January 2006

Ｊａｎｕａｒｙ 2006 － CONTENTS －

I. March 2006 Interim Overview 1. Interim Results (New Orders and Net Sales) ・・・・・・3 2. Interim Results (Operating Income and Recurring Profit)・・・・・・4 II. Revision of Fiscal Year Projections 1. Fiscal Year Projections (New Orders and Net Sales) ・・・・・・5 2. Fiscal Year Projections (Operating Income and Recurring Profit) ・・・・・・6 III.2nd Medium-term Management Plan (March 2006-March 2008) 1.Medium-term Management Policy・・・・・・7 2. Medium-term Management Strategy ・・・・・・8 3.Business Target Figures ・・・・・・9 4.Non-NTT Business Market Trends & Sales Plan ・・・・・・10 5. Business Integration Measures ・・・・・・11 6. Number of Engineers with Major Vendor Qualifications・・・・・・12 7. Responses to Challenges in the Managerial Environment・・・・・・13 IV. Future Business Strategy 1. NTT Business Growth Strategy ① ・・・・・・14 2. NTT Business Growth Strategy ② ・・・・・・15 3. Promotion of “COMSYS-style kaizen”・・・・・・16 4. Expansion of NCC Business ・・・・・・17 5. Promotion of IT Solutions Business ・・・・・・18 6. comsip IP Telephony System ・・・・・・19 V. その他 1. Shareholder Structure (Top 5 Shareholders) ・・・・・・20 2.Shareholder Return (Dividends) ・・・・・・21 3. COMSYS Group ・・・・・・22 4. Corporate History ・・・・・・23

2 I-1. March 2006 Interim Overview (New Orders and Net Sales)

Increased New Orders and Net Sales Compared with Previous Interim Results and Projections

Strong sales of B Flets Ongoing growth conditions for optical cable installation IPv6 network-related expansion in western Japan Increased IP network-related construction from acceleration of customer orders in first half of FY Increased capital investment to address number Increased construction to cover greater area and improve quality portability Establishment of NCC business firewall Increased construction to expand nationwide coverage

New Orders vsvs Plan Plan +3.9%+3.9% Net Sales vsvs Plan Plan +3.6%+3.6%

vsvs Prior Prior InterimInterim PeriodPeriod vsvs Prior Prior InterimInterim PeriodPeriod +12.2%+12.2% +6.6%+6.6% (¥100 million) (¥100 million) +41 +57 +74 +164

1,191 1,507 1,150 1,450 1,117 1,343

Sept. 2004 Plan Sept. 2005 Sept. 2004 Plan Sept. 2005 3 I-2. Interim Results (Operating Income and Recurring Profit)

Dramatically Increased Operating Income and Recurring Profit Compared with Previous Interim Results and Projections ■ Net sales exceeding projections ■ Reduced costs by steadily implementing management efficiency measures Improved ■ Reduced personnel expenses by revising pension system ■ Improved construction revenues from consolidated Profitability subsidiaries Operating Income Recurring Profit vsvs Plan Plan +40.0%+40.0% vsvs Plan Plan +33.3%+33.3% vsvs Prior Prior InterimInterim PeriodPeriod vsvs Prior Prior InterimInterim PeriodPeriod +58.1%+58.1% +42.9%+42.9% (¥100 million) (¥100 million) Operating Income Recurring Profit +18 Operating Margin Recurring Profit Margin +15 +14 +18 5.1% +1.3pt 4.2% 60 3.8% 3.9% +1.4pt 49 45 2.8% 3.0% 42 35 31

Sept. 2004 Plan Sept. 2005 Sept. 2004 Plan Sept. 2005

4 Ⅱ-1. Fiscal Year Projections (New Orders and Net Sales)

Aggressive Marketing Expansion and Enhanced Competitiveness

■ Increased B Flets and IPv6 network-related construction in NTT business ■ Increased construction in DoCoMo business from FOMA-related capital investment ■ Achievement of expansion plan in IT solutions business ■ Downward revisions due to lackluster orders from gov’t and private sector in interim 2005

New Orders Net Sales vsvs Plan Plan +5.1%+5.1% vsvs Plan Plan +2.4%+2.4% vsvs Prior Prior PeriodPeriod +9.0%+9.0% vsvs Prior Prior PeriodPeriod +3.6%+3.6%

