Presentation to the 9 th World Electronics Forum

Presentation to the 9 th World Electronics Forum Research and Development at NEC Australia Pty Ltd © NEC Australia 2003

Corporate Profile - 2003 NEC Corporation © NEC Australia 2003

Profile - NEC Corporation • Established : July 17, 1899 • President : Akinobu Kanasugi • Capital : Y 244. 7 billion ($A 3. 22 billion - as of March 31, 2003 • Net Sales : Y 4695 billion ($A 61, 780 million) to March 31 2003 • Major Operations the NEC Group : The internet solutions business including of the manufacture and sales of computers, communications equipment, electron devices and software. • Employees : 142, 000 © NEC Australia 2003

NEC Globally Employees: 142, 000 Sales: A$62 B (2002) R&D Investment: A$4. 3 B in 2002/3 North America Europe Japan: 111, 180 Asia 4, 943 5, 272 Latin America 58 Middle and Near East/Africa 17, 279 Oceania 1, 400 © NEC Australia 2003 1, 868

Research & Development in NEC • R&D for future business (research) - 1500 employees in Japan, USA, Germany – Quantum Computing – IT - Bio (Super-computing for pharmaceuticals) – Fuel Cells (for mobile phones) – Carbon Nanotube Technology • R&D for current business (development) – Broadband Internet – Mobile Internet – Intelligent Internet • Total Expenditure 2002/3 A$4. 3 B (6. 4% of sales) © NEC Australia 2003

Corporate Profile - 2003 NEC Australia Pty Ltd © NEC Australia 2003

Corporate Profile Established : December 1969 Sales : A$474 Million (FY 02/03) (Exports: A$110 M, R&D: A$40 M) Employees : 1250 (400 engineers in R&D) Business Focus : Business & Carrier Solutions Global R&D Centre Export of locally designed products Home Electronics Quality Standards : ISO 14001 & ISO 9001 Australian and Defence Quality Award © NEC Australia 2003

Our Presence AUSTRALIA PAPUA NEW GUINEA Darwin Port Moresby Northern Territory Queensland West Australia South Australia Perth NSW Sydney Adelaide NEC Australia (Head Office) 8 Branch Offices Plant & Technology Centre © NEC Australia 2003 Brisbane Canberra MELBOURNE Tasmania NEW ZEALAND Auckland

Strategy in Australia Originally NEC sold equipment to carriers, government and large/ small businesses and on the domestic market. Strategy now is to provide: © NEC Australia 2003 - network solutions/services to carriers, ISP’s and government - manage facilities (voice and data VOIP networks) for government, large and small businesses. (See attachment) - design and development of products and services for domestic and export markets

NEC Australia’s Mandated Products for R&D • Broadband Access Products (DSL) (ADSL, SHDSL, Vo. DSL, Video on DSL) • Digital Mobile Phones (W-CDMA) (G 2. 5 and G 2. 5/3 G) • Mobile Satellite Systems (Networks and mobiles) • Electronic Services Delivery (Credit card payment of government services, invoice presentment and part payment) • Business Networks (PBX), Contact Centre Software © NEC Australia 2003

Network Solutions involving system integration • Mobile satellite networks - mobile handset – M-Sat Optus/Defence – M-Sat Telespazio (Italy and Europe) – Iconet Inmarsat/Mc. Graw • Broadband DSL (4 M lines exported) – Nextep 98 sites in Australia – PCCW Hong Kong – NTT Japan – Singtel Singapore – Telecom Malaysia – Telecom Turkey © NEC Australia 2003

Our Achievements R&D and Exports (1990 -2003) © NEC Australia 2003

Research and Development in NEC Australia • $40 M per annum and 400 engineers (40 with postgraduate degrees. • Focus is very much on product design and development. • Critically focussed on local and overseas market outcomes – NEC Corporation • Multilingual and multicultural skills available. • Strong project management; on-time, full-documented, fully tested, cost effective • Links to international standards critical © NEC Australia 2003

Current R&D Projects at NEC/A • Gigabit ethernet design for x. DSL networks • ASIC, Layer 1 software, hardware, RF circuits, industrial design and applications for 2. 5 and 3 G Mobiles • VOIP Networks • Electronic Services Delivery (e-commerce) © NEC Australia 2003

© NEC Australia 2003