RNS Number:2459O
NEC Corporation
01 August 2003



 Consolidated Financial Results for the First Quarter of the Fiscal Year Ending
                                 March 31, 2004




I. Consolidated Financial Results

                          Three months ended June     Three months ended June                  Increase
                                         30, 2003                    30, 2002                 (Decrease)
                               In billions of yen          In billions of yen                         %

Net sales                                 1,030.7                     1,021.2                       0.9
Operating income (loss)                      12.0                       (7.0)                         -
Income before income                          9.8                        19.8                    (50.2)
taxes
Net income                                    0.7                         7.2                    (90.3)
                                              Yen                         Yen                       Yen
Per share of common stock
Net income:
    Basic:                                   0.42                        4.37                    (3.95)
    Diluted:                                 0.40                        4.06                    (3.66)




                                   As of June 30,             As of March 31,                Increase
                                             2003                       2003                (Decrease)
                               In billions of yen         In billions of yen                         %

Total assets                              3,983.3                    4,103.3                     (2.9)
Shareholders' equity                        378.6                      358.4                      5.6



(Notes)

 1. The consolidated financial statements of NEC are prepared in accordance with
    accounting principles generally accepted in the United States, or U.S. GAAP.
 2. Number of consolidated subsidiaries and affiliated companies accounted for by
    the equity method:

                              As of June 30, 2003        As of March 31, 2003       As of June 30, 2002

Consolidated subsidiaries             194                        183                        179

Affiliated companies                   17                         17                         11
accounted for by the
equity method


--------------------------------------------------------------------------------




II. Business Results



 First Quarter of the Fiscal Year Ending March 31, 2004 (three months ended
June 30, 2003)



During the three months ended June 30, 2003, the Japanese economy saw some
improvement of its financial stability through the injection of public funds and
the recovery of the stock market during the latter part of the period. This has
resulted in a gradual boost of confidence in the economy. However, the real
economy of Japan still remained severe due to continuing deflation in Japan and
growing concern regarding the United States economy.

The business environment surrounding NEC has also remained challenging since the
previous fiscal year. There are, however, various positive signs due to the
steadily growing popularity of broadband and mobile communications. In fact,
broadband subscribers now exceed 10 million in Japan and the penetration rate of
mobile phones has surpassed 60%.

NEC has concentrated on optimizing its management structure to match the
characteristics of individual business sectors, the innovation of its
manufacturing process, and reducing materials cost. These steps are intended to
reinforce NEC's corporate structure so as to yield profits even in the midst of
deflation. During the current fiscal year, NEC is implementing the following
four strategies:

1. Secure stable profits by strengthening core businesses.
2. Eliminate down-side risk by improving loss making business areas.
3. Rebuild a sound financial structure.
4. Establish a growth strategy with IT/network integrated solutions.

Consolidated net sales of NEC for the three months ended June 30, 2003 increased
by 9.5 billion yen, or 1%, to 1,030.7 billion yen as compared with the
corresponding period of the previous fiscal year. This was mainly due to
increased sales in mobile communications products and social infrastructure
business. Sales decreases were mainly in the areas of personal solutions and
computer platforms.

Regarding profits, there was a significant improvement during the corresponding
period of the previous fiscal year due mainly to lowering fixed expenses and
promoting cost reductions. During this quarter as well, both the ratios of cost
of sales and selling, general and administrative (SG&A) expenses against net
sales showed improvements. As a result, NEC recorded an operating income of 12.0
billion yen, an increase of 19.1 billion yen as compared with the corresponding
period of the previous fiscal year.

As compared with the corresponding period of the previous fiscal year, income
before income taxes decreased by 9.9 billion yen to 9.8 billion yen. The main
reason for such a decrease was that NEC recorded a considerable amount of gain
on the sale of marketable securities in the corresponding period of the previous
fiscal year. NEC posted a net income of 0.7 billion yen, this is a decrease of
6.5 billion yen as compared with the corresponding period of the previous fiscal
year. However, NEC recorded equity in losses of affiliated companies of 3.9
billion yen (an improvement of 1.0 billion yen as compared with the
corresponding period of the previous fiscal year) mainly due to the weak
operating results of semiconductor-related affiliated companies.



