August 28, 2000

Furukawa Electric and NTT Data Invest in Fusion

Fusion Communications Corporation was established on March 13, 2000, with an initial capitalization of 100 million yen, which was put up in full by Nissho Electronics Corporation. Fusion's capitalization was subsequently increased to 400 million yen, with Furukawa Electric Company, Ltd. and NTT Data Corporation both taking equity stakes in Fusion through the acquisition of shares from Nissho Electronics.

Thanks to the capital infusion from Furukawa Electric and NTT Data and the many benefits that will accrue from the advanced technologies that these two companies can offer, in addition to Nissho Electronics' state-of-the-art network technology know-how, solutions-provision capabilities, and comprehensive maintenance systems, Fusion has now gained a strong support system to help bolster its nationwide network development and network administration.

Furukawa Electric plans to become very active in the business of telecommunications equipment, including customer routers and other IP-related equipment and the laying of next-generation optic fiber. NTT Data is currently developing a billing system that will eventually become a main pillar of support for Fusion's services. As is clear from such undertakings, capital investment by these two firms will only serve to enhance their ongoing cooperative relationship with Fusion.

While Fusion is currently capitalized at 400 million yen, the company plans to increase its capital to 2 billion yen some time this fall. An additional capital increase to 8 billion yen is planned for next spring, when Fusion will begin to provide its unique services.

Fusion is now engaged in capital investment discussions with other firms. The company's goal is to pursue cooperative relationships that have the potential to impact dramatically on Fusion's success.