(¥100 million) (¥100 million) +150 +257 +104 +70

3,100 3,000 2,843 2,950 2,896 2,930

Mar. 2005 Plan Mar. 2006 Mar. 2005 Plan Mar. 2006 Note: The figures for the March 2005 term cover 12 months, with three months excluded for comparison purposes, as the settlementterm of Nippon COMSYS’ consolidated subsidiaries was amended. 5 II-2. Fiscal Year Projections (Operating Income and Recurring Profit)

Further Improved Efficiency and Investment in Expanding Business Range ■ Thorough implementation of “COMSYS-style kaizen” management efficiency measures to maximize the effects of increased net sales and reduced costs ■ Future-focused investment to enlarge IT solutions business (personnel training, development and testing facilities, etc.)

Operating Income Recurring Profit vsvs Plan Plan +10.3%+10.3% vsvs Plan Plan +10.4%+10.4% vs Prior Period +15.9% vs Prior Period +15.9% vsvs Prior Prior PeriodPeriod +12.5%+12.5%

(¥100 million) (¥100 million)

Recurring Profit Operating Income Recurring Profit Margin +20 6.0% Operating Margin +17

+0.5pt +22 +15 5.6% 5.3% 5.5% 180 +0.5pt 4.9% 163 4.8% 160 160 145 138

(1)(1) To To be be the the No. No. 1 1 company company in in infrastructure infrastructure development development

(i) Set up a separate entity to ensure proper governance (ii) Develop COMSYS-Style Kaizen to strengthen business front line

(2)(2) Aiming Aiming to to be be a a Systems Systems Integrator Integrator in in construction construction business business

(i) Product power (ii) Technological ability (iii) Advisory ability

(3)(3) Maximizing Maximizing the the effect effect of of business business integration integration

Making the best use of the Pure Holding Company System (i) Concentration and selection (reorganization of business companies) (ii) M&A; alliances

7 Ⅲ-２．Medium-term Management Strategy

1.1. To To achieve achieve sales sales of of ¥320 ¥320 billion billion in in the the March March 2008 2008 term term

2.2. To To raise raise the the ratio ratio of of non-NTT non-NTT sales sales to to 50% 50%

3.3. To To secure secure an an operating operating income income ratio ratio of of 5.5% 5.5%

8 III-3. Business Target Figures

(Unit: ¥100 million) ＣＨＣＨＣＨ CHD’s 2nd term D’s 3rd term (Mar. 2006 term) D’s 4th term (Mar. 2007 term) D’s 5th term (Mar. 2008 term) CHD’s 3rd term results ① Projected figures 2nd medium-term projected 2nd medium-term projected (Mar. 2006 term) ［12 months (Note)］ ② Differential (②–①)figures ③④ Differential (②–①)figures Differential (②–①) Current Plan New Orders 2,843 2,950 + 107 3,100 + 150 3,220 + 120 3,100 Net Sales 2,896 2,930 + 34 3,050 + 120 3,200 + 150 3,000 138 145 + 7 155 + 10 175 + 20 160 Operating Income 4.8% 4.9% + 0.1% 5.1% + 0.2% 5.5% + 0.4% 5.3% Operating 160 163 + 3 170 + 7 190 + 20 180 Margin Recurring Profit 5.5% 5.6% + 0.1% 5.6% + 0.0% 6.0% + 0.4% 6.0% 77 85 + 8 95 + 10 105 + 10 93 Recurring Profit Margin 2.7% 2.9% + 0.2% 3.1% + 0.2% 3.3% + 0.2% 3.1% Net Income 7.7% 7.7% + 0.0% 8.1% + 0.4% 9.0% + 0.9% 9.0% Net Profit Margin 6.2% 6.8% + 0.6% 7.8% + 1.0% 8.7% + 0.9% 8.7% 42mil. 43mil. +1mil. 44mil. +1mil. 46mil. +2mil. 46mil. 46 30 ▲16 5 ▲25 2 ▲3 2 ROA ROE Per capita sales

Liabilities with interest Note: The 2nd term results comprise 12-month figures from Comsys’s consolidated subsidiaries.