 Results by business segments (including inter-segment transactions and
profit/loss figures)



Sales and segment profits of NEC's main segments were as follows (figures in
brackets denote increases or decreases as compared with the corresponding period
of the previous fiscal year):

IT Solutions Business

Sales: 401.5 billion yen (-10%)
Segment profit: 5.5 billion yen (+2.1 billion yen)

Sales for IT Solutions business for the three months ended June 30, 2003 were
401.5 billion yen, a decrease of 10% as compared with the corresponding period
of the previous fiscal year.

Regarding sales by main product areas, although the IT market remained severe in
Japan, systems integration ("SI") services for the private sectors such as
manufacturing and retail industries grew steadily. As compared with the
corresponding period of the previous fiscal year sales for SI/services increased
by 6% to 131.6 billion yen. Compared with the corresponding period of the
previous fiscal year when NEC won large shipments, sales for software decreased
by 11% to 16.0 billion yen. In the area of computer platforms, sales decreased
by 23% to 86.8 billion yen due to the fact that large shipments were also
secured during the corresponding period of the previous fiscal year, and to the
recent drop in overall price. In the area of personal solutions business, due to
a decrease in domestic shipments of personal computers ("PCs") for consumers,
sales decreased by 12% to 167.1 billion yen as compared with the corresponding
period of the previous fiscal year.

Segment profit of the IT Solutions business was 5.5 billion yen, an increase of
2.1 billion yen as compared with the corresponding period of the previous fiscal
year. The main contributing factors were the significant improvement of
profitability in the field of PC business by the reduction of fixed expenses, as
well as the cost reduction through the promotion of centralized purchasing and
standardization of parts.



Network Solutions Business

Sales: 388.6 billion yen (+18%)
Segment profit: 10.6 billion yen (+5.3 billion yen)

Sales for Network Solutions business increased by 18% to 388.6 billion yen as
compared with the corresponding period of the previous fiscal year.

Regarding sales by main product areas, in the area of broadband, although there
are new business opportunities in the corporate and broadband access field, the
world telecommunications market remained severe. As a result, sales for
broadband communications systems and services decreased by 14% to 88.7 billion
yen as compared with the corresponding period of the previous fiscal year. In
the area of mobile communications, although sales of mobile infrastructure
decreased, shipments for mobile handsets grew in Japan and full-scale shipments
to overseas markets were launched. These positive factors resulted in sales
increase for mobile communications products by 35% to 249.2 billion yen. In the
area of social infrastructure, due to the growth of terrestrial digital
broadcasting systems in Japan, sales increased by 22% to 50.7 billion yen as
compared with the corresponding period of the previous fiscal year.

Segment profit of the Network Solutions business was 10.6 billion yen. This was
mainly due to the improved profitability in the broadband area deriving from the
reduction of fixed expenses and costs which had been implemented since the
previous fiscal year.



Electron Devices Business

Sales: 224.7 billion yen (-2%)
Segment profit: 10.5 billion yen (+13.7 billion yen)

Sales for Electron Devices business were 224.7 billion yen, a decrease of 2% as
compared with the corresponding period of the previous fiscal year.

Regarding sales by main product areas, overall semiconductor sales increased by
5% to 174.9 billion yen as compared with the corresponding period of the
previous fiscal year. This was due to the steady growth in sales of
semiconductors for mobile phones featuring color displays and sophisticated
functions. Sales for displays saw a decrease of 32% to 19.8 billion yen as
compared with the corresponding period of the previous fiscal year. This was
mainly due to a shift from less-profitable general-use products for PCs to high
value-added industrial products in the color liquid crystal display ("LCDs")
business. Despite steady growth in the area of electronic components and other
products, sales decreased by 11% to 30.0 billion yen as compared with the
corresponding period of the previous fiscal year. This was mainly due to the
exclusion of printed wiring boards business and car electronics business from
NEC's scope of consolidation as a result of business restructuring which was
implemented during the previous fiscal year.

Segment profit of Electron Devices business was 10.5 billion yen, a large
improvement as compared with the corresponding period of the previous fiscal
year when NEC posted a segment loss of 3.2 billion yen. This was mainly due to
improved profitability for semiconductor business which is the core of the
Electron Devices business, and improved profitability for color LCDs business
and electronic components business which are NEC's loss making businesses.



 Cash Flow

Net cash provided by operating activities during the three months ended June 30,
2003 was 4.2 billion yen, an increase of 75.3 billion yen as compared with the
corresponding period of the previous fiscal year. This was mainly due to a
smaller decrease in notes and accounts payable reflecting reduced payments for
parts and materials.

