Europe : NEC announced that it has received orders of Mobile Internet Platform and mobile handsets for Mobile TeleSystems (MTS)'s i-modeTM" service. MTS Russia's largest mobile phone operator in Russia and CIS which is currently holding over 40 million subscribers and over 35% market share. i-mode operation in Russia is scheduled to start in September 2005, and further operation is scheduled in Ukraine, Uzbekistan and Belarus in the future.

Expansion of high-level functionality for the mobile Internet services in Russia is moving forward, and advanced and rich services are becoming a reality in near future. "Russia is one of the important markets for NEC." said Noboru Wakita, Senior General Manager of NEC's Mobile Solutions Operations Unit. "NEC is forging strategic relationships with mobile operators and is reinforcing its mobile business to provide improved revenue and create new business opportunities for operators in Russia and other region of the world. In order to contribute to the development of mobile services, NEC will contribute to the quick roll out of attractive i-mode services with both application service platform and i-mode handsets."

-NEC's i-mode platform NEC's highly reliable Mobile Internet Platform is an enabler for the provision of i-mode service, one of the world's leading and most advanced Mobile Internet Services, will be available in Russia. This platform is an integrated solution that realizes unified operations and service management, composed of well integrated subsystems. One of these is a gateway that enables MTS's customers to gain easy, quick and secure access to the large variety of rich content offered by i-mode service on GPRS mobile packet networks. A mail subsystem enables customers to enjoy functional i-mode mail services with video and picture attachments. A portal subsystem shows service menus and membership content menus on each mobile terminal. The platform offers complete management of user information, content and services information, agent charging and billing (including real-time for pre-paid) in addition to flexible support of new features to be released in future.

- NEC's i-mode mobile terminals.

For the initial stage, NEC will provide two i-mode models.

"N411i" is compact and striking with a full-scale 1.3M Pixel integrated camera which enables users to take rich pictures. N411i also features the 1.9 inch 65K colors main LCD to display not only high-resolution pictures but also MPEG4 movies. Developed based on expertise gained from the Mobile Internet markets in Japan and Europe, "N411i" is very suitable for accessing mobile Internet applications and rich contents, comprising 64 tone polyphonic ring tones, DoJa(tm) JAVA Applications and wide variety of connectivity such as Bluetooth, IrDA, USB and PictBridge. NEC also provides the "N343i", the Ultra Slim Design Phone, with 300K Pixel integrated camera and with DoJaTM JAVA Applications.

To provide attractive Mobile Internet services for both 2.5 and 3G, NEC is to expand their Mobile Multimedia Platform business, targeting operators worldwide who wish to enhance customer satisfaction and increase revenue.

NEC plans to add to their Mobile Applications line-up and aspires to gaining the leading position in the Mobile Internet market. As a total solution provider for Mobile Internet solutions, NEC has strong competence in mobile infrastructure systems, mobile application platforms, and an impressive portfolio of content and competitive i-mode mobile handsets. Worldwide, NEC's Mobile Internet Platform is currently operated by Wind in Italy, Telefonica Moviles Espana, Bouygues Telecom in France, Cosmote in Greek, Telstra in Australia and Taiwan Far EasTone Telecommunications.

About MTS> Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 40.6 million subscribers. The regions of Russia, as well as Belarus, Ukraine and Uzbekistan, in which MTS and its subsidiaries are licensed to provide GSM services, have a total population of approximately 225.8 million.

Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange with the ticker symbol MBT. Additional information about MTS can be found on MTS' website at www.mtsgsm.com.

About NEC's Business Development in Russia> NEC has been involved in businesses in Russia for more than 30 years, contributing to the deployment of most telecommunications infrastructures such as public switching systems, over 30,000 km of optical transmission systems, over 9,000 km of microwave systems including Trans-Siberian-Line networks, Satellite communication systemsand enterprise communication systems. Especially as for microwave system, we have supplied over 12,000 sets as a part of Mobile Infrastructure System to Russian Mobile Operators and contributing to the enhancement of Mobile Services. It has also pursued technology transfer to local joint venture partners. NEC Neva Communications System, a manufacturing facility of public switching system, is the first joint venture company of Russia and Japan in high-tech area.

NEC has also transferred optical transmission technology to EZAN, Experimental Factory of Russian Science Academy.

About NEC's mobile application business> NEC is a total mobile solutions provider capable of providing solutions from mobile handsets to infrastructure and mobile applications. NEC has been actively expanding its sales in mobile applications, infrastructure and handsets globally. The firm has a proven track record of delivering platforms for implementing mobile internet services such as i-mode/WAP2.0, along with location information systems, contents conversion software and mail servers.

When introduction of 3G infrastructure and IMS gets going, the changeover to all-IP and broadband multimedia data communications will move into high gear. The predictions are, as a result, that packet-based voice services

-- such as VoIP service and PoC (Push to Talk Over Cellular)

-- will expand and the integration of voice and data services will accelerate along with the introduction of image distribution services such as cartoons or movies. On the foundation of its Mobile Internet Platform, NEC will aggressively expand sales efforts in its primary products of (i) "Ring back melodies", in which phone call recipients let call senders hear their favorite music or messages, (ii) "Location information system", a platform for providing various services based on participant's location and (iii) "3G/2.5G Mobile Visual Solution" to provide multimedia data such as cartoons, together with its other application software offerings.

About NEC's Global Mobile Business

NEC is a total solution provider for 3G and mobile Internet. It has been involved in every first-stage rollout of 3G systems worldwide. It is also responsible for developing the first 3G handsets for the world's first 3G networks. NEC has competence in the mobile Internet field with its mobile infrastructure system, mobile application platform and its impressive portfolio of contents. NEC's mobile handsets are known for their prominent technologies including large color screens, built-in cameras and other functions that make them ideal for use in the mobile Internet. In the 3G/mobile multimedia global, NEC aims to take strong initiative to create the market and to obtain leading position.