August 9August 9thth, 2006, 2006

eAccess Limited eAccess Limited 【【94279427】】11stst Quarter Results for Fiscal Year Ending 3/2007Quarter Results for Fiscal Year Ending 3/2007

（（4/2006 4/2006 ～～ 6/20066/2006））

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III. Financial Overview III. Financial Overview

II. Operational OverviewII. Operational Overview

I.I. FY2006/ 1Q Results HighlightFY2006/ 1Q Results Highlight

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I.I. FY2006/1Q Results HighlightFY2006/1Q Results Highlight

III. Financial Overview III. Financial Overview

II. Operational OverviewII. Operational Overview

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(As of August 2006)(As of August 2006)

Corporate OverviewCorporate Overview

Date of Establishment: November 1, 1999

Capital Shares and capital reserve: 21.5 billion yen

Number of Employees: Approximately 600*

Japan’s Largest ADSL Wholesale Operator

Internet Service ProviderAcquired in July 2004

eAccess Ltd.eAccess Ltd.

Subsidiary

46.2% ownershipAOLADSL

Establishment: January 5, 2005Capital shares and capital reserve:

143.2 billion yen

Feasibility Study

WiMAX

eMobile

*The number includes eMobile employees.

5

FY2006/1Q HighlightsFY2006/1Q Highlights

Achieved 12,000 ADSL net subscriber addition in 1Q Achieved 12,000 ADSL net subscriber addition in 1Q to a total accumulated subscribers of 1.93 millionto a total accumulated subscribers of 1.93 million

Completed 363.2 billion yen financing which will Completed 363.2 billion yen financing which will satisfy the funding requirement of our mobile plansatisfy the funding requirement of our mobile plan

Completed Phase 1 cell planning for data service launchCompleted Phase 1 cell planning for data service launchStart rolling out network in Tokyo Osaka Nagoya areasStart rolling out network in Tokyo Osaka Nagoya areas

Commence quarterly dividend payout from 2Q (900 yen per share)Commence quarterly dividend payout from 2Q (900 yen per share)Expect annual dividend payout to be 1,800 yen per shareExpect annual dividend payout to be 1,800 yen per share

ADSL/ ADSL/ ISPISP

FinancialFinancial

MobileMobile

ShareholdersShareholdersReturnReturn

Achieved consolidated operating margin of 15.1%, Achieved consolidated operating margin of 15.1%, despite of initial startdespite of initial start--up loss for eMobileup loss for eMobile

Parent base operating profit increased by 63.8% YoY, Parent base operating profit increased by 63.8% YoY, with operating margin of 22.8%with operating margin of 22.8%

Strong growth in ADSL/ISP revenue and profits in 1QStrong growth in ADSL/ISP revenue and profits in 1Q

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I.I. FY2006/1Q Results HighlightFY2006/1Q Results Highlight

III. Financial OverviewIII. Financial Overview

II. Operational OverviewII. Operational Overview

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ADSLADSL･･ISP BusinessISP Business

8

50Mbps50Mbps

Lowest price plan for Metal Plus NetLowest price plan for Metal Plus Net

Automatic upgrade from 3Mbps to 5MbpsAutomatic upgrade from 3Mbps to 5Mbps

ADSL plan without phone subscription rights requirementADSL plan without phone subscription rights requirement

Assessing the possibility of wholesale FTTH Assessing the possibility of wholesale FTTH service with UCOMservice with UCOM

Lowest price level of flat rate ADSL service in JapanLowest price level of flat rate ADSL service in Japan

PurposePurpose

5Mbps plan 5Mbps plan

FTTH

Metal Plus Net (10Mbps) Metal Plus Net (10Mbps)

Metal Plus NetMetal Plus Net（（Type2Type2））

AOL960KbpsAOL960Kbps

Current menuCurrent menu

40Mbps40Mbps

24Mbps24Mbps

12Mbps12Mbps

8Mbps8Mbps

3Mbps3Mbps

1Mbps1Mbps

Reduce churnReduce churn

Improve Improve customer customer

satisfactionsatisfaction

PromotePromotemigration ofmigration ofnarrowbandnarrowbandsubscriberssubscribers

Expanding our ADSL service menus through cooperation Expanding our ADSL service menus through cooperation with partner ISPs to meet user demand from different segmentswith partner ISPs to meet user demand from different segments

Expansion of ADSL service menuExpansion of ADSL service menu

Expansion of ADSL Service MenuExpansion of ADSL Service Menu

9

Churn TrendChurn Trend

Average monthly churn in 1Q increased to 2.08% from 4Q 2005 (Jan-March 2006) due to the moving season. Monthly churn rate decreased since the peak in April.