Net cash used in investing activities was 29.9 billion yen, an increase of 71.4
billion yen as compared with the corresponding period of the previous fiscal
year. This was mainly due to decreased proceeds from the sale of marketable
securities.

As a result, free cash flows (the total of cash flows from operating activities
and cash flows from investing activities) were cash outflows of 25.6 billion
yen, a 3.9 billion yen improvement as compared with the corresponding period of
the previous fiscal year.

Net cash provided by financing activities was 19.8 billion yen mainly due to an
increase in commercial paper. As a result, cash and cash equivalents amounted to
340.4 billion yen, an increase of 90.1 billion yen as compared with the
corresponding period of the previous fiscal year.

Due to the deconsolidation of a leasing company, the balance of interest-bearing
debt was 1,508.1 billion yen, a decrease of 699.9 billion yen as compared with
the corresponding period of the previous fiscal year (a decrease of 149.7
billion yen excluding the effect of the deconsolidation of a leasing company).
When compared to the end of the previous fiscal year ended March 31, 2003, this
was an increase of 21.0 billion yen due mainly to an increase in commercial
paper.



 Outlook for the Fiscal Year Ending March 31, 2004

Although there is some improvement in domestic business confidence, there has
been no noticeable change in IT investment by companies and capital expenditure
of telecommunications carriers. There has been no significant change in NEC's
business environment since the announcement of NEC's financial forecast on April
24, 2003.

Under these circumstances, it is anticipated that for the six months ending
September 30, 2003, the forecast of the consolidated net sales announced this
April will be maintained mainly due to the steady growth of IT/network related
businesses and the electron devices business.

Regarding profits, NEC has revised its forecast for the six months ending
September 30, 2003 announced this April as below. This was due to (i) the steady
progress of cost and expense reductions, and (ii) more than expected profit
resulting from the sale of shares of NEC Electronics Corporation, a subsidiary
of NEC, in connection with the listing of the subsidiary on the First Section of
the Tokyo Stock Exchange on July 24, 2003.

NEC intends to review the financial results forecast for the fiscal year ending
March 31, 2004 and announce the revision for the forecast, if necessary, on or
before the announcement of the financial results for the first half of the
fiscal year scheduled to be made at the end of October 2003. The forecasts for
the interim and year-end dividends are yet to be determined as announced this
April.



Revised Financial Results Forecast for the First Half of the Fiscal Year Ending
March 31, 2004

Consolidated
                              Revised forecast on July       Comparison with the       Comparison with the
                                              31, 2003   corresponding period of     forecast on April 24,
                                                        the previous fiscal year                      2003
                                    In billions of yen        In billions of yen        In billions of yen
                                                               (except % figure)

        Net sales                              2,200.0                      + 1%                         -
        Operating income                          50.0                    + 23.3                     + 5.0
        Income before income                      65.0                    + 44.6                    + 30.0
        taxes
        Net income                                12.0                    + 11.0                     + 9.0


Non-consolidated
                              Revised forecast on July       Comparison with the       Comparison with the
                                              31, 2003   corresponding period of     forecast on April 24,
                                                        the previous fiscal year                      2003
                                    In billions of yen        In billions of yen        In billions of yen
                                                               (except % figure)

        Net sales                              1,100.0                     - 21%                         -
        Ordinary income                            1.0                    + 33.3                         -
        Net income                                16.0                    + 18.9                    + 11.0




--------------------------------------------------------------------------------

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                                                         (In millions of yen, millions of U.S. dollars)
Three months ended June 30                                 2003    (% of net        2002     (% of net  Increase   2003
                                                                      sales)                   sales) (decrease)

Net sales                                          JPY1,030,743      (100.0)JPY1,021,239      (100.0)  JPY 9,504 $8,590
Cost of sales                                           755,873       (73.3)     757,164       (74.1)    (1,291)  6,299
Selling, general and administrative expenses            262,834       (25.5)     271,160       (26.6)    (8,326)  2,191
Operating income (loss)                                  12,036        (1.2)     (7,085)       (-0.7)     19,121    100
Non-operating income                                     18,030        (1.7)      68,086        (6.6)   (50,056)    150
Interest and dividends                                    3,644                    4,175                   (531)     30
Other                                                    14,386                   63,911                (49,525)    120
Non-operating expenses                                   20,172        (1.9)      41,123        (4.0)   (20,951)    168
Interest                                                  7,775                    9,209                 (1,434)     65
Other                                                    12,397                   31,914                (19,517)    103
Income before income taxes                                9,894        (1.0)      19,878        (1.9)    (9,984)     82
Provision for income taxes                                4,947        (0.5)       8,337        (0.8)    (3,390)     41
Minority interest in income (losses) of                     278        (0.0)       (739)       (-0.1)      1,017      2
consolidated subsidiaries
Equity in losses of affiliated companies                (3,969)       (-0.4)     (5,049)       (-0.5)      1,080   (33)
Net income                                              JPY 700        (0.1)   JPY 7,231        (0.7) (JPY6,531)     $6
                                                                                                          

