Fujitsu Combines U.S. Personal Computer Companies to Better Serve Customers' Growing Mobile Computing Needs; Stronger Merged Company to Market Notebook and Pen-based Computers.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 13, 1999--

Fujitsu Personal Systems, Inc. (FPSI) and Fujitsu PC Corporation (FPC), subsidiaries of Fujitsu Limited, a leading provider of comprehensive information technology and network solutions, announced an internal reorganization today to combine their U.S. personal computer operations into one company to better meet the growing needs of mobile computing customers.

The combination of FPSI and FPC will be called Fujitsu PC Corporation (FPC) and be based in Santa Clara. The new FPC will have offices in Milpitas, Calif., and Memphis, Tenn., as well as sales offices throughout North America and Europe.

"Our goal is to become the undisputed leader in providing personal computing products for the mobile market," said Chiaki Ito, Chairman and CEO of Fujitsu PC Corporation. "This powerful combination will give us the means to reach that goal."

Ito said the combination makes sense for a number of reasons. Technology and customer needs have brought the product lines of both companies increasingly closer. Today's customers prefer one-stop shopping for a comprehensive array of products to meet their mobile computing requirements.

"We are confident that an integrated sales force will be better to meet our customers' needs," Ito said. "This will enable us to develop and deliver an integrated, full range of products -- both notebook PCs and pen-based products -- that our customers require."

A streamlined corporate entity will also allow FPC to put more resources into sales, customer service and product development, as well as to create a more efficient management structure.

Ito said both the pen-based market and the notebook market are critical to Fujitsu's future, and the company is committed to growing and expanding its product lines in both areas.

The management structure of the combined company will be modified somewhat. Ito, who had been the Chairman and CEO of both companies, will retain that position in the new FPC. Toshio Morohoshi, Corporate Vice President of the former FPC, will be Chief Operating Officer of the new company. John Roth, who was Senior Vice President for Administration and Chief Financial Officer of FPSI, will continue in that role with the new FPC.

The rest of the senior management team consists of J.P. Martin, Vice President of European Sales; Phil Marson, Vice President of North American Sales; Steve Andler, Vice President of Marketing; Chris Claudatos, Senior Vice President of Operations; John VanZandt, Vice President of Engineering; and Bob Faulhaber, Senior Vice President for Customer Service and Support.

The two companies combined currently have about 350 employees. Due to the merger, there will be some redundancies in U.S. operations, and some positions will be eliminated. The company's European sales offices will not be affected.

"Our goal is to grow Fujitsu PC Corp., and we believe that the steps we're taking today will effectively reposition FPC for long-term, profitable growth," Ito said.

About Fujitsu PC Corporation

Fujitsu PC Corporation (FPC) is a leading provider of personal computing products for the mobile market. The company is the undisputed leader in the Windows(R) pen tablet market and one of the top suppliers of notebook computers in the U.S. FPC is a subsidiary of Fujitsu Limited, a leading provider of information technology products and solutions for the global marketplace with consolidated revenues of $43.3 billion. FPC has headquarters in Santa Clara, with major offices in Milpitas and Memphis and sales offices throughout North America and Europe.