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Message from president of NEL

Realizing Customers' "Wants"
In the communications field, there has been a large ongoing change since around the year 2000 *. This change indicates the shift from analog to digital to the opening of the proverbial gate of IP-based communications, a shift to a so-called ubiquitous society. In addition, the increase in the number of FTTH subscriptions means that broadband communication is becoming the most sought-after commodity. Currently, each home has internet access at speeds of up to 100 Mbps. As a result, new internet-based businesses have grown, and the addition of video communications with the advance in image compression technology means that the Next Generation Network (NGN), where communication and video merges, will be arriving soon.
At NTT Electronics (NEL), in order to match this drastic change in the communications field, we have taken advantage of our exceptional expertise within various fields to provide high performance and high quality products and services, such as photonics products and LSI devices, security, video codecs, etc., to our customers to achieve a broadband communications network. Our diodes and photo acceptance units for optical communications, AWG, splitters, and other devices are being used by communications device manufacturers worldwide, and network encryption systems, which allow the transmission of sensitive data, are highly valued by financial industries. Our MPEG-2 Codec LSI (VASA) and associated systems for HDTV are widely used by both domestic and foreign broadcasting businesses, and our small encoder LSI chips are being used for hand-sized video cameras for HDTV. In addition, we were among the first to develop the H.264 / AVC video codec, which was adopted for the re-transmission of terrestrial digital broadcasting.
Our company will continue to prepare for our customers' wants in advance, providing products on a timely basis for industrial development. We ask our customers for their continued support of NEL and its products.
President & CEO
Hiroshi Yoshimura
* The number of mobile phone subscriptions has overtaken that of fixed-line subscriptions (1999). The number of PCs shipped has eclipsed that of TVs (2000). Data traffic has outnumbered that of voice traffic (2001). ADSL subscriptions have eclipsed those of CATV (2002). And in 2004, the net increase of FTTH exceeded that of ADSL. Within a few years, the number of FTTH subscriptions is expected to overtake that of ADSL.