NEC AND TOSHIBA TO MERGE SATELLITE BUSINESSES

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March 13, 2000

NEC Corp. and Toshiba Corp. have launched talks on forging an alliance focused on satellite production. Toshiba and NEC will try to compete with Mitsubishi Electric Corp., Japan's satellite leader whose market share in the industry stands at 55 percent. NEC, the second largest in the sector, is strong at developing small satellites, while Toshiba, ranks third, and develops parts for larger satellites, antenna and solar batteries. The new venture, employing up to 500 workers, will seek foreign partners. NEC's annual sales in the satellite industry are estimated at 40 billion yen (US$364 million), compared with 25 billion yen (US$228 million) reported by Toshiba.

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March 13, 2000

Andrews Space & Technology