Elpida Memory Establishes Semiconductor Company 'Hiroshima Elpida Memory, Inc.'

HIROSHIMA, Japan, August 26, 2003 - Elpida Memory, Inc. ("Elpida"), a leading provider of Dynamic Random Access Memory (DRAM), announced today the establishment of a new semiconductor manufacturing company 'Hiroshima Elpida Memory, Inc.' ("Hiroshima Elpida"). At the same time Elpida, NEC Corporation, and NEC Hiroshima have agreed to integrate the manufacturing operations of NEC Hiroshima, Ltd. ("NEC Hiroshima"), a wholly owned subsidiary of NEC Corporation, into the new company. Hiroshima Elpida will be established on September 1, 2003 as a wholly owned subsidiary of Elpida. This will enable Elpida to establish a strong framework for its entire DRAM business, including device development and marketing functions, as well as leading-edge processing and production capabilities.

As part of the agreement, employees from NEC Hiroshima will be re-assigned to Hiroshima Elpida. Hiroshima Elpida will lease the property and the 200 mm manufacturing facility from NEC Hiroshima. To date, Elpida had outsourced its state-of-the-art 300 mm wafer manufacturing to NEC Hiroshima. This agreement enables Hiroshima Elpida to operate 200 mm and 300 mm manufacturing simultaneously. Hiroshima Elpida will continue to provide manufacturing outsourcing to NEC Electronics Corporation (previously carried out by NEC Hiroshima). NEC Hiroshima will thus act as a management company of assets leased to Hiroshima Elpida, and as employer of contract employees temporarily lent to Hiroshima Elpida. Additional details of the agreement were not disclosed.

Hiroshima Elpida will enhance Elpida's business efficiency by reducing costs, facilitating quick customer response, and enabling speedier operations' management. Elpida Hiroshima will focus on its manufacturing technology strength, while Elpida's core competence will continue to be in the design and development of DRAM technology. This marks another major milestone in Elpida's pursuit to become a top 3 DRAM company.

"As a leading DRAM company, our ability to control our own manufacturing is critical to the development and high-yield production of leading-edge products," said Yukio Sakamoto, president of Elpida Memory. "The formation of Hiroshima Elpida enables us to unify production and distribution as a DRAM manufacturer."

About Elpida Memory, Inc.
Elpida Memory, Inc. is a manufacturer of Dynamic Random Access Memory (DRAM) with headquarters based in Tokyo, Japan, and sales and marketing operations located in Japan, North America, Europe and Asia. Elpida offers a broad range of leading-edge DRAM products. Elpida is a joint venture company formed by NEC and Hitachi on December 20, 1999 and has been in operation since April 2000.

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 approximately $40 billion in the fiscal year ended March 2003. For additional information, please visit the NEC home page at: http://www.nec.com.