TOKYO, JAPAN, January 27, 2000 --- NTT Mobile Communication Network, Inc. (NTT DoCoMo) and Matsushita Communication Industrial Co., Ltd. will establish a new company to distribute music via NTT DoCoMo's PHS and cellular phone networks, the firms announced today. The new company, dubbed Air Media Incorporation, will be set up early next month. NTT DoCoMo will own 51% of the new venture and Matsushita Communication will own the rest.

Air Media Inc. will begin testing its new Mobile Media Distribution Service (MMD service) from April. A free trial service will begin the following month, with an aim to launch a commercially based MMD service - using a 64Kbps PHS data communications network - from the fall. Air Media is also planning to distribute music via a next-generation mobile telecommunications system that is based on wideband CDMA (W-CDMA) technology.

MMD will allow mobile phone users to download and sample songs, as well as access concert schedules and other music-related information from various content holders. Users can also enjoy interactive programs by responding to music popularity polls and taking part in other activities.

*EMDLB system: Music distribution system, which Matsushita Electric Industrial and UMG, BMG and AT&T are jointly developing and promoting in the United States.

Air Media will research MMD service requirements and monitor its efficiency. Research will focus on how and when the service is likely to be used, as well as popular content and average charges. Air Media will also poll users during the trial test period and incorporate the comments and opinions into the eventual commercial service.

2. Trial Period

Two months from May 2000

3. No. of monitors

500

4. Musical content

About 1,000 music selections (30 seconds each)

5. Area

NTT DoCoMo's PHS service area

6.Terminal

Air Media will provide a special PHS terminal and SD Memory Card Player to the trial user free of charge. The equipment must be returned at the end of the trial period.

Details concerning trial methods and user recruitment have not been finalized yet. Such information will be provided as soon as it is available.

Shinagawa-ku, Tokyo

DoCoMo is Japan's largest mobile communications operator. DoCoMo had more than 27 million subscribers as of December 1999, and consolidated sales of 3.1 trillion yen (US$27 billion) in fiscal 1998 (ended March 1999). It was formed in July 1992 to take over the mobile telecom operations and sales of Nippon Telephone and Telegraph (NTT). DoCoMo provides nationwide services, including cellular and PHS telephone, paging, satellite mobile communications, and maritime and in-flight telephone service. The company also has subsidiaries in the United States, France and Brazil. In February 1999, DoCoMo launched the "i-mode" service for continuous connection with the Internet via mobile phones. DoCoMo expects to introduce third-generation mobile communications based on its W-CDMA system in the spring of 2001. The company is listed on the Tokyo Stock Exchange.

Note: "DoCoMo" refers to NTT Mobile Communications Network, Inc.(operating in the Kanto Koshin-etsu region of Japan) and its subsidiaries, including 8 regional operators.