Comprehensive Business Alliance between SOFTBANK BB and BELLSYSTEM24

SOFTBANK CORP. is pleased to announce the results of a board meeting held on July 20, 2004, which approved a comprehensive alliance between our wholly-owned subsidiary, SOFTBANK BB Corp. (Head office: Chuo-ku, Tokyo; President & CEO: Masayoshi Son; “SOFTBANK BB”) and BELLSYSTEM24, Inc. (Head office: Toshima-ku, Tokyo; President & CEO: Yukio Sonoyama; “BELLSYSTEM24”). Under the alliance, SOFTBANK BB will outsource its call center operation with the aim of improving customer satisfaction with call center operations, strengthening information security and improving the efficiency of marketing, sales and productivity.

1. Comprehensive Business Alliance

(1) Administration of call centers

SOFTBANK BB has been considering the possibility of integrating the call centers it operates itself and those outsourced to several suppliers, with the objective of providing a higher level of call center operations. The purpose of the integration is to establish a customer support system that can respond to the increase in the number of members and the considerable expansion of services resulting from the merger with JAPAN TELECOM CO.,LTD.. After all call center operations have been integrated into BB Call Corp, all shares in BB Call will then be sold to BELLSYSTEM24, a highly specialized call center operator. Operating the call centers as a member of the BELLSYSTEM24 Group will facilitate improvements in customer satisfaction, security of information and efficiency.

(2) Outsourcing telemarketing operations

Telemarketing sales of all manner of products that are currently provided and as well as products that will be provided in the future by SOFTBANK Group companies will be outsourced to BB Call under the ownership of BELLSYSTEM24, which has sophisticated CRM marketing expertise. This operation will bolster the efficiency of sales and marketing, improve productivity and expand sales. As a condition for undertaking the sales, BELLSYSTEM24 will invest in the setup of the telemarketing systems and provide new services through BB call.

(3) Collaboration in new services

The SOFTBANK Group is considering ways of expanding sales through the telemarketing of new services that the group is planning to offer. BELLSYSTEM24 will provide the investment in the setup of systems associated with the provision of new services through BB call, to support the expansion of the new services promoted by the SOFTBANK Group.

2. Based on the comprehensive business alliance between the SOFTBANK Group and BELLSYSTEM24 in this transaction, BELLSYSTEM24 will make a total investment of 128 billion yen, consisting of the following amounts

• <1> Acquisition of BB Call shares (approximately 50 billion yen) and assumption of the loan liability (approximately 19 billion yen): Approximately 69 billion yen

  • transfer of call center operations
  • setup of telemarketing system

• <2> Investment in the setup of associated systems for the provision of new services: Approximately 59 billion yen

3. Effect on Business Performance

With this sale, SOFTBANK expects to post a profit on the sale of investment securities of approximately 40 billion yen in the fiscal year ending March 2005.

Reference

SOFTBANK BB Corp.

BB Call Corp.

BELLSYSTEM24, Inc.