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NEC Establishes New Structure for Execution of Growth Strategy
- New structure aims to strengthen responsiveness to NGNs -

*****For immediate use March 23, 2006

Tokyo, March 23, 2006 --- NEC Corporation today announced the reorganization of its structure, effective as of April 1, 2006. The new structure aims to strengthen NEC's responsiveness to next generation network (NGN, note 1*) business opportunities, including the construction of telecommunication/service carriers NGN networks and platform systems for new services integrated by telecommunication and finance/broadcasting.

From this year, telecommunication/service carriers worldwide will embark on construction of NGNs that enable service tie ups (FMC, note 2*) between fixed line and mobile phones, and multi-cast transmission (note 3*) of image data etc. The construction of service provision platforms for the realization of new services and innovation in the area of communication network infrastructure that handles dramatic increases in traffic will be necessary to realize the provision of new, safe and secure network services. In addition, enterprises and financial institutions are also integrating their own information systems with information communication services through NGNs, striving to create new services.

In order to strengthen its responsiveness to NGN business opportunities such as these, NEC will further advance the collaboration/integration of its large-scale system construction technology, software technology, voice/data network construction technology, hardware technology and service provision know how, which it has cultivated over many years, through the revision of its organization, and accelerate the execution of its growth strategy.

On the other hand, enterprise customers are now further strengthening application of information communication technology (ICT, note 4*), such as next-generation CRM and SCM, toward further enhancement of management quality and increased competitiveness. The Japanese government has also started to implement an "IT new innovation strategy" with a view toward 2010 and is actively driving expansion of ICT applications.

In order to respond to these market trends, NEC will consolidate its management resources including consulting capabilities, IT/Network integration technology, outsourcing know how and voice/data integration technology of the NEC Group, and advance the exploitation of new markets through the development of leading-edge solutions such as RFID and grid computing.
A basic outline of the new structure and a list of the corporate officers in charge of the business units are set forth below.

Basic Outline of New Structure

1. Strengthening of NGN Responsiveness

(1)

Strengthening of solution provision capabilities responding to changes in information communication systems for the generation of NGNs
A Carrier Network Business Unit will be newly established to incorporate sales, systems integration (SI) services, hardware development and software development related to the construction of NGNs of telecommunication/service carriers.

(2)

Enhancement of large-scale mission critical solution provision capabilities
A Government, Community, Financial and Carrier Solutions Business Unit will be newly established to perform provision of construction of next generation service platform systems of telecommunication/service carriers supporting NGNs and sales/SI services related to construction of large-scale mission critical systems (note 5*) for government offices and financial institutions etc., which accompany construction of NGNs.

(3)

Strengthening of company-wide software business driving power
Currently, there is an increase in software development in the network area toward the realization of NGNs. In response to this business opportunity, a Software Business Promotion Unit will be newly established to promote future company-wide software business strategies, in addition to the promotion of company-wide software development know how, management and engineering.

2.

Strengthening of New Market Cultivation Capability

(1)

Strengthening of leading-edge solution provision capabilities
An Enterprise Solutions Business Unit will be established to promote creation of new enterprise solutions that unify consulting, IT, networks and outsourcing. Product development that supports solutions will be strengthened through collaboration with NEC Infrontia Corporation (HQ: Tokyo, President: Kazunori Kiuchi), which is soon to become a wholly-owned subsidiary of NEC Corporation.

(2)

Strengthening of platform business through integration of hardware and software technology
Hardware and software technology will be integrated, and an IT Platform Business Unit will be newly established to strengthen development of market-oriented computer and software products, as well as cost competitiveness, quality and sales expansion.

Corporate Officers in Charge of Business Units

The corporate officers in charge of the 10 business units, effective as of April 1, 2006, will be appointed as follows.

Domestic Sales Business Unit Senior Executive Vice President and Member of the Board Kazumasa Fujie
Government, Community, Financial and Carrier Solutions Business Unit Executive Vice President Masatoshi Aizawa
Enterprise Solutions Business Unit Executive Vice President and Member of the Board Saburo Takizawa
Social Infrastructure Solutions Business Unit Executive Vice President Masatoshi Aizawa
Carrier Network Business Unit Executive Vice President Botaro Hirosaki
IT Platform Business Unit Senior Vice President Yoshikazu Maruyama
NES Solutions Group Business Unit Senior Vice President Norihiko Kunishima
NE Software Development Group Business Unit Executive Vice President Toshihiko Takahashi
Mobile Terminals Business Unit Associate Senior Vice President Susumu Otani
Personal Solutions Business Unit Executive Vice President Toru Katayama

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of 4,855 billion yen (approx. $45.4 billion) in the fiscal year ended March 2005.
For additional information, please visit the NEC home page at: http://www.nec.com
* Newsroom: http://www.nec.co.jp/press/en/

* Please see the attachment for a detailed organization chart.


Notes

  1. NGN: Next generation network for telecommunication/service carriers based on IP technology.
  2. FMC: Fixed mobile convergence. Technology for close cooperation between fixed-line phones and mobile communication, and the services used by them.
  3. Multi-cast transmission: Technology for transmission of the same data to several specified receivers. Also used for image transmission on the internet.
  4. ICT: Information and communication technology.
  5. Mission critical system: Features all of the 4 following elements (1) High performance (2) High reliability (3) Strong and resilient security (4) Ease of development/maintenance. A system that has a minimal affect on society and business when it goes down.

NEC Press Contacts

In Japan
Diane Foley
NEC Corporation
d-foley@ax.jp.nec.com
+81-3-3798-6511

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