NEC and Neusoft to Establish Joint Venture in China for Cloud Computing

Beijing, August 31, 2010 - NEC Corporation (NEC; TSE: 6701), NEC China Co., Ltd. (Headquarters: Beijing; President: Masaki Kidowaki), and Neusoft Corporation (Neusoft, 600718.SH), Neusoft IT Service Co., Ltd. (Neusoft IT Service) today announced an agreement regarding cloud computing services in China. Under this agreement, NEC China and Neusoft IT Service will establish a joint venture to promote the expansion of cloud computing business in China in October 2010.

NEC and Neusoft will develop comprehensive cloud computing services that include core enterprise systems, Software as a Service (SaaS), Platforms as a Service (PaaS) and Infrastructure as a Service (IaaS) for Chinese companies and foreign companies branching out into the Chinese market.

NEC is planning to globally develop cloud oriented datacenters (*1) and to promote cloud computing services throughout the world’s major markets. This agreement is an important step towards NEC’s achievement of a global service network that provides businesses with uniform, high quality services regardless of location. NEC’s promotion of cloud services including core systems is supported by its accomplishments in hardware, including superior energy conservation products, operational management middleware and highly reliable service infrastructure system technologies, cultivated through the construction of Open Mission Critical Systems (OMCS).

Neusoft is a leading IT solutions & services provider in China that is expanding throughout the world. The company possesses exceptional industry know-how, customer resources and rapid response times, as well as superior operational management and client support in the Chinese market. In recent years, Neusoft has aggressively pursued cloud computing through promotion of its cloud application solutions, as well as investment in research and development of cloud application frameworks, common core technologies and tools. Furthermore, the company has achieved marked growth through proactive development of cloud computing in the fields that include healthcare, automobile telematics service and location-based services (LBS). The partnership with NEC will enable Neusoft to continue the expansion of its cloud computing business and to create more value to its customers through this win-win partnership.

The NEC Group and the Neusoft Corporation will combine their strengths to offer highly reliable, comprehensive cloud computing and optimized service menus for businesses.

About the NEC and Neusoft business partnership:

1) NEC China and Neusoft IT Service will establish a joint venture in October 2010.
About the joint venture
- Company Name: NEC Neusoft Information Technologies Co., Ltd.
- Location: Dalian, Liaoning Province, China
- Capital: 50 million RMB (NEC China: 70%; Neusoft IT Service: 30%)
- Employees: First fiscal year: 70; Second fiscal year: 200 (approximate)

2) The joint venture will establish a service platform that is capable of providing highly reliable services based on the current Neusoft datacenter.

3) The joint venture will promote a comprehensive cloud computing menu that includes SaaS, IaaS and PaaS. SaaS will be capitalized on to expand the availability of NEC Group’s and Neusoft Corporation’s applications. The joint venture will provide customers with these applications quickly and at a low cost, thanks to NEC and Neusoft’s experience in providing package products, including front domains and core systems, for an array of applications across a wide variety of businesses and industry fields.

4) NEC China and Neusoft IT Service will carry out sales activities and system integration for a wide range of customers. These activities will enable coordination between the existing systems and systems using cloud computing services.

5) Support will be available 24 hours a day, 365 days a year, in languages that include Chinese, Japanese and English, and cover services such as deployment assistance and system integration.

China’s cloud computing market is growing rapidly at an average annual rate of more than 30%, and is expected to be worth more than 16 billion RMB in 2012. With this agreement, the NEC Group and Neusoft Corporation aim to become the leaders in China’s cloud computing services.

Notes
*1) NEC’s Cloud Oriented Datacenters
These datacenters feature base systems for providing services that are built from system models (a combination of specialized hardware products, operating systems and middleware) using NEC’s proven technologies and core systems. The datacenters provide highly reliable application services that are well suited for business utilization, including core systems. In addition to its domestic sites, NEC is establishing and networking cloud oriented datacenters throughout the world. Integrated operational monitoring centers that carry out global observations enable the provision of highly efficient, superior quality global service network operations.

About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company’s experience and global resources, NEC’s advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society. For more information, visit NEC 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. ©2010 NEC Corporation.

About Neusoft Corporation
Neusoft is a leading IT solutions & services provider in China, with worldwide operations, serving an increasing range of large corporate customers from all over the world. Focusing on software technology, Neusoft provides industry solutions, product engineering solutions and related software products & platform, and services. With more than 17,000 employees around the world, Neusoft has a comprehensive marketing and service network in more than 40 cities across China, as well as subsidiaries in the U.S., Europe, Japan and Middle East. The Company is the first listed software company in China and is traded on the Shanghai Stock Exchange. For more information, please visit: http://www.neusoft.com/en.

PRESS CONTACTS:

NEC Corporation
Akiko Shikimori
+81-3-3798-6511
a-shikimori@ay.jp.nec.com

Neusoft Corporation
Evelyn Tang
+86-24-8366-5663
tangyi@neusoft.com