-April: 2.49% May: 1.98% June: 1.77%-1QAverage: 2.08%

[Retention Measures]Continued retention measures with Partner ISPs-Automatic upgrade from 3M to 5M-Free charge for moving houses-Free charge for changing service menu-Initiate long-term discount-Free installation support etc.

Churn rose in 1Q due to seasonal moving period in April. Churn rose in 1Q due to seasonal moving period in April. Achieved net subscriber addition by expanding ADSL service menuAchieved net subscriber addition by expanding ADSL service menu

and implementing churn reduction measures.and implementing churn reduction measures.

10

ISP business (AOL) StrategyISP business (AOL) Strategy

Introduction of new service in July 20065Mbps plan：3,024 yen/month

(IP phone bundled menu)-Existing 1Mbps users can upgrade to 5Mbps plan for free of charge

960Kbps plan：1,995 yen/month-Lowest price level of flat rate ADSL service.

Maintain lower churn, increase subscriber acquisition and promote migration to broadband, by offering a wide range of service menus to meet user demand.

Expanding lower speed menuExpanding lower speed menuExpanding lower speed menu

Increasing page view by expanding access menu and improving contIncreasing page view by expanding access menu and improving contentsents

Strengthen contents by improvingfunctions of AOL diary and increasingmovie and music related contentswithin the entertainment section.

ContentsContentsContents

11

WiMAX ProjectWiMAX Project

Commenced WiMAX field trial, to prepare for the WiMAX commercialCommenced WiMAX field trial, to prepare for the WiMAX commercial licenselicense

Dec 2005 ：Established WiMAX division

Apr 2006 ：Applied for mobile WiMAX field trial license

July 2006 ：Obtained mobile WiMAX field trial license, and commenced field trials

【Summary of field trial】

Spectrum：2.5GHz

Trial Period：1 year

Trial Area：Three cell sites within Tokyo 23 wards

Purpose：Gather data and information relating to cell design and equipment.

*eAccess is the first operator to conduct field trial withinTokyo 23 wards

12

eMobile StrategyeMobile Strategy

13

(As of March 2006）*1 Speed and monthly charges are based on the average price of top 5 ISPs.*2 Monthly price is for individual houses, and includes monthly modem rental charges.

PHS and othersPHS and others2 million users2 million users

【【MobileMobile】】

Potential Mobile Potential Mobile Data MarketData Market

【【32~384kbps32~384kbps】】5,000~15,000 yen5,000~15,000 yen

Pricing and speed need to be improved in order to expand

market

Fixed & Mobile Internet AccessFixed & Mobile Internet Access

Total : Approx. 31.2 million Total : Approx. 31.2 million

【【64kbps64kbps】】～～2,000 yen2,000 yen

【【11～～50Mbps50Mbps】】2,0002,000～～5,000 yen5,000 yen

【【1.51.5～～30Mbps30Mbps】】4,0004,000～～6,000 yen6,000 yen

【【1010～～100Mbps100Mbps】】6,0006,000～～8,000 yen8,000 yen

Speed and Monthly charges*

ADSLADSL14.5 million14.5 million（（4646％）％）

Dial UpDial Up7.9 million7.9 million（（2525％）％）

CATVCATV 3.3 million3.3 million（（1111％）％）

FTTHFTTH 5.5 million5.5 million（（1818％）％）

Non Internet userNon Internet user

Source: MIC

【【Fixed LineFixed Line】】

Entering March 2007Entering March 2007

14

eMobile Business Plan ScheduleeMobile Business Plan Schedule

FY3/2006 FY3/2007 FY3/2008 FY3/2009 FY3/2010 FY3/2011 FY3/2012

-Y1 Y0 Y1 Y2 Y3 Y4 Y5

Net profit positive

Subs. 5.0 million

EBITDA positive

Subs: 3.0 million

Data service

Voice serviceMar. Mar.