9 Ⅲ-4． Non-NTT Business Market Trends & Sales Plan

MarchMarch 20052005 termterm After 3 years MarchMarch 20082008 termterm (actual(actual results)results) (projected(projected figures)figures) ※We are now reviewing 2nd medium-term business plan Sales

ＮＴＴ business ＮＴＴ business ¥165,2 bn [57％] ¥160 bn 【50％】 Sales weight ¥289.6 bn ５０％ ¥320 bn [100%] [100%]

Non-NTT business Non-NTT business 【％】 ¥124.4 bn ％] ¥160 bn 50 [43 Of these, sales from non-NTT business

Information Maintenance ＮＩ IP Phone ８９１１８１６５

ＩＴ solutions business ＩＴ solutions business ¥64 bn Constructionbusiness Construction business ¥27.3 bn ¥96 bn ％ ¥97.1 bn [22％] [40 ] ¥160 bn ¥124.4 bn ％［ [100%] [60 ] 78%][100%] Information Maintenance ＮＩ２００ IP Phone １００２４０１００

10 Ⅲ-5. Business Integration Measures

(Unit: ¥100 mn) AmountAmount addedadded throughthrough managerialmanagerial improvementimprovement

Mar.Mar. 20062006 Mar.Mar. 20082008 Sep.Sep. 20052005 PlanPlan Mid-termMid-term ResultsResults ～～CumulativeCumulative totaltotal ManagementManagement planplan ～～CumulativeCumulative totaltotal 1stst and 2ndnd terms 3rdrd term plan sincesince companycompany start-upstart-up ～～CumulativeCumulative totaltotal 1 and 2 terms 3 term plan sincesince companycompany start-upstart-up （（Nov.Nov. 25,25, 2005)2005) sincesince companycompany start-upstart-up

(1)(1) EffectEffect ofof selectionselection && concentrationconcentration ７１３２０・・IntegrationIntegration ofof NTTNTT businessbusiness inin metrometro TokyoTokyo ・・NCCNCC businessbusiness integrationintegration (April(April 1)1) ７１３２０・・ConsolidationConsolidation && closureclosure ofof engineeringengineering companiescompanies ･･PromotingPromoting outsourcingoutsourcing ofof informationinformation businessbusiness (Alster;(Alster; Sunnetcom)Sunnetcom) (2)Effect(2)Effect ofof unificationunification ofof operatoperationsions handledhandled byby groupgroup companiescompanies ２５２５３４３４７２７２・Integration of internal systems ・・CentralizedCentralized buyingbuying ・・”Comsys-style”Comsys-style kaizen”kaizen” ・Enhancement of operations of Comsys Shared ・・IntegratedIntegrated businessbusiness operationoperation inin thethe useuse ofof Service Co. realreal estateestate && otherother areasareas (3)Effect(3)Effect ofof M&AM&A && alliancealliance formationformation

・Alliance with IT vendors such as Nissho Electronics ・・KokusaiKokusai DensetsuDensetsu andand ShojiShoji TsushinTsushin ２２６６１０１０・Tie-up with Unique Link for development of toto bebe mademade subsidiarysubsidiary (Oct.(Oct. 1)1) Comsys brand products ・・FormingForming alliancesalliances toto expandexpand maintenancemaintenance businessbusiness

(4)Company’s(4)Company’s ownown measuresmeasures toto improveimprove managementmanagement ６７６７７３７３８７８７・・ClarifyingClarifying thethe rolesroles ofof CHDCHD && subsidiaries;subsidiaries; andand reassigningreassigning personnelpersonnel ・・NormalizingNormalizing outsourcingoutsourcing expensesexpenses

Total amount contributed by managerial improvement (of this, the synergy effect amount) １０１（３２）１０１（３２）１２６（４７）１２６（４７）１８９（９２）１８９（９２）

11 Ⅲ-6． Number of Engineers with Major Vendor Qualifications

(Unit: Person) Cisco Microsoft Oracle Linux Maker / Certification PLATINUM CCIE ※1 MCSE ※2 RHCE ※4 Period GOLD ※3

841 850 111 134 FY2004 (results ) (2004.4～2005.3) 6 11 31 3 1,420 1,070 170 390 FY2007 (Plan) （2007.4～2008.3） 70 20 50 20

※1 CCIE “Cisco Certified Internetwork Expert” is the top qualification for the engineer recognition by Cisco, a maker for network appliances, such as routers. ※2 MCSE “Microsoft Certified Systems Engineer” is the top qualification for the engineer qualification system by Microsoft.

