TOKYO and LONDON, February 5 /PRNewswire/ --

- Operators to Benefit From Increased Uptake of 3G Services, Reduced 
Churn and Lowered Operational Costs

NEC Corporation today announced the readiness of its Femtocell
solution for Operator Lab and Friendly User trials. NEC Femtocell solution is
in Operator trials in Europe and in other parts of the world. NEC Femtocell
solution will enable Operators to deliver 3G mobile services via a standard
IP broadband connection directly into subscribers' homes or business
environments.

A Femtocell is a small low-power plug-and-play consumer device
(Femtocell access point) enabling the provision of localised 3G coverage and
dedicated capacity while using the subscriber's broadband connection as a
backhaul.

U ABI Research predicts that "After a widespread launch in mid
2008, the European Femtocell market will represent the largest global market
with 16.6 million units per annum in 2012 out of a total shipment volume of
36 million units and a market valuation of US$4.2billion".

NEC is among the first provider to offer a complete solution
which includes the Femtocell access point for direct subscriber use, together
with the Femtocell gateway and the management and provisioning systems. NEC
is uniquely positioned to provide Operators the optimum choice of Femtocell
Solution to integrate with the 3G core network using the Iu interface or to
the IMS core network using the SIP interface. NEC Femtocell Solution is
compatible with the existing and planned 3G mobile handsets, which is
essential for driving mass-market adoption.

NEC Femtocell solution provides mobile operators with a
practical and cost-effective platform for delivering Next Generation Services
direct to the end-user such as competitive voice calling, IPTV all via a
single in-home device. In addition to providing new revenue streams,
operators who take advantage of femtocell technology will be well-positioned
to differentiate their service offering in the face of increasing competition
in the wider telecoms market.

Mr Yoichi Watanabe, Assistant Senior Vice President at NEC
commented: "The battle to retain a meaningful and profitable relationship
with subscribers is heating up, with mobile operators facing competition from
new entrants into the market. The company which can deliver customers with
the communications services they require and will pay for is the one which
will remain visible and relevant. As an established provider of mobile
infrastructure expertise, NEC recognised that femtocell-based solutions will
provide the best platforms for operators who are planning to offer true FMC
services to subscribers and we are happy to announce that NEC Corporation has
established NEC Europe as the Global Competence Centre for Femtocell".

Mr Richard Hanscott, Vice President of Network Solutions in
NEC Europe added: "Our European team has been at the forefront of NEC's
development in this exciting new area and we are pleased to announce that we
have signed six Operator Trials to date. Results from trials have confirmed
successful integration and co-existence of Femto network with the 3G macro
network, fully meeting our performance prediction and as a result we
anticipate moving into a Friendly User Trial with an operator in Q2 2008. We
are encouraged by the recognition we are receiving from major European &
Asian Operators that NEC is now taking the lead in helping to develop this
new market opportunity".

About NEC Corporation

NEC Corporation is one of the world's leading providers of
Internet, broadband network and enterprise business solutions dedicated to
meeting the specialized needs of its diverse and global base of customers.
NEC delivers tailored solutions in the key fields of computer, networking and
electron devices, by integrating its technical strengths in IT and Networks,
and by providing advanced semiconductor solutions through NEC Electronics
Corporation. The NEC Group employs more than 150,000 people worldwide. For
additional information, please visit the NEC home page at: http://www.nec.com