OperationOperation

FinancialFinancial

1.7Ghz License

Nov

Completed financing as plannedCompleted financing as plannedBuilding the network to prepare for the data service launch in 3Building the network to prepare for the data service launch in 3/2007/2007

Revenue 300 billion yenEBITDA 100 billion yen

Expand to nationwide

Expand coverage for voice service

Focus on Tokyo, Osaka, Nagoya area

15

（（500500億円億円~600~600億円）億円） （（646646億円）億円） （（140140億円億円~240~240億円）億円）

eMobile Financing StructureeMobile Financing Structure

Completed financing of 363.2 billion yen for eMobileCompleted financing of 363.2 billion yen for eMobile’’s funding requirements funding requirement

EquityEquity DebtDebt143.2 billion yen 220 billion yen

Bank LoanBank Loan：：total 13 bankstotal 13 banks

＋＋ = 363.2 billion yen= 363.2 billion yen

eAccesseAccess46.2%46.2%

Others 15.3%Others 15.3%

Goldman Goldman Sachs 24.9%Sachs 24.9%

TemasekTemasek7.0%7.0%

TBS 6.6%TBS 6.6%

*Woodperker Group, New World TMT, Mitsui&Co.,YodobashiCamera, BicCamera, Kojima,Yoshimoto Kogyo (Sedona Capital) etc…

Aozora Bank, Ltd. Mitsubishi UFJ Trust and Banking Corporation

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Sumitomo Mitsui Banking Corporation

**

16

eMobile Board of Directors StructureeMobile Board of Directors Structure

eAccess DirectoreAccess Director

Representative Director and COO

Haruo Taneno

Representative Director Representative Director and COOand COO

Haruo TanenoHaruo Taneno

Representative Director and CEO

Sachio Semmoto

Representative Director Representative Director and CEOand CEO

Sachio SemmotoSachio Semmoto

eAccess Representative Directorand CEO

eAccess Representative Directorand CEO

Representative Director and CFO

Eric Gan

Representative Director Representative Director and CFOand CFO

Eric GanEric Gan

eAccess Representative Directorand CFO

eAccess Representative Directorand CFO

External DirectorToyoo Gyohten

External DirectorExternal DirectorToyoo Toyoo GyohtenGyohten

External DirectorTaketo Furuhata

External DirectorExternal DirectorTaketo FuruhataTaketo Furuhata

President of Institute for International Monetary Affairs

President of Institute for International Monetary Affairs Former President of IDCFormer President of IDC

EVPShinichi Suzuki

EVPEVPShinichi SuzukiShinichi Suzuki

Former Senior VP&CTO of KVHFormer President of Nissho Techno

Former Senior VP&CTO of KVHFormer President of Nissho Techno

EVPYasushiro Murakami

EVPEVPYasushiroYasushiro MurakamiMurakami

Former Managing Director of Daimei Corporation

Former Managing Director of Daimei Corporation

External DirectorPeter Cowhey

ExternalExternal DirectorDirectorPeter CowheyPeter Cowhey

Dean of International Relations & Pacific Studies

Univ. of California, San Diego

Dean of International Relations & Pacific Studies

Univ. of California, San Diego

Director

Toshio Yasui

DirectorDirector

Toshio YasuiToshio Yasui

eAccess Representative Directorand COO

eAccess Representative Directorand COO

17

Network Construction ProcessNetwork Construction Process

Cell Planning (Phase 1)

Site Acquisition

Civil Work

Equipment Installation

Tuning (Optimization)

Operation

Completed

In-Process

Next process

18

Network ConstructionNetwork Construction

Selected Ericsson and Selected Ericsson and HuaweiHuawei as our two major vendors, as our two major vendors, eMobile is rolling a full nationwide 3.5G (HSDPA) network eMobile is rolling a full nationwide 3.5G (HSDPA) network

Radio Network : Start from Tokyo, Osaka, Nagoya area

Core Network : Nationwide

Radio Network : Start from Sendai, Sapporo area

19

Partnership with Partnership with HuaweiHuawei

eMobile has selected eMobile has selected HuaweiHuawei as our second RAN network vendor.as our second RAN network vendor.

HuaweiHuawei TechnologiesTechnologies

Headquarters: Shenzhen, ChinaHeadquarters: Shenzhen, ChinaSales in 2005: $8.2 billion Sales in 2005: $8.2 billion Employee: 40,000Employee: 40,000

Providing mainly WCDMA related equipments to the Providing mainly WCDMA related equipments to the leading next generation telecom network vendor leading next generation telecom network vendor serving 28 of the worldserving 28 of the world’’s top 50 operators, and s top 50 operators, and Serving over one billion users worldwideServing over one billion users worldwide

Nearly a half of employee is dedicated to R&D. Major Nearly a half of employee is dedicated to R&D. Major R&D centers are located in Bangalore, India and R&D centers are located in Bangalore, India and Silicon Valley.Silicon Valley.

