*****For immediate use July 19, 2006

Tokyo, July 19, 2006 --- NEC Corporation (NEC) announced that it has reached a comprehensive agreement for the delivery of RF repeaters to Telefónica Móviles España, S.A. An RF repeater is a small sized radio network relay unit, which enables 3G services indoors, such as in railway or subway stations, office buildings and restaurants. It relays and amplifies the radio waves from 3G base stations and allows coverage in areas that have been conventionally difficult to reach.
3G telecommunications traffic is increasing annually as mobile network infrastructure is upgraded, such as to that of high speed downlink packet access (HSDPA). However, in the European market, research data shows that quite a large percentage (64%) of mobile communication is originating from indoor areas. This prompts mobile carriers to expand their 3G indoor coverage offering toward increased profits and improved customer service.
NEC has proven expertise and competence in domestic and international mobile infrastructure business and 3G mobile network optimization for both indoor and outdoor services. This built-in solution includes the provision of professional services such as optimum RF design with radio planning tools and equipment such as RF repeaters. RF repeaters, along with our micro node-Bs, which have an extremely strong record in the 3G infrastructure business, are essential items for provision of total 3G solutions indoors.
Spain has a population of 41.11 million people and boasts one of the highest levels of mobile phone penetration in Europe at 83%. Telefónica Móviles España, S.A. is Spain's largest mobile operator with 20.3 million subscribers. Building on its experience in the delivery of RF repeaters to Telefónica Móviles, NEC will expand its built-in 3G solutions business to various domestic and international carriers.
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| Akiko Shikimori, |
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| NEC Corporation Tel: +81337986511 a-shikimori@ay.jp.nec.com |
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