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November 20, 2015

Intention to acquire 100% ownership of NTT Com Security to enhance security services

Nippon Telegraph and Telephone Corporation (abbreviated to NTT; Head Office: Chiyoda-Ku, Tokyo; President: Hiroo Unoura) has informed NTT Com Security AG (abbreviated to NCS; Head Office: Ismaning, Germany; CEO: Frank Brandenburg) of its intention to enter into negotiations regarding a merger of NCS onto NTT Communications Deutschland GmbH, a 93.01% shareholder of NCS and wholly-owned subsidiary of NTT in Germany, and thereby acquire the remaining shares in NCS against adequate cash compensation. Prior to this proposal, NTT has made NTT Communications Deutschland GmbH, formerly an indirectly-owned subsidiary under NTT Communications Corporation, a directly-owned subsidiary of NTT.

1.Strategic Intent

In anticipation of an increasing demand across our existing client base and the wider market, NTT's intent is to deliver a step change in the level of investment and development of services required to meet the constantly evolving threat landscape across cyber space. NTT's strategic intent is to continue to develop and provide world class security services for our clients in a continually changing market.

For NTT's clients, we will bring together the combined power of the security platforms of NCS, Solutionary, Dimension Data, and the NTT Innovation Institute to provide a more holistic security offering. Over the coming years NTT will increase investments in developing a broader IT security value proposition to take to market through NTT's subsidiaries such as Dimension Data, NTT Communications and NTT Data. The significantly enhanced level of security service will span the full network layer: from infrastructure to applications, and cyber-defense, supported by information and communications technologies.

2.Company profiles

Summary of NTT Com Security

(1)Corporate name	NTT Com Security AG
(2)Head of Office	Ismaning, Germany
(3)Foundation	1993
(4)CEO	Frank Brandenburg
(5)Number of Employee	840
(6)Business summary	Offering total IT security solutions/services (sales and maintenance of security hardware and software, consulting for risk management and security system design, managed security services(MSS))

[NTT Com Security Web site] http://www.nttcomsecurity.com Open other window

Summary of NTT Communications Deutschland

(1)Corporate name	NTT Communications Deutschland GmbH
(2)Head of Office	Germany
(3)Business summary	Specific purpose company to own shares of NCS

Summary of Solutionary

(1)Corporate name	Solutionary, Inc.
(2)Head of Office	Nebraska, United States
(3)Foundation	2000
(4)CEO	Steve Idelman
(5)Number of Employee	300
(6)Business summary	Offering IT security services (Consulting for security system design and security management, managed security services(MSS))

[Solutionary Web site] http://www.solutionary.com/ Open other window

Summary of Dimension Data

(1)Corporate name	Dimension Data
(2)Head of Office	Johannesburg, South Africa
(3)Foundation	1983
(4)CEO	Brett Dawson
(5)Number of Employee	30,000
(6)Business summary	Offering total IT solutions/services in 58 countries all over the world (sales and maintenance of IT hardware and software, consulting, IT outsourcing, Cloud services, managed services)

[Dimension Data Web site] http://www.dimensiondata.com/ Open other window

Summary of NTT Innovation Institute

(1)Corporate name	NTT Innovation Institute, Inc.
(2)Head of Office	California, United States
(3)Foundation	2013
(4)CEO	Nina Simosko
(5)Number of Employee	40
(6)Business summary	Research and Development in security, cloud computing, etc.

[NTT Innovation Institute Web site] http://www.ntti3.com/ Open other window

Summary of NTT Communications

(1)Corporate name	NTT Communications
(2)Head of Office	Tokyo, Japan
(3)Foundation	1999
(4)President	Tetsuya Shoji
(5)Number of Employee	6,500 (21,500 in NTT Com Group)
(6)Business summary	Telecommunications, etc.

[NTT Communications Web site] http://www.ntt.com/ Open other window

Summary of NTT Data

(1)Corporate name	NTT Data
(2)Head of Office	Tokyo, Japan
(3)Foundation	1988
(4)President	Toshio Iwamoto
(5)Number of Employee	11,100 (76,600 in NTT Data Group)
(6)Business summary	IT system integration, etc.