NEC Launches Next Generation Thin Client Systems, First to Providing High Performance Multimedia Processing Utilizing Virtualization Technology
- New system delivers new levels of breakthrough price / performance

*****For immediate use November 6, 2006

Tokyo, November 6, 2006 ---NEC Corporation today announced the launch of a new Virtual PC-Class Thin Client System(*1). The new system includes the next generation of Thin Client computing device, the US100, which provides a high level of IP telephony and video processing quality in the smallest thin client footprint. The device is designed to achieve the impressive multimedia performance through the employment of NetClient(TM), the advanced system-on-a-chip solution that incorporates leading-edge technologies from NEC and ServerEngines™ LLC. The new system also features VMware Virtual Desktop Infrastructure pre-installed and pre-integrated with NEC systems through collaboration established under the VMware Virtual Desktop Infrastructure Alliance program.

Using NEC's Virtual PC-Class Thin Client System, enterprises large and small can realize substantial reductions in installation costs, as well as enhanced functionality not previously available in the market(*2). Sales of the new products begin today in Japan and Europe, while North America is expected to begin shipping the first quarter of 2007.

The breakthrough enhancements of the US100 include high audio and voice quality VoIP function, high video processing performance, and a significant reduction in initial installation costs, which solves some problems experienced with earlier Thin Client systems. In addition to the robust security and mobility of Thin Client systems, the new offerings are able to deliver a business environment that utilizes IP telephony and video that is comparable to that of an environment known to standard business PCs or rich clients but costs less. NEC's US100 helps to reduce power consumption by more than 60%(*3) compared conventional systems that employ business PCs.

The introduction of the Virtual PC-Class Thin Client System is the result of NEC's vision of Next Generation Network (NGN) integrated technologies. As part of this strategic initiative to leverage NEC's global competencies in visual, network and computing technologies, NEC has formed a specialized sales team in North America and Europe to expand business with strategic business partners.

NEC expects sales of 150 billion yen ($1.25B US) over the next three years of the total client integrated solution of various types of Thin Client systems with particular focus on the next generation Virtual PC-Class Thin Client systems.

Overview of New Products and Enhanced Sales Structure

1.	Advanced Thin Client Device
	(1) The US100 is the first Thin Client device to provide rich PC-quality high-speed video and audio processing delivering the next generation in thin client technology: Improving space efficiency, the palm-sized (15.5 cm (W) x 10.4 cm (D) x 3.4 cm (H)) device can be placed on the desktop or mounted behind the LCD screen. Employing ServerEngines' NetClient(TM) LSI chip, which was co-developed with NEC, US100 delivers high multimedia performance and is the first to introduces new functionality to the Thin Client market such as smooth video processing(*4) at the level of a business PC and VoIP system. Supporting industry standard protocols, the US100 provides enhanced levels of intelligent functionality which off-loads server processing and allows the device to work separately from softphone applications that connect to NEC's IP telephony server, UNIVERGE SV7000. Voice and video can be transmitted directly between US100 devices, eliminating server impact and ensuring a high quality of voice regardless of server processing conditions. The US100 was created through a collaborative effort between NEC Corporation, NEC Electronics, ServerEngines and Wyse Technology, the leading vendor in the Thin Client terminal market.   (2) The US50 Mobile Notebook Terminal (released in Japan only) builds on the emergence of the Next Generation Network concept to deliver the ultimate in a portable virtualized thin client environment: The B5-size Thin Client notebook has the footprint of a sheet of paper, weighs only 1 kilogram, is designed for portable usage. Services such as configuration design of ROM, customization, testing and packaging are provided in order to meet enterprises' existing system environments and operation needs. As a result, the terminal offers a high level of convenience as it offers automatic access to a server with a USB key, access to a server via a mobile card and wireless LAN service, and operates in the Virtual Private Network (VPN) environment.
2.	Advanced solution "All-In-One" NEC Express5800/Virtual PC Center (VPCC) Models realizes low-cost, next generation Virtual PC-Class Thin Client System
	(1) NEC Express5800/VPCC Virtual PC Server with pre-installed server function: The server is powered by VMware Virtual Desktop Infrastructure loaded with middleware and a client operating system that operates up to 20 units of virtual PC-class Thin Client terminals. As a result, the system can be installed and fully operational in a shorter time and at a lower cost than traditional Thin Client architectures.   (2) NEC Express5800/VPCC Management Server pre-installed: The NEC Express5800/VPCC Management Server provides centralized management over the entire VPCC system in an integrated fashion. The VPCC Management Server is loaded with middleware, which significantly simplifies PC administrative tasks over traditional desktop system management and traditional Thin Client management functions. Tasks such as reallocation of VPCC resources, addition of application software, bulk application of security patches, and advanced security provisioning provide system administrators enhanced efficiency and flexibility. With its detailed features for managing clients, this server achieves a significant reduction in operation and management costs after installation, compared to traditional business PC environments. The Express5800/VPCC Management Server is realized through the integration of VMware Infrastructure and NEC integrated platform management software.
3.	Enhancement of Sales Structure for Client Integrated Solution
	NEC established a strong sales structure in North America and Europe to accelerate the client integrated solution business, which focuses on the Virtual PC-Class Thin Client System. NEC Corporation of America will play the central role in promoting the business in North America, and NEC Computers working with NEC Philips Unified Solutions will drive the business in Europe. In addition, the sales structure will expand to business partners such as Group Bull in Europe.