※3 PLATINUM GOLD The top qualification for the vendor quality recognition series by Oracle Japan. This qualification is also recognised as the global qualification by Oracle, “Oracle Certified Professional (OCP)” ※4 RHCE “Red Hat Certified Engineer“ is the qualification for Linux engineers authorised by Red Hat, a global distributor of Linux. 12 Ⅲ-7. Responses to Challenges in the Managerial Environment

ComplianceCompliance

－－ComplianceCompliance withwith variousvarious lawslaws (strengthening(strengthening preventivepreventive measures)measures)－－－－StrengtheningStrengthening internalinternal businessbusiness auditsaudits andand legallegal checkschecks －－

ThoroughThorough safetysafety measuresmeasures PromotingPromoting corporatecorporate socialsocial responsibilityresponsibility (CSR)(CSR) －－EnhancingEnhancing safetysafety consciousnessconsciousness－－－－GlobalGlobal environment-conservationenvironment-conservation activitiesactivities －－－－ThoroughgoingThoroughgoing basicbasic motionsmotions－－－－Social-contributionSocial-contribution activitiesactivities －－

SettingSetting upup anan advisoryadvisory boardboard toto makemake thethe bestbest useuse ofof thethe PurePure HoldingHolding CompanyCompany SystemSystem

SteppingStepping upup M&AM&A andand formingforming moremore alliancesalliances Intensifying risk management toto expandexpand thethe scopescope oror changechange thethe typetype ofof businessbusiness Intensifying risk management －－Starting risk management projects －－－－TyingTying upup withwith ITIT technologytechnology venturesventures －－ Starting risk management projects －－StartingStarting aa TOBTOB readinessreadiness projectproject －－－－MakingMaking useuse ofof treasurytreasury sharesshares andand cashcash －－

ImprovingImproving productivityproductivity throughthrough costcost reductionreduction

－－DevelopingDeveloping “Comsys-style“Comsys-style kaizen”kaizen” modeled modeled onon Toyota’sToyota’s “kaizen”“kaizen” system system －－－－IntegratingIntegrating operationsoperations businessbusiness －－－－AllocatingAllocating managerialmanagerial resourcesresources appropriatelyappropriately －－ 13 IV-1. NTT Business Growth Strategy ①

KeyKey IssuesIssues forfor NTTNTT GroupGroup SpecificSpecific StrategiesStrategies ofof COMSYSCOMSYS GroupGroup GoalGoal

ExpandExpand VolumeVolume

30 million optical cable ◆ Acquire rapid decision-making structure The COMSYSGroupwillworktobe for fiber-optic construction lines to customer ・ Acquisition and reorganization of construction companies the NTTGroup’sbestpartner. as wholly-owned subsidiary residences ・ Acquire fiber-optic specialists ◆ Promote “COMSYS-style kaizen”

ExpansionExpansion forfor HigherHigher QualityQuality

Construction of Next- ◆ Participation in new vendor domains generation IPNW Network ◆ Training CCIE-certified IP specialists ・Targeting 70 specialists by March 2008

High-speedHigh-speed BroadbandBroadband CapabilityCapability Promotion of DoCoMo ◆ Establishment of Business construction structure ・Super 3G ・ Acquisition of specialists ・HSDPA ◆ Expansion of customers with marketing proposals 14 IV-2. NTT Business Growth Strategy ②

KeyKey IssuesIssues forfor NTTNTT GroupGroup SpecificSpecific StrategiesStrategies ofof COMSYSCOMSYS GroupGroup GoalGoal

ExpansionExpansion throughthrough 20072007 Problem Problem The COMSYSGroupwillworktobe ◆ Retaining existing specialists the NTTGroup’sbestpartner. Maintenance of existing (Personnel structure & recruitment facilities and training of personnel） ◆ Creation of existing facility maintenance structure

ExpansionExpansion byby AdaptingAdapting toto UbiquitousUbiquitous SocietySociety

◆ Support for NTT one-stop One-stop services services ◆ Creation of new in-home businesses in ubiquitous society

15 IV-3. Promotion of “COMSYS-style kaizen”

ImplementImplement BeginningBeginning withwith AccessAccess BusinessesBusinesses (Services(Services andand GeneralGeneral Construction) Construction)

