AirTouch to Join New Japanese Cellular Company — AirTouch Will Serve Six Japanese Markets with Over 100 Million People

Business Wire, March 30, 1995

SAN FRANCISCO--(BUSINESS WIRE)--March 30, 1995--Capitalizing on opportunities in the fast-growing Japanese cellular market, AirTouch Communications (NYSE:ATI) today announced that it is a partner in a new company being formed to provide cellular service in the Tohoku region.

AirTouch International will own a 4.5 percent interest in Digital TU-KA Tohoku Co., Ltd. The new company, headquartered in Sendai, north of Tokyo, plans to build a 1.5 GHz digital cellular system that will use the Japanese Digital Cellular (JDC) technical standard. The network is expected to start service in 1997. There are approximately 10 million people in the region.

AirTouch International also holds a 15 percent share in Tokyo Digital Phone, and 13 percent interests in Kansai Digital Phone and Central Japan Digital Phone. These three companies launched commercial service in 1994, and now have a total of more than 240,000 customers.

"Since we began providing cellular service in Japan last April, we consistently have been surprised by the phenomenal customer demand," said Sam Ginn, chairman and chief executive officer of AirTouch Communications. "By joining this new company, we will enhance our position in a very important market and be able to offer even more Japanese consumers affordable, high-quality wireless services."

Digital TU-KA Tohoku includes partners from two separate groups that have established cellular ventures in Japan: the TU-KA Phone Group and the Digital Phone Group. The new company is being formed to enable the partners to provide nationwide mobile communications services throughout Japan. As part of that effort, the partners have already created two other cellular companies that plan to begin service in the Kyushu and Chugoku areas in 1996. AirTouch owns 4.5 percent shares in each company.

The other major partners in digital TU-KA Tohoku and their ownership interests are: Japan Telecom (24.15%), Nissan Motor Co. (24.15%), Hitachi, Ltd. (5.5%), East Japan Railway Co. (5.5%), Nippon Steel Corp. (5%), Toyota Motor Corp. (5%), and GTE Mobile Communications International (4.5%). The company has a total of 41 shareholders.

Through its six Japanese cellular operations, AirTouch will serve regions with over 100 million people, or more than 80 percent of the Japanese population. The country's cellular penetration rate is less than three percent, compared with about 10 percent in the United States. AirTouch is also a partner in IDC, a Japanese international long-distance telephone service company.

AirTouch Communications is involved in cellular, paging and vehicle location in the United States and wireless ventures in many of the world's top markets, including Japan, Germany, Sweden, France, Spain, Portugal, Belgium, Italy, South Korea and Thailand. The company, which is based in San Francisco, serves nearly 3.6 million customers worldwide.

CONTACT: AirTouch Communications

Susan Rosenberg, 510/210-3910