Oki Electric Delivers IP Telephony System to Kobe Steel.

TOKYO -- Oki Electric Industry Co., Ltd. (TOKYO:6703) today announced it has delivered an IP telephony system to Kobe Steel , Ltd. based on Oki's IP telephony server, IP CONVERGENCE(R) Server SS9100. Kobe Steel installed 2,000 units of Oki's IP phones in its Tokyo headquarters, and expects to expand to 15 locations to reach 10 thousand IP telephony units throughout the country by the fiscal year ending March 2009, which will become one of the largest IP telephony systems in Japan. NTT Communications Corp. took charge of the system integration, and Kobelco Systems Corp. took charge of the total coordination.

"We are proud to contribute to Kobe Steel's IP telephony system, which is expected to become one of the largest IP systems in Japan. By shifting all of its internal phones to IP, based on our SS9100, Kobe Steel can make all internal and external calls on IP, enabling them to reduce communication costs and improve productivity," said Masashi Tsuboi, President of IP Systems Company at Oki Electric. "We will continue to propose new communication styles to Kobe Steel to help them reexamine their office work style and further increase productivity."

Kobe Steel's intranet platform is based on Kobelco Systems' 'Kobelco Net,' and uses NTT Com's 'Arcstar IP-VPN' for its network service for IP communication among internal locations. Oki's SS9100 was installed at Kobelco Systems' Kobe Center to control the intranet IP Centrex System and control IP telephony units in each location via NTT Com's IP leased line. NTT Com's IP telephony service, '.Phone IP Centrex(1)" connected to the Kobe Center enables this large system to also use IP telephony for external calls in a low cost.

In addition, even in a time of a disaster when PSTNs restrictions apply to communications, outgoing calls can be made via Kobe Center, which makes it a disaster-resistant system. Kakogawa Works, the largest plant of Kobe Steel, selected Oki's large-scale IP-PBX, DISCOVERY01(R) to establish a system based on 4,000 units of internal Personal Handyphone System (PHS) and fixed phones that enable users to make and receive calls wherever they are within the plant, which significantly increases convenience and reduces communication costs.

Oki will continue to work with Kobe Steel providing solutions using SS9100 for business applications, FOMA(R)/ Wireless LAN dual terminal(2) and high voice quality softphones.

Endorsement from Microsoft Co., Ltd.:

    "We are delighted to hear about Oki Electric's installation of
    its IP telephony server, IP CONVERGENCE SERVER SS9100, to Kobe
    Steel. By giving our approbation on Oki's launch of SS9100 in
    February 2004, we have deployed technology collaboration as
    well as conducting promotion activities. Delivering this large
    scale IP telephony system based on SS9100 not only provides
    new work styles and communication methods to enterprises but
    also reduces TCO and contributes in increasing
    competitiveness."

                                               Kozo Hizume,
                  Senior Manager, ISV Solution Development,
                                        Microsoft Co., Ltd.

(Glossary)

(1) .Phone IP Centrex:

IP telephony service for enterprises using NTT Com's VoIP network based on Arcstar IP-VPN, the IP-VPN network service, e-VLAN, the wide Ethernet service, and OCN, the Internet connection service provided by NTT Com.

(2) FOMA/ Wireless LAN dual terminal:

NTT DoCoMo's WiFi terminal, which can be used as a 3G cellular phone both in public and intra-office.

About Oki Electric Industry Co., Ltd.

Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer, with its headquarters in Tokyo, Japan. With the corporate vision, "Oki, Network Solutions for a Global Society," Oki provides top-quality products, technologies and solutions to its customers through its info-telecom system business, semiconductor business and printer business. All three businesses function as a collective force to create exciting new products and technologies that satisfy a spectrum of customer needs in various markets. Visit Oki's global web site at http://www.oki.com/.

Notes:

--CONVERGENCE, DISCOVERY01 are registered trademarks of Oki Electric Industry Co., Ltd. in Japan.

--.Phone IP Centrex, Arcstar IP-VPN are registered trademarks of NTT Communications Corporation

--Names of companies and products are trademarks or registered trademarks of the respective companies.