FOR IMMEDIATE RELEASE 1997-0044

Tokyo, March 3, 1997 - Fujitsu Limited today announced that it will consolidate its Compound Semiconductor Division, a research & development group, with its wholly-owned manufacturing subsidiary, Fujitsu Quantum Devices Limited (FQD). The consolidation of development, manufacturing and sales of compound semiconductor business will speed-up business decisions, improve management efficiency and result in even higher customer satisfaction. This move further strengthens Fujitsu's position as the global leader in compound semiconductors.

A new R&D building is now under construction at FQD's headquarters facility in Yamanashi Prefecture, Japan. Upon completion, Fujitsu will unify its compound semiconductor R&D division with FQD, bringing together development and manufacturing. FQD's sales and marketing organization will also be further strengthened.

The new FQD will continue to be the world's leading compound semiconductor business and further enhance its position as the premier "specialist" in the field of compound semiconductors. The new FQD organization will be completed in October 1997. The consolidated company will have approximately 1300 employees with a revenue base near 50 billion yen. (More than $400 million at 120 yen to the dollar.) FQD is targeting revenue of 100 billion yen in the year 2001.

With this new organization, Fujitsu will be able to better promote its industry-leading compound semiconductor technology in new and fast-growing areas such as digital mobile communications. Fujitsu compound semiconductor products are already widely used in satellite and mobile communications, supercomputers, high speed video transmission, submarine cables, microwave and radio communication and optical fiber systems.

Fujitsu is the world leader in compound semiconductor technology. Fujitsu holds the top market share worldwide and operates the world's largest mass production facility for GaAs* compound semiconductor device fabrication. The consolidation will enable FQD to better handle fast product life cycles and to quickly respond to market needs. Fujitsu will also strengthen international marketing, sales and development activities in the U.S., U.K. and Singapore, as well as aggressively pursue new markets.

Overview of FUJITSU QUANTUM DEVICES LIMITED (after consolidation):

Establishment Date:	May, 1984
Company Name:	FUJITSU QUANTUM DEVICES LIMITED
Registered Location:	Nakakoma-gun, Yamanashi, Japan
Shareholders:	FUJITSU LIMITED 100%
Business:	Development, manufacturing and sales of Microwave, Optical, and GaAs LSI Semiconductors

Supplement

Fujitsu began mass production of discrete semiconductor devices in 1959. In 1973, Fujitsu developed the world's first GaAs-FET*, a compound semiconductor, which was applied in a microwave radio link system in 1976.

Mass production of GaAs-FETs began at Fujitsu's Aizu factory in 1977. At this time, Fujitsu started to mainly concentrate on development and manufacturing of compound semiconductors.

In 1979, Fujitsu introduced the first commercially available low-noise germanium avalanche photodiodes and long wavelength laser diodes with single-mode operation.

Fujitsu Quantum Devices was established as a wholly-owned subsidiary in 1984 to specialize in the manufacture of compound semiconductors. In 1985 the name of Fujitsu's business unit changed from "Discrete Semiconductor Division" to "Compound Semiconductor Division". In 1991, the world's largest GaAs wafer fabrication facility was completed at FQD.

Fujitsu developed and supplied many epoch-making products. HEMTs*, invented by Fujitsu in 1980, enabled the creation of direct broadcasting satellite systems which use small parabolic dishes for an antennna.

In 1987, Fujitsu introduced the most advanced InGaAs avalanche photodiodes and InGaAsP distributed feed-back lasers in the fiber-optic market. In 1992, Fujitsu introduced the first commercially available distributed feed-back laser with an integrated electro-absorption modulator which dramatically increased the link lengths achievable from 2.5 Gbs systems.

Fujitsu GaAs MMICs* are widely used in cellular phones. Super-high reliability laser diodes* are employed in submarine cable systems and high bit rate digital communication systems and Fujitsu GaAs LSIs are used in the world's fastest supercomputers.

Compound Semiconductor :

A semiconductor consisting of two or more elements, such as Gallium and Arsenic, or various other elements. It is different from Silicon or Germanium types which consist of a single element. Compound semiconductors have many advantages over Silicon semiconductors. Its high electronic movements make it suitable for high-speed devices and high luminescence efficiency for optical fiber communication devices.

Compound Semiconductor FET (Field Effect Transistor) :

Compound semiconductor FET has the characteristic of low noise and high electric power efficiency at high frequency band. FETs are applied to products such as cellular and mobile phones.

GaAs (Gallium Arsenide) :

The velocity and mobility of electrons in GaAs devices is remarkably high. Semiconductors fabricated use GaAS materials have very low power consumption and very high speed. Switching speeds are much faster compared to Silicon and GaAs' luminescence characteristic is also excellent. Large Scale Integration (LSI) devices made from GaAs are used in very high speed supercomputers and work stations, Asynchronous Transfer Mode (ATM) switching systems, Gigabit Ethernet applications and a wide range of telecommunication systems.

HEMT (High Electron Mobility Transistor) :

Invented by Fujitsu laboratories in 1980, HEMTs are widely used applications such as direct broadcast satellite (DBS) antennas and global positioning systems. The superior low-noise characteristics of HEMTs enable scientist to see deep into outer space with radio telescopes and also allowed the commercialization of satellite TV systems which use small (30cm or less) and inexpensive antennas.

Laser Diode :

Mainly composed of Gallium Arsenide and Indium Phosphorus. Oscillation within the diode makes laser light emit from both ends of the chip, which enables laser diodes to convert high-speed electric signals into lightwave signals. Laser diodes are used in key optical fiber communication systems like in trunk line systems, cable TV systems, and fiber to the home systems.

MMIC (Monolithic Microwave IC) :

Device which composes plural FETs and microwave circuits on a single chip, with the characteristics of low noise, high efficiency of power consumption, and high power output at high frequency. MMICs are applied in mobile communication systems such as PHS (personal handyphones), direct broadcast satellite, and wireless LANs.

- The compound semiconductor market has annual growth rate of more than 20% world wide, based on data provided by Dataquest and Margus Research.