NEC And Intel Plan To Deliver Powerful Internet Business Solutions

Tokyo, Japan, Sept. 29, 1999 - NEC Corporation and Intel Corporation today announced that they plan to collaborate to establish a new global partnership to enhance their Internet-related businesses.

The two companies said they are collaborating to bring together the capabilities of NEC's "BIGLOBE" Internet service with Intel® Online Services to offer global Internet solutions to BIGLOBE customers.

The companies said they also plan to provide consumers easy-to-use, affordable Internet terminals and consumer services to expand the use of the Internet.

As part of the plans, Intel will establish its first Intel Online services center in Japan in cooperation with NEC. By becoming the first user of Intel® Online Services in Japan, NEC will also enhance its Internet services. Together the two companies plan to provide a large scale, highly reliable platform for deploying e-Business solution services for both business-to-business and business-to-consumer activities. Services are targeted to begin in the first half of 2000.

In addition to network and Web content services, NEC would provide Internet application services in Japan. Intel® Online Services would offer open standard e-Business application and hosting services. This will enable customers to use these services through BIGLOBE in Japan, and through Intel® Online Services outside Japan.

The two companies said they also plan to provide Internet terminals and consumer services to expand the use of the Internet in Japan. NEC and Intel plan to work together on the localization and marketing of these products for the Japanese market.

In recent years, use of the Internet has spread rapidly into every sector of society. The number of Internet users in Japan is expected to grow from the current 15 million to 30 or 40 million by 2003. Worldwide Internet usage is expected to grow from 196 million in 1999 to 502 million in 2003. The volume of transactions between corporations over the Internet stood at 20 trillion JPY (approx. $182 billion) in the U.S. for 1998 and this is expected to grow to 165 trillion JPY (approx. $1.3 trillion) by 2003. In Japan, that number is expected to increase from 9 trillion JPN (approx. $82 billion) to 68 trillion JPY (approx. $618 billion).

NEC has positioned the Internet at the core of its future growth strategy. The company's "Invitation to the Internet" is a concept that refocuses a range of its businesses toward the Internet. The company would like to increase the number of BIGLOBE subscribers, who will form the foundation for these businesses, to over 10 million by 2002.

Intel® Online Services is a key component of Intel's strategy to develop new growth areas in addition to its core microprocessor and networking businesses. Intel® Online Services will operate several global Internet service centers offering Internet hosting services to new, Internet-era businesses.

NEC and Intel have been working together for more than 20 years in the growing PC and server market segments. NEC determined that the optimum way to develop its global solutions business was to align with a foreign ally. Intel believes that a strong alliance in the Japanese market is important to develop its online service business in that country. As a result, the two companies decided to further strengthen their relationship.

NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) pioneered the concept of C&C, the integration of Computers and Communications, and is the only company in the world to be counted among top ranking corporations spanning the wide range of fields essential for this vision of multimedia: computers, communications and electron devices. Employing in excess of 150,000 people around the world, NEC saw net sales in fiscal year 1998-99 amount to 4,759 billion yen (approx. US$40 billion). For further information, visit the NEC home page at: http://www.nec-global.com.

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