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Japan's Economy Proves Vibrant for cdmaOne™ Technology

COSTA MESA, Calif., May 11, 1998 -- Signifying significant growth opportunities for Japanese cdmaOne operators, the CDMA Development Group (CDG) today announced that despite Japan’s recent economic recession, the Japanese telecommunications industry continues to increase capital spending to support an increased demand for wireless services, and that the country continues to be an explosive growth market for cdmaOne technology.

"In order to support demand for new digital communications systems, Japanese operators have already begun to increase capital spending by as much as 10 percent compared to last year. Clearly Japan's cdmaOne operators remain unaffected by the country's current economic condition," said Perry LaForge, executive director of the CDG. "In fact, at the end of March, published cellular subscribers reached an all time high of more than 31.5 million -- the numbers are continuing to climb, and cellular operators DDI and IDO are on track to provide nationwide cdmaOne service in Japan."

CDG member company DDI-Cellular Group recently announced that three of its cellular subsidiary companies — Kansai Cellular Telephone Co. Ltd., Kyushu Cellular Telephone Co. Ltd. and Okinawa Cellular Telephone Co. Ltd. — plan to begin cdmaOne service on July 14, 1998. In addition, DDI’s five remaining cellular subsidiaries and IDO have recently submitted applications to provide cdmaOne services to the Ministry of Posts and Telecommunications. Based on current deployment forecasts, Japan will enjoy nationwide cdmaOne coverage by April 1999.

In addition, Japan's DDI Corp. recently launched a significant advertising campaign, signing United States movie idol Leonardo DiCaprio, star of the blockbuster Titanic, to appear in a series of commercials, print advertisements and collateral materials for its cdmaOne cellular phone system. The commercials are scheduled to begin airing in June 1998.

DDI and IDO chose cdmaOne technology for its superior voice quality, subscriber capacity and ability to provide the foundation for third generation wireless services. Due to consistently high levels of demand for wireless services, Japan is facing spectrum shortages in the Osaka and Tokyo metropolitan areas by the end of 1998. In the Japanese networks, the inherent spectral efficiency of cdmaOne will be further enhanced by the use of advanced 8kbps EVRC vocoders. Such enhancements will enable DDI and IDO to provide the call capacity needed to meet projected levels of demand for cellular services into the 21st Century.