(Note)
US dollar amounts are translated from yen, for convenience only, at the rate of
US$1 = 120 yen.


--------------------------------------------------------------------------------

CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                         (In millions of yen, millions of U.S. dollars)
                                                   June 30,    June 30,    Increase    March 31,   Increase    June 30,
                                                       2003        2002  (decrease)        2003  (decrease)        2003
                                                (Unaudited) (Unaudited)                                     (Unaudited)

Current assets                                          JPY         JPY         JPY         JPY         JPY     $15,282
                                                  1,833,771   2,117,445   (283,674)   1,920,042    (86,271)
Cash and cash equivalents                           340,488     250,291      90,197     344,345     (3,857)       2,837
Notes and accounts receivable, trade                641,693     712,220    (70,527)     821,985   (180,292)       5,347
Current portion of investment in leases                   -     248,726   (248,726)           -           -           -
Inventories                                         636,265     681,343    (45,078)     553,820      82,445       5,302
Other current assets                                215,325     224,865     (9,540)     199,892      15,433       1,796
Long-term assets                                  2,149,589   2,535,507   (385,918)   2,183,258    (33,669)      17,913
Long-term receivables, trade                         24,701      37,371    (12,670)      33,073     (8,372)         206
Investments and advances                            433,088     495,351    (62,263)     433,027          61       3,609
Investment in leases                                      -     255,707   (255,707)           -           -           -
Property, plant and equipment                       813,468     948,255   (134,787)     838,341    (24,873)       6,779
Other assets                                        878,332     798,823      79,509     878,817       (485)       7,319
Total assets                                            JPY         JPY         JPY         JPY         JPY     $33,195
                                                  3,983,360   4,652,952   (669,592)   4,103,300   (119,940)
Current liabilities                                     JPY         JPY         JPY         JPY         JPY     $13,933
                                                  1,671,887   1,923,899   (252,012)   1,774,224   (102,337)
Short-term borrowings and current portion of        545,826     768,984   (223,158)     483,306      62,520       4,549
long-term debt
Notes and accounts payable, trade                   785,729     747,225      38,504     875,018    (89,289)       6,548
Other current liabilities                           340,332     407,690    (67,358)     415,900    (75,568)       2,836
Long-term liabilities                             1,698,676   1,952,986   (254,310)   1,737,219    (38,543)      14,156
Long-term debt                                      962,364   1,439,168   (476,804)   1,003,787    (41,423)       8,020
Accrued pension and severance costs                 705,646     482,580     223,066     705,551          95       5,880
Other                                                30,666      31,238       (572)      27,881       2,785         256
Minority shareholders' equity in consolidated       136,203     143,688     (7,485)     135,613         590       1,135
subsidiaries
Preferred securities issued by a subsidiary          97,950      97,350         600      97,800         150         816
Common stock                                        244,726     244,726           -     244,726           -       2,039
Additional paid-in capital                          361,817     361,820         (3)     361,820         (3)       3,015
Retained earnings                                    42,267      73,356    (31,089)      41,567         700         352
Accumulated other comprehensive income (loss)     (266,905)   (142,493)   (124,412)   (286,417)      19,512     (2,224)
Treasury stock                                      (3,261)     (2,380)       (881)     (3,252)         (9)        (27)
Total shareholders' equity                          378,644     535,029   (156,385)     358,444      20,200       3,155
Total liabilities and shareholders' equity              JPY         JPY         JPY         JPY         JPY     $33,195
                                                  3,983,360   4,652,952   (669,592)   4,103,300   (119,940)


--------------------------------------------------------------------------------

CONDENSED CONSOLIDATED BALANCE SHEETS ( SUPPLEMENTARY INFORMATION )
                                                                          (In millions of yen, millions of U.S.dollars)
                                                   June 30,    June 30,    Increase    March 31,   Increase    June 30,
                                                       2003        2002  (decrease)        2003  (decrease)        2003
                                                (Unaudited) (Unaudited)                                     (Unaudited)

