NEC Corporation

17. Subsequent Events

(1) On April 16, 1996, the parent company issued 1.0 percent unsecured yen convertible bonds of 100,000 million yen ($934,579 thousand) due 2011 by a public offering. The issue price was 100 percent of the face value of the bonds and the conversion price is 1,375 yen ($12.85) per share.

(2) On June 4, 1996, the Board of Directors of the parent company resolved to transfer certain assets and liabilities of the company's personal computer business to Packard Bell Electronics, Inc. in order to integrate its worldwide personal computer business except for the business in Japan and China. In exchange, the company will receive non-voting convertible preferred stock (not exceeding 8,000,000 shares) and non-voting, non-convertible preferred stock (for the amount in excess of the value equivalent to 8,000,000 shares) of Packard Bell Electronics, Inc. as consideration for the assets transferred of which the amount would be expected to be in the range of approximately 34 billion yen ($320 million) to 40 billion yen ($370 million). As a result, the aggregate additional investment amount in Packard Bell Electronics, Inc. made subsequent to March 31, 1996, including a non-voting convertible preferred stock investment of 30,706 million yen ($286,972 thousand; 6,725,285 shares) made in April 1996 would be in the range of approximately 65 billion yen ($607 million) to 71 billion yen ($657 million).

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