NEC Corporation



Press Release
                        Media Contact: 
                        Aston Bridgman
                        NEC Corporation
                        TEL   :+81-3-3798-6511
                        FAX   :+81-3-3457-7249
                        E-mail:a-bridgman@ak.jp.nec.com

*****For immediate use February 20th, 2001

NEC Publishes Financial Results Forecast Revision for Fiscal 2001 (Year to March 31, 2001)


TOKYO February 20th, 2001 - NEC Corporation (NEC) (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701) announced today, its revised financial results forecast for fiscal 2001 (year to March 31, 2001). Details of the results forecast are as follows: -

1. Revised consolidated financial results forecasts for fiscal 2001

2.Revised non-consolidated financial results forecasts for fiscal 2001

3.Background to NEC Corporation's Revised Financial Results Forecasts

Against a background of decreasing information technology-related investments since NEC made its financial results statement on October 26th 2000, the company's business environment has become increasingly severe with falls in the prices of memory devices and wavering demand in the domestic and overseas markets for personal computers. Despite efforts by NEC to promote sales of its products, reduce costs and management expenses and to implement other measures aimed at improving performance, the sudden and continuing erosion of prices and widespread fall in demand has made it necessary to issue today's revision to the financial results forecasts issued in October 2000.

4. Details to the Revised Financial Results Forecast

Consolidated financial results

a. While demand for mobile terminals continues to grow in the domestic market, the difficult situation in the semiconductor memory market and the flattening of demand for personal computers is expected to result in sales for the fiscal year ending March 31, 2001 that are 100 billion Yen lower than forecast in October 2000. This is expected to result in consolidated net sales of approximately <,400 billion Yen (+8% compared to the fiscal year ended March 31, 2000).

b. With the lower consolidated net sales forecast explained above, income before income taxes is anticipated to be <0 billion Yen lower than the forecast made in October 2000 and reach approximately 100 billion Yen (3.3 times higher than in the fiscal year ended March 31, 2000).

c. Net income for the period to March 31, 2001 is forecast to be 30 billion Yenlower and reach an estimated 60 billion Yen.

Non-consolidated financial results

d. Net sales are forecast to be 70 billion Yen lower than the October 2000 forecast resulting in estimated net sales of 4,130 billion Yen (+9% over the results for the previous year) for the year ending March 31, 2001

e. Due to the lower anticipated increases in net sales, ordinary income is expected to be 66 billion Yen (34 billion Yen lower than forecast in October, 2000), and net income is expected to reach 2< billion Yen or 11 billion Yen lower than forecast in the fall of 2000.

f. (i) Losses incurred due to the business restructuring of NEC's affiliates and the lowered value of holdings in affiliate companies due to the introduction of the stricter "Financial Product Accounting" method, will be taken as a non-recurring loss.
(ii) With the transfer of holdings in affiliate companies to a retirement trust fund to be established, and with the sale of securities in these companies and initial public offerings, NEC will also register non-recurring income.

Combined these measures are expected to result in a non-recurring loss of 26 billion Yen.

Results by In-house Company
(Consolidated basis)

1. Sales (in billions of Yen) Percentile figures indicate performance compared with the same period last year

2. Operating Profit (in billions of Yen) Percentile figures indicate performance compared with the same period last year

***


CAUTIONARY STATEMENTS:

1. The above forecasts are forward-looking statements involving risks and uncertainties. The important factors that could cause actual results to differ materially from such statements include, but are not limited to, general economic conditions in NEC's markets, which are primarily Japan, North America, Asia and Europe; demand for, and competitive pricing pressure on, NEC's products in the marketplace; NEC's ability to continue to win acceptance of its products in these highly competitive markets; and movements of currency exchange rates, particularly the rate between the yen and the U.S. dollar in which NEC makes significant sales.

2. In case where the information contained in this press release falls within the definition of "Material Information" under the Securities and Exchange Law of Japan, Article 166, Paragraph 2, if you read this press release before the time of "Publication" (which is defined under the Securities and Exchange Law of Japan and its Enforcement Ordinance as twelve hours after its release; i.e., approximately 11:00 p.m. on February 20, 2001 [JST]), you and the persons listed below may be prohibited from purchasing, selling, or making other transactions of shares of stock or other securities of NEC Corporation before the time of Publication.
- Other directors or employees of your company if the content of this press release comes to their knowledge in connection with their duty



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