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NEC Electronics Restructures Manufacturing Operation Completes Reduction in Force and Launches New Organization Structure

Santa Clara, Calif. - May 17, 2001 - -NEC Electronics Inc., today announced its new streamlined organization structure at its Roseville manufacturing plant aimed to increase U.S.-based business and reduce costs through more efficient operations. The plant is a much leaner organization following this week's reduction in force where fewer than 400 positions were eliminated. This action follows the 100 employees released in April resulting from the closure of its assembly and test operation. Both actions, plus typical run rate attrition will result in a total headcount reduction of 700 or over 40%, by the end of September.

NEC Electronics' restructured manufacturing organization consists of four key areas, production, production support, a new foundry area and process technology center. is at the heart operation with concentration on System LSI critical to plant's infrastructure support. increasing business its U.S. customers, NEC has launched first U.S.-based effort. engineers will be dispatched work directly customers develop tailored solutions. Also for Electronics, center (PTC) created Roseville development.

NEC Electronics' restructured manufacturing organization is keenly focused on production and production processes. The plant also leverages headquarters functions enabling the plant to maintain its focus on production and production processes. Acting as one unified operation; manufacturing, headquarters, field sales and design centers provide U.S.-based customers manufacturing excellence, process technology development, foundry and engineering expertise locally.

About NEC Electronics Inc.
NEC Electronics Inc., headquartered in Santa Clara, California, is one of the leading developers, manufacturers and suppliers of semiconductor products in the United States. Committed to meeting customers' cost, performance and time-to-market requirements, the company offers solutions ranging from standard products to system-on-a-chip (SOC) solutions, as well as customized products for next-generation designs. NEC Electronics also offers customers the benefits of a state-of-the-art manufacturing facility in Roseville, CA, and the global manufacturing capabilities of its parent company, NEC Corporation (NASDAQ: NIPNY). For more information about products offered by NEC Electronics Inc., please visit the NEC Electronics Web site at http://necelam.com.

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NEC Electronics Inc. is either a registered trademark or trademark of NEC Corporation in the United States and/or other countries. #10884