| *****For immediate use September 28th,
Postponement of Start of Operation at New Front-end Manufacturing Plant
TOKYO, September 28th, 2001 - Elpida Memory
Inc. ("Elpida") today announced that although it will proceed with and
advance the construction of the planned 300mm wafer front-end manufacturing plant
at the NEC Hiroshima site, equipment installation will be postponed due to the
unprecedented continued worsening of conditions in the DRAM market, and added
to by the inability to read future conditions due to the recent terrorist attack
on the United States of America. Equipment installation at the new fab originally
scheduled to start in December 2001 will now commence from September 2002.
Both NEC Corporation ("NEC") (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701)
and Hitachi, Ltd. ("Hitachi") (NYSE: HIT) will continue product supply
from NEC Hiroshima Ltd. and Hitachi Nippon Steel Semiconductor Singapore Pte.
Elpida Memory Inc. ("Elpida") was established in December 1999 as
a joint venture DRAM company between NEC and Hitachi, bringing together the engineering
skills of both companies at Elpida's Development and Device Center in Sagamihara
City, Kanagawa Prefecture. Elpida has approximately 450 engineers working on development
and design of DRAM devices based on a leading edge 0.13-micron process rule. In
August 2000 the company succeeded in developing the world's first 256Mb DRAM using
this leading-edge process rule, realizing a die-size 50% smaller than equivalent
devices based on conventional 0.18-micron process technology.
Combining NEC and Hitachi's DRAM marketing operations, Elpida began its own
sales operations from February 2001 including existing products from the two partners.
However, although the business integration of both NEC and Hitachi with Elpida
has advanced favorably, the unprecedented depression in the DRAM market has left
no option but to postpone the start of operation at the new DRAM facility.
Elpida, the only DRAM specialized company in Japan with all functions from
development to production and sales, is aiming build strong ties with customers
and take a leading position along side top DRAM companies in the world market.
About Elpida Memory, Inc.
Elpida Memory, Inc. (formerly NEC-Hitachi Memory, Inc.) is a global corporation
with its headquarters based in Tokyo, Japan, and sales and marketing operations
located in Japan, North America, Europe and Asia. Elpida was officially formed
on December 20th, 1999. Research, design and development operations were merged
from NEC and Hitachi on April 1, 2000 and sales and marketing operations commenced
in the first quarter of 2001.
Elpida's entire product line-up will be marketed under the Elpida brand name
and will include DRAM devices and modules inherited from both NEC and Hitachi,
as well as products designed and developed by Elpida as they become available
for production. The company is currently involved in developing leading-edge DRAM
products based on 0.13-micron process technology. Elpida's main DRAM foundries
are located at NEC Hiroshima and Hitachi Nippon Steel Semiconductor Singapore
with additional production capacity available from other NEC fabs.
For more information, visit Elpida's World Wide Web site at http://www.elpida.com
About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) is a leading provider of Internet
solutions, dedicated to meeting the specialized needs of its customers in the
key computer, network and electron device fields through its three market-focused
in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC
Corporation, with its in-house companies, employs more than 150,000 people worldwide
and saw consolidated net sales of 5,409 billion Yen (approx. US$43 billion) in
the fiscal year ended March 31, 2001. For further information, please visit the
NEC home page at: http://www.nec.com
About Hitachi, Ltd.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global
electronics companies, with fiscal 2000 (ended March 31, 2001) consolidated sales
of 8,417 billion yen ($67.9 billion*) The company manufactures and markets a wide
range of products, including computers, semiconductors, consumer products and
power and industrial equipment. For more information on Hitachi, Ltd., please
visit Hitachi's Web site at http://global.hitachi.com
* At an exchange rate of 124 yen to the dollar.