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KDDI Announces Strategic Investment in CDNetworks Co., Ltd.
[October 14, 2011]

KDDI Announces Strategic Investment in CDNetworks Co., Ltd.

TOKYO --(Business Wire)--

KDDI (News - Alert) (TOKYO:9433) announced an agreement with the shareholders of CDNetworks Co., Ltd. (Headquarters: Seoul, CEO: Samuyeol Ko, "CDNetworks"), a global Contents Delivery Network (CDN) service [1] provider, on strategic investment in the company.
Based on this agreement, KDDI will purchase 85.5% of common shares in CDNetworks for approximately USD167 million (approximately JPY 12.8 billion) [2] in October 2011 and KDDI will embrace CDNetworks as one of KDDI family.

CDN services realize acceleration of Internet communication by temporary cache and delivery of contents in servers which are located closer to the end users. The services are now essential for Internet providers to offer their users stress-free and comfortable services and contents. CDNetworks operates its CDN business in 70 cities in 31 countries [3], focusing on Korea, Japan, China, the United States and Europe. CDNetworks is highly competitive in Asia, which is a rapid growing field of the Internet related business.

KDDI will add new value, combining high-quality Internet network and CDN services, to various Internet service providers including contents providers through the strategic investment in CDNetworks. In addition, KDDI will realize offload of further increasing mobile traffic and build up the network environment suitable for the smartphone era by adding CDN services in KDDI's mobile platform.

[1] See separate sheet for the overview of CDNetworks' business
[2] USD 1 = JPY 76.88 (as of October 11, 2011)
[3] As of May 2011


Company overview of CDNetworks

Company name   CDNetworks Co,. Ltd.
Establishment May 2000
Capital Approximately USD 6 million
Headquarters Seoul, Korea
Representative Samuyeol Ko (CEO)
Revenue Approximately USD 99 million (FY 2010)
Branches Korea, Japan, China, the United States, France and the United Kingdom


  Contents Delivery Network Business, Data Center Business

About KDDI
KDDI Corporation is the only telecom company in Japan that provides broad services ranging from fixed line to mobile communications. With more than 30 million subscribers, KDDI is Japan's second-largest mobile operator. Furthermore, with more than 50 years of strong tie-up with overseas telecom companies, top-class line volume in Asia, and high-quality network development in the United States and Europe, KDDI offers various services around the world using globally established "TELEHOUSE (News - Alert)" data centers as its foundation.

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