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NEC Received an Order for Ringback Melody System Solution to Russia's Largest Mobile Operator

Tokyo, and Moscow, May 13th, 2005 -- NEC today announced that it has received an order for a Ringback Melody (RBM) System project for Russia's largest mobile phone operator, Mobile TeleSystems (MTS), which is currently holding over 40 million subscribers and over 35% market share. RBM operation at MTS is scheduled to start soon.

The main feature of NEC's RBM solution is its capability to roll out merely by adding dedicated software onto the server base of MTS's existing mobile phone infrastructure without imposing a heavy burden on the existing infrastructure. It also features a patented system to generate high quality sound with wider frequency and dynamic ranges. In NEC's RBM system, a unique algorism converts the RBM data so that high sound quality is maintained when being played back with the phone's standard voice decoder.
NEC's RBM solution also features a high scalability. The order for MTS this time is to cover around 500,000 subscribers in Moscow as an initial stage, and NEC expecting additional involvement of MTS's expansion project of Moscow and other cities by easy scaling-up to a larger system.

NEC is demonstrating its strong foothold in this area supplying RBM solution to Guangdong Mobile, the largest mobile operator in China. Guangdong Mobile's RBM subscriber numbers has exceeded 10 million in January 2005 making it the world's largest for a fully operating Ringback Melody service.

Taking cue from the success of projects in Russia, China and also in Japan, NEC will further expand its RBM solution business in Asia and Europe. NEC also intends to provide other value-added solutions for mobile internet services globally.

Expansion of high-level functionality for the mobile Internet services in Russia is moving forward, and 3G deployment is becoming a reality in near future. "Russia is one of the important markets for NEC." said Noboru Wakita, Senior General Manager of NEC's Mobile Solutions Operations Unit. "NEC is forging strategic relationships with mobile operators and is reinforcing its mobile applications business to provide improved revenue and create new business opportunities for operators in Russia and other region of the world. In order to contribute to the development of mobile services, NEC is cooperating in the area of 3G infrastructure, mobile applications and 2.5G/3G mobile terminals and is quickly rolling out attractive mobile services." In February 2005, NEC announced its entry into 2.5G mobile terminal market.

About NEC's Business Development in Russia
NEC has been involved in businesses in Russia for more than 30 years, contributing to the deployment of most telecommunications infrastructures such as public switching systems, over 30,000 km of optical transmission systems, over 9,000 km of microwave systems including Trans-Siberian-Line networks, Satellite communication systems and enterprise communication systems. Especially as for microwave system, we have supplied over 12,000 sets as a part of Mobile Infrastructure System to Russian Mobile Operators and contributing to the enhancement of Mobile Services. It has also pursued technology transfer to local joint venture partners. NEC Neva Communications System, a manufacturing facility of public switching system, is the first joint venture company of Russia and Japan in high-tech area. NEC has also transferred optical transmission technology to EZAN, Experimental Factory of Russian Science Academy.

About NEC's mobile application business
NEC is a total mobile solutions provider capable of providing solutions from mobile handsets to infrastructure and mobile applications. NEC has been actively expanding its sales in mobile applications, infrastructure and handsets globally. The firm has a proven track record of delivering platforms for implementing mobile internet services such as i-mode/WAP2.0, along with location information systems, contents conversion software and mail servers. When introduction of 3G infrastructure and IMS gets going, the changeover to all-IP and broadband multimedia data communications will move into high gear. The predictions are, as a result, that packet-based voice services -- such as VoIP service and PoC (Push to Talk Over Cellular) -- will expand and the integration of voice and data services will accelerate along with the introduction of image distribution services such as cartoons or movies. On the foundation of its Mobile Internet Platform, NEC will aggressively expand sales efforts in its primary products of (i) "Ring back melodies", in which phone call recipients let call senders hear their favorite music or messages, (ii) "Location information system", a platform for providing various services based on participant's location and (iii) "3G/2.5G Mobile Visual Solution" to provide multimedia data such as cartoons, together with its other application software offerings.

About NEC's Global Mobile Business
NEC is a total solution provider for 3G and mobile Internet. It has been involved in every first-stage rollout of 3G systems worldwide. It is also responsible for developing the first 3G handsets for the world's first 3G networks. NEC has competence in the mobile Internet field with its mobile infrastructure system, mobile application platform and its impressive portfolio of contents. NEC's mobile handsets are known for their prominent technologies including large color screens, built-in cameras and other functions that make them ideal for use in the mobile Internet. In the 3G/mobile multimedia global, NEC aims to take strong initiative to create the market and to obtain leading position.

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of 4,855 billion yen (approx. $45 billion) in the fiscal year ended March 2005. For additional information, please visit the NEC home page at: http://www.nec.com

Media Contact:
Akiko Shikimori
NEC Corporation
Tel: +81 3 3798 6511
e-mail: a-shikimori@ay.jp.nec.com

Chris Shimizu
NEC Europe Ltd
Tel: +44 (0)20 8752 2794
+7 (095) 766 32 08
e-mail: chris.shimizu@uk.neceur.com