Tokyo, August 30, 2005 --- NEC Corporation ("NEC", code number:
6701) today announced that it has resolved to sell a part of its
holdings in its affiliate, Elpida Memory, Inc. (listed on the First
Section of Tokyo Stock Exchange, code number: 6665).
As a result of this sale in holdings, Elpida Memory, Inc. will
no longer be an affiliated company of NEC as accounted for by the
equity method.
There will be no change in NEC's business relationship with
Elpida Memory, Inc. in all areas including product procurement.
1.Number of shares/change in holding percentage
| Securities |
Number of shares |
Holding percentage |
| Before sale |
Shares to be sold |
After sale |
Before sale |
After sale |
Common stock of
Elpida Memory, Inc. |
Under the name of
NEC |
|
|
|
|
|
|
2.Shares will be sold to a securities company for resale to
institutional investors.
3.Period of sale: By September 30, 2005
4.Affect on the financial results for the fiscal year ending
March 31, 2006
Estimated gain owing to the sale of holdings has already been
recognized in the financial forecast for the fiscal year ending
March 31, 2006 as announced on July 28, 2005.
Cautionary Statements
This material contains forward-looking statements pertaining to
strategies, financial targets, technology, products and services,
and business performance of NEC Corporation and its consolidated
subsidiaries (collectively "NEC"). Written forward-looking
statements may appear in other documents that NEC files with stock
exchanges or regulatory authorities, such as the U.S. Securities
and Exchange Commission, and in reports to shareholders and other
communications. The U.S. Private Securities Litigation Reform Act
of 1995 contains, and other applicable laws may contain, a
safe-harbor for forward-looking statements, on which NEC relies in
making these disclosures. Some of the forward-looking statements
can be identified by the use of forward-looking words such as
"believes," "expects," "may," "will," "should," "seeks," "intends,"
"plans," "estimates," "aims," or "anticipates," or the negative of
those words, or other comparable words or phrases. You can also
identify forward-looking statements by discussions of strategy,
beliefs, plans, targets, or intentions. Forward-looking statements
necessarily depend on currently available assumptions, data, or
methods that may be incorrect or imprecise and NEC may not be able
to realize the results expected by them. You should not place undue
reliance on forward-looking statements, which reflect NEC's
analysis and expectations only. Forward-looking statements are not
guarantees of future performance and involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those in the forward-looking
statements. Among the factors that could cause actual results to
differ materially from such statements include (i) global economic
conditions and general economic conditions in NEC's markets, (ii)
fluctuating demand for, and competitive pricing pressure on, NEC's
products and services, (iii) NEC's ability to continue to win
acceptance of NEC's products and services in highly competitive
markets, (iv) NEC's ability to expand into foreign markets, such as
China, (v) regulatory change and uncertainty and potential legal
liability relating to NEC's business and operations, (vi) NEC's
ability to restructure, or otherwise adjust, its operations to
reflect changing market conditions, and (vii) movement of currency
exchange rates, particularly the rate between the yen and the U.S.
dollar. Any forward-looking statements speak only as of the date on
which they are made. New risks and uncertainties come up from time
to time, and it is impossible for NEC to predict these events or
how they may affect NEC. NEC does not undertake any obligation to
update or revise any of the forward-looking statements, whether as
a result of new information, future events, or otherwise.
The management targets included in this material are not
projections, and do not represent management's current estimates of
future performance. Rather, they represent targets that management
will strive to achieve through the successful implementation of
NEC's business strategies.
Finally, NEC cautions you that the statements made in this
material are not an offer of securities for sale. The securities
may not be offered or sold in any jurisdiction in which
registration is required absent registration or an exemption from
registration under the applicable securities laws. For example, any
public offering of securities to be made in the United States must
be registered under the U.S. Securities Act of 1933 and made by
means of an English language prospectus that contains detailed
information about NEC and management, as well as NEC's financial
statements.
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.
$45.4 billion) in the fiscal year ended March 2005. For additional
information, please visit the NEC home page at: http://www.nec.com
* Newsroom: http://www.nec.co.jp/press/en/
***
NEC Press Contacts:
In Japan Diane Foley
NEC Corporation
d-foley@ax.jp.nec.com
+81-3-3798-6511