RNS Number:1775I
NEC Corporation
03 March 2003

                                                               February 28, 2003



                    Sales of the Shares of NEC's Subsidiary



      On February 28, 2003, NEC Corporation ("NEC") held a meeting of the board
    of directors at which it was resolved that NEC shall transfer 1,260,000
    shares of NEC Leasing, Ltd. ("NEC Leasing"), its consolidated subsidiary, to
    Sumisho Lease Co., Ltd. and SMBC Leasing Company, Limited. NEC signed a
    share transfer agreement with each of the two companies on the same date.

      Anristu Corporation, NEC Tokin Corporation, Toyo Communication Equipment
    Co., Ltd., NEC Facilities, Ltd. and NEC Ameniplantex, Ltd., all NEC's
    affiliates, will also transfer a part of their holdings in NEC Leasing
    (total 2,340,000 shares) to Sumisho Lease Co., Ltd. and SMBC Leasing
    Company, Limited.

      After those transfers, NEC Leasing will no longer be a consolidated
    subsidiary of NEC and treated as an affiliated company accounted for by the
    equity method.





1.The reason of the transfer of shares

      NEC Leasing, a core company of the NEC Group in the field of providing
    sales financing services, has had close business relationships with the NEC
    Group companies including NEC and its business has been constructed, to a
    great extent, on synergy with the NEC Group.

      NEC Leasing has endeavored to strengthen its ability to provide high
    quality financial solutions to its customers by way of acquiring high level
    financial products development capability and expanding its services to its
    customers.

      The leasing industry in Japan, however, undergoes dramatic changes and not
    a few M&A already took place. In order to cope with such drastic changes and
    to speed up the implementation of NEC Leasing's growth strategy, NEC has
    agreed with Sumisho Lease Co., Ltd. and SMBC Leasing Company, Limited to
    sell a part of its holdings in NEC Leasing in an effort to strengthen NEC
    Leasing's activities.

      The function of NEC Leasing within the NEC Group and our support policy to
    NEC Leasing's activities will remain unchanged with these transactions.





2. Profile of NEC Leasing, Ltd.
(1) Company Name                             NEC Leasing, Ltd.
(2) Representative                           President   Takehiko Yamamoto
(3) Address                                  29-11, Shiba 5-chome, Minato-ku, Tokyo
(4) Date of Incorporation                    September 7, 1970
(5) Main Business                            Leasing, rentals and other related activities
(6) End of Fiscal Year                       March 31
(7) Number of Employees                      477 (as of March 2002)
(8) Main Branches                            Kanto Branch, Chubu Branch, Kansai Branch and Kyushu Branch
(9) Paid-in Capital                          800,000,000 yen
(10) Total Number of Shares Issued           12,000,000 shares
(11) NEC's Shareholding Ratio                61.5% (inclusive of 11.5% indirectly held)
(12) Recent Financial Results
                                                                        (Millions of yen)
                         Fiscal Year Ended      Fiscal Year Ended      Fiscal Year Ending
                             March 2001             March 2002        March 2003 (forecast)
Net Sales                             286,621                260,426                 254,000
Ordinary Income                         6,209                  6,764                   8,000
Net Income                              2,891                 -1,700                   4,740
Total Assets                          721,011                720,601            -




3. Profile of Transferees
(1) Company Name        Sumisho Lease Co., Ltd.          SMBC Lesaing Company, Limited
(2) Representative      President   Mitsuharu Ishii      President   Yohei Shiraga
(3) Address             5-33, Kitahama 4-chome,          9-4, Nishishimbashi 3-chome,
                        Chuou-ku, Osaka                  Minato-ku, Tokyo
(4) Main Business       Leasing, rentals and loans       Leasing and rentals
(5) Relation to NEC     Ordinary course of business only Ordinary course of business only




4. Number of shares to be transferred, shareholding ratio before and after the
transfers
                                (1) Number of shares     (2) Number of shares  (3) Number of shares
                                before the transfers     to be transferred     after the transfers
NEC Corporation                        6,000,000              -1,260,000             4,740,000
                                         50.0%                  -10.5%                 39.5%
NEC's consolidated subsidiaries        1,380,000              -1,380,000                 0
                                         11.5%                  -11.5%                 0.0%
NEC's affiliated companies             1,620,000               -960,000               660,000
accounted for by the equity              13.5%                   -8.0%                 5.5%
method
Sub-Total                              9,000,000              -3,600,000             5,400,000
                                         75.0%                  -30.0%                 45.0%
SMBC Leasing Company, Limited           600,000                1,800,000             2,400,000
(Note)                                    5.0%                   15.0%                 20.0%
Sumisho Lease Co., Ltd.                 600,000                1,800,000             2,400,000
                                          5.0%                   15.0%                 20.0%
Others                                 1,800,000                   0                 1,800,000
                                         15.0%                   0.0%                  15.0%
Total                                  12,000,000                  0                12,000,000
                                         100.0%                  0.0%                 100.0%





   (Note) SMBC Leasing Company, Limited plans to acquire from Sumitomo Mitsui
              Banking Corporation 600,000 shares on the same date.
                                (1) Number of shares     (2) Number of shares  (3) Number of shares
                                before the transfer      to be transferred     after the transfer
Sumitomo Mitsui Banking                 600,000                 600,000                  0
Corporation                               5.0%                   5.0%                  0.0%




5. Date of the transfers

    In the middle of March, 2003





6. Forecast of NEC's financial results

    The effect of these transactions is already included in NEC's forecast for
    its consolidated financial results for the fiscal year ending March 31,
    2003.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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