Renesas Launches Reorganization of Chinese Operational Structure to Expand Business in China.

-- Unified Operation Including Sales and Application Technology Support to Start in China --

TOKYO -- Renesas Technology Corp. today announced a reorganization of its sales and application technology support structure in China with the aim of expanding its business in that country. The new structure commenced operations in January 2007. Initially, Renesas Technology's sales subsidiaries underwent restructuring on December 1, 2006. This was followed on January 1 of this year by a restructuring of the application technology subsidiaries. Under the new arrangement, a total of four sales and application technology subsidiaries will operate as a virtual, single structure under the unified management system of a single CEO, Managing Officer Masahiro Yamamura (presently stationed in Shanghai).

Renesas has considered China to be a key market ever since its establishment in 2003. The local subsidiary, Renesas Technology (China) Co., Ltd., started operation on July 1, 2004, to reinforce management and adjustment functions for the Chinese market. Now a new structure has been launched to further strengthen these capabilities by consolidating them, virtually, into a single, unified company.

In the past, Renesas' sales operations in China were divided between sales subsidiaries headquartered in Shanghai, which were responsible for the northern portion of the Chinese mainland, and sales subsidiaries headquartered in Hong Kong, which focused on the southern China region. In addition, separate sales subsidiaries served Japanese companies, as well as other customers. There were also separately managed application technology subsidiaries providing support services, one headquartered in China and others headquartered in Singapore.

However, Renesas' customers continue to expand their networks of regional facilities throughout China, with no distinction between the northern and southern regions. Renesas therefore decided to carry out a thorough reorganization and consolidation of its sales and application technology operations, unifying the management system and eliminating the regional distinction between north and south in order to provide speedier and more comprehensive customer support.

Specifically, subsidiaries with identical functions have been combined. Four sales subsidiaries with a total of ten facilities have been consolidated as two subsidiaries with seven facilities: Renesas Technology (Shanghai) Co., Ltd., with facilities in Shanghai, Beijing, Qingdao, and Hangzhou, and Renesas Technology Hong Kong Ltd., with facilities in Hong Kong, Shenzhen, and Xiamen. Application technology operations have been consolidated as two subsidiaries: Renesas System Solutions (Beijing) Co., Ltd., with facilities in Beijing, Shanghai, and Shenzhen, and the new Renesas System Solution Hong Kong Ltd., based in Hong Kong. Managing Officer Masahiro Yamamura will serve as the CEO of these four companies. This new arrangement will put the sales and application technology teams in China under a unified management, regardless of facility location, and enable them to provide customers with integrated contact points, as well as more efficient and comprehensive support.

In the years ahead, Renesas plans to reinforce its efforts to develop and supply products focused on the Chinese market under the new structure described above. The company will expand its presence in China by concentrating on local business connections with Chinese manufacturers, in addition to transfer business with the Chinese subsidiaries of manufacturers headquartered elsewhere, such as Europe, North America, and Japan.

About Renesas Technology Corp.

Renesas Technology Corp. is one of the world's leading semiconductor system solutions providers for mobile, automotive and PC/AV (Audio Visual) markets and the world's No. 1 supplier of microcontrollers. It is also a leading provider of LCD Driver ICs, Smart Card microcontrollers, RF-ICs, High Power Amplifiers, Mixed Signal ICs, System-on-Chip (SoC), System-in-Package (SiP) and more. Established in 2003 as a joint venture between Hitachi, Ltd. (TOKYO:6501)(NYSE:HIT) and Mitsubishi Electric  Corporation (TOKYO:6503), Renesas Technology achieved consolidated revenue of 906 billion JPY in FY2005 (end of March 2006). Renesas Technology is based in Tokyo, Japan and has a global network of manufacturing, design and sales operations in around 20 countries with about 26,200 employees worldwide. For further information, please visit http://www.renesas.com.