NEC America Introduces New Line of Broadband Technologies for the U.S. Market; NEC GPON Solution Supports NEC's Vision of PON Implementations as a Critical Step in Next Generation Networks.

HERNDON, Va. -- NEC America, Inc. (NEC), a leading provider of carrier-class communications products for optical networks announced today, its new product line of high-performing SpectralWave(TM) GPON (Gigabit Passive Optical Network) access equipment. NEC's solution supports both Ethernet and TDM services on a single fiber; enabling service providers to deliver converged data and voice services for the last mile, in a cost-effective and bandwidth-efficient manner.

Leveraging its global strength in access technologies, NEC first began its PON system research and development more than two decades ago. Since then, NEC has launched successful PON solutions globally; establishing NEC as a leading access solutions organization.

"Specifically, many Ethernet access implementations provide as little as 50% of usable bandwidth to the service provider and may be inadequate to support legacy TDM and voice," said Nick Maynard, senior analyst, Yankee Group. "GPON is a critical access technology which offers roughly twice the capacity of EPON, and will likely dominate in North America. It is important that NEC brings its global technological strength to the U.S. market -- as it will be a complementary offering to its current line of optical infrastructure technologies."

NEC's fully ITU-T(1) standards compliant GPON offering for the U.S. market is a flexible option for service providers as it is designed for the next generation packet networks, supports high bit rates of up to 2.488 Gbps and leverages NEC's experience(2) in delivery of triple-play, IPTV and advanced services. NEC's technology and product range provides an optimal and efficient access networking support for multiple services and operation, administration, maintenance and provisioning (OAM&P) functionality and scalability.

The NEC SpectralWave GPON solution consists of the AM Series Optical Line Terminal (OLT) and ME Series Optical Network Units (ONU) and Terminals (ONT). It is anticipated that the SpectralWave GPON solution will be generally available early 2Q06. The non-blocking AM Series OLT platform scales to over 3000 subscribers per shelf and provides a flexible multi-service access platform with close integration to service delivery systems; thus enabling rapid introduction and cost-efficient delivery of triple-play and converged services. The ME Series products include a modular ONU platform with configurable subscriber interface types for Multi-Dwelling Unit (MDU) and Multi-Tenant Unit (MTU) deployments as well as a variety of ONT types to address a wide spectrum of service scenarios, from single-family Internet access and IPTV to home-office models. NEC's SpectralWave GPON solution products are fully aligned with the key industry network architecture initiatives and standards, including: FSAN, DSL Forum WT-101 and ETSI TISPAN.

"As Fiber-To-The-Premise and Fiber-To-The-Home are becoming more widely accepted in 'Greenfield' sites and mixed copper/fiber environments, we anticipate that GPON will be more regularly deployed," said Rocky Kler, general manager, Optical Network Systems Division, NEC America. "NEC America's response is to leverage our global commitment and product strength in access technologies to bring true broadband services over a single platform. Our vision is that PON implementations will be a key step in simplifying access networks, consistent with our view of the next-generation network."

About NEC America, Inc.

NEC America, Inc., headquartered in Irving, Texas, is a leading provider of innovative communications products, solutions and services. NEC America serves all communications industries from carriers, to enterprise, to wireless and is an affiliate of NEC Corporation (Nasdaq:NIPNY), a Global Fortune 500(R) company and one of the leading patent producing enterprises in the world. For more information about NEC America, visit its website at www.necamerica.com.

SpectralWave(TM) is a trademark of NEC America, Inc.

(1) GPON standards were ratified by ITU-T and are known as ITU-T
    Recommendations G.984.1, G.984.2 and G.984.3 -- NEC complies to
    all standards.

(2) NEC Broadband technology has been deployed in various service and
    deployment scenarios: From the highly competitive broadband
    environment of Japan and IPTV deployment in Hong Kong to
    Singapore's dense infrastructure and the extended loop-lengths of
    Australia.