Fujitsu to Reorganize Photonics Business

Tokyo, April 28, 2008

Fujitsu Limited and subsidiary Fujitsu Access Limited announced today that they plan to merge and reorganize their photonic systems businesses in July in order to strengthen their photonics systems development, manufacturing and sales operations for the Japanese market. The plan was approved today at a meeting of Fujitsu Limited's Board of Directors.

Background

In recent years, the photonics business has become increasingly competitive. Product development cycles are becoming shorter as a result of growing demand for higher-speed, higher-capacity, multifunctional solutions.

The Fujitsu Group has long been a leading global developer of photonic systems, including the WDM⁽¹⁾ and SONET⁽²⁾ backbone network systems developed by Fujitsu, and the GE-PON⁽³⁾access network⁽⁴⁾ for customers in Japan developed by Fujitsu Access. As the market has evolved, however, the boundary between backbone and access networks has become increasingly blurred. In this environment, the management of Fujitsu and Fujitsu Access deemed it necessary to generate greater collaboration by combining their capabilities and know-how, particularly for the development of next-generation photonic systems for the Japanese market.

The photonics divisions to be merged and reorganized are as follows:

1. Photonics Sales Divisions
   The Japan sales divisions of Fujitsu Limited and Fujitsu Access Limited will be merged into one Fujitsu Limited sales division for the Japanese market.
2. Photonics Development and Manufacturing Divisions
   The Japan product development divisions of Fujitsu Limited and Fujitsu Access Limited, and all the companies' photonics manufacturing divisions will be merged and reorganized. Fujitsu Limited will continue to develop products for markets outside Japan. The power electronics⁽⁵⁾ business of Fujitsu Access, including its sales division, will continue to be managed by Fujitsu Access.

The merger of the sales divisions will reinforce the sales capabilities for the photonics business, while the merger of the development and manufacturing divisions will streamline and accelerate operations. Overall, the new structure will ensure that photonic systems customers receive optimal products and service.

Details on the merger and reorganization will be announced in the middle of May.