NEC, Hitachi Form Joint Venture

TOKYO -- NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) (TSE: 6701) and Hitachi, Ltd. (NYSE:HIT) (TSE:6501) today announced that the two companies have agreed to pursue the joint development of next-generation optical transport systems. This is the first step of both companies' wide-ranging and long-term alliance in the telecommunications arena. NEC and Hitachi aim to expand their optical transport systems business for overseas markets including the rapidly growing US market, utilizing both companies' extensive expertise and capabilities in this area.

NEC and Hitachi will begin joint planning and development of next generation systems such as Dense Wavelength Division Multiplexer (DWDM) systems, Synchronous Optical Network (SONET )/Synchronous Digital Hierarchy(SDH) optical transmission systems and others, which are the core systems for the era of ultra-high-speed and ultra-high-capacity telecommunications. The first products of the joint development are expected to be rolled out during the first half of fiscal year 2001 (ending March 2002).

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