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I.I. FY2006/1Q Results HighlightFY2006/1Q Results Highlight

III. Financial OverviewIII. Financial Overview

II. Operational OverviewII. Operational Overview

21

FY2006FY2006

15.22

1.99

1.58

0.93

4.87

1.75

2.89

FY2005FY2005

1Q1Q(2005/4(2005/4--6)6)

14.29

3.26

2.93

1.75

5.70

1.46

2.43

FY2006FY2006

ParentParent

1Q1Q(2006/4(2006/4--6)6)

- 6.1 %

+ 63.8 %

+ 85.4 %

+ 88.2 %

+ 17.0 %

- 16.6 %

- 15.9 %

YoY %YoY %

RevenueRevenue

Operating profitOperating profit

Recurring profitRecurring profit

Net IncomeNet Income

EBITDAEBITDA

CapexCapex

DepreciationDepreciation

(billion yen)

FY2006/1Q Financial ResultsFY2006/1Q Financial Results

14.29

3.26

2.93

1.75

5.70

1.46

2.43

ADSLADSL･･ISPISP MobileMobile ConsolidatedConsolidated

－

- 1.10

- 1.61

- 1.62

- 1.09

0.47

0.01

14.29

2.16

1.32

0.97

4.60

1.93

2.44

＋＋ ＝＝

1Q1Q(2006/4(2006/4--6)6)

NonNon--ConsolidatedConsolidated

Parent achieved 39.8Parent achieved 39.8％％ EBITDA margin and 22.8EBITDA margin and 22.8％％ operating profit margin. Mobile business startoperating profit margin. Mobile business start--up up losses were absorbed by ADSL/ISP business profit. Consolidated olosses were absorbed by ADSL/ISP business profit. Consolidated operating margin was 15.1%.perating margin was 15.1%.

YoYYoYComparisonComparison

*Minority interest adjustment of 0.83 billion yen in the net income line.

*

22

14.29

3.26

2.93

1.75

5.70

1.46

2.43

1Q1Q ForecastForecast ProgressProgress

56.00

10.90

9.70

5.40

20.50

13.00

9.60

25.5 %

29.9 %

30.2 %

32.4 %

27.8 %

11.2 %

25.3 %

NonNon--ConsolidatedConsolidated

14.29

2.16

1.32

0.97

4.60

1.93

2.44

1Q1Q ProgressProgress

56.00

- 3.20

- 6.30

- 1.30

6.90

93.70

10.10

25.5%

NA

NA

NA

66.7 %

2.1 %

24.2 %

ConsolidatedConsolidated

ForecastForecast

RevenueRevenue

Operating profitOperating profit

Recurring profitRecurring profit

Net IncomeNet Income

EBITDAEBITDA

CapexCapex

DepreciationDepreciation

(billion yen)

ADSL/ISP business progressed inADSL/ISP business progressed in--line with forecastline with forecastMobile business startMobile business start--up costs and Capex are mostly incurred FY2006/2Hup costs and Capex are mostly incurred FY2006/2H

Financial ProgressFinancial Progress

23

1,867 1,870 1,895 1,918 1,930

300 289 280 270 260

2,167 2,159 2,175 2,187 2,190

0

400

800

1,200

1,600

2,000

2,400

2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q

ISP 契約数ADSL 契約数

Achieved net subscriber addition through increasing demandAchieved net subscriber addition through increasing demandfor lowfor low--speed ADSL service and the bundling with Metal Plus servicespeed ADSL service and the bundling with Metal Plus service

ADSL/ISP Subscriber GrowthADSL/ISP Subscriber Growth

ISP Subscribers

ADSL Subscribers

Narrowband Subscribers

Non-eAccess broadband subscribers※Excluding eAccess’ ADSL

subscribers

（thou. Subscribers）

Subscriber

Subscriber

24

15,219 15,132 15,149 14,853 14,291

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q

(million yen)

Revenue decline was inRevenue decline was in--line with the expected ARPU dilution line with the expected ARPU dilution from rising Metal Plus and 1Mbps ADSL subscribersfrom rising Metal Plus and 1Mbps ADSL subscribers

Revenue GrowthRevenue Growth

25

5,206 5,416 5,6926,604

5,155

34.2%

39.8%

44.5%

35.8%34.1%

0

2,000

4,000

6,000

8,000

2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

EBITDA（ADSL ・ISP）

EBITDA margin (%)（ADSL・ISP）

Achieved high level of EBITDA margin of 39.8% up by 5.6% point YAchieved high level of EBITDA margin of 39.8% up by 5.6% point YoYoYfor ADSL/ISP business through continuous cost cutting effortfor ADSL/ISP business through continuous cost cutting effort

（million yen） （million yen）

EBITDA TrendEBITDA Trend

EBITDA and EBITDA margin trend EBITDA and EBITDA margin trend (Consolidated Basis(Consolidated Basis））

EBITDA and EBITDA margin trendEBITDA and EBITDA margin trend(ADSL(ADSL･･ISP OnlyISP Only））

4,874 4,691 4,8195,754

4,601

32.0% 31.0% 31.8%

38.7%

32.2%

0

2,000

4,000

6,000

8,000

2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q0.0%

10.0%

20.0%

30.0%

40.0%

50.0%EBITDA

EBITDA margin (%)

*2005/4Q figure includes NTT charges retroactive adjustment of approx. 1,000 million yen.

