Tripartite Business Structure in Europe, US and Japan Will Provide One-stop Solutions Source for Global and Pan-European Carriers

Tokyo/ London, June 1, 2001 - Fujitsu Limited announced today that it will reorganise its existing European telecommunications subsidiaries into a consolidated solutions-oriented company with strengthened sales, development and support capabilities. Fujitsu is reorganising to better serve global carriers with operations in Europe as well as pan-European carriers in the region’s expanding telecommunications network business market. Together with Fujitsu’s already comprehensive network business operations in Japan and the United States, which are likewise being strengthened, the enhanced European operation will serve as a third pillar in the group’s worldwide structure that aims to provide a one-stop network solutions source for global and regional carriers.

To be implemented in two stages, the reorganisation will involve the following Fujitsu subsidiaries:

• Fujitsu Europe Telecom R&D Centre Limited (FTRC) Headquartered in Uxbridge, U.K., FTRC carries out development of transport access, wireless and switching systems and equipment as well as European telecommunications market analysis.
• Fujitsu Telecom Deutschland GmbH (FTD) Headquartered n Hessen, Germany, FTD sells and services telecommunications equipment, primarily in Germany, and also provides technical support.
• Fujitsu Telecommunications Europe Limited (FTEL) Headquartered in Birmingham, U.K., FTEL develops, manufactures, markets and deploys communications equipment, mainly in the U.K.

Initially, FTRC and FTD will be merged in July of this year to form a new company, Fujitsu Networks Europe Limited, which will be headquartered in London. In the next stage, planned for completion by end of March 2002, FTEL and Fujitsu Networks Europe will merge. The resulting corporate entity, which will retain the Fujitsu Networks Europe Limited name, will serve as Fujitsu’s unified telecommunications network business presence in Europe.
Due to the rapid growth of the Internet service-related market in Europe in recent years, putting in place high-capacity communications networks has become an urgent priority, and major North American and European carriers have become increasingly active in constructing pan-European networks. Along with this, there have been growing needs for construction and operational support for global- and European-scale optical networks, as well as Internet Data Centres that utilize such networks. Moreover, in order to efficiently build networks that extend across Europe, customers are increasingly looking for a single network solution with a single point of contact and quick, well-positioned support.

In light of these market trends and changing needs, Fujitsu made the decision to merge its European telecommunications subsidiaries into a single company to better service major carriers, including its incumbent carrier customers in Europe. Upon completion of the realignment, Fujitsu Networks Europe will be organised into two principal divisions.

The Network Systems Business Division will offer platforms and solutions for global optical networks targeting pan-European and global carriers.

The Broadband Access Business Division will offer access system platforms and solutions, including their development and manufacture.

In addition, in concert with the network services division of Fujitsu Network Communications, which has been providing services and logistics support to global carriers from North America through its Amsterdam office, Fujitsu Networks Europe will provide a full range of maintenance and operational services to support its solutions business.

As recently announced, Fujitsu is putting special emphasis on broadband Internet-related business areas as an extension of its “Everything on the Internet” business strategy. This reorganisation strengthens Fujitsu’s networks business in Europe. Additionally, recently announced changes in Japan have enhanced its domestic network solutions business structure. By linking its European and Japanese operations with those of Fujitsu Network Communications in the U.S., Fujitsu will have a tripartite structure designed to offer carriers as well as ISPs and ASPs a truly global one-stop solutions source for network design, construction, maintenance and operations outsourcing. Fujitsu will thus be better positioned to more aggressively address market requirements and pursue telecommunications network solutions business opportunities.Fujitsu has already made inroads in this field in Europe, including an order from 360networks, the Canada-based global carrier, which is building a Europe-wide optical network spanning eight countries and twenty cities. Fujitsu is supplying its FLASHWAVE® 320G DWDM optical transmission system (10Gbit/s x 32 channels, expandable to 1.2 Tbit/s) and FLASH®-192 10Gbit/s optical transmission system.

The reorganisation announced today indicates Fujitsu's strong commitment to expanding its telecommunications network business in Europe. The company has set a European telecommunications sales target of 100 billion yen (980 million euros) in fiscal 2003, and in future it aims to become one of the top three communications equipment vendors in the European market.

** FLASH® and FLASHWAVE® are registered and/or proprietary trademarks of Fujitsu Limited. All other company/product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only.

About Fujitsu

Fujitsu is a leading provider of Internet-focused information technology solutions for the global marketplace. Its pace-setting technologies, best-in-class computing and telecommunications platforms, and worldwide corps of systems and services experts make it uniquely positioned to unleash the infinite possibilities of the Internet to help its customers succeed. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.48 trillion yen for the fiscal year ended March 31, 2001. Internet: http://www.fujitsu.com/

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