NEC And Thomson Multimedia Announce Intention To Combine Their Worldwide Plasma Displays Businesses In A 50/50 Joint Venture

Increased Common Resources Will Accelerate Joint Ambition Towards Worldwide Leadership In Plasma Displays

15-Mar-01

NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) (TSE: 6701) and Thomson Multimedia (NYSE: TMS) (Paris Sicovam 18453) announced increased commitments in the area of plasma display technology through the signature of a memorandum of understanding (MOU), dated March 14, 2001, which strengthens the relationship between the two companies and paves the way for the creation of a 50/50 worldwide research and development, sales and manufacturing joint venture for plasma display panels, modules and monitors.The strengthening of the strategic relationship between NEC and Thomson in plasma technology will take the following forms:1. The existing research and development cooperation in plasma display technology will be reinforced through the launch of a joint and global research and development program, functioning as one sole integrated program, covering all aspects of plasma display panels and modules. Patents and know-how resulting from this program will be equally owned by the two parties. The parties' current intention is to enter into a definitive agreement for this joint and global research and development program by June 2001.2. The existing plasma display related patents of NEC and Thomson will be co-owned by the two parties on an equal basis, also giving each party reciprocal access and rights to the related technology of each party. It is the intention of NEC and Thomson to license the common patent portfolio to third parties, in which case Thomson will act as licensing agent for both parties.3. NEC and Thomson will work towards the establishment of a 50/50 joint venture company for research and development, manufacturing and sales of plasma display panels, modules and monitors. The parties' current intention is to enter into a definitive agreement for the establishment of this joint venture company by the end of 2001.Both NEC and Thomson intend to increase their financial commitment to plasma display technology and products through their reinforced cooperation, and jointly become world leaders in this high growth area in the OEM (Original Equipment Manufacturer), consumer and professional markets. In particular they intend to increase immediately together OEM sales of plasma modules.The MOU is subject to the approval of both NEC and Thomson's competent corporate bodies. The principles set forth in the MOU will be detailed in separate definitive agreements.""I am very pleased that we intend now to pool fully our common expertise in plasma display technology in order to create a worldwide leadership in this very attractive high-end display technology. This enlarged global agreement demonstrates the unique strength that Thomson and its strategic partners have succeeded to create together for their mutual benefit and the one of their customers,"" said Thierry Breton, Chairman and CEO of Thomson.""I am quite pleased to strengthen the strategic partnership with Thomson through plasma displays business. Based upon this enlarged and strong partnership of two companies, we aim to become a world leader of plasma displays business,"" said Mr. Nishigaki, CEO of NEC.

For more information about NEC Corporation, visit www.nec.com. For more information about Thomson multimedia, visit www.thomson-multimedia.com.

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http://www.nec.com
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