NEC AND PACKARD BELL ENTER INTO STRATEGIC ALLIANCE IN MULTIMEDIA FIELD

July 5, 1995 -- NEC Corporation (NEC) and Packard Bell (PB) announced today
they had agreed in principle to enter into a strategic alliance in the PC
and broader multimedia field. Both companies have maintained a close
relationship, NEC supplying CD-ROMs and memory chips to Packard Bell, and
Packard Bell supplying its "Navigation" software to NEC. This new
alliance, with NEC's investment in Packard Bell, will further reinforce
the close relationship between the two companies. NEC and Packard Bell,
top suppliers of PCs in Japan and the U.S., endeavor to cooperate not only
in product supply activities but also procurement, product development,
technical cooperation, and sales support.

NEC will acquire 19.99 percent of Packard Bell's shares amounting to 170
million U.S. dollars by the end of August.

This year, NEC anticipates the shipment of 2.8 million units of PC-98
series and 0.5 million units for overseas, and Packard Bell plans to ship
4 million units. As a result combined projected shipment of 7.3 million
units worldwide.

Though the details of the alliance will be finalized by both parties, an
outline of the possible activities based on the new alliance is as
follows:

** Cooperation in the U.S.

* Supply of CD-ROMs and 4M/16M DRAMS to Packard Bell from NEC will be
increased. NEC also to consider supplying other products such as 3D chip
sets and color LCDs to help Packard Bell expand its presence in the home
PC market.

* Both companies will discuss the possibility of mutually supplying PCs.
Both companies will consider mutually using marketing channels.

** Cooperation in Japan

* Multimedia terminals, game/entertainment PCs will be jointly developed
for the expanding home electronics market in Japan.

* NEC will consider expanded utilization of Packard Bell's software
technology such as the "Navigation" software interface technology for
NEC's PC-98 series for the expansion of PC-98 business.

* Effective decrease in costs of NEC's PC-98 series will be achieved by
joint procurement and manufacturing activities.

** Cooperation worldwide

* Effective decrease in costs will be achieved by worldwide-level joint
procurement and manufacturing activities.

* Both companies will jointly make an effort to create a de facto standard
in key technologies for the multimedia era, such as game players, 3D,
MPEG, set-top box technologies and software.

* NEC will support Packard Bell regarding multimedia terminal and related
telecommunications technologies.

* Both companies will be mutually involved in marketing and sales
promotion.

Packard Bell is ranked No. 1 in the U.S. PC market, it has won top share in
the 4th quarter of 1994 and the 1st quarter of 1995. Packard Bell holds
more than 50 percent share m especially retail channels market. A clear
concept of the multimedia PC with built-in software and CD-ROMs and strong
sales channels has made Packard Bell successful especially in the U.S.
home PC market.

NEC, as a leading multimedia company, is one of the world's top suppliers
of telecommunication infrastructure systems such as switching systems,
transmission systems, radio and mobile systems, computers and electron
devices. NEC is ranked within the world's top 5 for all these areas.

Especially in the PC field, NEC launched the "PC-98 series" which is the
best selling PC in Japan and has been keeping more than a 50 percent
share. As of June 28, NEC reached 10 million units of the PC-98 series in
cumulative shipment since its introduction in October 1982. In 1992, NEC
launched "98MULTi" based upon the all-in-one-type multimedia PC concept.
In the U.S., NEC has supplied PCs for more than 10 years and sales of
color notebook-type PCs using the most advanced TFT-LCD technology "Versa"
was launched in 1993.

NEC and Packard Bell believe this new alliance will work well with French
company Bull, one of the shareholders of Packard Bell and these 3
strategic partners will conduct a worldwide multimedia business focusing
on the U.S., Europe, and Japan.

NEC also believes the alliance will have a strong impact and contribute to
the reinforcement of PC-98 business in Japan.
 
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