MELBOURNE -- NEC Australia today announced a number of major milestones in the company’s broadbandDSL business.

This month, NEC Australia reported that it has delivered one million DSL ports to Telstra anddeployed its unique TV over DSL solution to half a million subscribers to PCCW’s worldleading now Broadband TV service in Hong Kong - the first and largest commercialvideo-over-DSL deployment in the world.

NEC commenced volume supply of DSL in Australia in July 2004, and has provided abroadband solution that has addressed rollout speed and reach, as well as the flexibility toadapt to future network changes through the provision of higher speed services. Thesolution enables ADSL2+ services to be provided when required through remote activation.Since August 2001, NEC Australia has been developing and deploying its DSL technologyand platform to PCCW Limited in Hong Kong. The now Broadband TV service was launchedin September 2003, and has been a runaway success in Hong Kong. Two years later, nowBroadband TV has 500,000 customers.

NEC and PCCW collaborated closely to deliver a complete Pay TV experience overbroadband, allowing customers to enjoy DVD quality movies at the same time as accessinginteractive online features at high speeds, using the same connection. The design, yearsahead of its time, will also incorporate HDTV.NEC Australia began development work on ADSL in 1993 at the company’s global R&Dcentre in Melbourne.

Now boasting 163 software and hardware engineers dedicated to access productsdevelopment, new enhancements to the company’s Next Generation Broadband R&DCentre in Melbourne were commemorated by Victorian Premier Steve Bracks in 2003 at theofficial opening. NEC Australia has been working on DSL technology development for over10 years and has played an integral part in the global development of broadbandtechnologies.

NEC Australia’s Managing Director, Mr Toshiharu Iwasa comments that “NEC Australia hasalways been at the forefront of developing emerging technologies, many of which are notonly world class - they have also been world first. We plan to maintain our leadershipposition in IT and network solutions R&D here in Australia and expand our reach to newexport markets.”

NEC Corp. (Tokyo: 6701)