The T2K experiment has observed electron neutrino appearance in a muon neutrino beam produced 295 km from the Super-Kamiokande detector with a peak energy of 0.6 GeV. A total of 28 electron neutrino events were detected with an energy distribution consistent with an appearance signal, corresponding to a significance of 7.3 sigma when compared to 4.92 +/- 0.55 expected background events. In the Pontecorvo-Maki-Nakagawa-Sakata mixing model, the electron neutrino appearance signal depends on several parameters including three mixing angles theta(12), theta(23), theta(13), a mass difference vertical bar Delta m(32)(2)vertical bar and a CP violating phase delta(CP). In this neutrino oscillation scenario, assuming vertical bar Delta m(32)(2)vertical bar = 2.4 x 10(-3) eV(2), sin theta(2)(23) = 0.5, and vertical bar Delta m(32)(2)vertical bar > 0 (vertical bar Delta m(32)(2)vertical bar < 0), a best- fit value of sin2 theta(2)(13) = 0.140(- 0.032)(+0.038) (0.170(-0.037)(+0.045)) is obtained at delta(CP) = 0. When combining the result with the current best knowledge of oscillation parameters including the world average value of theta(13) from reactor experiments, some values of delta(CP) are disfavored at the 90% C. L.