Current assets                                          JPY         JPY (JPY 5,063)         JPY         JPY     $15,282
                                                  1,833,771   1,838,834               1,920,042    (86,271)
Cash and cash equivalents                           340,488     231,097     109,391     344,345     (3,857)       2,837
Notes and accounts receivable, trade                641,693     729,389    (87,696)     821,985   (180,292)       5,347
Inventories                                         636,265     681,343    (45,078)     553,820      82,445       5,302
Other current assets                                215,325     197,005      18,320     199,892      15,433       1,796
Long-term assets                                  2,149,589   2,273,827   (124,238)   2,183,258    (33,669)      17,913
Long-term receivables, trade                         24,701      37,371    (12,670)      33,073     (8,372)         206
Investments and advances                            433,088     514,648    (81,560)     433,027          61       3,609
Property, plant and equipment                       813,468     931,358   (117,890)     838,341    (24,873)       6,779
Other assets                                        878,332     790,450      87,882     878,817       (485)       7,319
Total assets                                            JPY         JPY         JPY         JPY         JPY     $33,195
                                                  3,983,360   4,112,661   (129,301)   4,103,300   (119,940)
Current liabilities                                     JPY         JPY         JPY         JPY         JPY     $13,933
                                                  1,671,887   1,756,408    (84,521)   1,774,224   (102,337)
Short-term borrowings and current portion of        545,826     571,911    (26,085)     483,306      62,520       4,549
long-term debt
Notes and accounts payable, trade                   785,729     791,213     (5,484)     875,018    (89,289)       6,548
Other current liabilities                           340,332     393,284    (52,952)     415,900    (75,568)       2,836
Long-term liabilities                             1,698,676   1,596,074     102,602   1,737,219    (38,543)      14,156
Long-term debt                                      962,364   1,086,008   (123,644)   1,003,787    (41,423)       8,020
Accrued pension and severance costs                 705,646     481,576     224,070     705,551          95       5,880
Other                                                30,666      28,490       2,176      27,881       2,785         256
Minority shareholders' equity in consolidated       136,203     127,800       8,403     135,613         590       1,135
subsidiaries
Preferred securities issued by a subsidiary          97,950      97,350         600      97,800         150         816
Common stock                                        244,726     244,726           -     244,726           -       2,039
Additional paid-in capital                          361,817     361,820         (3)     361,820         (3)       3,015
Retained earnings                                    42,267      73,356    (31,089)      41,567         700         352
Accumulated other comprehensive income (loss)     (266,905)   (142,493)   (124,412)   (286,417)      19,512     (2,224)
Treasury stock                                      (3,261)     (2,380)       (881)     (3,252)         (9)        (27)
Total shareholders' equity                          378,644     535,029   (156,385)     358,444      20,200       3,155
Total liabilities and shareholders' equity              JPY         JPY         JPY         JPY         JPY     $33,195
                                                  3,983,360   4,112,661   (129,301)   4,103,300   (119,940)

(Note)
In the condensed consolidated balance sheet at the end of June 30, 2002 on this
page, the investment in a leasing subsidiary is accounted for by the equity
method.


--------------------------------------------------------------------------------

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                                                        (In millions of yen, millions of U.S. dollars)
Three months ended June 30                                                        2003       2002     Increase   2003
                                                                                                     (Decrease)
I. Cash flows from operating activities
Net income                                                                        JPY 700  JPY 7,231 (JPY6,531)     $6
Adjustments to reconcile net income to net cash provided by (used in)
operating activities
  Depreciation                                                                     39,898     43,730    (3,832)    332
  Equity in losses of affiliated companies, net of dividends                        4,454      5,294      (840)     37
  Decrease in notes and accounts receivable                                       199,988    208,742    (8,754)  1,667
  Increase in inventories                                                        (82,928)   (29,962)   (52,966)  (691)
  Decrease in notes and accounts payable                                         (80,330)  (178,684)     98,354  (669)
  Other, net                                                                     (77,533)  (127,474)     49,941  (647)
Net cash provided by (used in) operating activities                                 4,249   (71,123)     75,372     35
II. Cash flows from investing activities
Proceeds from sales of fixed assets                                                 8,356     14,604    (6,248)     70
Additions to fixed assets                                                        (56,424)   (30,574)   (25,850)  (470)
Proceeds from sales of marketable securities                                       16,685     44,330   (27,645)    139
Purchase of marketable securities                                                     (4)       (67)         63      0
Other, net                                                                          1,486     13,265   (11,779)     12
Net cash provided by (used in) investing activities                              (29,901)     41,558   (71,459)  (249)
Free cash flows ( I + II )                                                       (25,652)   (29,565)      3,913  (214)
III. Cash flows from financing activities
Net proceeds from (repayments of) bonds and borrowings                             20,291   (89,899)    110,190    169
Dividends paid                                                                      (780)    (4,689)      3,909    (7)
Other, net                                                                            292       (61)        353      3
Net cash provided by (used in) financing activities                                19,803   (94,649)    114,452    165
Effect of exchange rate changes on cash and cash equivalents                        1,992    (3,267)      5,259     17
Net decrease in cash and cash equivalents                                         (3,857)  (127,481)    123,624   (32)
Cash and cash equivalents at beginning of period                                  344,345    377,772   (33,427)  2,869
Cash and cash equivalents at end of period                                            JPY        JPY JPY 90,197 $2,837
                                                                                  340,488    250,291


