TOKYO -- NEC Corp. (TSE: 6701) and Oki Electric Industry Co., Ltd. (TSE: 6703) today announced that they have reached an agreement to cooperate in developing IP telephony system business in the Japanese market as of today. Based on both companies’ abundant technological know-how and customer support capabilities in voice communications, the companies will collaborate on IP telephony systems, starting from the construction of an IP telephony system targeting the enterprise market."Through this alliance NEC will be able to extend its IP telephony product line-up to customers throughout Japan. We want this partnership with Oki to send a strong message to the Japanese market that we are challenging to establish a new and fast growing IP telephony business and industry," said Kazunori Kiuchi, Associate Senior Vice President at NEC. "Our alliance with NEC is a direct response to the market needs for the IP telephony solutions, which is rapidly growing along with the expansion of broadband access such as ADSL (Asymmetric Digital Subscriber Line), CATV, and FTTH (Fiber To The Home)," stated Yutaka Asai, President of IP Solutions Company at Oki Electric. "Together, our companies will combine highly complementary sets of core technologies, skills and expertise to provide our customers with superior solutions, and we will contribute to the popularization of IP telephony services. Our target is to make Japanese communications the most advanced through the use of IP telephony." The partnership agreement covers the following areas:

NEC Corp.Oki Electric Industry Co. Ltd.