Review of Operations

Contents C&C Operations Communications Systems and Equipment Computers and Industrial Electronic Systems Electron Devices Other Operations International Activities Research and Development Social Responsibility

C&C Operations Communications Systems and Equipment NEC recorded a strong performance in this product category. Rapid growth in domestic cellular phone subscriptions has led to strong demand for digital cellular systems and handsets. Sales of data communications systems surged in the wake of booming interest in the Internet and intranets in Japan. Overseas, sales of communications systems and equipment were also healthy. C&C Operations Computers and Industrial Electronic Systems Robust sales of PCs and PC servers as well as growing demand for systems integration services in Japan contributed to NEC's increased revenues in this category. Demand for PCs and PC-based information systems was driven largely by the rapidly expanding corporate use of client-server PC networks. C&C Operations Electron Devices Sales of electron devices were down, primarily due to plunging DRAM prices, while ASICs and microcomputers recorded higher sales. Brisk demand for notebook PCs propelled sales of TFT color LCDs both in Japan and overseas. Other Operations Focusing on multimedia products, NEC launched Plasma X, the industry's highest-quality plasma TV, a device destined to become a vital multimedia interface in the homes of the 21st century. Sales of LCD projectors soared, reflecting the growing demand for multimedia presentation with PCs.