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*****For immediate use November 26, 2001

NDK and NEC to Restructure SAW Device Business

Tokyo, November 26, 2001 - Nihon Dempa Kogyo Co., Ltd. (NDK) and NEC Corporation (NEC) announced today that two companies have agreed to restructure their SAW (Surface Acoustic Wave Filter) business jointly.
SAW filters are one of the most important devices in mobile phones, and as such, the demand for these filters is also large in accordance with the expansion of mobile internet market.
NDK and NEC are to integrate their SAW device businesses and establish, in Spring 2002, a new joint venture company who develops, manufactures and sells SAW devices mainly for mobile handsets and other communications equipment.

NDK will take the initiative in operating and growing the new joint venture company, holding a majority of shares of the company. New development site will be located in Tokyo metropolitan area. The current manufacturing facilities of both companies, Hakodate NDK Co., Ltd. and Otsuki plant of NEC Yamanashi Ltd., will be responsible for manufacturing at the beginning of the joint venture, but after transferring technologies to the new company, Hakodate NDK will ultimately conduct all the manufacturing operation. Three years later, after NEC will have transferred all related technologies and operating activities, NEC intends to sell all of its holding shares of the joint venture company to NDK.

This agreement brings value to both NDK, whose strategy is to expand its SAW device business, and NEC, who has been seeking for an allied partner to restructure its SAW device business. NDK owns a global marketing network and is renowned worldwide for its competitiveness in devices for mobile communications equipment such as quarts devices while NEC holds a leading-edge SAW technology.

Combining NDK's SAW and other devices with NEC's SAW filters which employs plastic package technology, the new company will be able to provide high-value-added and high-performance device solutions with broader range as well as new types of module-devices to their customers.

NDK Group of companies are strongly involved in the development of new products and new business opportunities to cope with the progressing global IT market such as mobile communication and computers. NEC Group of companies are aiming to maximize its corporate value through the implementation of reorganization and restructuring measures.

About NDK
Nihon Dempa Kogyo Co., Ltd.(NDK), is one of the world's leading manufacturers of quartz crystal electronic components. The Company's crystal units and devices are recognized for their consistent high quality, which has led them to be adopted in an array of electronic devices in industries ranging from mobile communications equipment to automotive electronics and aerospace. NDK group employs approximately 5,600 people globally. Consolidated net sales rose 32% to yen74 billion in the fiscal year ended March 31, 2001.

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 approximately 150,000 people worldwide and saw net sales of 5,409 billion Yen (approx. US$43 billion) in fiscal year 2000-2001. For further information, please visit the NEC home page at:

NEC is the first and only company who employed plastic packaging technology for SAW filters, instead of ceramic package. This permits stable supply and large volume production. More over, the product can be assembled in the similar production line as semiconductors so permitting production volumes to be flexibly adjusted. It can realize lighter weight and compact package.

For further information, please visit the NEC home page at:


Press Contact:

Akiko Shikimori
NEC Corporation
Tel: +81-3-3798-6511
Hayami Ishikawa
Nihon Dempa Kogyo Co., Ltd
Tel: +81-3-3346-8151
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