AimAim ofof “kaizen”“kaizen” SpecificSpecific MeasuresMeasures “COMSYS-style kaizen” “COMSYS-style kaizen” ◆ Acquisition and reorganization of construction companies as wholly-owned subsidiary Reduce indirect ◆ Expand IT infrastructure expenses 1. Introduce customer-tailored management system (March 2006) 2. Introduce real-time management system between worksites and offices (March 2006)

Eliminate on-site ◆Thoroughly eliminate waste 1. Inter-site transfer time waste 2. Pre-start waiting time 3. Retracing work processes 4. Overlapping operations

16 IV-4. Expansion of NCC Business

AggressivelyAggressively ExpandExpand BusinessesBusinesses throughthrough FirewallFirewall withwith NTTNTT GroupGroup BusinessesBusinesses Over Over ¥ ¥ 30 billioninMarch2008 NewNew OrdersOrders MajorMajor CustomersCustomers BusinessBusiness StrategyStrategy 30 billioninMarch2008 ¥23.0 bn au ◆ Expand Nationwide ¥21.1 bn Vodafone Increase branches in Chugoku, Hokuriku ¥10.3 bn Willcom and Okinawa areas KDDI ◆ Collaborate with New Mobile Business Entrants JAPAN 3/’04 3/’05 3/’06 eAccess, IP Mobile and Softbank TELECOM ◆ Bolster Construction Structure TEPCO Introduce Firewall Increase construction engineers by 100 POWEREDCOM ◆ Expand Business Scope IPNW, maintenance and solutions

MaintainMaintain TopTop NCCNCC ShareShare 17 IV-5. Promotion of IT Solutions Business

CreateCreate NewNew RevenueRevenue BaseBase forfor thethe COMSYSCOMSYS GroupGroup 100 ¥64.0 bn

ars 3 ye After Maintenance e by ncreas mes i 2.5 ti 340 NI ¥35.048 bn ¥27.3 bn Maintenance 102 Maintenance 65 NI 2nd Half Plan: ¥23.7 bn IP Telephony (100) IP Telephony (30) 94 SI 87 NI IP Telephony 25 200SI (1) Maintenance 1st Half Results: ¥11.3 bn SI 114 NI IP Telephony45 (5) SI 43

March 2005 March 2006 March 2008 Term Term Term Note: Figures in parenthesis are comsip sales 18 IV-6. comsip IP Telephony System

IntegratingIntegrating TelephoneTelephone ServicesServices intointo IntranetIntranet CapabilitiesCapabilities

comsipcomsip ◆◆ NumerousNumerous applicationsapplications (Merg(Mergerer ofof PCsPCs andand telephones)telephones) FeaturesFeatures ◆◆ ConstructionConstruction ofof Linux-basedLinux-based routersrouters andand TRON-basedTRON-based terminalsterminals

¥10.0 bn 180 proposals

NewNew ¥6.0 bn OrdersOrders ¥3.0 bn 1st Half: ¥500 mn NewNew OrderOrder TargetsTargets March 2006 Term March 2007 Term March 2008 Term ◆◆ DevelopDevelop andand expandexpand aapplicationpplication softwaresoftware ◆◆ DevelopDevelop andand expandexpand carriercarrier connectionsconnections ◆◆ MarketMarket small-scalesmall-scale backupbackup productsproducts StrategyStrategy ◆◆ ExpandExpand numbernumber ofof marketingmarketing partnerspartners ◆◆ SecureSecure aa commissionedcommissioned maintenancemaintenance structurestructure 19 Ⅴ-1. Shareholder Structure (Top 5 Shareholders)

〇 Shareholders (as of September 30, 2005) Distribution of shares by owners (as of Sept. 30, 2005) Number of 15.37% shares held Major shareholders Equity （％）（8,404 owners） (1,000 shares) 41.72％ Trust account of Japan 14,697 10.07 28.84% （82 owners） Trustee Services Bank （213 owners） Trust account of Master 13,519 9.26 Trust Bank of Japan 11.96% 2.11% Japan Trustee Services Bank （162 owners）（29 owners） (trust account for Fujikura’s retirement benefits, entrusted by 6,834 4.68 Financial institutions Securities companies Mitsui Asset Trust & Banking Co.) Other corporations Foreign corporations Individuals, other Sumitomo Electric Industries, Ltd. 5,166 3.54 (for comparison) Distribution of shares by owners (as of March 31, 2005) Furukawa Electric Co., Ltd. 5,166 3.54 16.86% （9,349 owners） Number of shareholders 8,890 ％ 26.85% 42.06 Ratio of non-Japanese （81 owners） ownership of shares 28.84% （211 owners）

