NEC Expands in Russia

NEC establishes sales & marketing subsidiary in Russia to accelerate local business growth

July 12, 2005

1 Min Read

TOKYO -- NEC Corporation (TSE: 6701; NASDAQ: NIPNY) today announced that it has established a sales & marketing subsidiary in Russia, Closed Joint Stock Company NEC Infocommunications (hereafter "NEC Infocom"), which has commenced operations this month.

Investment in information and communication technologies ("ICT") in Russia was effectively frozen when the Russian financial crisis struck in 1998. However, investment resumed slowly from about 2000, and now the formerly primitive ICT infrastructure standards of Russia are rapidly advancing. Russia has now also entered a period of explosive growth in mobile phone use, marking the advent of an enormous, unexploited mobile phone market. This, combined with progress in the switchover to broadband over backbone among major cities and access networks, is also driving enterprise ICT investment.

Until recently, NEC has managed its Russian business out of three management bases: the Moscow Representative(liaison) Office, the Radio Technical Center (a technical support center engaged in engineering, maintenance and technical support etc. in the field of wireless equipment, mainly Pasolink, and Closed Joint Stock Company NEC Neva Communications Systems (a joint venture company engaged in the manufacture and sale of public switching systems; investment ratio: NEC 45%, Telecominvest Production 35%, Sumitomo Corporation 10%, Mitsui & Co., Ltd., 10%; hereafter "NEC Neva").

NEC Corp.

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