Oki to Introduce Japan's Leading CTI System, CTstage® 4i for .NET, to the Chinese Market - Responding to Rapidly Growing Call Center Demand in the Chinese Market -

Beijing, China, April 8, 2003 -- Oki Electric Industry Co., Ltd. (TSE: 6703) announced today that it will market its CTI (Computer Telephony Integration) and IP communications system, CTstage® 4i for .NET, to the Chinese market from April 2003. Responding to China's booming call center market, Oki will introduce the system for Chinese companies considering construction of CTI systems and for Japanese companies with bases in China. In its entry into this market, Oki will collaborate with partners such as IBM, Intel, Microsoft, and NEC Systems Integration (China) Co., Ltd. (NECSI). OKI Software Technology Co., Ltd., in Changzhou, Jiangsu Province in China, a wholly-owned subsidiary of Oki Electric, will manufacture and market the products for the Chinese market.

"With more than 3500 systems sold in Japan after its introduction in 1996, Oki's CTstage is a clear leader in the CTI market. CTstage also represents a de facto standard, accounting for more than 95% of the Japanese UnPBX market. This market share indicates that Oki provides a CTI system that meets market demands precisely, through its collaborations with more than 120 partners," said Masashi Tsuboi, President of the Multimedia Messaging Company at Oki Electric. "Drawing on our combined experience, we believe Oki can provide the best CTI solutions for the Chinese market."

Rapid economic growth in China has led to increasing enterprise demand for large-scale call centers. This market is projected to grow to 2.27 billion RMB in 2003. Many call center systems currently available on the market call for significant user investment, requiring connection between PBXs and computers as well as several dedicated operators and administrators. Additionally, market interest in call centers and CTI functions is growing among small businesses and call centers and sales and marketing divisions at large enterprises, driven by demand for more effective marketing and improved customer service.

The Chinese version of Oki's CTstage 4i for .NET is a high cost-performance UnPBX-type call center system running on a Window-based PC serve, ideal for small call centers of less than 100 seats. A single server provides all necessary functions, including extension line management, Automatic Call Distribution (ACD), ACD monitoring, Interactive Voice Response (IVR) and Intelligent Routing, functions which under legacy call center systems require external hardware or PBX.

As the system is based on Windows open system, the system works seamlessly with existing systems and various CRM packages. The system also provides displays for client and administrator support in both Chinese and English, a strength for multinational companies with a presence in China. These characteristics enable companies to deploy advanced PC server-based call center system.

The CTstage 4i system consists of both hardware and software, and incorporates extension and trunk interface boards. It supports the Microsoft.NET platform, IBM's high-performance server IBM® e-server xSeries 225, and Intel's telephony boards.

Oki and CTstage partners IBM, Intel, and Microsoft will team up to market the system in China. For Japanese companies in China, Oki will team with NECSI. Oki will provide CTstage platforms, while NECSI provides systems integration and system construction. OKI Software Technology in China will serve as the base for Oki's CTstage business in China, providing various functions, from purchasing and manufacturing to marketing and sales, system integration, and support. OKI Software will establish a sales office in Shanghai to enhance its marketing activities.

Oki's CTstage 4i for .NET will be available from April 2003. After its initial foray into the small call center market, Oki plans to expand its business to softswitch-based full IP CTI systems for large-scale call centers.

The company will exhibit CTstage 4i for .NET at the Contact Center Management & CRM Solution China 2003 (http://www.ctiforum.com/expo/2003/ccm2003/ccmindex.htm), to be held at the International Convention Center in Beijing, China, from April 9 to 11.


Endorsement from Microsoft:
"Microsoft welcomes the sales launch of Oki's CTI system, CTstage 4i for .NET, to the Chinese market. Competition in the Chinese market has increased ever since China joined the WTO, and such competition increases the importance of CRM. A call center system is one of the essential elements in CRM and Oki's CTstage is the most recognized solution in Japan, representing top share in the market. Last year, CTstage won the 'Microsoft Certified Partner ISV Award for 2002,' an award given to the most excellent applications in design using Microsoft product as a platform. We believe Oki's CTstage will be widely recognized and used by many companies in China as well.
Microsoft and Oki Electric announced a business partnership in the computer telecommunications area in February 2001, and based upon this collaboration, we have been promoting various activities. We will extend this partnership also in the Chinese market and work together to provide excellent solutions to customers."

Shinichi Ata
President, Microsoft Co., Ltd.


Endorsement from NECSI:
"NECSI is pleased with the expansion of Oki's CTstage 4i business to the Chinese market. Under the strong partnership, NEC and Oki provide the most advanced CRM/CTI solutions to customers in Japan. By combining NEC's know-how of CRM solutions and Oki's leading CTI platform, CTstage 4i, we will provide robust solutions to our customers. NEC and Oki will actively work together to implement promotion and marketing activities, such as seminars and exhibitions, for the Chinese market."

Yuichiro Aoki
President, NEC Systems Integration (China) Co., Ltd.


Notes:
- 95% share: From "03 The Status and Strategic Outlook of the Call Center/Contact Center Market," from Yano Research Institute Ltd.
- 2.27 billion RMB: From "The Chinese Call Center Industry Development Research Report 2002," co-written by Frost & Sullivan (China) and the CTI Forum
- CTstage is a registered trademark of Oki Electric Industry Co., Ltd. in Japan, the US and China.
- IBM, logo mark of e-business and xSeries are trademarks or registered trademarks of IBM Corporation.
- Microsoft, Windows are trademarks or registered trademarks of Microsoft Corporation in the US and other countries.
- Other names of companies and products are trademarks or registered trademarks of the respective companies.


About OKI Software Technology Co., Ltd.
Address:     Changzhou Software Park, Changzhou, Jiangsu Province, P. R. China
Chairman:     Sadayuki Hikita
President:     Ma Weidong
Employees: 60 (As of March 2003)
Establishment: December 28, 2001
Capital:          100 million yen
Investor:     Oki Electric Industry Co., Ltd. 100%
Business:     Development, design, and marketing of information and communication systems software, and marketing of information and communication system equipment


About Oki Electric Industry Co., Ltd.
Founded more than a century ago in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer, headquartered in Tokyo, Japan. Oki Electric provides customers with top-quality products, technologies and solutions for telecommunications systems, information systems and electronic devices through its corporate vision, "Oki, Network Solutions for a Global Society." Visit Oki's global web site at http://www.oki.com/. All the information on CTstage is available at http://www.ctstage.com.





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