Jupiter Telecommunications Financial Results For the Nine Months Ended September 30, 2007

In the third quarter of the fiscal year ending December 31, 2007, the Jupiter Telecommunications Co., Ltd. (JASDAQ: 4817) consolidated group (the J:COM Group) steadily implemented its “Volume plus Value” growth strategy. On September 1, 2007, Jupiter TV Co., Ltd. (JTV), Japan’s largest multi-channel operator in Japan, was merged with J:COM Group. With the merger, the J:COM Group is positioned to provide a full range of services from content creation and supply of programs in the multi-channel market, to program distribution for customers.

As part of its volume strategy, the J:COM Group focused its efforts on gaining new customers through the sales of bulk contracts for multiple dwelling units, a popular service that is a source of stable income for the J:COM Group. The sales push was centered on the marketing activities of approximately 2,000 direct sales representatives covering all parts of Japan.

As part of its value strategy, the J:COM Group sought to increase the average monthly revenue per unit (ARPU) by increasing the number of services offered per subscribing households (bundle ratio) and improving the value of existing services it already offers.

In the area of cable television services, the J:COM Group focused on gaining new subscribers to digital services, and promoting a shift from analog to digital services among existing subscribers. As a result, the cable television digital migration rate (the percentage of CATV subscribing households who have digital CATV service) as of September 30, 2007 was 63%, an increase from 47% as of September 30, 2006.

In the area of high-speed Internet access services, the J:COM Group introduced in September 2007 the J:COM NET Ultra 160 Mbps super high-speed Internet service for single and small-scale multiple dwelling units within 12 systems of the Kansai region.

Furthermore, in order to generate and develop new business opportunities, the J:COM Group established Media Business Department in March 2007 and took steps to strengthen its advertising media business. As one element in this effort, in July 2007, the J:COM Group acquired an 80% interest in Recruit Visual Communications Co., Ltd., a wholly-owned subsidiary of Recruit Co., Ltd. The new subsidiary was renamed Jupiter Visual Communications, Co., Ltd. In September 2007, Dentsu Inc. acquired a 10% equity stake in Jupiter Visual Communications Co., Ltd., a move which paves the way for the two companies to work on the joint development of new advertising media and advertising methods.

As a result of the aforementioned measures, subscribing households (the number of households that subscribe to one or more services) of consolidated system operators increased by 473,900 (or 22%) from September 30, 2006, to 2,615,300 households as of September 30, 2007. By type of service, cable television subscribers increased by 381,700 households (or 21%) from September 30, 2006 to 2,159,700 households as of September 30, 2007. The number of high-speed Internet access and telephony services subscribers increased year over year by 228,900 (or 24%) and 207,300 (or 20%) respectively. This brought high-speed Internet access subscribers to 1,182,000 and telephony service subscribers to 1,259,900 households as of September 30, 2007.

The bundle ratio decreased from 1.77 as of September 30, 2006 to 1.76 as of September 30, 2007. However, the ratio excluding the Cable West Group improved to 1.81 as of September 30, 2007. Also ARPU decreased from ¥7,756 for the nine months ended September 30, 2006 to ¥7,668 for the nine months ended September 30, 2007. However, excluding the Cable West Group, APRU increased to ¥7,931 as of September 30, 2007.

More: Consolidated Quarterly Financial Results Release; Presentation; Highlights of 2007 3Q Results; Earnings Presentaion (Video)