*** For immediate use May 19, 2010
Tokyo, May 19, 2010 - The European Commission announced today a decision to impose fines on companies in the DRAM industry that infringed the European competition laws in the European Economic Area (EEA) from 1998 to 2002. NEC Corporation (NEC) confirms receipt of the Commission's notice communicating the decision.
The Commission imposes fines of Euro 10,296,000 on NEC, Euro 2,124,000 jointly and severally on NEC and Hitachi, Ltd. (Hitachi), and Euro 8,496,000 jointly and severally on NEC, Hitachi and Elpida Memory Inc. (Elpida). The fines imposed jointly and severally relate to the period after March 2001, when NEC transferred its overseas DRAM sales business to Elpida, a joint venture company with Hitachi at that time.
The Commission's investigation began in 2002. NEC cooperated fully with the Commission during the course of the investigation, and ultimately settled the case with the Commission pursuant to the Commission's Settlement Notice of 30 June 2008.
This will not affect the financial forecast in the "Full Year Consolidated Financial Results for the Fiscal Year Ended March 31, 2010" that was announced on May 12, 2010.
This material contains forward-looking statements pertaining to strategies, financial targets, technology, products and services, and business performance of NEC Corporation and its consolidated subsidiaries (collectively "NEC"). Written forward-looking statements may appear in other documents that NEC files with stock exchanges or regulatory authorities, such as the Director of the Kanto Finance Bureau, and in reports to shareholders and other communications. NEC is relying on certain safe-harbors for forward-looking statements in making these disclosures. Some of the forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," "targets," "aims," or "anticipates," or the negative of those words, or other comparable words or phrases. You can also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking statements necessarily depend on currently available assumptions, data, or methods that may be incorrect or imprecise and NEC may not be able to realize the results expected by them. You should not place undue reliance on forward-looking statements, which reflect NEC's analysis and expectations only. Forward-looking statements are not guarantees of future performance and involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Among the factors that could cause actual results to differ materially from such statements include (i) global economic conditions and general economic conditions in NEC's markets, (ii) fluctuating demand for, and competitive pricing pressure on, NEC's products and services, (iii) NEC's ability to continue to win acceptance of NEC's products and services in highly competitive markets, (iv) NEC's ability to expand into foreign markets, such as China, (v) regulatory change and uncertainty and potential legal liability relating to NEC's business and operations, (vi) NEC's ability to restructure, or otherwise adjust, its operations to reflect changing market conditions, (vii) movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, (viii) the impact of unfavorable conditions or developments, including share price declines, in the equity markets which may result in losses from devaluation of listed securities held by NEC, and (ix) impact of any regulatory action or legal proceeding against NEC. Any forward-looking statements speak only as of the date on which they are made. New risks and uncertainties come up from time to time, and it is impossible for NEC to predict these events or how they may affect NEC. NEC does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or otherwise.
The management targets included in this material are not projections, and do not represent management's current estimates of future performance. Rather, they represent targets that management will strive to achieve through the successful implementation of NEC's business strategies.
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