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News Release 2002

June 19, 2002

Fusion Reaches 1.5 Million Subscriber Lines in Half the Expected Time

Fusion Communications Corporation, which has seen the number of its subscribers rise steadily since the company commenced telephone service last year, has now signed up a total of 1.5 million customers. Fusion reached this landmark on June 18, just over two months after the number of customers reached 1.2 million at the end of March. The company's target is 2.0 million customers by the end of fiscal 2002 (the end of March 2003); in other words, Fusion hopes to sign up 800,000 new subscribers in fiscal 2002. Since April 2002, the company has been approaching its target at twice the speed it had predicted.

The number of registered MYLINE subscribers has also grown steadily. As of the end of October 2001, when the free sign-up period ended, MYLINE calls accounted for 1.5% of out-of-prefecture calls; as of the end of May, that share had grown to 2.3%.

One factor behind the faster-than-anticipated growth in Fusion's customer base is that the company has been in business for a year and a large number of customers have actually used its service, allowing the company to accumulate a track record and prove its reliability. Even corporate customers, which had hesitated to use Fusion's service, are giving it high marks.

Another factor in Fusion's growth is the increase, over the past year, in the number of companies offering IP telephone services of various kinds. This increase has drawn attention to, and deepened people's understanding of, IP telephony, and in turn is believed to have led to growth in the number of Fusion subscribers.

The phrase "IP" (Internet Protocol) has become widely known among the general public, and the number of IP telephony users is expected to increase in the future thanks to developments such as the decision by the Ministry of Public Management, Home Affairs, Posts and Telecommunications to issue IP telephony numbers.

As a leader in IP telephony, Fusion plans to provide a variety of IP telecommunication services to satisfy the needs of even more customers.



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