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*****For immediate use March 12, 2003

NEC strengthens product lineup for fiber optic transceivers

- New line includes 10Gbps LR-2, 2.5Gbps SFP and 1.25Gbps PON transceivers -

"10Gbps optical transponder for long reach (OD-J8967)" "2.5Gbps Pluggable Transceiver (OD-J8842)"
"10Gbps optical transponder for
long reach (OD-J8967)"
"2.5Gbps Pluggable Transceiver
(OD-J8842)"
"1.25Gbps ONU transceiver for PON system (OD-B1222-N21)" "1.25Gbps OLT transceiver for PON system (OD-B1222-L21)"
"1.25Gbps ONU transceiver for
PON system (OD-B1222-N21)"
"1.25Gbps OLT transceiver for
PON system (OD-B1222-L21)"


Tokyo, Japan, March 12, 2003 - NEC Corporation today announced the introduction of new fiber optic transceivers that will be displayed at the OFC 2003 show in Atlanta. The three new breakthrough products are:

(1) The world's first 10Gbps optical transponder with built-in semiconductor optical amplifier for 80km long-reach applications
(2) 2.5Gbps SFP transponder for 40km reach applications
(3) 1.25Gbps E-PON transceiver for optical access applications

The product features include:

1. 10Gbps optical transponder with built-in semiconductor optical amplifier for 80km long- reach applications. (OD-J8967)

The product is the world's first 10 gigabit per second (Gbps) optical transponder capable of long reach transmission to 80 kilometers that meets the Telcordia OC-192 LR-2b/ITU-T G.691 L-64.2b specification and is compliant with the mechanical and electrical standards of the 300-pin Multi-Source Agreement (MSA) for 10Gbps optical transponders.

The new 104mm x 89mm x 16mm (4in x 3.5in x .63in) component is expected to bring about a significant reduction in the size and cost of long reach transmission systems, as the need for external optical amplifiers such as erbium-doped fiber amplifiers (EDFA) or additional passive dispersion compensation devices is eliminated.

The critical breakthrough in the transponder is a fully-integrated transmitter module that is comprised of a modulator-driver chip, an EML chip (electro-absorption modulator integrated DFB-laser) and Genoa's new second-generation single-chip linear optical amplifier (LOA), all combined on a common substrate. The LOA loaded optical module was jointly developed by NEC and Genoa Corporation (URL: http://www.genoa.com/).

A live demonstration of long reach transmission using the transponder will be conducted at the upcoming OFC '2003 exhibit at Atlanta in USA, March 25-27 (Booth#3152).

The new product will be sold worldwide. Volume production of the product will begin in May, 2003. NEC is targeting sales of more than 2000 10Gps transceiver module units over the next 2 years.

2. 2.5Gbps SFP transponder for 40km reach applications (OD-J8842)

This product consists of a compact 2.5 gigabit per second (Gbps) optical transponder packaged in an SFP (small form factor pluggable) module, capable of long reach transmission to 40 kilometers that meets the Telcordia OC-48 LR-1/ITU-T G.957 L-16.1 specification and is ideally suited for Metro applications.

The new 56.5mm x 13.5mm x 8.5mm component makes possible a significant reduction in the size and cost of long reach transmission systems.

The critical breakthrough in the transponder is a fully-integrated transceiver module that is comprised of a high sensitivity APD (avalanche photodiode) essential for long distance transmission, its bias generation circuits and bias control circuits.

The new product will be sold world wide. Mass production of the product will begin in April, 2003. NEC is targeting sales of the 2.5Gbps to exceed 20,000 units within the next 2 years.

3. 1.25Gbps E-PON transceiver for optical access applications
(OD-B1222-N21, OD-B1222-L21)

The products are transceiver modules for optical network unit (ONU) and optical line terminal (OLT), suitable to Ethernet PON systems. NEC has started sample delivery of these transceiver modules to PON system equipment vendors.

The critical breakthrough in the transceiver modules is a fully-integrated transceiver module that is comprised of planar lightwave circuits with WDM function loaded with a LD and a PD by our passive alignment technique, essential for mass production at low cost. The modules are also loaded with a burst-mode transmitter LSI and a burst-mode receiver LSI designed and developed by NEC for high speed data transmission at 1.25Gbps.

The new product will be sold world wide. Mass production of the product will begin in June, 2003. NEC expects to ship more than 150,000 units of all PON transceivers, including existing products, within a year.

"Conforming transponders that meet the Telcordia OC-192 LR-2b/ITU-T G.691 L-64.2b specification for high-optical-loss 80km, long reach, applications have been unavailable without external amplification of the optical signal. By incorporating Genoa's new, high-power, linear optical amplifier directly into the module, we overcame this problem." stated Keiichi Takahashi, general manager of NEC Corporation's Fiber Optic Devices Division. "Our new 10Gbps optical transponder now enables us to offer approximately 20% less power consumption, 50% smaller size and lower-cost, than our conventional ones in a simple, easy-to-use, industry-standard form factor."

"Also conforming SFP transceivers that meet the Telcordia OC-48 LR-1/ITU-T G.957 L-16.1 specification for high-optical-loss 40km, long reach, applications have been difficult thus far. By incorporating high sensitivity APD and miniaturization of bias generation and bias control circuits based on our high density mounting technology, we overcame this problem," Takahashi commented. "Our new 2.5Gbps optical transponder now enables us to offer 60% less power consumption, 75% smaller size and lower-cost, than our conventional ones in a simple, easy-to-use, industry-standard SFP."

"With increasing demand for broadband access networks, the optical access systems business is expected to grow rapidly. The Ethernet PON system is one of the most promising systems among various optical access systems, and is now under standardization process in the IEEE," Takahashi said. "Our new 1.25Gbps optical transceivers now offer one of the best solutions as transceivers for such Ethernet PON systems."

The new products are another example of NEC's quality design and their addition to NEC's existing lineup is expected to enable NEC to further expand its optical components sales world wide.

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701) is one of the world's leading providers of broadband and mobile Internet solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as a Global Fortune 500(R) company and one of the world's top patent-producing companies, the NEC group delivers tailored solutions in the core technologies and services required in a networked world, ranging from advanced semiconductor solutions, to large-scale mission critical systems, systems integration, and broadband and mobile technologies. The NEC group employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2002. For additional information, please visit the NEC home page at http://www.nec.com/.

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