Corporate Information

Press Release (Oct 12,2006)
KDDI, TEPCO Agree to Integrate FTTH Business

                                                           October 12, 2006
                                                           KDDI Corporation
                                               Tokyo Electric Power Company

KDDI Corporation (represented by President and Chairman Tadashi Onodera, 
hereinafter referred to as "KDDI") and Tokyo Electric Power Company 
(represented by President Tsunehisa Katsumata, hereinafter referred to as 
"TEPCO") have today agreed to integrate the business activities of 
TEPCO's Fiber Optic Network Company and KDDI. Under the agreement, the 
companies will combine their operating resources in order to develop a 
stronger telecommunications service group while providing an integrated 
telecommunications and electric power service that meets wide-ranging 
customer needs.

KDDI and TEPCO entered into a comprehensive agreement on Oct 13, 2005 to 
provide a telecommunications business offering a high level service for 
customers and to develop a strong strategy to compete against the NTT Group.
The current agreement is based on an earlier agreement, on January 1 of this 
year, between KDDI and POWEREDCOM Inc..

1. Integration of TEPCO's Fiber Optic Network Company and KDDI

KDDI will acquire TEPCO's Fiber Optic Network Company on January 1, 2007. As 
part of the merger, KDDI will allocate 144,569 common shares to TEPCO. On 
the date of partition, a representative from TEPCO is scheduled to swear in 
as the executive committee, while staff of Fiber Optic Network Company is 
scheduled to be dispatched to KDDI to assist with the transition.

KDDI will absorb all contracts associated with Fiber Optic Network Company, 
including contracts with customers.

'TEPCO Hikari FTTH service' customers will continue to make use of current 
services through KDDI's ISP.

2. Establishing a Joint Venture to Construct, Maintain Fiber Optic Equipment 
   and Facilities

KDDI and TEPCO are considering the feasibility of establishing a joint 
venture that would assume responsibility for the set up and maintenance of 
fiber optic cables by January 1, 2007.

With this integration, KDDI and TEPCO hope to develop a stronger 
telecommunications business group.

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