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*****For immediate use August 26th, 2002

Toppan Printing and NEC integrate Printed Wiring Board Business by way of company split




TOKYO, August 26, 2002 - Toppan Printing Co., Ltd. (Toppan Printing) and NEC Corporation (NEC) (NASDAQ: NIPNY) (FTSE: 6701q.1) today announced that as of October 1, 2002, they will establish a joint venture company (the "New Company") by way of company split ("Kaisha Bunkatsu") under the Commercial Code of Japan (the "Split") and integrate their printed wiring board (including high density module board) business (the "Business").

  1. Purpose of the Split

    PCs, mobile phones, and digital AV equipment are becoming more advanced, smaller and more lightweight, and the performance expectations of network infrastructure equipment such as routers are increasing. LSIs and other electronic components incorporated in such products are required to achieve higher speed, multi-functionality and high-density. This has in turn given rise to demand for module boards for LSI package and printed wiring boards with high-density and high-reliability.
    Toppan Printing and NEC have decided to integrate their Business for the purpose of enhancing the competitiveness of their Business by utilizing the resources and the strengths of both companies, i.e. Toppan Printing's direct sales force and advanced multilayer technology, and NEC's build-up board mass-production technology, product design capability and fast TAT (turn-around-time).

  2. Outline of the Split

    (1) Business
    The New Company is expected to have sales in the region of 35 billion yen, a workforce of 2,100 employees.

    (2) Issuance of the New Company's shares
    At the time of its incorporation, the New Company will issue 20,000 shares of its common stock and allot 11,000 shares to Toppan Printing and 9,000 shares to NEC.

    (3) Assets, liabilities, rights and obligations to be transferred to New Company
    The material assets, rights, liabilities and obligations of Toppan Printing and NEC that the New Company will succeed and assume are as follows:
    (a) Accounts receivable, inventories, tangible fixed assets, intangible fixed assets, shares of subsidiaries and other assets belonging to the Business.
    (b) Accounts payable which belong to the Business.
    (c) Patents and other intellectual property rights which belong to the Business.
    (d) Contracts belonging to the Business.
     
    Toppan Printing and NEC will loan employees belonging to the Business to the New Company and cause such employees to provide their services for the New Company.

    (4) Schedule
    Effective Date of the Split October 1, 2002
    Date of Commercial Registration: October 1, 2002

    (Summary of the New Company)
    Name: NEC TOPPAN CIRCUIT SOLUTIONS, INC.
    Business Area: Development, design, manufacture, and sale of printed wiring boards and high-density module boards.
    Scheduled Date of incorporation: October 1, 2002
    Head office: Chuo- ku, Tokyo
    Directors: Yukio Tagawa (President), Yuichi Kumamoto, Seiichi Ito, Takeshi Toyama, Shunichi Suzuki
    Corporate Auditors: Yasunori Negishi, Akitake Tsuda,Hidetaka Kakiya, Takao Ono
    Stated Capital: 1 Billion yen
    End of fiscal year: March 31
    Stockholders: Toppan Printing (55%), NEC (45%)

  3. Transfer of subsidiaries

    As of October 1, 2002, the following subsidiaries of Toppan Printing and NEC will become wholly-owned subsidiaries of the New Company:

    (1) TN Technologies Niigata Co, Ltd.
    (a wholly-owned subsidiary of Toppan Printing, which will change its corporate name to NEC TOPPAN CIRCUIT SOLUTIONS NIIGATA, INC.)
    Address 5270 Aza-Yamazaki, Oaza-Ijimino, Shibata-shi, Niigata, Japan
    Established August, 2002
    President Keiji Miyajima
    Paid-in Capital 283 million yen
    Operations Manufacturing and sale of printed wiring boards

    (2) NEC Toyama, Ltd.
    (a wholly-owned subsidiary of NEC, which will change its corporate name to NEC TOPPAN CIRCUIT SOLUTIONS TOYAMA, INC.)
    Address 560 nyuzen, nyuzen-cho, shimoniikawa-gun, Toyama, Japan
    Established October, 1972
    President Seiichi Ito
    Paid-in Capital 300 million yen (as of March 31, 2001)
    Operations Manufacturing and sale of printed wiring boards

    (3) NEC Components Philippines, Inc.
    (a wholly-owned subsidiary of NEC, which will change its corporate name to NEC TOPPAN CIRCUIT SOLUTIONS PHILIPPINES, INC.)
    Address Light Industry & Science Park II, Barangay La Mesa Calamba, Laguna 4027, Philippines
    Established March, 1996
    President Kunihiko Suzuki
    Paid-in Capital 1165 million pesos
    Operations Manufacturing and sale of printed wiring boards

About Toppan Printing Co., Ltd.
Toppan Printing Co., Ltd., since its founding in 1900, has played key roles in worldwide leadership of the printing industry, generated global acclaim and US$10 billion in revenues. Today, the Company's operations extend beyond conventional lines of printing and show strong performances in each field, including securities and cards, commercial printing, publications printing, packaging, industrial materials, and electronics. Especially in the electronics field, Toppan boasts the largest share of the world market for liquid-crystal color filters. For more detailed information, please visit the Toppan Web site at: http://www.toppan.co.jp/english/.

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 140,000 people worldwide and saw consolidated net sales of 5,101 billion Yen (approx. US$38 billion) in the fiscal year ended March 31, 2002. For further information, please visit the NEC home page at: http://www.nec.com

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CAUTIONARY STATEMENTS:
The statements in this material with respect to our plans, strategies, and beliefs, as well as other statements that are not historical facts are forward-looking statements involving risks and uncertainties. A number of important factors could cause our actual results to differ materially from such statements. Among the factors that could cause actual results to differ materially from such statements include: general economic conditions in our markets; demand for, and competitive pricing pressure on, our products and services; our ability to continue to win acceptance of our products and services in highly competitive markets; and movements of currency exchange rates. Any forward looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

Press Contacts:

Nobuo Azami
Toppan printing Co., Ltd
+81-3-3835-5636
kouhou@toppan.co.jp  
Daniel Mathieson
NEC Corporation
+81-3-3798-6511
d-mathieson@bu.jp.nec.com
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