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Fujitsu Expands Manufacturing Capacity in North Texas

July 25, 2008

Fujitsu Network Communications, a leading supplier of innovative optical and wireless networking solutions, announced today that they are expanding manufacturing capacity at their Richardson, Texas, headquarters. In an era where many companies are outsourcing manufacturing to locations outside the U.S., Fujitsu is shifting manufacturing of key optical and electronic components from Europe and Japan to the U.S. In the process, 67 new professional and production jobs will be created in North Texas.

“In an environment where a majority of customer orders require delivery in under a week, and often within 24 hours, our manufacturing facility in Richardson is critical to our competitive advantage,” said Hans Roehrig, senior vice president of operations and manufacturing at Fujitsu Network Communications. “Fujitsu is one of only a few major optical networking vendors that manufactures its own equipment in North America. By optimizing our in-sourced supply chain and implementing highly-regarded manufacturing philosophies, we are able to respond faster to rapidly changing customer requirements and deliver industry-leading product reliability.”

Fujitsu is transferring manufacturing of optical and electronic assemblies for its market-leading FLASHWAVE(R) 4500 Multiservice Provisioning Platform (MSPP) and FLASHWAVE 7500 Re-configurable Optical Add/Drop Multiplexer (ROADM) from Japan. Manufacturing of broadband and fiber access products from Europe are also being transferred to Richardson. In addition, hard disk drive logistics are being consolidated from a third party vendor. The transfer process for these manufacturing processes began in the first quarter of 2008, and is expected to be completed by the end of this year.

One of the key objectives of these moves is to improve Fujitsu’s ability to respond to highly variable global demand. By pooling production capabilities in fewer places, peaks and troughs of demand can be balanced to improve operating efficiency.

“The transfer of manufacturing requirements from Europe and Japan to Richardson is an affirmation of the success we have been able to achieve through a commitment to continuous improvement,” continued Roehrig. “Each year our employees implement more than 4,000 process improvements through our Kaizen reward program. Most changes are small improvements, but the combined impact of thousands of small ideas delivers impressive results. We welcome the addition of new employees to our manufacturing team, and look forward to their fresh perspectives and contributions that will reinforce our manufacturing facility as second to none in our industry.”

“Since helping to establish the Telecom Corridor(R) brand by locating their headquarters in Richardson in 1981, Fujitsu Network Communications has consistently demonstrated a commitment to our local economy,” said Steve Mitchell, mayor of Richardson, Texas. “Fujitsu was one of four founding members of the Metroplex Technology Business Council (MTBC), the largest technology trade association in Texas and a leading advocate for Dallas/Fort Worth’s high-tech industry. The expansion of Fujitsu’s manufacturing operations in Richardson is the latest in a series of events solidifying our status as a leading center of technology research, design, and manufacturing in the U.S.”

Fujitsu is currently the eighth-largest employer in Richardson with approximately 1,500 employees on its 143-acre campus.

About Fujitsu Network Communications Inc.

Fujitsu Network Communications Inc. is an innovator and strategic partner with over 20 years of experience as a leading provider of wireline and wireless networking solutions that solve critical business issues and enable new services. With the support of Fujitsu Limited (TSE:6702), a $53B company with approximately 160,000 professionals in 70 countries, Fujitsu enables their customers to build or seamlessly migrate to fully converged networks that improve network performance and profitability. Over 400,000 Fujitsu network elements have been deployed by all major carriers across North America. Fujitsu maintains a well-established and highly-regarded position as a market leader by providing the best-in-breed data networking solutions that drive next-generation access, core, and wireless networks. For more information, please visit http://us.fujitsu.com/telecom.

FLASHWAVE(R) is a trademark of Fujitsu Network Communications Inc. (USA) FUJITSU (and design) (R) and THE POSSIBILITIES ARE INFINITE(TM) are trademarks of Fujitsu Limited. Telecom Corridor(R) is a trademark of the Metroplex Technology Business Council. All rights reserved. All other trademarks are the property of their respective owners.




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