Enhancing Embedded Database Capabilities to Expand Business and Meet Demands for Increasingly Sophisticated and Diverse Embedded Solutions

May 12, 2008-NEC System Technologies, Ltd. announced today that it is seeking to expand its embedded solutions business. The company is working to strengthen its capabilities with embedded databases, which are expected to experience increased demand in the future for information appliances, automotive equipment and other embedded systems. As one measure for increasing its strength in this field, the company has realized a mutual agreement with Encirq K.K. (headquarters: Shinagawa-ku, Tokyo) to begin cooperative work with prospects for a partnership contract.

Encirq K.K. is the Japanese incorporated branch of the US company Encirq Corporation, which is a global leader in advanced data management software for embedded systems. They develop and sell software frameworks and components that allow optimal data management for embedded applications.

As the first steps in this cooperative work, NEC System Technologies will combine hardware and software IP that it has developed with Encirq's embedded database DeviceSQL, which features high speed and a small footprint, to make a demonstration system, for example, and advance cooperation in sales activities. Through this the company seeks to enhance its range of embedded solutions and acquire new customers, as well as improve the productivity of embedded system development and, eventually, develop unique framework products. Through its cooperation with NEC System Technologies, Encirq seeks to expand its market for the same products.

Please see the attached sheet for a comment from Encirq Corporation CEO Deborah Goslin.

Attachment

Comment from Encirq Corporation CEO Deborah Goslin about this cooperation "We are extremely pleased that NEC System Technology has selected DeviceSQL as a key value-added component in their embedded solutions offerings for customers. Both NEC System Technology and Encirq have tremendous experience in the embedded systems market and our partnership will help satisfy our customers' complex needs. I'm confident that our state-of-the-art technology and professional services are ideally suited for tackling the growing data management challenge in high-performance, cost-sensitive embedded devices."