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*****For immediate use January 8th, 2003

Telekom Malaysia awarded NEC for xDSL platform for broadband access service




TOKYO and Melbourne, January 8th, 2003 - NEC Corporation ("NEC") (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701) NEC Corporation announced today that NEC Australia has won a contract to supply broadband xDSL platform from Telekom Malaysia, the largest telecom carrier in Malaysia, valued at RM16M. (about US$4.2M) through PERNEC, NEC's joint venture company in Malaysia. The xDSL platform provides Telekom Malaysia's ADSL broadband access. Operation of the platform has successfully begun.

NEC supplied Multi-Service Access Platform, AM31, developed by NEC Australia. AM31 is one of the highest quality broadband products in the industry, especially in expandability of up to 1,920 lines per rack and of adaptability to variety of interfaces. With adaptation of AM31 based broadband xDSL platform, Telekom Malaysia is able to provide a high-speed and reliable ADSL service to the users, and is able to expand its service flexibly.

Broadband access subscriber growth shows a dramatic increase initiated by the increase of Internet users in Malaysia, today. The growth of xDSL users is predicted to be approximately 40% per annual basis. This Contract is to cater for the growing broadband access market in Malaysia.

The broadband access market has been growing in the Asia Pacific region, and NEC was quick to adapt market demands, and was able to develop and supply xDSL systems to the market as one of the early xDSL system supplier. Currently, NEC ranked top xDSL supplier in Japan, and also has many supply records outside of Japan, including Hong Kong, having more than three million DSL lines operational all together in the Asia Pacific region.

NEC (in Japan) and NEC Australia are positioned as core development center for broadband access system. NEC plans to expand sales activities related to broadband solution targeting Asian countries, such as China, Taiwan, Malaysia, Thailand, Singapore, Indonesia to meet their strong market demand.

<About NEC>
NEC Corporation (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701) is one of the world's leading providers of broadband and mobile Internet solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as a Global Fortune 500(R) company and one of the world's top patent-producing companies, the NEC group delivers tailored solutions in the core technologies and services required in a networked world, ranging from advanced semiconductor solutions, to large-scale mission critical systems, systems integration, and broadband and mobile technologies. The NEC group employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2002. For additional information, please visit the NEC home page at http://www.nec.com.

<About NEC Australia>
NEC Australia Pty Ltd specialises in developing internet-enabled and mobile solutions for carriers, network operators and business. The company has 400 R&D staff undertaking leading research and development in third-generation (3G) mobile terminals, mobile satellites and DSL technologies at the NEC Technology Centre in Melbourne. NEC Australia's broadband business, NEXTEP Broadband, owns and maintains its own broadband network, and delivers services for SMEs and large businesses. NEXTEP Broadband's network is the second-largest on the east coast, with services available through 92 exchanges in Sydney, Melbourne, Brisbane, Newcastle, Wollongong, Geelong and Perth. For additional information, please visit the NEC Australia or NEXTEP websites at www.nec.com.au and www.nextep.com.au.

<About the project>

  • Customer:Telekom Malaysia
  • Prime Contractor:PERNEC
  • Contract Amount:RM16M (US$4.2M)

<Features of AM31 Multi-Service Access Platform>

  - xDSL Platform which support variety of technologies such as Ethernet, IP, ADM etc.
  - World leading DSL line density with up to 1920 lines per rack
  - Flexibility of access interfaces including ADSL, SHDSL, VDSL, E1/T1, and STM-1/OC-3 in one integrated platform
  - Adaptabillity to variety of services such as high-speed internet/intranet, VOD(Video on demand), VoDSL, Digital TV broadcast etc.

( http://www.nec.co.jp/press/en/0206/1802.html )

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Media Contact:

Akiko Shikimori, Corporate Communications Division
NEC Corporation (Tokyo Japan)
Tel: 81 (0)3 3798-6511
E-mail:a-shikimori@ay.jp.nec.com
Shawn Tan
NEC Business Coordination Centre (Singapore) Pte Ltd
Tel: 65-6416 9571
E-mail:shawn_tan@bccs.nec.com.sg
Sandy Watson , Public Relations
NEC Australia
Tel: 0401 714 880
E-mail:sandy.watson@nec.com.au
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