The price and shipment date of the new products in Japan are as follows:

Product name	Characteristics	Price (excluding tax)	Shipment date
Thin Client TerminalUS100	Virtual PC/screen transfer-type compatible desktop terminal. Handles high-speed video drawings, VoIP function. Works with IC Card reader/writer.	52,000 yen (approx. $439)	December 15, 2006(*5)
Thin Client TerminalUS50(Available only in Japan.)	Virtual PC/screen transfer-type compatible notebook terminal (B5). Work with wireless LAN, IC card reader/writer.	220,000 yen (approx $1,857)	November 15, 2006
NEC Express5800/VPCC Virtual PC Server	Pre-loaded with hardware and software necessary for a virtual PC-class server. Easy installation.	1,916,000 yen(*6) (approx. $16,176)	December 15, 2006(*5)
NEC Express5800/VPCCManagement Server	Pre-loaded with a set of hardware and software necessary for a virtual PC-class management server. Centrally manages numerous virtual PC server sets and virtual PCs.	391,000 yen (approx. $3,301)	December 15, 2006(*5)

Since introducing a Client Integrated Solution in April 2005, NEC has expanded the technology and service offerings, from diagnostics and consulting of customers' client environments to optimized system design, construction and operation. There are three Thin Client systems available: "Virtual PC," "Net-Boot," and "Screen Transfer." The Virtual PC system, in particular, is evaluated highly by customers because it enables effective use of hardware assets by allocating server resources according to the user's load, as well as the utilization of existing applications.

Through enhancement of its Thin Client business, NEC strives to improve enterprise security, reduce TCO (Total Cost of Ownership), and deliver a highly mobile work-style in the Next Generation Network (NGN) era.

Comments from ServerEngines
"When NEC first presented their Virtual PC Center concept, we found it very compelling," said Raju Vegesna, president and CEO of ServerEngines. "As a result, we worked with NEC to develop the NetClient™ SoC to power the US100, the first of a new generation of Thinner Clients with embedded security and multimedia processing capabilities."

Comments from VMware
"VMware is excited to partner with NEC to deliver superior enterprise desktop manageability and security through virtualization," said Diane Greene, president of VMware. "NEC's Virtual PC Center offering is the result of collaboration under the VMware Virtual Desktop Infrastructure Alliance program and will facilitate the deployment of virtual desktops with our joint customers."

Comments from Wyse Technology
"Wyse is pleased to partner with NEC on the US100," stated Dr. John Kish, CEO, Wyse Technology. "By choosing the Wyse software suite including Wyse Thin OS to power the US100, NEC has chosen the best of breed operating system, for their thin computing environment. As the global leader in thin computing, we look forward to working with Global Strategic Accounts like NEC to expand the scope and reach of the thin computing paradigm."

*The names of the companies and products appearing in this release are either a trademark or registered trademark of their respective companies.

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Note

*1	Achieves an efficient work environment and a further reduction in TCO by virtually creating a PC environment on a server and flexibly allocating server resources such as a CPU to users.
*2	Ability to provide full motion video and audio through a virtualized thin client environment.
*3	Comparison with the entire client server system using 20 units of business PCs or rich clients.
*4	Codec at the time of shipment (December 15) will be MPEG-1/MPEG-2.
*5	The shipment date is for Japan only. The shipment date for North America and Europe is January 15, 2007.
*6	A single server accommodates the client environment of up to 20 people.

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Contacts In Japan

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