NEC and Epson Deliver Global SCM Reform for Printer Supplies

Tokyo, December 01, 2008 - NEC Corporation announced today the creation of a new weekly cycle system for implementing Supply Chain Management (SCM) reform, in cooperation with Seiko Epson Corporation (Epson), which applies to the global production, sales and inventory of approximately 6,000 printing supplies, including ink cartridges and media. The new system has begun operation in November 2008 throughout eleven worldwide locations.

The system was established in order to optimize the global supply and demand structure that governs the manufacture, sale and inventory of products. The organization consists of internationally located production centers linked with logistics and sales bases that each deliver weekly manufacturing, shipping and inventory data to a central processing center in order to develop a unified strategy for controlling supply flow.

Epson had traditionally born costs from a wide range of locations in order to process manufacturing, sales and inventory information that support its monthly planning cycle. However, swift responses are required in order to handle changes in the printer market, and an increasing number of printer supplies has brought attention to the need for greater speed, accuracy and flexibility of production, sales and inventory channels.

The SCM reform now underway addresses Epson’s evolving logistics needs by implementing centralized planning and a responsive weekly cycle that optimize the organization of production, sales and inventory.

Please see below for background on Epson’s new SCM system:
1) Production, sales and inventory planning cycle reduced from monthly to weekly.
2) Market responsiveness and planning accuracy improved through a reduced planning cycle period.
3) Production and sales data from company locations become easily accessible.

Epson is aiming to reduce global costs related to printer supply inventories by nearly 7 billion yen by the end of 2010. Looking forward, the company is seeking to expand its SCM reform program to consumer and business printers, in addition to business practices and technologies that will deliver greater advantages to Epson.

NEC and Epson cooperatively developed this new SCM system through Global Supply Chain Consulting and cooperative analysis of Epson business practices, which resulted in innovative new business approaches, training outlines and operational proposals.

NEC regards this important project as recognition of its ability to provide highly evaluated consulting and system development for a wide range of business partners. The company aims to continue its contributions to operational reform for clients serving both domestic and international markets.

About NEC Corporation
NEC Corporation is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of a diversified 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 website at: http://www.nec.com

About Epson
Epson is a global leader in imaging products including printers, 3LCD projectors and small- and medium-sized LCDs. With an innovative and creative culture, Epson is dedicated to exceeding the vision and expectations of customers worldwide with products known for their superior quality, functionality, compactness and energy efficiency.
Epson is a network of 93,279 employees in 107 companies around the world, and is proud of its ongoing contributions to the global environment and to the communities in which it is located. Led by the Japan-based Seiko Epson Corp., the Group had consolidated sales of 1,347 billion yen in fiscal 2007.

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