NEC Establishes a Battery Business SubsidiarySupporting the Expansion of Environmentally Friendly Energy

Tokyo, February 10, 2010 - NEC Corporation (NEC; TSE: 6701), a global leader in networking, communications and information technology, and NEC TOKIN Corporation (NEC Tokin) announced today the establishment of "NEC Energy Devices, Ltd.," on April 1, 2010, a spinoff of NEC TOKIN's high-capacity laminate lithium ion secondary battery business and wholly owned subsidiary of NEC.

The high-capacity laminate lithium ion secondary battery business is a center of the NEC Group's new environmentally conscious energy business.

In order to promote the electrode business, a key component of high-performance lithium ion battery for automobiles, particularly among new environmentally conscious energy business, it will require to establish high quality management systems to achieve quality standard for automotive parts, to collaborate with automobile manufacturers closely and to invest sufficient management resource including continuous investment in R&D in order to overcome stiff development competition from rival companies.

The establishment of this new subsidiary is to separates high-capacity laminate lithium ion secondary battery business from NEC TOKIN and establish new organization that NEC directly manages business including investment, operation, production and technology.

NEC will accelerate environmentally friendly energy business with aggressive investment mainly through electrodes business for high-performance lithium ion battery for automobiles.

Also NEC TOKIN will seek to expand business by concentrating management resources on the growth of its electronics component business, including capacitors and EMC, and promoting the development of products that drive awareness of energy markets that are environmentally friendly, including lithium ion capacitors, magnetic materials and piezoelectric sensors. Furthermore, NEC TOKIN will continue to provide full support and quality assurance to its square battery consumers.

The market of high-capacity laminate lithium ion secondary battery is expected to grow for electric vehicles and hybrid electric vehicles use. It will further expand to various industry segments including electricity storage system for industry and household use as a key component that contribute to the reduction of CO2 emissions and global warming.

In April 2007, NEC, NEC TOKIN and Nissan Motor Co., Ltd. jointly established Automotive Energy Supply Corporation (AESC) to advance the development and production of high performance lithium ion battery packs for automobiles.

NEC TOKIN also established an electrode production line outside of Tokyo for the mass production of electrodes supporting the battery packs mentioned above.

In addition to investment in AESC, NEC created an environmentally friendly energy promotion office in April 2009, and the NEC Group is now poised to drive the development and expansion of environmentally friendly energy fields through products that include high performance lithium ion battery pack electrodes for automobiles and large-scale storage systems supporting smart grid markets of the future.

Looking forward, NEC will continue to proactively develop business that breaks new ground in the expansion of environmentally conscious fields.


New Subsidiary Overview

Name:	NEC Energy Devices Ltd.
Headquarters:	Sagamihara city, Kanagawa prefecture, Japan
Capital:	400 million JPY (100% NEC)
Representative:	Mamoru Sato Date of Birth: December 2, 1951
Employees:	300 (forecast)
Established:	April 1, 2010 (effective date of the company split)
Business:	Development, production, sale and maintenance of high-capacity laminate lithium ion secondary batteries, electrodes and products supporting the environmentally friendly energy field

NEC Corp
* Regarding the transfer of stock for the spinoff and establishment of a new company

On April 1, 2010, NEC TOKIN will spinoff its high-capacity laminate lithium ion secondary battery division and establish the division as a wholly owned NEC TOKIN subsidiary in exchange for 4,000 shares of the new company. Also on April 1, 2010, NEC TOKIN shall transfer 100% of the new company's shares to NEC, making it a wholly owned subsidiary of NEC.


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 140,000 people worldwide. For additional information, please visit the NEC website at: http://www.nec.com.

NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. (C)2010 NEC Corporation.

 
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Chris Shimizu
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E-Mail：yc-shimizu@cb.jp.nec.com