NEC Electronics Revises Full-Year Forecasts In Accordance with Change in Accounting Principles

KAWASAKI, Japan, December 24, 2009

NEC Electronics Corporation (TSE: 6723) today revised its consolidated financial forecasts for the full year (the period from April 1, 2009 to March 31, 2010), which it disclosed on October 28, 2009. The company revised its financial forecasts following the change in its accounting principles from accounting principles generally accepted in the United States (U.S. GAAP), to accounting principles generally accepted in Japan (Japanese GAAP).

1. Revised forecasts for the full-year consolidated financial results

(For the year ending March 31, 2010)

In millions of yen

	Net Sales	Operating Income (Loss)	Ordinary Income (Loss)	Net Income (Loss)
Previous forecasts (As of Oct 28)	460,000	(46,500)	---	(55,000)
Revised forecasts (prepared in accordance with Japanese GAAP)	462,000	(47,500)	(51,500)	(59,000)
Increase (decrease)	2,000	(1,000)	---	(4,000)
Percent change	0.4	---	---	---
Reference: Results for the year ended March 31, 2009 (prepared in accordance with U.S. GAAP)	546,470	(68,355)	---	(82,625)

Note 1)	Following the change in its accounting principles from U.S. GAAP to Japanese GAAP, ordinary income (loss) is used to indicate the company's financial forecasts instead of income (loss) before income taxes.
Note 2)	Income (Loss) before income taxes under U.S. GAAP as of October 28, 2009: (53,500) Income (Loss) before income taxes under Japanese GAAP as of December 24, 2009: (58,000)
Note 3)	The above previously forecasted "Net Income (Loss)" prepared in accordance with U.S.GAAP is computed in the same method as for "Net income (loss) attributable to NEC Electronics Corp.".

2. Background to the revision of full-year forecasts
As announced in NEC Electronics' "NEC Electronics to Change Accounting Principles for Consolidated Financial Statements" press release, the company has changed its accounting principles for its consolidated financial statements from U.S. (U.S. GAAP) to Japanese GAAP.
Prepared in accordance with Japanese GAAP, NEC Electronics expects the following revisions to its forecasts for the fiscal year ending March 31, 2010: net sales are expected to increase by 2.0 billion yen from the previous forecast. The figures for net sales were calculated by recognizing sales incentive and others as selling and administrative expense, as opposed to deducting these expenses from the net sales.
Operating loss and net loss are expected to decrease by 1.0 billion yen and 4.0 billion yen, respectively, mainly due to differences in accounting methods of pension related expense.
NEC Electronics' financial forecasts were revised in accordance with the change in its accounting principles and there are no other changes from what was announced on October 28, 2009.

Cautionary statements:
The statements in the material above with respect to the plans, strategies and forecasts of NEC Electronics Corporation ("NEC Electronics") are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results could differ materially from such forward-looking statements due to several factors.

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About NEC Electronics

NEC Electronics Corporation (TSE: 6723) specializes in semiconductor products encompassing advanced technology solutions for the high-end computing and broadband networking markets; system solutions for the mobile handset, PC peripheral, automotive and digital consumer markets; and multi-market solutions for a wide range of customer applications. NEC Electronics Corporation has subsidiaries worldwide including NEC Electronics America, Inc. and NEC Electronics (Europe) GmbH. More information about NEC Electronics worldwide can be found at www.necel.com.

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