)3448-7001 buildings and systems Issued : Establishment December 1951 n Commissioning and construction of data communications 135,264,252 shares Paid-in Capital ¥31,140 million systems (LAN, CATV, etc.) Number of Shareholders 9,641 Stock Listings Common Stock-Tokyo, Osaka n Commissioning, construction and maintenance of network Date of Listing July 1962 Representative President systems, centered on PBX Stock Exchange Listing First Section of Tokyo Stock Hironobu Takeuchi n Systems integrator Exchange and Osaka Number of Employees 3,530 Securities Exchange Net Sales ¥219,200 million n Sales Network Transfer Agent The Mitsubishi Trust and Head Office Banking Corporation n Businesses Western Japan Headquarters Securities Department Telecommunications Facilities Business Branches 11-1, Nagatacho 2-chome n Cable works (optical fiber cable laying, burying telephone lines, etc.) Hokkaido/Tohoku/Akita/Fukushima/Kantominami/Kantonaka Chiyoda-ku, Tokyo 100-0014 31 n Civil engineering works (underground conduit lines, Tochigi/Shinetsu/Niigata/Tokai/Hokuriku/Kansai/Chugoku/Shikoku Auditor Certified Public Accountants of Japan manholes and cable-tunnel construction, etc.) Takamatsu/Kyushu/Okinawa O-Yu Kyodo Office n Switching works (digital telephone switch-boards, etc.) Overseas n Transmission wireless works (digital/micro communications Bangkok Liaison Office facilities, etc.) Sales Offices n Mobile communications works (mobile wireless base stations, etc.) Tohoku Area Major Shareholders As of March 31, 2002 Aomori/Morioka/Yokote/Akitakenhoku/Oomagari/Yamagata Percentage Electric Facilities Business Kanto Area Share Held Company Name of Shares (Thousands) n Communications power supply works Urawa/Kawagoe/Kumagaya/Oyama/Mito/Tsuchiura/Takasaki Outstanding (transformer, generation, and storage-battery facilities) Koshigaya/Chiba/Urayasu/Chiyoda/Shinjuku/Setagaya/Nakano Japan Trustee Services Bank, Ltd. (Trust Account) 8,694 6.42% n General electrical facilities works Suginami/Arakawa/Itabashi/Adachi/Edogawa/Tama/Kawasaki Fujikura Ltd. 5,212 3.85 Yokosuka/Shonan/Zama Civil Engineering-Related Business Chubu Area Sumitomo Electric Industries, Ltd. 5,166 3.81 n General civil engineering works Joetsu/Chuetsu/Fukui/Toyama/Kofu/Matsumoto/Toshin/Kiso The Furukawa Electric Co., Ltd. 5,166 3.81 n Construction of multi-use underground cable conduit facilities (C·C·BOX) Shizuoka/Ueda The Mitsubishi Trust and Banking Corp. (Trust Account) 4,952 3.66 n Water supply and sewage facilities works Kinki Area UFJ Bank Limited (Trust Account) 4,902 3.62 n Land development Kitaosaka/Higashiosaka/Minamiosaka/Kobe/Kyoto/Shiga n Surveying Chugoku Area The Chase Manhattan Bank, N.A. London 4,161 3.07 Okayama/Matsue/Yamaguchi/Tottori ASAD 3,517 2.60 Building Construction and Real Estate-Related Business Shikoku Area Nippon Life Insurance Company (Pension Trust Account) 2,839 2.09 n Building construction and ancillary facilities works Minamihoribata/Kochi/Tokushima Fujitsu Limited 2,413 1.78 n Land sales, purchase and intermediation Kyushu Area n Piping works Kitakyushu/Kumamoto/Oita/Kagoshima

Investors’ Guide 2002 ■ Brief History of COMSYS

Dec. 1951 Founded as The Nippon Telecommunications Aug. 1982 Won contract for Japan’s first fiber-optic cable Construction Co., Ltd. (NTK). installation project. Mar. 1952 Won first contract for cable-laying and machinery Apr. 1984 Established our Niigata Branch. installation. Jul. 1990 Changed our name from The Nippon Aug. 1952 As Japan’s only firm with top certifications in cable laying, Telecommunications Construction Co., Ltd. to Nippon machinery installation, and radio facilities projects, COMSYS Corporation. Our first Head offices building (Dec. 1951) designated approved contractor by Nippon Telegraph Jul. 1990 Established our Hokuriku Branch. and Telephone Public Corporation (now NTT). Feb. 1991 Certified as comprehensive contractor for Jun. 1953 Won contract for cable installation at a microwave telecommunications relay station as part of telecommunications construction projects by NTT. Cable conversion project (1978) a project linking Tokyo, Nagoya, and Osaka. Mar. 1992 Won Japan’s first contract under the Rapid Reconstruction Sep. 1953 Established our Osaka Branch (now our Kansai Branch). Project in Kuwait following the Gulf War. Sep. 1957 Established our Nagano Branch (now our Shinetsu Branch). Mar. 1994 Increased paid-in capital to ¥10 billion. Sep. 1959 Orders received break ¥10 billion. Mar. 1997 Orders received and net sales exceeded ¥200 billion. 32 Dec. 1961 Completed our 100th microwave station. Jul. 1997 Increased paid-in capital to ¥20 billion. Jul. 1962 Increased paid-in capital to ¥300 million. Aug. 1999 Increased paid-in capital to ¥30 billion. The Bangkok cable project (Dec. 1965) Jul. 1962 Listed on the Tokyo Stock Exchange, Second Section. Apr. 2000 Established our Fukushima, Takamatsu, and Okinawa Nov. 1963 Won our first contract for a Shield Tunneling Method project. Branches. Dec. 1965 Won our first overseas contract (Bangkok). Jul. 2000 Developed the Tuned Rotary-Mass Damper jointly with Aug. 1970 Established our Urawa Branch (now our Kantonaka Branch). Tokai University. Sep. 1970 Won a contract for a satellite-communication Earth station. Sep. 2000 Developed “SweeCOM,”a revolutionary negative pressure Jul. 1972 Established our Yokohama Branch (Now our and absorption cable installation system, for the efficient Kantominami Branch). laying of fiber-optic cable.

Feb. 1972 Listed on the Osaka Stock Exchange, Second Section. Satellite communications project (Sep. 1970) Aug. 2001 Completed our new headquarters building at 17-1, Nov. 1972 Listed on the First Section of the Tokyo and Osaka Stock Exchanges. Higashigotanda 2-chome, Shinagawa-ku, Tokyo. Dec. 1972 Increased paid-in capital to ¥1.5 billion. Dec. 2001 50th Anniversary of the Company’s founding. Jul. 1973 Established our Akita and Utsunomiya Branches (now our Tochigi Branch). Mar. 2002 Selected as one of the 225 companies included New Headquarters Building in Osaki Apr. 1976 Increased paid-in capital to ¥2.5 billion. in the Nikkei Stock Price Average. (Aug. 2001) Mar. 1982 Established our Hokkaido, Tohoku, Hokuriku, Tokai, Chugoku, Shikoku, and Kyushu Branches.

Investors’ Guide 2002 Welcome■ COMSYS Website to COMSYS Website

www.comsys.co.jp/ 17-1, Higashigotanda 2-chome Shinagawa-ku, Tokyo 141-8647, Japan URL http://www.comsys.co.jp Public Relations Office TEL. 03-3448-7000 FAX. 03-3448-7001

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