TOKYO and MOSCOW - July 3, 2008

TransTeleCom Company CJSC (TTK), Russia's leading telecommunications backbone operator and NTT Communications Corporation (NTT Com) , jointly announced today that the Hokkaido-Sakhalin Cable System (HSCS), which directly links the two companies' telecom networks via an undersea cable between Nevelsk, Sakhalin in Russia and Ishikari, Hokkaido, Japan. began commercial operation on July 3, 2008.

The two companies jointly started to construct the fiber-optic submarine cable HSCS in 2007 and the work has been completed in December 2007. HSCS measures 570 km in length and has a capacity of 640 Gbps. Its startup gives NTT Com the shortest route between Japan and Europe, compared with existing cable routes through southern Asia and the United States, by connecting the cable to the TTK's extensive backbone network in Russia, which exceeds 55,000 km.

The HSCS route will enable NTT Com to provide the following high-reliability, high-quality services:

• Global Leased Line
NTT Com will provide additional offering in Arcstar Global Leased Line Service utilizing the new route and taking orders starting today. It is estimated to shorten the latency within the company's backbone by 20 to 30% compared to the existing routes. 

• Global IP-VPNs
The HSCS route will be added to the backbone of NTT Com's secure, scalable Arcstar Global IP-VPN Service (MPLS) beginning August 2008.

• Transit Service 
The HSCS route will be added to NTT Com's global IP Tier 1 network covering Asia-Pacific Europe and North America, with connection to major ISPs worldwide, beginning today.