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NEC Signs Contract for EAC1 Qingdao Landing Extension Submarine Cable System

June 28, 2005

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Tokyo, June 28 th , 2005-- NEC Corporation (NEC) (NASDAQ: NIPNY) announced today that it has signed a turnkey contract with China Network Communications Group Corporation ("China Netcom") for the supply of EAC1 Qingdao Landing Extension Submarine Cable System, providing a comprehensive set of services including marine installation, commissioning and integration based on a full turnkey basis. When completed in 2Q 2006, the system will provide seamless connection from China to Asian major cities and other countries worldwide.

EAC-1 Qindao Landing Extension consists of 350 km of submarine cable, submarine repeater and transmission systems. It will be connected with existing East Asia Crossing 1 (EAC-1) submarine system, which is owned and operated by China Netcom's subsidiary, Asia Netcom, to configure a ring system over North Asia region and utilize DWDM submarine optical networking solutions based on the most advanced technologies of NEC. The system will have an initial capacity of 40 Gbit/s and be upgraded up to 1.28 Tbit/s.

China Netcom, the leading telecommunications operator in China , is currently diversifying its network to address the exponential growth in demand that is being fueled by increased usage of data and the Internet in the region. Upon completion, this system will play an important role, providing direct route from Mainland China to the world including Asian countries and USA , for better quality and better route selection for internet business. China Netcom also expects that the network will provide a sufficient and flexible capacity for international broadcasting TV programs. It is expected to play a crucial role as the memorial network for China Netcom toward Olympic Games 2008 in Beijing since China Netcom is one of the authorized sponsors of Olympic Games 2008 and the yacht racing will be held in Qingdao ,

"NEC re-confirms its leadership in the submarine industry and is confident to bring field-proven technology and solution which enable China Netcom to provide the most reliable services to improve their business position in the international telecommunication market. NEC is honoured to contribute toward the telecommunication infrastructure development and improvement for the upcoming Olympic Games in 2008," said Akihito Ohtake, Senior Vice President at NEC Corporation.

NEC will further contribute to the expansion of telecommunication infrastructure in China and also Asia Pacific region with our state-of-the-art optical submarine cable system technologies. Recently, NEC also received an order for "JASUKA backbone Ring Project" to provide 1040 km submarine cable system from PT Telekomunikasi Indonesia .

EAC1 Qingdao Landing Extension Submarine Cable System

Customer: China Network Communications Group Corporation
System Capacity: Initial 40Gb/s upgradeable to 1.28Tb/s
Cable length: 350 km
Ready for Service: 2Q 2006

Route Map:

Background Information

NEC Corporation has been supplying submarine cable systems for more than 30 years. In particular, it has been involved in the installation of most cable systems constructed in the ASEAN region. In Asia and Pacific, NEC was involved in the construction of huge networks such as 19,000km APCN2 (Asia Pacific Cable Network - 2), 11,000km AJC (Australia-Japan Cable), 7,800km EAC2 (East Asia Crossing 2), 1,000km TIS (Thailand-Indonesia-Singapore), and 2,500km AUFS-West (Alaska United Fiber System-West), 160km DMCS (Dumai-Melaka) and 1,040km JASUKA (Indonesia Domestic).

About NEC Corporation

NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) 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. Ranked as one of the world's top patent-producing companies, 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 and had net sales of 4,855 billion yen (approx. $45 billion) in the fiscal year ended March 2005. For additional information, please visit the NEC home page at: http://www.nec.com.

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