NEC Strengthens its Business Capability in India through Establishment of New Company for IT/Network Business

NEW DELHI, INDIA, 11 March 2006 -- NEC Corporation (NEC) today announced that it will establish a new company, NEC India Pvt. Ltd (tentative name), in April 2006 in New Delhi, India, in order to expand its IT/Network business in the rapidly expanding Indian IT market. The new company will provide solutions for construction of communication infrastructure and corporate IT/Network infrastructure accompanying a rapid increase in IT-related public investment and increased communication demand in India.

NEC India Pvt. Ltd is scheduled to start operation in April, 2006. On establishment, the company will employ 50 people and there are plans to increase this number to approximately 300 employees over 3 years. The new company will be founded with capital of 1 million US dollars and NEC Solutions Asia Pacific Pte. Ltd (NECSAP) will own a 60% share and NEC 40%. It will provide leading-edge IT/Network Solutions such as information systems, internet protocol (IP) systems, security systems, radio frequency identification systems (RFID) and wireless systems. In addition, it will sell mass-market IT products such as servers, PCs and projectors.

In recent years, the Indian economy has been booming due to the advancement of industrialization and the development of incentive measures for foreign funding by the government. According to the Indian government, the estimated GDP growth rate for this year (April 2005 to March 2006) will be 8.1%. Moreover, it aims to maintain an average growth rate of 7-8% over the next 10 years. This will lead to expectations for improved purchasing power by a population of greater than 1 billion people. In addition, as a world-leading software developer, will continue to become an even more important market within Asia as a country possessing high growth potential in the IT field.
NEC has been developing communication infrastructure business in since it established a representative office there in 1977. Following that, NECSAP set up an office in 2002, and began selling IT equipment. In addition, NEC’s Purchasing Division established a liaison office in Chennai in 2002 as a procurement support base mainly for offshore outsourcing of software development. Moreover, NEC System Technologies, Ltd. established a joint venture company, NEC HCL System Technologies, with Indian company HCL Technologies Ltd. in December 2005, as a production base for software development.

“Our new company in will provide solutions that meet local needs, responding to the rapidly growing IT/Network demand that is forecast in the booming Indian market,” said Mr. Norihiko Kunishima, Senior Vice President at NEC Corporation. “We also plan to capitalize on high-quality local software resources to develop our own proprietary products and expand local sales, contributing to the expansion and growth of India.”

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 www.nec.com

About NEC Solutions Asia Pacific Pte Ltd
A wholly-owned subsidiary of NEC Corporation, NEC Solutions Asia Pacific is a leading information technology services provider with core competencies spanning the entire range of systems integration and consultancy services. This includes world-class identity solutions, turnkey implementation of mission-critical solutions, project management, and regional systems support and maintenance services. As the NEC regional hub for systems integration in South Asia , the company also supports sales and services in South Asia including and for systems integration. NEC Solutions Asia Pacific is the first recipient of the Singapore Economic Development Board's International Headquarters Award.

The company's suite of solutions and services covers Systems Integration, Identity Solutions, RFID Solutions, Financial Solutions, Retail Management Solutions, Managed Services & Outsourcing Centre, Manufacturing Business Solutions, Enterprise Resource Planning, Imaging and Workflow Solutions, Enterprise Information Portals and Knowledge Management, NECare Service Centre, Enterprise Servers, Network Solutions and Multimedia Products. Visit www.nec.com.sg