Tokyo, February 15, 2017 - The Japan Fair Trade Commission today announced a decision to issue a Cease and Desist Order and an Order for Payment of Surcharge against NEC Corporation for activities in violation of antitrust law with respect to transactions for hybrid optical communication equipment and equipment for transmission lines for Chubu Electric Power Co., Inc.

NEC Corporation has a tradition of working to ensure thorough observation of compliance. Following our recent announcement on fire-fighting and emergency digital radio equipment, the Company would like to respectfully apologize again for any troubles this latest matter may have caused for the Company's customers, shareholders and other stakeholders.

Going forward, NEC Corporation aims to strengthen its compliance system and to ensure the implementation of thorough measures to prevent a recurrence of this issue, while continuing efforts to restore confidence.

1. About the Cease and Desist Order
   In regard to transactions for hybrid optical communication equipment and equipment for transmission lines for Chubu Electric Power Co., Inc., it is ordered that the Company confirm that activities that violate the provisions of Article 3 of the Antitrust Law, the prohibition of unreasonable transaction restrictions, have ceased and that the Company implement corrective measures to prevent similar actions from taking place in the future.


2. About the Order for Payment of Surcharge
   
   Amount of surcharge: 240,650,000 JPY
   
   NEC Corporation received a 30% reduction in the surcharge amount following the recognition of its petition to participate in the Fair Trade Commission's surcharge reduction and exemption system (leniency system).


3. NEC Corporation Response
   NEC Corporation has a tradition of working to ensure thorough observation of compliance. As part of this, top management will transmit a message and continue to implement education and training for employees in order to reinforce the awareness of compliance.


4. Influence on Business Performance
   The above surcharge has no impact on business forecasts for the 3rd quarter settlement of accounts for the fiscal year ending March 31, 2017 as NEC made provision for contingent losses.

NEC Corporation treats these circumstances with great seriousness and Company officers will voluntarily relinquish portions of their compensation as outlined below.


The Chairman of the Board and the President and CEO will voluntarily relinquish portions of their compensation in addition to the portions relinquished in relation to the fire-fighting and emergency digital radio equipment issue.

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