29.12.2003 – 08:50

Fujitsu Limited

euro adhoc: Fujitsu Limited
Joint Ventures
Fujitsu and Sumitomo Electric Establish Joint Venture in Compound Semiconductor Devices (E)

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Fujitsu Limited
                                  Sumitomo Electric Industries, Ltd.

Fujitsu and Sumitomo Electric Establish
           Joint Venture in Compound Semiconductor Devices

Tokyo, December 25, 2003 - Fujitsu Limited and Sumitomo Electric
Industries, Ltd. today announced that they have reached a basic
agreement to create a joint venture that will consolidate the
operations of Fujitsu Quantum Devices Limited, a wholly owned
subsidiary of Fujitsu that is focused on the development,
manufacture and sales of compound semiconductors, with the electronic
devices business of Sumitomo Electric's compound semiconductor
operations.  Fujitsu and Sumitomo Electric will each have an equal
equity ownership in the joint venture.

The new company, which will be engaged in everything from development
and manufacturing to sales of a wide variety of compound
semiconductor devices, will aim to quickly establish the trust of
customers worldwide as the world's leader in the field by offering a
level of technological and developmental expertise unmatched by any
company in the industry.

Compound semiconductor devices business has been expanding its
product applications from telecommunication infrastructure market,
such as equipment for fixed-line networks and wireless base stations,
to such growth markets as mobile terminals, digital home appliances
as well as enterprise applications, such as
wireless local area networks.

Fujitsu Quantum Devices will bring to the new joint venture a broad
portfolio of advanced technologies primarily geared toward the
telecommunications infrastructure market, including microwave devices
and optical communications devices.  Combined with Sumitomo
Electric's strengths in materials technologies, such as epitaxial
growth*, which contribute to superior device performance, the new
company will quickly take a leading position in the market
for microwave devices and other compound semiconductor devices,
offering products that combine unparalleled performance and value.

Through the integration of the two companies' operations, the new
joint venture will pursue the following strategies for growth:

1. By taking maximum advantage of the synergy from the partners'
distinct strengths, the joint venture will build a powerful R&D
platform, particularly in the areas of process technologies and
device performance.  And by bringing together the two companies'
long-term R&D work in cutting-edge technologies, the new venture will
be able to quickly establish an organization that can meet
a wide array of sophisticated customer needs.

2. Through the integration of the two companies' R&D and
manufacturing resources to maximize operating efficiency, the joint
venture will have a dominant position in the market for
telecommunications infrastructure devices as well as new markets with
high growth prospects, such as wireless and broadband
communications, digital home appliances and information terminals,
and IP networking.

3. The new venture will establish a global market presence, including
the key markets of the U.S., Europe, and Japan, where
fiber-to-the-home and other initiatives to develop high-speed
subscriber networks are being implemented, as well as China, which is
undergoing explosive growth.

Fujitsu Limited, Fujitsu Quantum Devices, and Sumitomo Electric will
continue to negotiate various details in order to sign a formal
agreement, with an aim of having the joint venture be operational as
of April 1, 2004, establishing a compound semiconductor device
manufacturer with a dominant technological and
competitive position to meet the needs of the global marketplace.

Note:
* Epitaxial growth technology:  A technology to form a thin crystal
layer on to a substrate.

About Fujitsu
Fujitsu is a leading provider of customer-focused IT and
communications solutions for the global marketplace. Pace-setting
technologies, highly reliable computing and telecommunications
platforms, and a worldwide corps of systems and services experts
uniquely position Fujitsu to deliver comprehensive solutions
that open up infinite possibilities for its customers' success. 
Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported
consolidated revenues of 4.6 trillion yen (US$38 billion) for the
fiscal year ended March 31, 2003.

For more information, please see www.fujitsu.com

About Sumitomo Electric Industries
Sumitomo Electric Industries, Ltd. (TSE: 5802) designs, manufactures
and sells optical fiber, cable and components, advanced materials and
electronic devices, and automotive parts. Through a successful
strategy of research and diversification, SEI has become one of the
world's leading companies at the forefront of the revolution in
information and communications.  The company has operations around
the world in more than 25 countries and employs 80,000 people.
SEI reported group net sales of 1,489 billion yen for the year ended
March 2003.

For more information, please seewww.sei.co.jp.

*All company names mentioned may be trademarks or registered
trademarks of their respective holders and are used for
identification purpose only.

This information is provided by RNS
      The company news service from the London Stock Exchange

end of announcement        euro adhoc 29.12.2003

Further inquiry note:

Press Contact:

Public & Investor Relations
Fujitsu Limited
Inquiries: http://pr.fujitsu.com/en/news/fjcontacts.html
TEL:+81 (0) 3-6252-2176
FAX:+81 (0) 3-6252-2783
E-mail:pr@fujitsu.com

Public Relations Office
Sumitomo Electric Industries, Ltd.
Tel: +81-6-6220-4119
E-mail: www@prs.sei.co.jp

Branche: Hardware
ISIN: JP3818000006
WKN: 0354912
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