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August 30, 2001
eAccess Ltd.

eAccess Announces 9-10 billion Third-Party Private Equity Placement Japan Telecom, Carlyle Group, and Goldman Sachs to lead one of Japan's largest ever private equity financing

TOKYO, August 30, 2001- eAccess Limited ('eAccess' or the 'company'), a broadband data communications company based in Tokyo, will raise an aggregate of 9-10 billion upon the completion of this third-party private equity placement in September 2001. The transaction, one of the largest ever third-party allocation of equity by a privately held company in Japan, is eAccess' new round of funding, following previous rounds in February 2000 (4.5 billion) and February 2001 (5 billion). With these three transactions, eAccess will have raised a combined total amount between 18.5-19.5 billion through third-party private equity placements. The current round of funding brings eAccess' capital to 10 billion, and gives the company total paid-in capital of 18.7-19.7 billion. (The exact amount will be confirmed upon the completion of the payment.)

This round of funding is characterized by three significant factors:

1. eAccess has secured the funding required to further develop its broadband operations
eAccess currently provides ADSL service through its own equipment installed in 473 local telephone exchanges in eight prefectures, including Tokyo, Osaka, Aichi and others. The company's current goals for its dynamic broadband services are to expand the geographic coverage of its ADSL services; construct a dedicated IP backbone using dark fiber; develop a range of value-added services, such as a content infrastructure; and promote fiber-to-the-home. The funding puts the company in a strong position to achieve these goals.

2. Investments based on strategic partnerships with telecommunications carriers
As part of this round of funding, eAccess is receiving 4 billion from Japan Telecom Co. Ltd. ("Japan Telecom"), one of the largest telecommunications carriers in Japan. Japan Telecom becomes the single largest shareholder (owning about 15%) in the privately held company. This financial relationship will form a stepping-stone for creating a strategic partnership between the two companies in the area of broadband services, especially DSL. (Please refer to today's press release, jointly announced with Japan Telecom, "eAccess and Japan Telecom to form Strategic Partnership")

3. Investments from major global investment firms including Carlyle Group's first major equity investment in Japan and continued commitment from Goldman Sachs
The Carlyle Group ("Carlyle"), one of the world's largest private equity firms, has recently established separate buyout and venture capital arms in Japan. This investment, Carlyle's first significant one in Japan, is a collaborative effort of both of these arms. Carlyle currently manages $14 billion of private equity capital in 15 funds operating in the United States, Asia, Europe and Japan. Since its founding in Washington, D.C., in 1987, Carlyle has been a significant telecommunications investor, often partnering with leading global telecommunciations companies and entrepreneurs. Goldman Sachs Group and its affiliated funds have invested more than $10 billion in 480 companies worldwide since 1986 and is one of the largest private equity investors in the world. Goldman Sachs Group and its affiliated funds have been a lead investor in eAccess since the Company's initial Series A round in February 2000, providing not only cash fund but also value added support on a continuous basis. Investments from Carlyle, Goldman Sachs, and others in the midst of the current highly competitive climate for venture capital can be taken as an indication of investors' positive evaluation of eAccess' business fundamentals.

In addition to Japan Telecom, Carlyle, and Goldman Sachs, this round's third party private equity placement includes Morgan Stanley, Premier Ventures, Sycamore Ventures as existing shareholders with additional investments; and Asahi Mutual Life Insurance, CDIB, HSBC Technology Fund, Nissho Electronics Co., Sumitomo Trading Co., and others as new equity investors (Above companies are listed in alphabetical orders).

eAccess was established in November 1999 as a broadband data communications company, focusing on DSL, Internet Protocol (IP) services and solutions to customers.
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eAccess Ltd.

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