Sumitomo Corporation (CEO: Mr. Motoyuki Oka, Legal address: Chuo-ku, Tokyo) (hereafter referred to as "Sumitomo") subscribed to newly issued shares of Pacific Telecom Inc.(CEO:Mr. Jose Ricardo P.R. Delgado, Legal address: Saipan, MP 96950-0306) (hereafter referred to as "PTI"), the largest telecommunications operator in Commonwealth of Northern Mariana Islands (CNMI, Capital: Saipan) for approximately US$ 25mil, which comprises 25% of the equity of PTI after the capital increase.

PTI is an integrated-telecommunication operator in CNMI, who provides almost all telecommunication services such as mobile communication, internet and fixed-line communication (including long distance and international). The population in CNMI is about 80,000, and PTI has totally approximately 60,000 subscribers including mobile communication, internet and fixed line communication, and has dominant market share in internet and fixed-line communication. Originally these services were provided by the major American telecommunication operator "Verizon" until the current owner Delgado group in Philippine completed the purchase of the operation and continues these services under PTI in September 2005. The Delgado group is one of the prominent family groups in Philippine and expanded their business from the field of logistics and transportation services into the telecommunications market when they started the first GSM mobile communication service in Philippine called "ISLACOM" which was merged into "Globe Telecom" later. On the back of that expreience, Verizon selected the Delgado family as the preferred bidder when it chose to exit from the region. Sumitomo and the Delgado family have been in discussions for some time regarding the participation of Sumitomo into this venture.

Even after Sumitomo's subscription of the newly issued share of PTI, the current CEO from the Delgado family will remain with the company, and Sumitomo will dispatch two board members. Sumitomo will also help in the company's development by dispatching a person in charge of business development in new markets in the pacific, and actively engage in the management of PTI together with Delgado group. After the capital increase, PTI will expand his business in Pacific Ocean area (Hawaii and Guam) utilizing the revenue, know-how and management resources in CNMI. In Pacific Ocean area, Japan has high presence with millions of tourists, and in addition, the Philippines also has high presence as about 25% of the population in this area are of Philippine origin. PTI considers and researches the new business opportunity targeting such Filipino citizens in this area as a one of potential business.

Sumitomo has been developing its business in the Telecommunication & IT field such as mobile communication, mobile contents, wireless broadband service, and fixed-line communication, in overseas especially in Mongolia, Indonesia, Russia, Viet Nam. Sumitomo is looking at growth potential and strategic values on "mobile communication service", "mobile value added service" and "mobile handset distribution and retailing", and aggressively pursuing the opportunities to enter into these three businesses in overseas. Sumitomo creates value chain & vertical synergy of three businesses through its participation and brings state-of-the-art technology or business model in Japan where the mobile market is well advanced. At the same time, Sumitomo is studying several opportunities in North American, CIS and Asian market to execute its regional expansion of telecommunication businesses.

[PTI Company Data]
Company Name	:	Pacific Telecom Inc.
Head Office	:	Commonwealth of Northern Mariana Islands, Saipan
Shareholders Equity	:	US$ 36Mil (after the subscription of Sumitomo)
Shareholders (after the subscription of Sumitomo)	:	Delgado Group 75% Sumitomo Corporation 25%
Employee	:	140
Main Business	:	mobile communication, Internet and fixed line communication (including long-distance and International)
Revenue	:	US$ 40Mil (2006 estimate)