12.13% （162 owners） 2.08% （31 owners）

Financial institutions Securities companies Other corporations Foreign corporations Individuals, other 20 Ⅴ-2. Return to Shareholders – Dividend Policy

●Dividend Policy

Stable Dividends（12yen per share） Dividends linked to business results

（Aim for a payout ratio of 20 - 25%）

●Increase dividend by 3 yen per share (ordinary dividend) Original Plan Latest Forecast for the FY 03/06 for the FY 03/06

Revised up earnings forecasts at the 12 yen per share end of 15 yen per share November 2005 （） Interim: 5 yen Interim: 7 yen determined （） Final: 7 yen Final: 8 yen forecast ●Payout Ratio: 19.9％ ●Payout Ratio: 22.7％

（Note）For FY 03/05 COMSYS paid 12 yen ordinary dividends and 3 yen special dividends 21 Ⅴ-3． COMSYS Group

[As of 30 Sep. 2005] COMSYS Holdings Corporation Establishment： 30 September 2003 Paid-in Capital: ¥ 10,000 million Number of Employees： Consolidated 7,086 Non-consolidated 25 http://www.comsys-hd.co.jp/

SANWA COMSYS TOSYS Corporation Engineering Corporation Nippon COMSYS Corporation Address: Address: Address: 1108-5, Higashiyama Aza, Watauchi, 6-17, Aobadai 3-chome 17-1, Higashigotanda 2-chome Wakaho, Nagano 381-0193, Japan Meguro-ku, Tokyo 153-0042, Japan Shinagawa-ku, Tokyo 141-8647, Establishment: 23 January 1960 Commencement of Business: Japan Paid-in Capital: ¥ 360.25 million 1 August1947 Establishment： 20 December 1951 Number of Employees： Establishment: 12 September 1947 Paid-in Capital: ¥ 31,140.51 million Consolidated 1,058 Paid-in Capital: ¥ 3,624.71 million Number of Employees： Non-consolidated 406 Number of Employees： Consolidated 4,769 URL: Consolidated 1,234 Non-consolidated 3,216 http://www.tosys.co.jp/index.html Non-consolidated 647 URL: http://www.comsys.co.jp/ URL: http://www.sancom-eng.co.jp

Consolidated Subsidiaries: Consolidated Subsidiaries: Consolidated Subsidiaries: 6 Companies 14 Companies 8 Companies

22 Ⅴ-4. Corporate History

Nippon COMSYS Corp. was established as a private construction company with the demand to promote the rebuilding of telecommunication facilities far left behind after the WWII. Since it was one of the largest public project to rebuild the lifeline telecommunication base of Japan, leaders in Japanese economic society and major corporates at the time gathered to found our company as The Nippon Telecommunications Construction Co., Ltd. in 1951.

≫ 12.1951 Founded as The Nippon Telecommunications Construction Co., Ltd. ≫ 8.1952 Certified as the first top comprehensive contractor by Nippon Telegraph and Telephone Public Corporation (Former NTT) ≫ 7.1962 Listed on the Tokyo Stock Exchange, Second Section ≫ 11.1972 Listed on the First Section of the Tokyo and Osaka Stock Exchanges ≫ 7.1990 Changed our name from The Nippon Telecommunications Construction Co., Ltd. to Nippon COMSYS Corporation ≫ 2.1991 Certified as comprehensive contractor for telecommunications construction projects by NTT ≫ 3.1994 Paid-in capital exceeded ¥10 billion ≫ 3.1997 Orders received and net sales exceeded ¥200 billion ≫ 8.1999 Paid-in capital exceeded ¥30 billion ≫ 12.2001 50th Anniversary of the Company’s founding ≫ 3.2002 Selected as one of the 225 companies included in the Nikkei Stock Price Index ≫ 9.2003 Establishment of COMSYS Holdings (Ticker Code: 1721)