--------------------------------------------------------------------------------

SEGMENT INFORMATION (UNAUDITED)

Business Segment Information
(1) Net Sales (Including internal sales to other segments)
                                                                          (In millions of yen, millions of U.S.dollars)
Three months ended June 30           2003 (% of total) % change                 2002         (% of total)         2003

IT Solutions business         JPY 401,573       (39.0)     -9.7          JPY 444,893               (43.6)        $3,346
Network Solutions business        388,634       (37.7)    +17.7              330,178               (32.3)         3,239
Electron Devices business         224,766       (21.8)     -2.0              229,337               (22.5)         1,873
Others                            130,667       (12.7)     -0.4              131,205               (12.8)         1,089
Eliminations                    (114,897)      (-11.2)        -            (118,833)              (-11.6)         (957)
Electronics business total      1,030,743      (100.0)     +1.4            1,016,780               (99.6)         8,590
Leasing business                        -            -        -               10,192                (1.0)             -
Eliminations                            -            -        -              (5,733)               (-0.6)             -
Consolidated total          JPY 1,030,743      (100.0)     +0.9        JPY 1,021,239              (100.0)        $8,590


(2) Segment Profit or Loss
                                                                          (In millions of yen, millions of U.S.dollars)
Three months ended June 30             2003 (% of profit on sales)    Increase        2002  (% of profit on sales) 2003
                                                                     (decrease)

IT Solutions business             JPY 5,536                  (1.4)   JPY 2,150   JPY 3,386                  (0.8)   $46
Network Solutions business           10,630                  (2.7)       5,313       5,317                  (1.6)    89
Electron Devices business            10,532                  (4.7)      13,780     (3,248)                 (-1.4)    88
Others                              (5,074)                 (-3.9)       (305)     (4,769)                 (-3.6)  (42)
Eliminations                        (2,674)                      -         123     (2,797)                      -  (23)
Unallocated corporate expenses      (6,914)                      -       (442)     (6,472)                      -  (58)
Electronics business total           12,036                  (1.2)      20,619     (8,583)                 (-0.8)   100
Leasing business                          -                      -     (2,243)       2,243                 (22.0)     -
Eliminations                              -                      -         745       (745)                      -     -
Consolidated total               JPY 12,036                  (1.2)  JPY 19,121 (JPY 7,085)                 (-0.7)  $100

(Note)
Corporate expenses include general corporate expenses and research and
development expenses at NEC Corporation which are not allocated to any business
segment.


(3) Net Sales to External Customers
                                                                          (In billions of yen, millions of U.S.dollars)
Three months ended June 30                                 2003        % change                     2002           2003

