NEC Electronics Announces Results of Enhanced Early Retirement Plan

1.Outline of the enhanced early retirement plan

1.Eligibility:

Employees of NEC Electronics Corporation and its subsidiaries in Japan* forty years of age and older who will have worked five consecutive years or more within the NEC Electronics Group as of March 31, 2008.

* Excluding two subsidiaries of NEC Kansai, Ltd., a wholly-owned subsidiary of NEC Electronics Corp.

2.Application period:

February 18 to February 29, 2008

3.Retirement date:

March 30, 2008

4.Enhancement:

The amount of early retirement benefits will be increased. In addition, placement support will be provided by an outside agency for those who request it.

While no upper limit was placed on the number of applicants for the enhanced early retirement plan, the consolidated forecasts for the fiscal year ending March 31, 2008 already included approximately 5.0 billion yen in expenses estimated for roughly 500 applicants.

2.Results

There were 685 applicants for the enhanced early retirement plan.

3.Impact on NEC Electronics' financial forecasts

The supplemental payments that are part of the enhanced early retirement plan are expected to total approximately 6.0 billion yen. This figure is within the scope of expenses forecasted for the fiscal year ending March 31, 2008, and therefore NEC Electronics will not change its consolidated forecasts for the current fiscal year.

As a result of implementing the enhanced early retirement plan, the cost of personnel for the next fiscal year is expected to decline by 5.0 billion yen on a consolidated basis, provided that salary and bonus levels remain on par with the current fiscal year.