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R&D expenditures during fiscal 2011 totaled 867 million yen.

The major portion of R&D activities took place in the Mobile Communications, Broadband Infrastructure, and Fixed-line Telecommunications segments. The main items were as follows:

Mobile Communications segment

Research was carried out in the Mobile Communications segment, primarily related to telecommunications system upgrades.

Broadband Infrastructure segment

Research was carried out in the Broadband Infrastructure segment, primarily related to nextgeneration networks.

Fixed-line Telecommunications segment

Research was carried out in the Fixed-line Telecommunications segment, primarily into virtualization technology for server storage groups.

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As of Apr. 30, 2013

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