NEC and Sify Form Strategic Partnership to Promote Thin Client Computing in India

Tokyo, Japan, March 1, 2007 - NEC Corporation, a leading provider of 3G infrastructure and handsets, Internet, broadband network and enterprise business solutions, and Sify Limited, a leader in consumer Internet and enterprise services in India with global delivery capabilities, today announced a strategic partnership to jointly promote thin client computing in India.

Under the leadership of CEO Raju Vegesna, Sify has been experiencing robust business expansion in the rapidly developing Indian economy. Sify's success can be attributed to its highly-focused business strategy that leverages the assets of its sophisticated network infrastructure and data centers in Mumbai, Bangalore and Chennai to reach enterprise clients with its IT infrastructure management services and personal consumers with its popular Internet portal, and over 3500 broadband internet cafes and its broadband home access service.

The collaboration will enable thin client computing in India with NEC supplying virtual PC centers ("VPCCs") to Sify, which will utilize them to provide thin client systems to customers as an outsourced service, to enable the spread of VPCC services to companies in India.

The commercial PC market in India is growing at the thriving pace of 24% per year as the Indian PC market is still in a stage of infancy and has great potencial. As Indian companies consider alternatives for commercial PCs, NEC and Sify will promote thin client computing as an outsourced service, which greatly reduces the total cost of ownership ("TCO") for the client. More importantly, thin client computing also enables an enhanced security environment for conducting business. Sify will also promote the installation of VPCCs in its Internet cafes and customer call centers.

The partnership aims at the installation of 100,000 client terminal units and 6,000 server units within the first three years of business in India. NEC India Pvt. Ltd will promote the concept of VPCC thin computing together with Sify for the delivery of services.

Mr. Kazuhiko Kobayashi, Executive Vice-President of NEC Corp, said, "With more mobile innovations in the ICT industry and faster technological adaptations in recent years, NEC believes that businesses and economies worldwide are evolving from a PC-based computing model to a network-centric computing model. We are optimistic about this new thin client business, and plan to grow it into a US$1.25 billion business for our global operations in the next three years."

Mr Raju Vegesna, Chairman and CEO, Sify Limited, said, "India was the fastest growing IT market in the Asia Pacific region in 2006 according to IDC. The IT adoption wave is forecast to continue in 2007, especially amongst small & medium-sized businesses, as well as in consumer homes. We believe that the availability of a network-entric computing model with its many advantages, especially cost and security, will accelerate the rate of IT adoption in the country. Sify, along with NEC, intends to catalyze the market for such services in India. We are ideally positioned to do so with our sophisticated infrastructure comprising of a world-class Internet Protocol network and our data centers, as well as our expertise in provisioning managed services."

Outline of collaboration
1. Deployment of VPCCs in India
Through NEC India, NEC will provide a VPCC package of 6 servers ("Express5800/VPCC Virtual PC Servers" with middleware and client OS) and 100 thin client terminals to Sify. The new package represents a high-availability model suitable for new installation in large-scale thin client terminals. Sify will install "Express5800/VPCC Virtual PC Servers" and "Express5800/VPCC Management Servers" in its data centers, and commence the provision of thin client terminal outsourcing services to corporate clients as a service rather than expecting users to purchase, construct and operate their own systems. This service will allow corporate clients to enjoy premium security functions, such as the prevention of information leaks and high-quality internet protocol ("IP") telephony and video processing, and reduce the TCO. Sify will promote thin client computing through a dedicated sales force, in addition to its current enterprise sales channel.

2. Installation of VPCCs into Sify's own systems
Sify will promote the use of VPCCs in its 3,500 Internet cafes in India, and installation and active utilization of VPCCs in its own call centers and office processing systems.

NEC and Sify will leverage their market leadership and capabilities to develop the thin client computing business in 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 150,000 people worldwide.

For additional information, please visit the NEC home page at: http://www.nec.com
* Newsroom: http://www.nec.co.jp/press/en/

About Sify Limited
Sify is among the largest Internet, network and e-Commerce services companies in India, offering end-to-end solutions with a comprehensive range of products delivered over a common Internet backbone infrastructure. This Internet backbone reaches 186 cities and towns in India. A significant part of the company's revenue is derived from Corporate Services, which include corporate connectivity, network and communications solutions, security, network management services and hosting. A host of blue chip customers use Sify's corporate service offerings. Consumer services include broadband home access, dial up connectivity and the iWay cyber cafe chain across 158 cities and towns. The company's network services, Data Center operations and customer relationship management are accredited ISO 9001:2000.
For more information about Sify, visit www.sifycorp.com.

About NEC India, Pvt. Ltd.
NEC India Pvt. Ltd was established in August 2006 in New Delhi, India, in order to strengthen NEC's Business capabilities in India and also to expand IT/Network business in the rapidly expanding Indian IT market. NEC Solutions Asia Pacific Pte. Ltd (NECSAP HQ:Singapore) will own a 60% share and NEC Corporation (HQ:Japan) 40%. NEC India will provide solutions for construction of communication infrastructure and corporate IT/Network infrastructure in India through leading-edge IT/Network Solutions such as information systems, internet protocol (IP) systems, security systems, radio frequency identification systems (RFID), wireless systems etc. In addition, it will sell mass-market products such as PCs, Projectors, Plasma, Display and other multimedia products.