TOKYO, JAPAN - NTT Communications (NTT Com) announced today that video distribution services provided through its "OCN Theater" service and "On Demand TV" service operated by On Demand TV, Inc. will be transferred to Plala Networks Inc. (Plala Networks), a wholly owned subsidiary of NTT Com, on March 1, 2008.

The increased economy of scale that will be realized through the consolidation is expected to help raise operational efficiency and facilitate the introduction of more competitive services.

For the time being, Plala Networks will retain the two existing brands, as well as provide services through its own "4th MEDIA" service. Fee structures and services of the two incoming brands will remain the same under Plala Networks.

Beginning in June, however, Plala Networks will consolidate the three brands under one unified brand. Notification of service transition for existing users will be done after March 2008.

Plala Networks will inform "OCN Theater" and "On Demand TV" customers of the changes in early January 2008. Procedures to dissolve On Demand TV, Inc. will start in July 2008.

Once the NTT Group begins offering next-generation network (NGN) services in March 2008, Plala Networks plans to introduce high-quality, multi-channel services, including retransmission of digital terrestrial television (DTT) in cooperation with TV broadcasters.

As part of launching the new brand, NTT Com and ITOCHU Corporation will increase the capitals of Plala Networks in the current fiscal year and then again in the new fiscal year beginning April 1, 2008.

In addition, Plala Networks intends to purchase a stake in I-Cast, Inc. (I-Cast), broadcaster through the use of telecommunications services, in March 2008, following an expected merger between I-Cast and On-line TV Co., Ltd. (On-line TV). A memorandum of understanding has been signed by I-Cast and On-line TV, and the two firms are now discussing a merger under the I-Cast name.

For further information about the respective brands and services, please see the attachment.

About NTT Com
NTT Communications Corporation (NTT Com) provides information and communications technology (ICT) solutions worldwide with dedicated professionals stationed in 21 countries. Renowned as an IPv6 technology pioneer and managed service expert, NTT Com offers diverse high-quality IP, Web-based, and managed network solutions combining network management, security, ubiquitous, Web portals/engines, and global services. Its world-class Tier 1 Internet backbone and secure closed networks with over 98,000 MPLS ports, combined with the networks of partner companies around the world, connect more than 200 countries. The company earned non-consolidated revenues exceeding one trillion yen (about US$10 billion) in fiscal 2006 ended March 31, 2007. NTT Com started as a long-distance phone company in 1999 after the reorganization of the NTT Group, and is the wholly-owned subsidiary of NTT, one of the world's largest telecommunications companies. NTT is listed in Japan, London and New York stock exchanges. Please visit www.ntt.com.