May 17, 2000

Fusion Communications Corporation is Established
A Telecommunications Carrier for the New Era

Fusion Communications Corporation announced its launch as a next-generation telecommunications carrier that focuses on IP (Internet Protocol) technologies.

All of the initial capital used to create Fusion was put up by Nissho Electronics, but Fusion is currently holding final discussions on capital participation with a member of the NTT Group and with Furukawa Electric Co., Ltd., both of which will come on board as core partners. Fusion plans to increase its total capital by 400 million yen by the end of this month.

Fusion has constructed the largest nationwide IP network in Japan. The company will fully utilize state-of-the-art technologies to provide integrated IP-based telephone (voice), data communications, Internet access, and a variety of other telecommunications services at the lowest possible cost. Those services are currently available only through separate network systems. Our goal is to provide an array of new services that will bring together all available communications services.

Through this "fusion" over IP, Fusion's customers will be able to utilize all of the various services through a single access line. Previously, a separate line was required for each. To facilitate access, Fusion will establish interconnections with the networks run by the NTT regional carriers. Fusion will also provide low-cost connections through an independent, high-speed, FWA (Fixed Wireless Access) network.

Fusion's most distinctive characteristic is the provision of integrated telecommunications services that bring together data communications, Internet access, and telephone (voice) transmissions. Although various carriers already provide so-called "telephone services using the Internet," Fusion's Internet telephone services will be of an entirely different order.

While Fusion's services are based on IP technologies, Fusion offers complete compatibility with the existing fixed-line telephone system, and thus suffer from none of the defects of existing Internet telephone services, such as inferior sound quality due to compression, complex dial-up procedures, or limitations on facsimile and modem communications. Rather, Fusion's Internet telephone services provide the same sound quality and dial-up procedures as conventional telephones and the same facsimile and modem usage. Fusion's customers can also avail themselves of supplementary services such as NTT's call waiting, much as they would if they were using a regular telephone. Additionally, Fusion will also acquire a carrier access code and be included as a carrier option under the MYLINE Carrier Selection Service (dialing parity system), to be launched next May by NTT Group firms.

Integration at the IP infrastructure level is not a unique trial being conducted by Fusion alone. The leading global carriers overseas, especially those in the United States, have rapidly adopted this approach. Several Japanese telecommunications firms have launched projects whose goal is to merge their various service infrastructures with IP. However, it will take some time for the Japanese carriers to complete this transition, as they must first complete the depreciation of their existing infrastructure assets and integrate and abolish various services. Fusion has moved ahead of the competition by providing full-scale, completely integrated, IP-based network services, and the company's pioneering efforts are not limited to infrastructure alone. Fusion intends to integrate its services at the higher level of applications to provide unprecedented, new telecommunications services to all of its customers.