NEC Launches Next Generation Thin Client Systems, First to Providing High Performance Multimedia Processing Utilizing Virtualization Technology


New system delivers new levels of breakthrough price / performance

TOKYO, Nov. 6 / - NEC Corporation today announced the launch of a new Virtual PC-Class Thin Client System(1). The new system includes the next generation of Thin Client computing device, the US100, which provides a high level of IP telephony and video processing quality in the smallest thin client footprint. The device is designed to achieve the impressive multimedia performance through the employment of NetClient(TM), the advanced system-on-a-chip solution that incorporates leading-edge technologies from NEC and ServerEngines(TM) LLC. The new system also features VMware Virtual Desktop Infrastructure pre-installed and pre-integrated with NEC systems through collaboration established under the VMware Virtual Desktop Infrastructure Alliance program.

Using NEC's Virtual PC-Class Thin Client System, enterprises large and small can realize substantial reductions in installation costs, as well as enhanced functionality not previously available in the market(2). Sales of the new products begin today in Japan and Europe, while North America is expected to begin shipping the first quarter of 2007.

The breakthrough enhancements of the US100 include high audio and voice quality VoIP function, high video processing performance, and a significant reduction in initial installation costs, which solves some problems experienced with earlier Thin Client systems. In addition to the robust security and mobility of Thin Client systems, the new offerings are able to deliver a business environment that utilizes IP telephony and video that is comparable to that of an environment known to standard business PCs or rich clients but costs less. NEC's US100 helps to reduce power consumption by more than 60%(3) compared conventional systems that employ business PCs.

The introduction of the Virtual PC-Class Thin Client System is the result of NEC's vision of Next Generation Network (NGN) integrated technologies. As part of this strategic initiative to leverage NEC's global competencies in visual, network and computing technologies, NEC has formed a specialized sales team in North America and Europe to expand business with strategic business partners.

NEC expects sales of 150 billion yen ($1.25B US) over the next three years of the total client integrated solution of various types of Thin Client systems with particular focus on the next generation Virtual PC-Class Thin Client systems.

Overview of New Products and Enhanced Sales Structure

1. Advanced Thin Client Device

(1) The US100 is the first Thin Client device to provide rich
PC-quality high-speed video and audio processing delivering the
next generation in thin client technology:
o Improving space efficiency, the palm-sized (15.5 cm (W) x 10.4 cm
(D) x 3.4 cm (H)) device can be placed on the desktop or mounted
behind the LCD screen.
o Employing ServerEngines' NetClient(TM) LSI chip, which was
co-developed with NEC, US100 delivers high multimedia performance
and is the first to introduces new functionality to the Thin Client
market such as smooth video processing(4) at the level of a
business PC and VoIP system.
o Supporting industry standard protocols, the US100 provides enhanced
levels of intelligent functionality which off-loads server
processing and allows the device to work separately from softphone
applications that connect to NEC's IP telephony server, UNIVERGE
SV7000. Voice and video can be transmitted directly between US100
devices, eliminating server impact and ensuring a high quality of
voice regardless of server processing conditions.

The US100 was created through a collaborative effort between NEC
Corporation, NEC Electronics, ServerEngines and Wyse Technology, the
leading vendor in the Thin Client terminal market.

(2) The US50 Mobile Notebook Terminal (released in Japan only) builds
on the emergence of the Next Generation Network concept to deliver
the ultimate in a portable virtualized thin client environment:
o The B5-size Thin Client notebook has the footprint of a sheet of
paper, weighs only 1 kilogram, is designed for portable usage.
o Services such as configuration design of ROM, customization,
testing and packaging are provided in order to meet enterprises'
existing system environments and operation needs. As a result, the
terminal offers a high level of convenience as it offers automatic
access to a server with a USB key, access to a server via a mobile
card and wireless LAN service, and operates in the Virtual Private
Network (VPN) environment.

2. Advanced solution "All-In-One" NEC Express5800/Virtual PC Center (VPCC)
Models realizes low-cost, next generation Virtual PC-Class Thin Client
System

(1) NEC Express5800/VPCC Virtual PC Server with pre-installed server
function:
The server is powered by VMware Virtual Desktop Infrastructure
loaded with middleware and a client operating system that operates
up to 20 units of virtual PC-class Thin Client terminals. As a
result, the system can be installed and fully operational in a
shorter time and at a lower cost than traditional Thin Client
architectures.

(2) NEC Express5800/VPCC Management Server pre-installed:
The NEC Express5800/VPCC Management Server provides centralized
management over the entire VPCC system in an integrated fashion.
The VPCC Management Server is loaded with middleware, which
significantly simplifies PC administrative tasks over traditional
desktop system management and traditional Thin Client management
functions. Tasks such as reallocation of VPCC resources, addition
of application software, bulk application of security patches, and
advanced security provisioning provide system administrators
enhanced efficiency and flexibility.

