Press Release

*****For immediate use April 24th, 2000

NEC IEEE1394 PHY & OHCI Single-chip Solution Offers Smallest Package, Reduced Cost for PC Market

NEC IEEE1394 PHY OHCL Linc-LSI,PD72872

TOKYO April 24^th, 2000 - NEC Corporation (NEC) (NASDAQ: NIPNY) (FTSE: 6701q.l) has developed a single chip IEEE1394 device that incorporates both physical layer (PHY) and open host controller interface (OHCI) link functions in the industry's smallest package, while achieving a 25% cost reduction to make it an attractive solution in the emerging personal computer market for IEEE1394 connectivity.

Sampling of the PD72872 begins from May 2000, with volume production of 1 million units per month set to begin from September 2000. NEC is already prepared for a ramp-up in production, timed to meet an anticipated sharp rise in demand.

By focusing specifically on the needs of the PC market, the PD72872 provides full functionality and interoperability while reducing its cost compared to its predecessor, the PD72870A. Specifically, the PD72872 reduces the number of IEEE1394 ports used from three to two in line with market needs, and enables the world's smallest package for an IEEE1394 OHCI controller.

The reduced cost of the PD72872 was achieved through a revised circuit design that shifts from a 3 metal aluminum layer structure to a higher density 4 layer device. Full interoperability of the new device is ensured by utilizing the same technology used in the earlier PD72870A, in particular the PHY component, to provide the high degree of reliability expected of such a key component.

NEC is also offering a low-cost "IP over 1394" driver software license, fully compatible with the IETF (Internet Engineering Task Force) standard, to provide a total solution for customers. The driver software is aimed at the new applications emerging for IEEE1394 such as large data transfer over simple IP protocol networks between PCs.

With the increasing use of e-mail to send digital information via the Internet almost instantaneously anywhere around the world, it is becoming an increasingly familiar sight even in homes. Together with the commencement of digital broadcasting and the digitalization of audio and visual content, the pace of change towards digital electronics is increasing.

IEEE1394 is intended to provide a high-speed serial bus interface for this rapidly increasing variety of multimedia data, providing an indispensable data transfer rate for this content of 100-400 megabits per second (Mbps). Initially used in digital camcorders, IEEE1394 is increasingly being seen in digital audio-visual products and personal computers, and is widely considered to be a strong contender to form the basis for multimedia networks in the home.

In the PC market in particular, Apple^*1 Computer Inc. began providing its popular iMac^TM*2 computer with the IEEE1394 (FireWire^TM*2) interface from last year, while Microsoft has incorporated various driver support software in its Windows^*3 98 Second Edition operating system. This has enabled digital audio-visual equipment with an IEEE1394 interface to connect with PCs to store and edit data, and use of the standard is rapidly increasing. Conversely, PC manufacturers are also preparing models utilizing IEEE1394 aimed at the consumer market, offering this capability, making it a standard interface on computers.

Consequently, NEC has focused on development of IEEE1394 devices for the applications such as the PC, set top boxes, digital video cameras, DVD, and peripherals such as rewritable CD drives and its current product, the PD72870A, was the world's first single-chip integrated PHY/link layer device. In addition to continuing development of its products, NEC is also designing IP over 1394 drivers for the Windows operating system, optimized to support its device products.

From LSIs through to software, NEC is committed to providing total device solutions to meet the needs of its customers, and the company intends to stake out its claim to leadership of the PC and consumer electronics markets for IEEE1394 controllers. NEC is also strengthening its production system aiming at providing 1m units per month for this important, emerging segment.

• About NEC Corporation
• Main specifications of the PD72872 Integrated IEEE1394 PHY/OHCI-Link LSI

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Notes:

*1:	Apple is a registered trademark of Apple, Inc.
*2:	iMac and FireWire are trademarks of Apple, Inc.
*3:	Windows is a registered trademark of Microsoft Corporation in the USA and or other countries.

• All other trademarks and registered trademarks are the property of their respective owners.

                        Media Contact:
                        Aston Bridgman
                        NEC Corporation
                        TEL   :+81-3-3798-6511
                        FAX   :+81-3-3457-7249
                        E-mail:Aston_Bridgman@HO-PRD.ccgw.nec.co.jp