*

*

26

2,3312,829

3,262

2,439

4,071

15.3% 16.1%

18.7%

27.4%

22.8%

0

1,000

2,000

3,000

4,000

5,000

2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Operating profit（ADSL・ISP）

Operating margin (%)（ADSL・ISP）

1,990 1,963 2,218

3,204

2,162

13.1% 13.0%14.6%

21.6%

15.1%

0

1,000

2,000

3,000

4,000

5,000

2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Operating profit

Operating margin (%)

（million yen） （million yen)

Operating margin for ADSL/ISP business increased 7.5% point YoY Operating margin for ADSL/ISP business increased 7.5% point YoY due to a decline in depreciation and operating expensesdue to a decline in depreciation and operating expenses

Operating Profit TrendOperating Profit Trend

Operating profit and Operating margin trendOperating profit and Operating margin trend（（Consolidated BasisConsolidated Basis））

Operating profit and Operating margin trendOperating profit and Operating margin trend（（ADSLADSL･･ISP OnlyISP Only））

*2005/4Q figure includes NTT charges retroactive adjustment of approx. 1,000 million yen.

**

27

（million yen）（million yen）

Capex in 1Q is mainly for ADSL/ISP businessCapex in 1Q is mainly for ADSL/ISP businessMobile business Capex are incurred mainly in 2H Mobile business Capex are incurred mainly in 2H

Capex and Operating FCF TrendCapex and Operating FCF Trend

Consolidated Capex TrendConsolidated Capex Trend Consolidated Operating Free Cash Consolidated Operating Free Cash FlowFlow※※ TrendTrend

※ Operating Free Cash Flow ＝ EBITDA – Capex

3,128

3,558

2,881

3,369

2,673

0

1,000

2,000

3,000

4,000

2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q

1,928

2,384

1,938

1,132

1,746

0

1,000

2,000

3,000

4,000

2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q

28

Maintain a very strong balance sheet for ADSL service expansion Maintain a very strong balance sheet for ADSL service expansion and mobile business and mobile business Consolidated gross cash position reached 187.1 billion yenConsolidated gross cash position reached 187.1 billion yen

with a net cash position reached 93.9 billion yenwith a net cash position reached 93.9 billion yen

--

42.3 %

84.9 % 187.07

93.13

- 93.94

84.94

33.69

220.24

--

100.0 %

15.3 %

38.6 %

- 278.8％

53.33

25.8 %

--

100.0 % 136.39

113.1 %

68.3 %

----

29.2 %

39.1 %

93.13

39.81

35.20

Share of Total 期末残高BalanceBalance

<Parent>As of June 30, 2006

Share of TotalBalance期末残高BalanceBalance

<Consolidated>As of June 30, 2006

Share of TotalBalance(billion yen)

Cash and Cash Deposit

Debt

Total Asset

Net Debt/Equity ratio(%)

Net Debt

Minority Interest (eMobile)

Total Shareholders’ Equity

Balance SheetsBalance Sheets

29

29.2%

46.6%

14.6%

0

500

1,000

1,500

2,000

2,500

3,000

3/2005 3/2006 3/2007E0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Plan to payout quarterly dividend from 2Q. MidPlan to payout quarterly dividend from 2Q. Mid--term dividend is planned to be 900 yen.term dividend is planned to be 900 yen.

+300円 +500円

1,800 yen

1,300 yen1,000 yen (Plus 200 yen commemorative dividend)

Dividend per shareDividend per share（（PlannedPlanned））

0 yen1Q

900 yen2Q

450 yen3Q

450 yen4Q

Creating High Shareholders ReturnCreating High Shareholders Return

(Dividend per share, yen)(Dividend payout

- parent basis)

Dividend Dividend YieldYield 1.32％ 1.43％

Based on the March end stock price of each fiscal year.

2.52％**11 **11 **22

Based on the stock price on August 8, 2006 of 71,400 yen

Highest level of Highest level of dividend yield in dividend yield in industryindustry

**11**22

30

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 Company accept 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.

DisclaimerDisclaimer