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TOKYO, April 1, 2004 - Elpida Memory, Inc. (Elpida), Japan's leading global supplier of Dynamic Random Access Memory (DRAM), and NEC Corporation (NEC) today announced that Elpida and Hiroshima Elpida Memory, Inc. (Hiroshima Elpida), a wholly owned manufacturing subsidiary of Elpida, have signed an asset purchase and sales agreement with NEC and NEC Hiroshima, Ltd. (NEC Hiroshima). According to the agreement, Hiroshima Elpida will acquire assets including land, buildings and facilities that were previously leased from NEC Hiroshima. This agreement is effective as of April 1, 2004.
The expected closing date is the end of September 2004. The purchase price is approximately 34 billion yen. All other terms and conditions of the agreement remain confidential.
"By securing these assets as the base for Elpida's strategic production center, Elpida can reinforce its prototype development and mass-production capabilities through highly efficient operation of its 200 mm and 300 mm facilities," said Yukio Sakamoto, president of Elpida. "In addition, the land purchased from NEC Hiroshima will provide us with room for future expansion as we continue to meet the industry demand for advanced process technology and volume availability of DRAM products"
Hiroshima Elpida will continue to own and operate its state-of-the-art 300 mm wafer fabrication facility located on the newly acquired land. The purchase agreement does not affect Elpida's foundry business at the 200mm facility, and Hiroshima Elpida will also continue to provide non-DRAM semiconductors to NEC Electronics Corporation. NEC will remain a primary shareholder in Elpida Memory, Inc.
About Hiroshima Elpida Memory, Inc.
Hiroshima Elpida Memory, Inc. was established on September 1, 2003 as a wholly owned subsidiary of Elpida Memory, Inc. Hiroshima Elpida is comprised of a 200 mm manufacturing facility and a state-of-the-art 300 mm wafer fabrication facility. The organization provides Elpida with strong foundation for its entire DRAM business including device development, leading-edge process technology and production capabilities.
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
All trademarks are the property of their respective owners.
Information contained in this news release is current on the date of the press announcement, but may be subject to change without prior notice.
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