Fujitsu to Spin Off Mainframe Mission-Critical Software Development and Maintenance Divisions

Tokyo, September 27, 2007

Fujitsu Limited announced that, at a meeting of its Board of Directors held today, it has decided to spin off through a simple incorporation-type separation its mainframe mission-critical software development and maintenance divisions into a newly established corporation, Fujitsu Mission Critical Software Limited, as of November 1, 2007.

1. Objectives of the Corporate Spinoff

As a basic stance of its medium-term strategic plan, Fujitsu is promoting positive structural reforms throughout the company. This drive aims to create an organizational alignment optimized for customer and market requirements and, by promoting a management approach that assigns greater responsibility and authority in order to accelerate decision-making, to enable the provision of business solutions that better meet the sophisticated needs of customers. In conjunction with this approach, Fujitsu has decided to spin off its mainframe mission-critical software development and maintenance divisions.

Since the dawn of the mainframe era, in conjunction with hardware advancements, Fujitsu has leveraged technologies and expertise accumulated over many years to develop and maintain mainframe mission-critical software, which is at the heart of customers' mission-critical systems. There is concern, however, that with the impending retirement of a generation of skilled engineers in Japan - a phenomenon facing both Fujitsu and its customers broadly known as the "year 2007 problem" - the level of skills and expertise in development and maintenance will decline. In light of this situation, in order to provide customers with stable, long-term support primarily in the development and maintenance of mainframe mission-critical software, Fujitsu has decided to establish a new company that will maintain and pass down its skills and expertise in this field.

This new company, Fujitsu Mission Critical Software Limited, will leverage the skills and expertise accumulated by Fujitsu over many years in mainframe systems to provide support in the areas of development and maintenance of mainframe mission-critical software, incident response, operational support for critical infrastructure systems, and services relating to mainframe operations, as well as "transmigration" support for migration of legacy systems to new IT systems. Moreover, by leveraging its know-how in mission-critical systems, the company will also provide services relating to open standard mission-critical systems. Thus it will create an organization offering enhanced support for customers across the entire life cycle of mission-critical systems.

September 27, 2007	Board of Directors Meeting to approve the incorporation-type separation plan
November 1, 2007 (scheduled)	Registration of incorporation (effective date of the corporate spinoff)

(3) Allotment of Shares

In conjunction with the spinoff, the newly formed company Fujitsu Mission Critical Software Limited will issue 2,000 shares of common stock, all of which shall be allotted to Fujitsu Limited (the transferor company).

(4) Payments to be Made in Connection with the Spinoff

There will be no payments made relating to the spinoff.

(5) Decrease in Capital Resulting from the Spinoff

There will be no decrease in capital resulting from the spinoff.

(6) Treatment of Share Purchase Warrants and Bonds with Share Purchase Warrants

Fujitsu Limited (the transferor company) will not transfer to nor have the newly formed corporation (Fujitsu Mission Critical Software Limited) assume its obligations relating to its share purchase warrants and bonds with share purchase warrants.

(7) The Rights and Obligations Transferred to the Newly Formed Corporation (the Transferee Company)

On the date of the spinoff, Fujitsu Limited will transfer to the newly formed corporation all assets, liabilities, and accompanying rights and obligations (excluding, however, real estate, patents and industrial rights, and software licenses that cannot be transferred) of Fujitsu Limited's mainframe mission-critical software development and maintenance division. All the employees of the newly formed corporation will be persons seconded from Fujitsu Limited (the transferor company).

(8) Ability to Fulfill Obligations

Fujitsu believes that, in relation to this spinoff, all debt obligations of Fujitsu Limited and of the newly formed corporation can be fulfilled.

(9) Directors and Auditors of the New Company

Masayoshi Matsuyoshi	Director
Akira Yamanaka	Director
Masayoshi Ushijima	Director
Satoshi Ieki	Statutory Auditor

3. Overview of Transferor Company

(As of March 31, 2007)

4. Overview of Business Divisions to be Spun Off

(1) Business Description of the Divisions to be Spun Off

(Mainframe mission-critical software development and maintenance divisions)
Development, maintenance, and related services for mission-critical software running on mainframe systems.

	Mainframe Mission-Critical Software Development and Maintenance Divisions (a)	Fujitsu Limited (b)	Ratio (a / b)
Net Sales	3,714 million yen	2,869,204 million yen	0.1%

Total assets are 100 million yen, there are no liabilities.

5. Overview of Company to be Newly Established

(1) Company Name	Fujitsu Mission Critical Software Limited
(2) Business Description	Development, maintenance, and related services for mission-critical software running on mainframe systems.
(3) Date to be Established	November 1, 2007
(4) Address	140 Miyamoto, Numazu-shi, Shizuoka
(5) Representative	Masayoshi Matsuyoshi, President
(6) Capital	100 million yen
(7) Fiscal Year	April 1 to March 31

6. Profile of Fujitsu Limited after the Spinoff

(1) Company Name	Fujitsu Limited
(2) Business Description	Development, manufacture, sales and services in the fields of software and services, information processing, telecommunications, and electronic devices.
(3) Address of Headquarters	4-1-1 Kamikodanaka, Nakahara-ku, Kawasaki-shi, Kanagawa
(4) Representative	Hiroaki Kurokawa, President
(5) Capital	324,625 million yen
(6) Fiscal Year	April 1 to March 31
(7) Company Status	As stated above, aside from the transfer of the business of the mainframe mission-critical software development and maintenance divisions to the newly established company through a corporate spinoff, there will be no changes to Fujitsu Limited.
(8) Business Impact	Because the newly established company will be a wholly owned subsidiary, there will be no impact on consolidated financial results. The impact on unconsolidated financial results is expected to be minor.