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NEC Becomes Leading Provider of Point-to-Point Wireless Access System PASOLINK in Brazil's Mobile and Fixed Network Market

***** For immediate use December 21, 2005

Tokyo, December 21st, 2005--- NEC Corporation today announced that it has signed a contract with leading mobile and fixed network operators, VIVO, CLARO and Embratel, to supply NEC's fixed point-to-point PDH microwave system "PASOLINK". NEC expects to supply approximately 3000 hops of PASOLINK to Brazil within a year.

In Brazil, VIVO is the leading CDMA-based mobile operator, and Claro is the leading GSM-based mobile operator. NEC's PASOLINK will be deployed for further expansion of the mobile network of both of these operators, by connecting mobile base stations.

Embratel, a leading fixed network operator, will also deploy NEC's PASOLINK. Embratel has a high presence in network operations for the enterprise market. PASOLINK will be utilized to respond to the increasing data communications requirements of large corporations.

"Brazil's mobile and fixed network market is currently booming, as proven by the high demand for the deployment of broadband and mobile communications networks. We are honored that we have been assigned with the vital task of reshaping the mobile and fixed network landscape here. And NEC intends to further expand its PASOLINK business in this region," said Toshiyuki Mineno, Senior General Manager, Mobile Solutions Operations Unit of NEC Corporation. In Brazil, mobile subscribers have almost doubled over the past three years. At the end of 2005, the number of mobile subscribers is expected to reach 90 million, a figure corresponding to 50% of the total Brazilian population.

<NEC's PASOLINK >
NEC launched its first PASOLINK product in the mid 1980s, supplying 18GHz PASOLINK systems to a leading telecom operator in UK. Since then, business has expanded to a worldwide scale. Recently, due to the rapid expansion of mobile networks, many operators have been deploying PASOLINK to connect radio base stations to speedily facilitate the rapid and simple installation of mobile infrastructure. Sales of NEC's PASOLINK have rapidly expanded recently due to large-scale, long-term contracts with mobile operators, not only in Europe, but also other countries such as BRICs. The rapid growth of the business is attributable to NEC's long-standing experience, competence, advanced and high-quality technologies, and its leading position in the global microwave communication systems market. Currently, NEC holds the leading position in this market with a share of over 20%
PASOLINK is chiefly designed for telecom carriers' backhaul, business and emergency networks. It offers simple and highly reliable fixed wireless solutions. PASOLINK is a PDH/SDH microwave system, which offers a variety of systems to cover small to large capacity requirements. The systems operate at various radio frequency bands ranging from 4 to 52 GHz and a maximum traffic capacity of 2 X 155 Mbps. It is applicable to various solutions such as mobile network infrastructure to connect base stations, business user links, private networks, LAN/WAN interconnection and back up for optical fiber networks. NEC's PASOLINK allows for simple installation, speedy service introduction and efficient and economical solutions for day-to-day transmission as well as emergency situations.
 
NEC offers a wide range of products in the PASOLINK series, including PASOLINK, PASOLINK Mx and PASOLINK+. PASOLINK features Ethernet interface functions and adds ATPC (Automatic Transmitter Power Control) functions to further improve transmission quality. PASOLINK Mx features the world's largest capacity of 80 Mbps (40 x 2 Mbps) within the bandwidth of 28 MHz by 16QAM. It enables the easy and rapid expansion of broadband and mobile network infrastructure such as 3rd generation (3G) and mobile multimedia application services, without disrupting the current licensed bandwidth.
 
NEC will continue to expand its PASOLINK business to meet the demands of emerging 3G, mobile internet and IP network markets to gain a leading position in the mobile solution arena.

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Media Contact:

Akiko Shikimori, NEC Corporation
Tel:+81 (3) 3798 6511
e-mail: a-shikimori@ay.jp.nec.com

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