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*****For immediate use November 8th, 2001

NEC to Establish Software Center for Telecom Infrastructure Systems

Tokyo and Beijing, November 8, 2001 - NEC Corporation (NASDAQ:NIPNY) (FTSE:6707q.1) (TSE:6701) announced that it plans to establish software development center named "Networks Software Center" for telecommunications infrastructure systems in February 2002, as one division of NEC China Ltd. The new software center will be located in Beijing and Shanghai.

The center will focus on developing middle-wares and application software of NEC's broadband & mobile network infrastructure systems for telecommunication operators and ISPs / ASPs. In addition to the development function, the center plays an important role to manage recruiting and procuring software from software vendors outside NEC on contracted basis in China.

The initial number of software engineering resource will be around 50 for the start and the number will be increased to 500 after three years (FY 2005).

NEC holds software development bases in the U.S, U.K., Brazil, Philippines and other countries, and also utilizing software vendors outside. The new "Networks Software Center" in China will become the largest telecom-related software base outside Japan.

Currently, telecom operators are pursuing further efficient management of their own network and also pursuing to offer attractive and differentiated network services and applications to their end-users. This trend will be accelerated in the future and, under such circumstances, it is important for telecom vendors like NEC, to offer total solution combining systems and software with high-cost-performance to meet the demand of operators. This is the reason for NEC to further expand its telecom software development and procurement bases, and will reinforce the new Networks Software Center in China.


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Akiko Shikimori
NEC Corporation
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