NewsRelease 2004 Rakuten Communications Corp.

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February 27, 2004

PoweredCom, Inc.
Fusion Communications Corp.

Fusion and PoweredCom Reach Basic Agreement on Phone Business Merger

Fusion Communications Corporation and PoweredCom, Inc. established a merger review board on November 17, 2003 to analyze and examine the viability and potential of a merger of the two companies in telephone services. The two companies have now reached a basic agreement on the merger.

An outline of the basic agreement is presented below. The two companies plan to discuss the details further to reach a final agreement by the end of April 2004.

Outline of Basic Agreement
*	PoweredCom's telephone business division will be spun off and merged with Fusion in order to maximize synergy and expand telephone services.
*	After the merger, PoweredCom will be the majority owner of stock in Fusion.
*	The final stock ratio will be determined upon further negotiation.
*	Regarding executive management following the merger, Tadahisa Sumida (current president of Fusion) will continue to be the company's president and CEO.
*	Other aspects of the management system will be determined upon further negotiation.
*	Discussions will continue in an effort to reach a final agreement by the end of April 2004, and reviews will also begin on the executive management system, service provision processes, and other issues.
*	The scheduled date for the merger is July 1, 2004.

Through this merger in telephone services, the two companies plan to utilize management resources to further boost their technological and marketing strength, thereby establishing a leading company able to offer customers attractive IP phone services and other voice communication services.