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NEC AND PHILIPS SIGN NEW DISTRIBUTION AGREEMENT IN THE UK

NEC and Philips sign new distribution agreement in the UK

As part of this agreement Philips Business Communications signs new distribution agreement with Crane Telecommunications

12 April 2005: NEC UK Ltd and Philips Business Communications today sign a new distribution agreement to assign distribution of its NEC NEAX 2000 IPS product line to Philips in the UK. This move will focus NEC on the development of solutions for key vertical markets, and migrating its enterprise communication product distribution to Philips will provide channel management throughout the UK. As part of this agreement, NEC’s prime distributor, Crane Telecommunications will sign a new distribution agreement with Philips. It will position Crane as the primary UK distributor for Philips range of SOPHO 2000 IPS products. The new agreement will provide Philips with immediate access to Crane’s existing NEC channel and allow both Crane and Philips new growth opportunities.

SOPHO 2000 IPS and NEAX 2000 IPS are based on the same technological architecture and the inter-operability between both of the products has been maintained through the strategic partnership between Philips and NEC. SOPHO 2000 IPS has been designed to meet the most severe demands of modern enterprise communications. Supporting up to 1000 extensions the SOPHO 2000 IPS provides mid-sized businesses and branch-offices with the ability to migrate smoothly to IP telephony, offering crystal clear Voice over IP quality, superior cost effectiveness and almost unparalleled versatility. At the same time, the inter-operability between SOPHO 2000 IPS and NEAX 2000 IPS provide NEC’s existing customers with expandability and maintainability with the same knowledge and skills.

Philips has enhanced the versatility of the platform by adding the products and applications that are currently supported across its range of iS PBXs. Philips recognises that IP technology opens new horizons for users, it does not change their needs. The SOPHO 2000 IPS offers all the benefits of traditional telephony, seen as indispensable by business users today, and the advantages of the emerging IP technologies.

The partnership with Philips gives NEC the opportunity of reaching the whole of the UK market with its technology for Enterprise Communication needs and will provide the opportunity to increase global market share.

Garry Foley, General Manager for NEC Business Solutions Division, comments, “Philips has a well developed European-wide service and support network. This move will provide NEC with an excellent UK support programme. Our Business Solutions Division will focus on the development of solutions for key vertical markets.”

David Grant, Chief Operating Officer of Crane Telecommunications, comments,” This development allows us to build on the considerable investment we and our channel have made in the NEC products over the last 2 years. Clearly the increased local support and marketing capability of Philips combined with the continued product development investment from NEC will create a stronger proposition and opportunity. Our existing NEC channel is very positive about the plans they have heard from the combined team which is also a great message for any reseller looking to strengthen their portfolio.”

Chris de Silva, Managing Director of Philips Business Communications, comments, “Over the last two years Philips and NEC have developed a strong and growing strategic relationship and the new partnership with Crane means we will continue the distribution of the SOPHO 2000 IPS through the existing channel that NEC has built up. We are delighted to be working with Crane and are impressed by the depth of knowledge of their channel. We believe that support for the resellers is the key element of a successful business relationship and we will continue to develop our Business Partner Programme, incorporating the best elements of Crane’s programmes alongside our own highly successful accreditation and training.”

About Philips Business Communications

Philips Business Communications (PBC) is an international communications technology vendor headquartered in Hilversum, Netherlands and with its UK head office in Cambridge.

PBC specialises in the provision of communications systems and the associated infrastructure, applications and services that are vital to all medium and large-sized enterprises in both the public and private sectors.

With an annual turnover in the region of €250 million and 1100 employees operating in 50 countries, PBC is a global communications technology vendor whilst being an autonomous business unit within Royal Philips Electronics.

PBC has extensive expertise in the areas of converged networks, virtual offices and customer relations providing its customers with all the benefits of simple to use, sophisticated voice systems that incorporate networking, mobile, messaging, contact centre solutions and IP telephony.

PBC’s core product offering is based around its series of voice servers, wired and wireless peripherals, applications software and converged voice and data integration services, which are marketed under the SOPHO brand name. PBC continues to build upon its ICT heritage by expanding into the areas of web-enabled applications, systems integration and valued added services.

PBC currently provides communications products and services to over 12 million end-users, targeting a broad range of vertical markets including healthcare, government, public safety, utilities, education and hospitality.

About NEC Corporation

NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) 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. Ranked as one of the world's top patent-producing companies, 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 140,000 people worldwide and had net sales of 4,906 billion yen (approx. $47 billion) in the fiscal year ended March 2004. For additional information, please visit the NEC home page at: http://www.nec.com.

About NEC (UK) Ltd
Founded in 1973, NEC UK is responsible for the marketing, sales, installation and service of a comprehensive range of NEC’s IT, communications and display technologies. With a proven track record in technical consultancy and multiple product streams, NEC UK can design, install and manage standalone and integrated solutions for corporate clients and their networks. In mobile communications, NEC delivers the latest handsets (3G and 2.5G) and network infrastructure. For the business market, NEC supplies converged network solutions, physical and electronic security systems and advanced IT solutions, from server and storage hardware to e-business and supply chain management services. NEC also offers a complete range of display products and managed services based on its latest display screens and projectors for the corporate, professional AV and home cinema markets.

The turnover of NEC UK in the financial year 2004 was over £300 million. For further information, please visit: www.nec.co.uk

About Crane

Crane Telecommunications’ (Crane) aim is to be the leading value-added distributor of communications equipment, software and services in their chosen operation markets. Founded in 1990, Crane supports over 250 reseller in the UK, Ireland and Benelux. Crane has partner agreements with world-class product and services suppliers such as Avaya, NEC, BT, Nortel, LG Electronics, Altitude, , Zeacom and Oak. With over 50,000 PBX implementations and a comprehensive support and services division, Crane continues to drive the adoption of the latest communications technology. Crane achieved a turnover of £55 million in 2003 with a current staff of 165. For further information, please visit: www.cranetel.com

NEC Philips Unified Solutions
is a joint venture of NEC and Philips.


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