IT Solutions business                                 JPY 372.7            -8.7                JPY 408.2         $3,106
  Domestic                                                312.9           -12.0                    355.5          2,608
  Overseas                                                 59.7           +13.5                     52.6            498
Network Solutions business                                374.5           +21.8                    307.5          3,121
  Domestic                                                277.8           +23.2                    225.4          2,315
  Overseas                                                 96.7           +17.7                     82.1            806
Electron Devices business                                 192.8            -7.5                    208.4          1,607
  Domestic                                                113.0           -12.4                    129.1            942
  Overseas                                                 79.7            +0.6                     79.2            665
Others                                                     90.5            +2.1                     88.7            756
  Domestic                                                 65.7            -4.8                     69.0            548
  Overseas                                                 24.8           +26.3                     19.6            208
Electronics business total                              1,030.7            +1.8                  1,013.0          8,590
  Domestic                                                769.6            -1.2                    779.1          6,413
  Overseas                                                261.1           +11.7                    233.8          2,177
Leasing business                                              -          -100.0                      8.2              -
  Domestic                                                    -          -100.0                      8.2              -
  Overseas                                                    -               -                        -              -
Consolidated total                                  JPY 1,030.7            +0.9              JPY 1,021.2         $8,590
  Domestic                                                769.6            -2.3                    787.4          6,413
  Overseas                                                261.1           +11.7                    233.8          2,177



(4) Net Sales by Products and Services (Including internal sales to other segments) *1

                                                                         (In billions of yen, millions of U.S. dollars)
Three months ended June 30                                  2003         % change                  2002            2003

IT Solutions business                                  JPY 401.5             -9.7             JPY 444.8          $3,346
  SI / Services                                            131.6             +5.6                 124.6           1,097
  Software                                                  16.0            -11.1                  18.0             133
  Computers / Platforms                                     86.8            -22.6                 112.2             723
  Personal Solutions                                       167.1            -12.1                 190.0           1,393
Network Solutions business                             JPY 388.6            +17.7             JPY 330.1          $3,239
  Broadband                                                 88.7            -14.3                 103.5             739
  Mobile                                                   249.2            +34.7                 185.0           2,077
  Social Infrastructure                                     50.7            +21.9                  41.6             423
Electron Devices business                              JPY 224.7             -2.0             JPY 229.3          $1,873
  Semiconductors                                           174.9             +5.0                 166.6           1,458
  Displays                                                  19.8            -32.0                  29.1             165
  Electronic Components                                     30.0            -10.7                  33.6             250

(Note)
*1 According to the introduction of the new business line system in April 2003,
NEC revised the classification of the product area in each business segment.
Sales by product areas in each business segment of the three months ended June
30, 2002 have been reclassified and displayed to conform to those of the three
months ended June 30, 2003.

--------------------------------------------------------------------------------

Operating income (loss) set forth above is a measure commonly used by companies
reporting in accordance with accounting principles generally accepted in Japan.
Management believes this measure is useful to investors in comparing NEC's
results of operations to other Japanese companies. This measure, however, should
not be construed as an alternative to "income (loss) before income taxes" or
"net income (loss)" as determined in accordance with U.S. GAAP. Please refer to
the condensed consolidated statement of operations for the calculation of the
operating income (loss).

                                      ***

CAUTIONARY STATEMENTS:

The statements in this press release with respect to the plans, strategies and
forecasts of NEC Corporation and its consolidated subsidiaries (collectively
"NEC") are forward-looking statements involving risks and uncertainties. NEC
cautions in advance you that actual results could differ materially from such
forward-looking statements due to several factors. The important factors that
could cause actual results to differ materially from such statements include,
but are not limited to, general economic conditions in NEC's markets, which are
primarily Japan, North America, Asia and Europe; demand for, and competitive
pricing pressure on, NEC's products and services in the marketplace; NEC's
ability to continue to win acceptance of its products and services in these
highly competitive markets; and movements in currency exchange rates,
particularly the rate between the yen and the U.S. dollar. Among other factors,
a worsening of the world economy resulting from the downturn in the IT and
telecommunications industries, a worsening of financial conditions in the world
markets, and a deterioration in the domestic and overseas stock markets, would
cause actual results to differ from the projected results forecast.

In cases where the information contained in this press release falls within the
definition of "Material Information" under Paragraph 2 of Article 166 of the
Securities and Exchange Law of Japan, if you (and directors or employees of your
company if the content of this press release comes to their knowledge in
connection with their duty) read this press release before the time of
"Publication" (which is defined under the Securities and Exchange Law of Japan
and its Enforcement Ordinance as twelve hours after its release; i.e.,
approximately 3:30 am on August 1, 2003 (JST)), you (and directors or employees
of your company if the content of this press release comes to their knowledge in
connection with their duties) may be prohibited from purchasing, selling, or
making other transactions of shares of stock or other securities of NEC before
the time of Publication.



--------------------------------------------------------------------------------

Contact: Diane Foley
Corporate Communications Division
NEC Corporation
+81-3-3798-6511





                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

QRFLFLFBXVBXBBV