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NEC Contributes to Next Generation Shopping with New POS - Global Expansion of Transaction Solutions

TOKYO, July 3, 2008 - NEC Corporation (Note*1) and NEC Infrontia (Note*2) have taken development of next generation shopping to a new level with the latest release of the "TWINPOS 5000" series.

The three new TWINPOS 5000 models distinguish themselves through aninnovative combination of form and function that are represented by the superior design of the "TWINPOS5500Ui," the small merchant entry model, "TWINPOS 5100Mi," and the self POS model for electronic money settlement, "TWINPOS 5500Si." Each of the models meets retail store demand for attractive next generation electronic money solutions that provide customers with instant access to cashless settlement options.

The TWINPOS 5000 series was strategically designed to promote theglobal expansion of transaction solutions through growing markets that include North America, China, Southeast Asia and others. NEC is also aiming to develop localized retail businesses and international business for Japanese retailers by cooperating with localized SI vendors to expand specialized consulting and SI services.

In recent years, businesses have been seeking to increase competitivestrength through real-time adaptation of management strategies. These strategies are largely influenced by systems that safely and reliably manage sales and customer information; complement the design of retail settings and provide high quality services to customers. Furthermore, the rapid spread of electronic money through a broad range of businesses that process large volumes of transactions has dramatically increased demand for consumer geared services. NEC's latest POS series meets the growing mutual needs of both retailers and consumers alike.

NEC is aiming to capitalize on its latest POS series, and the growingglobal need for transaction solutions, to sell as many as 250,000 POS units over the next 3 years.

Please see below for more background on each POS unit.

■ Superior Design Base Model POS "TWINPOS 5500Ui" Catering to design conscious merchants who may select from features that include underside base-illumination (an industry first), a wide variety of side panel color options, and freedom of keyboard and display placement.

The unit's size has been reduced to a width of 300 mm and depth of 240 mm by setting the motherboard housing in the rear of the display. Even when including the external receipt printer, the unit's total are a has been reduced by approximately 50% when compared to earlier models (Note*7). In addition to the freedom of conveniently positioning the unit, the quality of customer service is also complemented with customized customer messages that may be viewed from the rear display.

Electricity consumption reduced by as much as 40% when compared to earlier models (Note*8), made possible by such standby functions as CPU clock down (Note*9), and display lighting adjustments.

Security coverage includes virus protection with the industry's first virus scanner, in addition to file/version updates that minimize system obstacles.

■ Small Merchant Model POS "TWINPOS 5100Mi" A POS entry model that offers essential sales and inventory management functions in a compact package. A low price alternative, ideal for a full range of small merchants who operate in a relative few locations.

A width of 290 mm and depth of 230 mm enables even small establishments to easily accommodate the unit.

■ Electronic Money Settlement Self POS "TWINPOS 5500Si" A self-register specialized for businesses conducting a large volume of small denomination settlements using electronic money.

A single unit equipped with a reader/writer capable of processing 8 of the country's major national electronic money formats.

The world's first integrated reader/writer/scanner/printer capable of processing multiple electronic money formats. The unit is available in a compact size and offers self operating POS that maximizes customer convenience.

NEC and NEC Infrontia have an accomplished history of providing retailers with solutions that improve service and customer loyalty. The NEC Group of companies will continue to capitalize on existing solutions through innovative developments with new technologies, including product traceability systems that utilize multiple electronic money reader/writers and RFID, in order to keep pace with the growing needs of diversifying markets. Looking forward, NEC will be providing a rich lineup of solutions that support the ongoing transformation of transaction activities.

The POS systems outlined above operate on Microsoft Windows Embedded for Point of Service (WEPOS) OS. NEC and NEC Infrontia will continue to promote global platform compatibility while also providing drivers that support the conventional POS for NET standard. Please see below for an endorsement from Microsoft Corporation regarding the products featured in today's announcement.

"Congratulations to NEC and NEC Infrontia on the release of the latest TWINPOS 5000 series. We anticipate a promising future for NEC Infrontia's latest generation of POS devices, equipped with Microsoft's retail focused Windows Embedded for Point of Service OS. The compatibility, reliability and multilingual support provided by these versatile merchant devices will set a new market standard for retail platforms. The system's innovative new UI, made possible through Windows Presentation Foundation technologies, will enable an advanced user experience that has never been seen before. Microsoft is now looking forward to building on its close relationships with NEC and NEC Infrontia, as well as supporting the development of devices and solutions that meet the market's growing demand."

Katsuhiko Yamazaki Senior Officer, Senior Director, OEM Embedded Devices Microsoft Co., Ltd.

(note*1) Head Office: Minato-ku, Tokyo, President: Kaoru Yano (note*2) Head Office: Chiyoda-ku,Tokyo, President: Kazuyoshi Tanigishi (note*3) Main unit (12' LCD display), customer display, keyboard, receipt printer, magnetic card reader, barcode scanner, cash drawer (note*4) Main unit (12' LCD display), customer display, receipt printer,magnetic card reader, bar code scanner, cash drawer (note*5) Display, receipt printer, fixed scanner, multiple electronic money reader/writer (note*6) Shipment schedule; North America: October 2008, Southeast Asia / China: January 2009 (note*7) TWINPOS 3500 Series (note*8) TWINPOS 3500 Series (note*9) Alteration of a computer's activation speed

About the TWINPOS 5000 Series www.nec.co.jp

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