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Broadband Revolution in Japan November 23, 2005 Dr. Sachio Semmoto Founder, Chairman & CEO

IDATE 27 th International Conference. Broadband Revolution in Japan November 23, 2005 Dr. Sachio Semmoto Founder, Chairman & CEO eAccess Ltd. Corporate Overview. Company Name. eAccess Limited. Date of Establishment. November 1, 1999. Capital Shares.

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Broadband Revolution in Japan November 23, 2005 Dr. Sachio Semmoto Founder, Chairman & CEO

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  1. IDATE 27th International Conference Broadband Revolution in Japan November 23, 2005 Dr. Sachio Semmoto Founder, Chairman& CEO eAccess Ltd.

  2. Corporate Overview Company Name eAccess Limited Date of Establishment November 1, 1999 Capital Shares \15.25 Billion (Shareholders Capital \27.57 Billion) Number of Employees Approximately 400 employees Business Focus Broadband IP Telecommunications Service • Be invested by Goldmansachs, Morgan Stanley, Carlyle as private equity fund • Completed its Initial Public Offering in Tokyo Stock Exchange Mothers on October 2003 • Listed first section 1 of Tokyo Stock Exchange on November 2004 (the fastest record of first section of TSE for independent start-up) Accomplishment (As of June 2005)

  3. eAccess Accomplishment 11.1999 Founding of eAccess Ltd. 2.2000 Completion of private equity placement (\4.5 billion) 11.2000 Commenced ADSL commercial service 2.2001 Completion of private equity placement (\5.0 billion) 9.2001 Completion of private equity placement (\10.0 billion) 5.2002 Signed Business Purchase Agreement with Japan Telecom 10.2003 IPO on Tokyo Stock Exchange Mothers 7.2004 Acquisition of ISP Business from AOL Japan 11.2004 Listed on Tokyo Stock Exchange First Section 1.2006Founding of eMobile Ltd. 11.2006 Awarded 3G Mobile License

  4. eAccess Board Structure Strong Corporate Governance with Seven External Directors 【3 Internal Board of Directors 】 CEO　Sachio Semmoto　 COO　Haruo Taneno　 CFO　Eric Gan　 Former KDDI Senior Vice President Ex-Goldman Sachs Managing Director Co-Founder of DDI(KDDI) 【7 External Board of Directors 】･･･Extensive Experience in the Global and Domestic Telecom, IT and Financials Paul Reynolds Bill Smith Raymond Kwok Toru Hashimoto Chairman of Deutsche Securities Ltd, Tokyo Branch Former CEO of Fuji-bank (Currently Mizuho bank) Chief Executive of BT Wholesale CTO of Bell South Corporation Vice Chairman of Sun Hung Kai Properties Ltd. Morihiko Tashiro Professor Jiro Kokuryo Dr. Toshio Yasui Former President of Tomen Corporation Former President of Solectron Japan Professor of Keio University

  5. Mobile 3G/3.5G Data Voice VoIP Broadband Market Size of Telecom and Broadcasting Industry Total Telecom Market Size Approx. 16 trillion yen Total Contents/Broadcasting Market Size Approx. 4 trillion yen Market Trend: • From Fixed to Mobile • From Narrowband to Broadband • Telecom and Broadcasting Convergence Convergence [Going Seamless] Mobile Telecom：Approx. 9 trillion yen Broadband Telecom：Approx. 800 billion yen Fixed Telecom：Approx. 6.3 trillion yen Source: Joho Tsushin Handbook 2005, Company estimates

  6. eAccess Growth Story Product Roadmap - From ADSL to Mobile • Accelerate migration from narrowband to broadband • Entry to direct retail market Entry to the mobile market • Partner with 30 ISPs • VoIP Service • 1M service for low-end users • Seamless fixed and mobile services. • Broadband anywhere Metallic phone and ADSL bundled service Acquisition of AOL ISP business ADSL wholesale business • Expand metallic phone service area • Expand into telephone customer base ～2003 3/2005 2005 2006～ Mobile Expansion Phase ADSL ExpansionPhase ADSL Transition Phase

  7. Worldwide ADSL Market Growth Japan accounts for 12% of the global 114.8 million ADSL market Global ADSL market increased 48% YoY (thousand lines) 114,895 Japan 12.3% US 13.9% China 18.5% Korea 5.8% Others 49.5% Source: Point Topic

  8. Japan’s Broadband Market Growth DSL continues to grow rapidly and tremendously in the short term, compared to FTTH and CATV. （thou. Subscribers) FTTH (17%) CATV (15%) DSL (68%) Source : MIC

  9. Reasons for ADSL’s Growth -Price & Speed- World’s Fastest and Cheapest ADSL Service Comparison of ADSL Price in the World (＄) 48 47 50 39 35 40 27 30 25 20 10 0 eAccess Seoul New York London Paris Düsseldorf Speed 50M 1.5M 0.8M 0.5M 0.5M 0.8M Source: MIC

  10. Reasons for ADSL’s Growth –Deregulation & Geography- Favorable Regulatory Environment Favorable Geographic Environment Short Distance From NTT’s CO and the Customers’ Premises • ADSL Nationwide Expansion • Reduction in Collocation Cost • Shortened Provisioning Period • Unbundling of Modems (Adoption of the DIY menu) • IP Backbone Construction (Unbundling of Dark Fiber) • Introduction of Line-Sharing Distribution of Telephone Line Distance ～3km 4km 5km • US • UK • Germany • Italy 15% 40% 45% 70% 25% 65% 65% 85% 50% 80% 75% 90% Japan 85％ 90％ 95％ Source: Sumitomo Electric Materials Other Reasons • High Population Density • Low Usage of CATV High Growth Potential for the ADSL Market

