TOKYO, June 27 /PRNewswire/ --

- NEC Strengthens Global Software Business Helping Communications Service
Providers Accelerate Business Transformation

NEC Corporation (NEC) today announced a definitive agreement
to acquire NetCracker Technology Corp. (NetCracker), a US based software and
solutions company with an industry leading track record of delivering
Operations Support Systems (OSS) transformation to communications service
providers across the globe. This strategic acquisition underscores NEC's long
standing commitment to offer innovative solutions to the communications
industry, enabling them to transform their business, and rapidly deploy new
infrastructure and services.

With this acquisition, NEC adds a key element of software and
services to its market leading portfolio of mobile and fixed infrastructure
products. NetCracker's products, services and domain expertise will be
integral to leveraging complementary assets within both companies.

"NetCracker has distinguished itself with a record of
successful OSS transformations and exceptional software solutions and
professional services for leading communications service providers," said Mr.
Kaoru Yano, President of NEC. "The acquisition of NetCracker strengthens
NEC's offerings and brings even greater value to the global communications
industry."

"NEC and NetCracker share a vision of operations and business
support systems being critical to communications service providers, enabling
them to build a sustainable competitive advantage," said Andrew Feinberg, CEO
of NetCracker. "NEC's scale and solution offering will help us extend our
core application and services footprint and continue to broaden the solutions
we offer to our global customers."

NEC's communications carrier business is continually expanding
and the company's superior lineup of telecommunication products includes
full-line and full layer support; the early adoption of NGN related business
and globally competitive business models such as Pasolink and submarine cable
systems.

NEC will now leverage the acquisition of NetCracker to
strengthen its existing business foundations and to provide total solutions
for communications businesses whose IP and service diversification needs
continue to grow. The company anticipates that Operations Support Systems
will represent a key element to new international growth that is expected to
generate approximately 200 billion yen over the next 5 years.

NetCracker's know-how of transforming Operations Support
Systems enables communications service providers to deploy new services,
build operational excellence and closer customer relationships. As service
providers move to an all-IP environment and become more diversified, the
company's expertise becomes an increasingly essential element of their
success. Furthermore, the ongoing debut of innovative new services, including
IPTV, Triple-Play, 3G and others, provides exciting new opportunities for
deploying the next generation of OSS. NetCracker employs approximately 1,000
people worldwide and its customers include France Telecom, MTS, Sprint,
TELUS, Telstra, UPC and many other leading communications service providers
spanning the globe.

The new business relationship is expected to foster innovative
new solutions that address the needs of communications service providers and
accelerate NEC's international software business. NEC is committed to
retaining the relationships and go-to-market strategies that NetCracker has
developed. Upon the closing of the transaction, NetCracker will operate as an
independent business unit led by its current management team and will become
the centerpiece of NEC's communications service provider software business.

About NEC

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 a diversified 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 website at: http://www.nec.com

About NetCracker

NetCracker Technology is a leading global Solution Company
enabling Service Providers to deliver rapidly and manage effectively
convergent and content-rich offerings. NetCracker delivers service and
resource management through its software and implementation expertise.
NetCracker's portfolio includes a comprehensive suite of product modules as
well as specialized vertical solutions (such as Triple Play), all
pre-integrated with the NetCracker Framework. Founded in 1993, NetCracker
Technology is headquartered in Waltham, Massachusetts, and can be reached at
+1-781-419-3300 or http://www.NetCracker.com.

NEC is a registered trademark of NEC Corporation. All Rights
Reserved. Other product or service marks mentioned herein are the trademarks
of their respective owners. (c)2008 NEC Corporation.

NEC Corp. Press Contacts

    (Japan):

    Takehiko Kato
    t-kato@cj.jp.nec.com
    +81-3-3798-6511
 
    Joseph Jasper
    j-jasper@ax.jp.nec.com
    +81-3-3798-6511
 
    (USA)
    Kosuke Yamauchi
    K-yamauchi@ce.jp.nec.com
    +1-212-326-2504

    NetCracker Technology Press Contacts
    (USA)
    Sanjay Mewada
    sanjay.mewada@netcracker.com
    +1-781-419-3356