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Press Release
                        Media Contact:-
                        Aston Bridgman
                        NEC Corporation
                        TEL   :81-3-3798-6511
                        FAX   :81-3-3457-7249
                        E-mail:Aston_Bridgman@HO-PRD.ccgw.nec.co.jp

*****For immediate use October 4th, 1999

NEC Announces New Process Technology for World's Most Advanced System LSIs

- World's First 0.13-micron Process Technology -

[0.13-micron Process]
0.13-micron Process, "UX4"

NEC Corporation (NEC) (NASDAQ: NIPNY) (FTSE: 6701q.l) is to introduce the world's first 0.13-micron CMOS process technology with the development of its "UX4 Multi-feature Process" aimed at providing optimized System LSI-based solutions to meet the ever expanding variety of needs of the Internet equipment industry. System LSIs based on the UX4 process will enter product development from this month.

The world's first 0.13-micron CMOS process technology, UX4 will provide customers with a process set for multiple features optimized to meet their needs, including the choice between high-speed, standard and ultra low power consumption transistors in a single process. A prime feature of the new UX4 process is its use of Vt selection, that enables design of System LSIs utilizing any or all of the three transistor varieties to provide customers with the optimal solution to their needs.

UX4 will enable high-speed circuits of over 1GHz, to be integrated on the same System LSI as circuits designed using ultra low power consumption transistors to provide power consumption of less than half that of devices fabricated in a 0.18-micron process. With the added portability of NEC's IP core library, design lead-times for high-speed multi-function System LSIs will be reduced considerably.

UX4 will be a core technology in enabling System LSIs devices for a wide range of applications but particularly for Internet-related equipment such as mobile terminals and handsets for use with W-CDMA services.

Specifically, NEC is preparing its range of products to be available in the UX4 process, including its 64-bit high-performance VR-series microprocessors, its 32-bit V850-series of embedded microcontrollers, and System LSIs for digital television, digital recording equipment, home servers and other digital consumer electronics. It is also preparing its networking, personal computer peripherals and game consoles System LSIs, and cell-based ICs for a wide variety of products.

Aiming at becoming a semiconductor "Solutions Provider", NEC forecasts its System LSI business will see production sales in this current fiscal year (ending March 31, 2000) of 650 billion Yen, but expects that production sales figure to hit 1 trillion Yen in fiscal 2004, four years from now. The demand for Internet-related devices and equipment is one driver for this growth and this area is expected to account for over 50% of the System LSI business.

The UX4 multi-feature process is currently in production trials at NEC's UC Plant, the most advanced LSI development facility in the world located in the company's Sagamihara plant, and will be transferred to NEC Yamagata's newly completed Tsuruoka facility. The Tsuruoka facility begins operations for the first time from October 1999 and will introduce the UX4 process from April 2000.

To expand UX4 fabrication capability from 5,000 to 6,000 wafers per month at Tsuruoka, NEC will add a further 15 billion Yen to its current investment total in NEC Yamagata. With the strong demand for its System LSI products this year, NEC will also strengthen investment plans throughout its Semiconductor Group this year, concentrating domestic investment on NEC Kyushu, taking total investment for the Semiconductor Group from 130 billion Yen to 150 billion Yen this year.

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[Copyright(C) NEC Corporation 1999. NEC and C&C are trademarks of NEC Corporation.]