Oki Electric Establishes Network Integration Company

Tokyo, Japan, July 21, 2005 -- Oki Electric Industry Co., Ltd. (TSE: 6703) announced it has established Oki Network Integration Co., Ltd., a new company, effective today, to enhance Oki's info-telecom system business, which converges information and telecommunication technologies. This company provides total network integration for triple play*1 -- integrating voice, data and video --, offering highly reliable and secure networks as one-stop solutions.

"We have been providing various info-telecom converged solutions based on AP@PLAT®*2 with strong track record and high technologies," said Masayoshi Matsushita, President of Oki Network Integration. "By establishing this company dedicated to info-telecom convergence, we have become the industry leader in providing a one-stop solution for triple play on broadband networks. We will support our enterprise customers, from their standpoint, in changing their way of business to become more competitive as these technologies merge."

With the progress of the Internet, networks have become more sophisticated and high-speed, shifting voice to IP and video to digital. This is triggering the need to improve business operation efficiency by converging information and telecom and increasing competitiveness. For example, by linking mobile phones, wireless LAN terminals, softphones*3 and legacy phones with business applications, users can establish an office environment whenever and wherever they are. In addition, using video and voice with realistic sensation enables to offer real-time remote support that improves quality and productivity at overseas plants.

As the network becomes more complex, Oki Network Integration responds to a wide range of enterprise needs based on Oki's know-how. The company's offerings will include a one-stop service from optimum network consulting, design, construction and maintenance, through to operation. It will provide an efficient enterprise system that converges web applications, business applications and mobile applications based on voice and video with the company's fine-tuned service and skills to build a reliable network.

Providing triple play requires converging fixed and mobile network seamlessly by integrating different characteristics of voice, data and video, which involves high technical skills and know-how. The Oki group has experience in this area with its IP CONVERGENCE® Server SS9100, the IP telephony systems, OKI MediaServer, the IP video system, and establishment of information network for large-scale router networks. The Oki group will continue to provide various solutions to its customers by taking opportunities in the rapidly increasing IP network market.

[Glossary]

*1 Triple play:: This is a form of combining voice (phone), data and video communications into a single line over IP networks, which originally used different lines. The term is used when carriers, CATV or service providers offer service by combing voice (phone), data and video (broadcasting) on a single line.
*2 AP@PLAT:: This is Oki's info-telecom solution concept to create new customer value and business by converging information and telecommunication. It aims to reform business work-style by converging real-sensation voice, video and data communication with computers and business applications.
*3 Softphones:: An application software for phone conversation that operates on a PC. With the mouse and keyboard, users select whom to make phone calls to, enabling a phone conversation function

About Oki Network Integration Co., Ltd.

Established :: July 21, 2005
Location :: 1-2-21 Etchujima Koto-ku, Tokyo
TEL :: +81-3-5621-6601
Capital :: 100 million yen (Oki Electric Industry 80%, Oki Customer Adtech 10%, Oki Wintech 10%)
President :: Masayoshi Matsushita
Employees :: 210
Sales target :: 10 billion yen per year (Fiscal year ending March 2006)
Services :: Integrate voice, data, video and security related network
: Provide one-stop support from consultation, design, construction, operation and maintenance
: 24/7 network service with 300 locations throughout Japan

About Oki Electric Industry Co., Ltd.

Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer, with its headquarters in Tokyo, Japan. With the corporate vision, "Oki, Network Solutions for a Global Society," Oki provides top-quality products, technologies and solutions to its customers through its info-telecom system business, semiconductor business and printer business. All three businesses functions as a collective force to create exciting new products and technologies that satisfy a spectrum of customer needs in various markets. Visit Oki's global web site at http://www.oki.com/.

Notes:

CONVERGENCE a registered trademark of Oki Electric Industry Co., Ltd. in Japan.
AP@PLAT is a registered trademark of Oki Electric Industry Co., Ltd. in Japan and in the US.
Other names of companies and products are trademarks or registered trademarks of the respective companies.

Contact for Oki Electric:

For Europe and Americas: Public Relations Division: Phone: +1-408-737-6479

For Asia and Other Areas: Public Relations Division: Phone: +81-3-3580-8950

Information in the press releases is current on the date of the press announcement, but is subject to change without prior notice.