Attachment: Details of Structural Reform of Operations

I. Information Processing Group

1. Strengthen core businesses: restructuring cost 30 billion yen
   
   Concentration and consolidation of development activities
   
   • Concentrate UNIX server and storage development to Fujitsu Limited
     
   • Concentrate IA server development to Fujitsu Siemens Computers(Germany)
     
   • Liquidate HAL and concentrate processor development to Fujitsu Limited
     
   • Consolidate software development operations in North America
   
   Rationalizing of domestic manufacturing facilities
   • Servers and storage: consolidate three plants into one
   • IA servers: unify with desktop PC production lines
   
   
2. Selection and concentration of independent businesses: restructuring cost 50 billion yen
   
   Hard disk drives (HDD)
   
   • Concentrate on HDDs for servesr and mobile PCs
   • Withdraw from desktop HDD business - downsize overseas manufacturing sites and trim sales organization (4,200 personnel affected overseas and 300 in Japan)
   
   Printers - downsize operations
   • Concentrate production of system printers at Fujitsu Peripherals Ltd.
   • Transfer color laser printer manufacturing to joint venture with Minolta
   
   Consolidate scanner business to PFU
   
   Consolidate domestic PCB manufacturing plants
   

II. Telecommunications Group

1. Strengthen core businesses: restructuring cost 45 billion yen
   
   Strengthen advanced products and solutions businesses
   • Concentrate resources on development of photonic, IP and 3G mobile products
   • Transfer development of Access products to affiliated companies
   • Shift manpower to strengthen sales and SE force; consolidate and reorganize related companies in Japan and overseas
   • Reorganize domestic and overseas affiliated companies to consolidate low-growth businesses
   
   Strengthen ability to respond to changes in demand; seek low-cost production
   • Reassess and streamline personnel at Oyama, Nasu and Numazu plants
   • Reduce personnel at FNC in the U.S. and FTEL in the U.K.
   • Reorganize and consolidate plants of related companies
   
   

III. Electronic Devices Group

1. Strengthen core businesses: restructuring cost 125 billion yen
   
   Concentrate research at Akiruno Technology Center
   • Consolidate research on next-generation semiconductors at Akiruno
   • Further collaborate with Information Processing and Telecommunications Groups as well as Fujitsu Laboratories
   
   Streamline domestic plants to strengthen manufacturing capacity
   • Restructure Gresham plant (Oregon, US) operations (merger with AMD)
   • Restructure domestic front-end production lines from 12 to 9
   • Consolidate back-end processing fabs from 7 to 5
   
   
2. Selection and concentration of independent businesses: restructuring cost 20 billion yen
   
   Streamline operations
   • Compound semiconductors
   • SAW filters
   • Components
   
   Consolidate PDP production at Unit 2 of the Miyazaki Plant
   
   Create a separate company for LCD operations
   

IV. Services and Software Group

1. Strengthen core businesses: restructuring cost 30 billion yen
   
   Reorganize global business structure
   • Reorganize ICL and DMR
   
   Transform operating structure
   • Strengthen infrastructure services business
   • Develop new types of business and entering new fields
     - Strengthen IT consulting services
     - Promote componentization of software for greater productivity
     - Promote businesses related to e-Japan (electronic government)
     

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