Retirement Benefit Trust

RNS Number:9728O
NEC Corporation
22 August 2003




                                                                 August 22, 2003

Announcement concerning the Creation of the Securities-based Employee Retirement
                                 Benefit Trust

    At the meeting of the Board of Directors of NEC Coporation ("NEC") held
today, it was resolved that NEC will create a securities-based employee
retirement benefit trust (the "Trust") and transfer to the Trust additional
shares of Nippon Electric Glass Co., Ltd ("Nippon Electric Glass") to make NEC's
pension healthy.

    Since NEC maintains voting rights in the shares under the Trust, the
relationship between NEC and Nippon Electric Glass will remain unchanged after
the transfer.

1. Scheduled date of the creation of the Trust: August 25, 2003

2. Shares to be transferred and changes in shareholding ratio

         Securities            Number of the   Number of the   Number of the             Shareholding ratio
                               shares before   shares to be    shares after
                                additional     additionally     additional
                                 transfer       transferred      transfer
                                                                               Before additional     After additional
                                                                                    transfer             transfer
Common Stock of Nippon
Electric Glass

    Under the name of NEC          24,033,000  (-) 16,000,000       8,033,000                15.0%                 5.0%
                                   
    Under the name of the
Trust                              31,900,000  (+) 16,000,000      47,900,000                20.0%                30.0%

            Total                  55,933,000               0      55,933,000                35.0%                35.0%



3. Amount of the creation of the Trust: approximately JPY 19.0 billion

4. Effect on the financial results for the first half of the fiscal year ending
March 31, 2004:

        The profit on the creation of the Trust as a result of the additional
    transfer above has been reflected in NEC's non-consolidated financial
    results forecast announced on July 31, 2003.
        There will be no effect on NEC's consolidated financial results since
    such profit shall not be posted in the accounting principles generally
    accepted in the United States.





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