  11. Mobile Market Opportunities Mobile market is 12X larger than the fixed broadband market. Fixed Broadband Market（19.0 million subs） Mobile Market（88.5 million subs） CATV 15% Approx. 300 operators FTTH 14% Approx. 10 operators Vodafone 17％ • J-COM • others • NTT group • KDDI • Power companies • Usen • Softbank • STnet • others NTT DoCoMo 56％ ADSL 71％　 Approx. 30 operators KDDI group 27％ • eAccess • NTT group • Power companies • Softbank • ACCA • Heisei Denden • others Source: TCA (as of July 2005) Source: MIC （as of March 2005） 700 billion yen market Shared by over 300 operators 8.5 trillion yen market Shared by 3 operators

  12. One of the World’s Highest ARPU High ARPU in Japan Due to Lack of Competition ARPU Comparison (as of March 2005) Source: Merrill Lynch “Global Wireless Matrix 1Q05”

  13. Growth Potential in Minutes of Usage High Mobile Phone Charges Have Kept MOU Low in Japan (Mins) MOU Comparison (as of March 2005) Source: Merrill Lynch, “Global Wireless Matrix 1Q05”

  14. Expensive Cost per Minute High ARPU and Low MOU, Resulting in High Cost per Minute Cost per Minute (as of March 2005) Source: Merrill Lynch, “Global Wireless Matrix 1Q05”

  15. Releasing dry copper Releasing 1.7G㎐ Bandwidth Deregulation and User Demand of Telecommunications in Japan ADSL Mobile Telecommunications • Releasing collocation, line-sharing and dark-fiber, and applying DIY • Installing MNP • Increasing of Mobile Broadband demands • Increasing of Broadband demands

  16. Mobile Phones/PHS Subscribers and Penetration rates 105.6% 103.6% 100.6% 93.1% CAGR = 5.6％ (2006/3-20012/3) 86.1% 134,134 80.6% 131,846 128,274 75.6% 118,755 71.6% Additional Demand 68.2% 109,869 63.6% 42,660 40,372 36,800 102,890 27,281 58.7% 96,546 18,395 11,416 52.5% 5,072 91,474 87,057 44.8% 81,118 74,820 37.3% Mobile/PHS Penetration (%) 66,782 56,853 47,310 Mobile/PHS Subscribers [in thousands］ 1999/3 2000/3 2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 Source: TCA, company estimates Mobile/PHSSubscriber Forecasts and Penetration Rates 3G, Migration to Flat rate, Increased Data Demand and Increased usage of second handsets will push the market to grow over 100% penetration We expect 43 million additional subscribers from 2006/3～2012/3

  17. Global Comparison of Mobile Phone Penetration Penetration rate in Japan is low, relative to the global standard where in some countries exceed 100% In high penetrated countries, prepaid SIM services and 2nd handsets for specialized purposes are widespread Despite the slowdown in Japan’s penetration level, huge potential for further market growth still exist Country Comparison of Mobile Penetration Rates Oct.-Dec. 2004 Italy 110% Sweden 109% Portugal 107% Hong Kong 106% Israel 105% Japan’s relative position of penetration rate Czech 105% UK 104% Italy Norway 104% 110.0% Sweden Greece 104% Portugal Netherlands 100% Greece Norway Austria 100% UK Hong Kong Spain 99% 100.0% Ireland 96% Taiwan 95% Finland 95% Denmark 94% 90.0% Singapore 90% Australia 89% Switzerland 87% Germany 87% 80.0% Belgium 86% New Zealand 80% 70.6% Korea 76% France 74% 70.0% Japan 71% JAPAN US 61% Poland 60% Malaysia 56% 60.0% Russia 51% 6 Mos 12 Mos 18 Mos 24 Mos 30 Mos 36 Mos 42 Mos 48 Mos 54 Mos Source：Merrill Lynch "Global Wireless Matrix 4Q04"

  18. Product Strategy – Convergence –Seamless FMC Service FMC While Moving / Outside Office Office Home Wi-Fi Wi-Fi W-CDMA Dedicated Lines ADSL Wi-Fi W-CDMA and Wi-Fi to switch seamlessly, depending on location (Voice and Data) W-CDMA and Wi-Fi to switch flexibility, depending on contents Utilize the best communication method depending on your location and preferred contents

  19. Product Strategy - Mobile Applications –Handset Conceptual Models Multi-Functional Model Touch Screen Model Wireless Data Communication Model Music Box Model

  20. MVNO SIM card with data information Blank SIM Card モバイル キャリア Order Order Delivery Delivery Sales Strategy/Distribution Channels MVNO [ISP] Distribution to existing members [Portal] Distribution to existing members [Business Users] Strong sales channel [Infrastructure Providers] Providing comprehensive telecommunication infrastructure [Distributors/ Manufactures] Diversification of Handsets Direct sales Web sales Carrier shops Sole Agent under trading companies or manufactures Independent representative offices Independent mass retail stores MVNO: Mobile Virtual Network Operator

  21. Closing Thank You Very Much This presentation has been prepared by eAccess Ltd. (“the Company”). This presentation contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. The Companyaccept no liability whatsoever for any losses arising from any information contained in the presentation. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares of the Company, and no part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment.

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