Keiji Tachikawa Sums Up Mobile Performance

Japan :Although the Japanese mobile phone market posted robust year-on-year growth of 10% in fiscal 2002, the harsh business environment remains as market growth continues to slow down. DoCoMo achieved year-on-year increases in both revenue and profit, with its income before income taxes exceeding one trillion yen for the first time.

Inset is Dr. Keiji Tachikawa, President and CEO of NTT DoCoMo who issued this statement.

These are the results of management placing greater importance on profit and pursuing
increased efficiency. While it is regrettable that we continued to incur impairment losses on investments in overseas affiliated companies, we secured a net income of ¥212.5 billion.

We implemented a number of measures to increase the number of subscribers to the i-mode services and increase data traffic by introducing new mobile phone handsets capable of faster transmission speeds as well as introducing handsets equipped with cameras. As a result, the number of i-mode subscribers increased to 37.76 million, accounting for 86% of the total number of mobile phone subscribers, and the number of mobile phone handsets equipped with cameras reached nine million less than a year after their introduction.

We will further strengthen our core business in the fiscal year ending March 31, 2004, by releasing the 505i handset series to enhance our handset lineup. For FOMA, we have been able to achieve our revised goal of 320 thousand subscribers thanks to the proactive expansion of the coverage areas and improvements in the mobile phone handsets. We believe that the popularization and expansion of FOMA is the most important challenges facing DoCoMo in the fiscal year ending March 31, 2004, requiring a company-wide effort. We will further expand the FOMA coverage area and improve FOMA handsets and services in an effort to attain our goal of 1.46 million subscribers by March 31, 2004.

The business environment is becoming harsher, including discussions regarding the right to set the tariffs for fixed-line to mobile calls. To respond appropriately to the changes in the business environment, we will focus on our growth strategies of “Multimedia”, “Ubiquity” and “Globalization”, and improve business efficiency as well as disseminating FOMA, for which we obtained a foothold in the previous business year. At
the same time, we will strive to establish a strong foundation for management as we move into the future.

TODAY'S PRESS RELEASES

Local press in Beijiing has reported that a Motorola employee has contracted the SARS virus and is closing its headquarters. All empoyees ( over 900 ) will now work from home until further notice.

Although the Japanese mobile phone market posted robust year-on-year growth of 10% in fiscal 2002, the harsh business environment remains as market growth continues to slow down. DoCoMo achieved year-on-year increases in both revenue and profit, with its income before income taxes exceeding one trillion yen for the first time.

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