Oki Electric to Provide Nationwide IP Telephony System to Sapporo Breweries

Reduces costs by 100 million yen with private IP Centrex

Tokyo, Japan, December 26, 2005 -- Oki Electric Industry Co., Ltd. (TSE: 6703) today announced that Sapporo Breweries Ltd. will deploy an IP telephony system based on Oki's IP telephony server, IP CONVERGENCE® Server SS9100. The installation started from October, and Sapporo Breweries plan to complete a large-scale IP Centrex*1 system with 43 locations nationwide by 2007.

"Oki's IP telephony server SS9100 enables Sapporo Breweries to manage from one central location all their telecom equipment in multiple sites throughout Japan. This eliminates the need for the existing PBXs and VoIP gateways installed at each location, and thus reduces the management costs of such equipment," said Masashi Tsuboi, President of IP Systems Company at Oki Electric. "As Sapporo Breweries plan to expand their system and eventually introduce a Mobile Centrex system, we believe they can reduce costs by 100 million yen a year."

Oki will install its "BV8000 IWG," the inter-working gateway, in addition to the SS9100, in order to connect to existing VoIP gateways in multiple locations, prior to migrating to IP Centrex. This allows a smooth shift from the existing system to the new system, reducing the risks associated with renewing equipment at all locations at once.

Sapporo Breweries also plans to introduce the FOMA Wireless LAN Dual Network Handsets*2 in addition to fixed IP phones to establish a Mobile Centrex system, through which users can communicate internally and externally with a single phone. The company will also be reducing external communication costs by utilizing Japan Telecom's "Otoku Line," a service that directly provides connections.

By 2007 Oki expects to complete a large-scale private IP Centrex system for Sapporo Breweries with 1,800 IP telephones and 900 FOMA Wireless LAN Dual Network Handset*2 connected to 43 locations nationwide. As a result, the effect of the cost reduction is expected to be 100 million yen a year, including savings in PBX maintenance and fixed and mobile communications.

Oki plans to continue to support Sapporo Breweries for the completion of the private IP Centrex, and will propose "Com@WILL® Soft Phone" and application linkage as a solution to leverage the advanced expandability of SS9100.

[Glossary]

*1 Private IP Centrex:: This is a form of IP telephony that integrates voice communication onto IP networks and concentrates PBXs that were conventionally installed at each location into one location for easier management and operation. This enables significant reduction in operating costs, maximizes the usage of existing equipment, and facilitates connection with internal business applications.
*2 FOMA Wireless LAN Dual Network Handset:: A phone with two communication methods: one that works as a mobile phone when outdoors, the other as a VoIP terminal using the wireless LAN when in the office.

[Reference] IP Telephony System for Sapporo Breweries

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, and Com@WILL are registered trademarks of Oki Electric Industry Co., Ltd. in Japan.
FOMA is a registered trademark of NTT DoCoMo, Inc. in Japan and other countries.
Other names of companies and products are trademarks or registered trademarks of the respective companies and organizations.

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.