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*****For immediate use March 26, 2003

NEC and SVA to Establish TFT LCD Joint Venture in China

- Construction of a state-of-the-art fifth-generation production line -




TOKYO, March 26, 2003---NEC Corporation (NEC) (NASDAQ: NIPNY) (FTSE: 6701q.l) (TYSE: 6701) and SVA (Group) Co., Ltd. (SVA) today announced that the two companies have signed an agreement to establish a TFT LCD joint venture company in June 2003 in Shanghai, China. The project between NEC and SVA is the first national project to be approved by China's new ruling Communist Party which is led by China's newly appointed President, Mr. Hu Jintao.

The China-based joint venture company will plan, develop and manufacture TFT LCD panels and modules for PCs, monitors and TVs, while focussing on China's huge market as its main sales target. The company will become the first facility in China capable of handing every aspect of TFT LCD manufacturing from the initial array and cell process to the final production line phase.

Under the terms of the agreement, the new company will be capitalized at 50 billion yen, with 75% contributed by SVA and 25% from NEC.
At a planned capital expenditure of 85 billion yen, a state-of-the-art fifth-generation production line (glass base:45 thousand sheets per month) with a large-size glass substrate of 1,100mm x 1,300mm, is scheduled to begin operation in October, 2004. The facility will employ an initial workforce of approximately 1200 staff.

SVA is a leading company in China's electronics and IT industries, especially for communication equipment, home communication terminals, household electric appliances and display devices. SVA has established many joint ventures with major Japanese companies, and recently, formed strategic alliances with IBM and Microsoft.

In Japan, from April, NEC will separate its LCD business and establish a new company called NEC LCD Technologies Ltd.(NEC LCD Technologies). NEC LCD Technologies will develop, design, manufacture and sell color LCDs and LCD technologies and target the industrial market by providing value-added, specialized customization for display products. The company will focus its business model to concentrate on the development of ultra-wide viewing angle technologies and high-resolution display modules that are in demand for high-end monitors. For mass production products, NEC will aim to strengthen its business model by carrying out product development, production and sales through the new joint venture company in China.

With establishment of NEC LCD Technologies, NEC continues its worldwide sales and distribution of LCD products. NEC Electronics America, Inc. is the sales supplier of NEC active-matrix LCD and PDP modules in North America, and NEC Electronics (Europe) GmbH markets and sells NEC thin film transistor (TFT) active-matrix LCD and PDP modules in Europe.

An outline of the new joint venture company and SVA (Group) Co., Ltd. follow this page as an attachment.

About SVA (Group) Co., Ltd.
SVA (Group) Co., Ltd. (SVA) was founded in 1995. Today, SVA is the largest electronics group in China. It has over 20,000 employees worldwide, R&D in US, China, and Taiwan, and production facilities in China, Argentina, and South Africa. International Corporate Partnerships with fortune 500 companies include Hughes, InFocus, JVC, Kenwood, Motorola, National, Samsung, Sharp, Siemens, SONY, Toshiba, and VDO. For more information, please visit the SVA home pages at: http://www.sva.com.cn

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 http://www.nec.com.

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Press Contact:

Japan
Daniel Mathieson
NEC Corporation
+81-3-3798-6511
d-mathieson@bu.jp.nec.com
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