With its detailed features for managing clients, this server
achieves a significant reduction in operation and management costs
after installation, compared to traditional business PC
environments. The Express5800/VPCC Management Server is realized
through the integration of VMware Infrastructure and NEC integrated
platform management software.

3. Enhancement of Sales Structure for Client Integrated Solution

NEC established a strong sales structure in North America and
Europe to accelerate the client integrated solution business, which
focuses on the Virtual PC-Class Thin Client System. NEC Corporation
of America will play the central role in promoting the business in
North America, and NEC Computers working with NEC Philips Unified
Solutions will drive the business in Europe. In addition, the sales
structure will expand to business partners such as Group Bull in
Europe.

The price and shipment date of the new products in Japan are as follows:

Product name      Characteristics          Price          Shipment
(excluding tax) date

Thin Client Virtual PC/screen 52,000 yen December 15,
Terminal transfer-type (approx. 2006(5)
US100 compatible $439)
desktop terminal.
Handles high-
speed video
drawings, VoIP
function. Works
with IC Card
reader/writer.

Thin Client Virtual PC/screen 220,000 yen November 15,
Terminal transfer-type (approx 2006
US50 compatible $1,857)
(Available notebook terminal
only in (B5). Work with
Japan.) wireless LAN, IC
card
reader/writer.

NEC Pre-loaded with 1,916,000 December 15,
Express5800/V hardware and yen(6) 2006(5)
PCC Virtual software (approx.
PC Server necessary for a $16,176)
virtual PC-class
server. Easy
installation.

NEC Pre-loaded with a 391,000 yen December 15,
Express5800/V set of hardware (approx. 2006(5)
PCC and software $3,301)
Management necessary for a
Server virtual PC-class
management
server. Centrally
manages numerous
virtual PC server
sets and virtual
PCs.


Since introducing a Client Integrated Solution in April 2005, NEC has expanded the technology and service offerings, from diagnostics and consulting of customers' client environments to optimized system design, construction and operation. There are three Thin Client systems available: "Virtual PC," "Net-Boot," and "Screen Transfer." The Virtual PC system, in particular, is evaluated highly by customers because it enables effective use of hardware assets by allocating server resources according to the user's load, as well as the utilization of existing applications.

Through enhancement of its Thin Client business, NEC strives to improve enterprise security, reduce TCO (Total Cost of Ownership), and deliver a highly mobile work-style in the Next Generation Network (NGN) era.

Comments from ServerEngines

"When NEC first presented their Virtual PC Center concept, we found it very compelling," said Raju Vegesna, president and CEO of ServerEngines. "As a result, we worked with NEC to develop the NetClient(TM) SoC to power the US100, the first of a new generation of Thinner Clients with embedded security and multimedia processing capabilities."

Comments from VMware

"VMware is excited to partner with NEC to deliver superior enterprise desktop manageability and security through virtualization," said Diane Greene, president of VMware. "NEC's Virtual PC Center offering is the result of collaboration under the VMware Virtual Desktop Infrastructure Alliance program and will facilitate the deployment of virtual desktops with our joint customers."

Comments from Wyse Technology

"Wyse is pleased to partner with NEC on the US100," stated Dr. John Kish, CEO, Wyse Technology. "By choosing the Wyse software suite including Wyse Thin OS to power the US100, NEC has chosen the best of breed operating system, for their thin computing environment. As the global leader in thin computing, we look forward to working with Global Strategic Accounts like NEC to expand the scope and reach of the thin computing paradigm."

About NEC Corporation

NEC Corporation (NASDAQ:NIPNY) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 150,000 people worldwide and had net sales of approximately 4,825 billion yen (approx. $41.2 billion US) in the fiscal year ended March 2006.

For additional information, please visit the NEC home page at: http://www.nec.com/

* Newsroom: http://www.nec.co.jp/press/en/

(1) Achieves an efficient work environment and a further reduction in TCO
by virtually creating a PC environment on a server and flexibly
allocating server resources such as a CPU to users.
(2) Ability to provide full motion video and audio through a virtualized
thin client environment.
(3) Comparison with the entire client server system using 20 units of
business PCs or rich clients.
(4) Codec at the time of shipment (December 15) will be MPEG-1/MPEG-2.
(5) The shipment date is for Japan only. The shipment date for North
America and Europe is January 15, 2007.
(6) A single server accommodates the client environment of up to 20
people.

Source: NEC Corporation

CONTACT:
In Japan: Yasuhito Jochi,
NEC Corporation,
+81-3-3798-6511,
y-jochi@bp.jp.nec.com;

In the U.S.: Beth Makosey,
NEC Corporation of America,
+1-408-844-1320
cell: +1-408-206-1387,
Beth.Makosey@necam.com

Web site: http://www.nec.com/
http://www.nec.co.jp/press/en

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