Fujitsu Microelectronics, Inc. Gresham Plant to Cease Operations

Tokyo, November 30, 2001 - Fujitsu Limited today announced its decision to cease production operations at its Gresham, Oregon semiconductor manufacturing facility, Fujitsu Microelectronics, Inc (FMI), by the end of January 2002, and to close the plant and liquidate its assets. The closure reflects the continuing slump in the worldwide semiconductor market, as well as Fujitsu's intent to consolidate production of flash memory at Fujitsu-AMD Semiconductor Limited (FASL), its joint-venture manufacturing facility in Aizu-Wakamatsu, Japan. This is part of the global restructuring of its semiconductor factories. Approximately 670 employees at Gresham will be affected by the plant closure, and the process of giving notice of the closing has begun today.

Established in October 1988, the Gresham plant was Fujitsu's first overseas wafer fabrication facility and has served as one of its key production bases for memory products. In April 2000, based on Fujitsu's strategic withdrawal from commodity DRAM production and robust demand for flash memory devices, the Gresham plant began converting all production lines to flash memory. However, due to the precipitous and prolonged downturn of the flash memory market since the beginning of this year, the plant has been operating at levels well below capacity.

Amidst this deteriorating market environment, Fujitsu contemplated a variety of alternative strategies for the Gresham plant, including converting it to a joint venture with Advanced Micro Devices, Inc. (AMD), its longtime partner in the flash memory business. However, the recovery of the flash memory market now seems likely to be pushed back by at least 6 to 12 months later than the previously anticipated late 2002 time frame. Therefore, Fujitsu has concluded that it must reorganize its worldwide manufacturing structure to eliminate surplus flash memory capacity, a process that unfortunately requires the closing of the Gresham plant.

"FMI appreciates the hard work and dedication of its Gresham employees over the years, and we will do our best to assist those who will need to re-enter the workforce," said Takashi Yabu, vice president and general manager of FMI's Gresham Manufacturing Division. "All employees will remain on the payroll with full benefits until the end of January. In addition, we are offering generous severance benefits, and outplacement services will be available," Yabu added.

Although Fujitsu is closing its semiconductor manufacturing operations in the US, the company continues to aggressively pursue development, marketing and sales activities through Fujitsu Microelectronics America, Inc. (FMA). FMA, spun off from FMI in October and with a more than 20-year heritage in the U.S., provides customers with a comprehensive portfolio of advanced semiconductors and electronic devices, focusing on single-chip system-LSI solutions that capitalize on Fujitsu's core competencies in computers, communications, and semiconductors.

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About Fujitsu
Fujitsu is a leading provider of Internet-focused information technology solutions for the global marketplace. Its pace-setting technologies, best-in-class computing and telecommunications platforms, and worldwide corps of systems and services experts make it uniquely positioned to unleash the infinite possibilities of the Internet to help its customers succeed. Headquartered in Tokyo, Fujitsu Limited (TSE: 6702) reported consolidated revenues of 5.48 trillion yen for the fiscal year ended March 31, 2001.
For more information, see: http://www.fujitsu.com/

Press Contacts:
Yuri Momomoto, Robert Pomeroy Fujitsu Limited, Public Relations Tel: +81-3-3215-5259 (Tokyo) Fax: +81-3-3216-9365 E-mail: pr@fujitsu.com Emi Igarashi Fujitsu Microelectronics, Inc. Tel : 1-408-922-9104 Tel : 1-503-669-5690 Fax : 1-408-943-0403 E-mail : emi.igarashi@fma.fujitsu.com