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*****For immediate use March 11, 2003

NEC Announces New Management Structure to Strengthen
Business Integration of IT and Networks

- Transition from In-house Company Structure to Business Line Structure -

TOKYO, March 11, 2003 - NEC Corporation (NEC) (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701) today announced that as of April 1, 2003 it will transit from an in-house company system to a flat management structure, undertaking "Open and Flat Management" which is characterized by business lines and will promote "IT/Network Integrated Solutions" that will form the core of NEC's growth strategies.
Beginning with this reorganization, NEC will promote the integration of IT and Networks to operate as an integrated solutions provider and sharpen its customer-oriented management,which includes the establishment of a new solutions system and the development of middleware and IT/Network integrated products.

1.Outline of the Reorganization

1) Open and Flat Management Structure
NEC will eliminate the in-house company system or umbrellas of NEC Solutions and NEC Networks and transit to an open and flat business line structure that will cover the following nine business lines: Domestic Sales, Industrial Sales, Systems Services, Software, Computers, Broadband Solutions, Social Infrastructure, Mobile, and Personal Solutions. Simultaneously, NEC will further delegate authority to each business line to enable rapid decision making that closely adheres to customers' needs and market trends.

2) Appointment of Corporate Officers to Head IT/Network Integration
Executive Directors will be assigned to head IT/Network integrated business areas including system integration, middleware and hardware in order to establish an IT/Network integrated solutions structure and strengthen integrated software and hardware development.

3) Integration and Strengthening of Domestic Sales Divisions
NEC will implement integration of the business structure starting from the domestic sales divisions, the point of contact with customers and the market. To promote sales in the expanding IT/Network integrated market, NEC will integrate the Domestic Sales Division of NEC Solutions with the Network Sales Division and Government Sales Division of NEC Networks, and with its Corporate Domestic Sales Promotion Division.

4) Strengthening Solutions Business Through BIGLOBE
To enhance NEC's services business, the Personal BIGLOBE services operation unit will become independent and a Personal Solutions business line will be established to strengthen the alliance with NEC's personal computer business. Additionally, NEC's Business BIGLOBE Services Operations Unit will be incorporated into the Systems Services business line with the aim of reinforcing its outsourcing function.

5) Improving Staff Efficiency
NEC will integrate the current corporate staff divisions and the in-house company staff divisions to create an efficient organization and promote management that can closely work with business line operations.

Please see Attachment 1(Organization Chart) for detail on the new organization.

2.Corporate Officers

Please see Attachment 2 for executive personnel changes effective as of April 1, 2003.

Additionally, executives in charge of the nine business lines and the IT/Network integrated business areas will be appointed as follow:

1) Corporate Officers in Charge of Business Lines

1. Domestic Sales Senior Vice President Kazumasa Fujie
2. Industrial Sales Senior Vice President Hiroshi Takakuta
3. Systems Services Senior Vice President Kenji Ikehara
4. Software Associate Senior Vice President Koichi Ikumi
5. Computers Senior Vice President Tadao Kondo
6. Broadband Solutions Senior Vice President Kazunori Kiuchi
7. Social Infrastructure Senior Vice President Kazumasa Fujie
8. Mobile Senior Vice President and
Member of the Board
Tsutomu Nakamura
9. Personal Solutions Senior Vice President Kenji Yoshiyama

2) Corporate Officers in Charge of IT/Network Integration

1. IT/Network Integrated Executive Vice President and Kaoru Yano
  Solutions Member of the Board  
    Executive Vice President and Toshiro Kawamura
    Member of the Board  
2. Solutions Senior Vice President Kazunori Kiuchi
    Senior Vice President Kenji Ikehara
3. Products Associate Senior Vice President Masatoshi Aizawa
    Senior Vice President Kazuhiko Kobayashi
4. Middleware Associate Senior Vice President Masahiko Yamamoto
    Associate Senior Vice President Koichi Ikumi

NEC Corporation
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 high-speed, large-capacity mission critical systems, system 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


Press Contact:

Daniel Mathieson
NEC Corporation
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