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*****For immediate use June 3rd, 2002

Matsushita(Panasonic), NEC and Huawei Announce the Establishment of a Joint-venture Company in China to Expand 3G Mobile Handset Business.




BEIJING, China - NEC Corporation (NEC), ranked among the world leaders in computers communications and electronic devices, Matsushita Communication Industrial Co., Ltd. (MCI), known worldwide for the Panasonic brand of digital communications products, together with Huawei Technologies Co., Ltd. (Huawei), one of the leading manufacturers of telephone base station and other telecom infrastructure systems in China, today announced the establishment of a joint venture company "COSMOBIC Technology Co.,Ltd. (COSMOBIC)" in Shanghai, China to further expand the 3G mobile handset business of NEC and MCI. The official date of establishment is April 27th, 2002.

The total capital of COSMOBIC is US$8 million with NEC, MCI and Huawei owning 47%, 47% and 6% of the share, respectively. COSMOBIC is expected to begin its operations by the end of June this year.

Acting as a distribution base for the accomplishment of previously announced joint collaboration activities of NEC and MCI, the new company aims to accelerate the penetration of next generation mobile handsets and mobile internet technologies. The business of the new company will target not only at the Chinese market, but also global market. Its core businesses are as follows;

(1) COSMOBIC will secure licenses from NEC/MCI related to core communication software technology and sub-license them to handset and semiconductor manufacturers.
(2) COSMOBIC will develop and license the technology to handset and semiconductor manufacturers under contract with NEC/MCI or with a third party.
(3) COSMOBIC will develop application software under contract with handset and semiconductor manufacturers.
(4) COSMOBIC will provide technical support including interoperability testing to communication carriers and handset manufacturers.

The main objectives of establishing the new company in China, the largest mobile market and manufacturing site of mobile handsets in the world, are to promote NEC and MCI, to build a pool of high quality local engineers, to gather information on a global basis and to strengthen the relationship with China's major communication carriers.

Huawei's knowledge and experience of the Chinese mobile operations coupled with its current 3G research and development, will enhance the technical expertise on handset/infrastructure interoperability. This will serve as a firm foundation for Cosmobic to provide custom-made solutions to mobile operators and subscribers.

The establishment of Cosmobic has received support from China Mobile Communications Corp. (Headquarters: Beijing), the largest Chinese mobile telecommunications carrier. Mr Zhang Ligui, Secretary of the Party Committee of China Mobile, anticipated for the opening of Cosmobic with an encouraging note. "China Mobile congratulates on the establishment of Cosmobic, a joint venture by NEC, MCI and Huawei. As the world's largest network provider with the largest subscriber base, China Mobile is dedicated to the introduction and expansion of 3G mobile service. We realize that the close relationship between mobile operator and mobile terminal manufacturers is crucial to the success of 3G service. China Mobile will work hand in hand with Cosmobic in 3G mobile development to realize real-time communications at anytime anywhere."

Overview of the new company:

Company Name : COSMOBIC Technology Co., Ltd.
Chairman : Tsutomu Nakamura
President : Michio Sasaki
Place of Operation : Shanghai, China
Capital : US$8 million
Controlling Share : NEC 47%, MCI 47%, Huawei 6%
Business Contents : Core technology & know-how sublicensing, Core technology development, Application customization, Technical support
Commencement of Operation : End of June, 2002
Employees : 100 (as of the end of December 2002)

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.1) is one of the world's leading providers of Internet, broadband network and enterprise business solutions. NEC delivers tailored solutions in the key fields of computer, networking and electron devices, through its three market-focused, in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2002. From handsets to major network systems and mobile applications, NEC offers total solutions for mobile communications, and is leading the way as the first company in the world to supply 3G handsets and infrastructure systems. For additional information, please visit the NEC home page at: http://www.nec.com.

About Matsushita Communication Industrial
Matsushita Communication Industrial Co., Ltd (MCI) is a principal subsidiary of Matsushita Electric Industrial Co., Ltd., best known for its Panasonic brand consumer and industrial products. Matsushita Communication Industrial specializes in three business areas: mobile communications, automotive multimedia, and system solutions. One of the world's first 3G handset manufacturers for commercial services in Japan, the company recorded sales of 783.8 billion yen (US$5.9 billion) for the fiscal year ended March 31, 2002. For more information, visit http://www.mci.panasonic.co.jp/english.

About Huawei Technologies
Incorporated in 1988 and headquartered in Shenzhen, China, Huawei Technologies (http://www.huawei.com) is a private high-tech enterprise fully owned by its employees. Huawei specializes in the research and development (R&D), production and marketing of telecommunications equipment, providing customized network solutions for telecom carriers in fixed, mobile, optical network and data communications network. Sales in 2001 were US$3.1 billion.
Huawei products have been put into wide applications in 38 countries including Germany, Spain, Russia, Brazil, Kenya, Egypt, Thailand, Singapore and South Korea.
Among Huawei's 22,336 employees (as of Dec.31, 2001), 45.7 percent are engaged in R&D. Each year Huawei invests no less than 10 percent of its revenues into R&D.

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Media Contacts:

Akiko Shikimori, Ken Fukuchi, NEC Corporation (Tokyo, Japan)
Tel: +81-3-3798-6511 Fax: +81-3-3457-7249
Shawn Tan
NEC Business Coordination Centre (Singapore) Pte Ltd
Tel: 65-6416 9571
Shigeo Kusakabe, Matsushita Communication Industrial Co., Ltd.
Tel: +81-3-3438-9203 Fax: +81-3-3438-9212
Jun Fu, Huawei Technologies Co., Ltd
Tel: +86-755-8782637 Fax: 86-755-8782635

Contact for Cosmobic General Information:
http://www.cosmobic.com

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