Japanese Release Singapore Release

FOR IMMEDIATE RELEASE 1998-0226

Fujitsu Restructures Semiconductor Operation in Singapore

Singapore, October 30, 1998---Fujitsu Limited today announced that it would restructure operations at the Fujitsu Microelectronics Asia Pte. Ltd. (FMAL) back-end semiconductor plant in Jurong Town, Singapore. The measures are being undertaken in conjunction with a restructuring of its worldwide semiconductor production organization brought about in part by severe conditions in the IC memory market.

Established in 1986, the FMAL facility has been used mainly for the testing and back-end assembly of Dynamic Random Access Memory (DRAM) chips and the production of compound semiconductors. The restructuring plan will involve the transfer of the Jurong plant to a new subsidiary to be established by Fujitsu Quantum Devices Ltd. (FQD), itself a wholly owned subsidiary of Fujitsu Limited that manufactures and markets compound semiconductor products. The new company, provisionally named Fujitsu Quantum Devices Singapore Ltd. (FQDS), will manufacture microwave devices (e.g., MMICs, FETs) for mobile communication systems as well as optical devices. FQDS will also pursue the development of fundamental technology for compound semiconductors.

In addition, as part of the restructuring, Fujitsu plans to cease IC operations at the Jurong plant and will sell FMAL's IC assets to United Test & Assembly Ltd. (UTAC), a Singapore-based world-class consignment assembly company, by January 1999. Fujitsu will subsequently enter into a contract with UTAC for the outsourcing of DRAM test operations.

Fujitsu Quantum Devices, which was spun off from Fujitsu in October 1997 to develop, manufacture and market compound semiconductor products, pioneered and is the market leader in high-speed network devices, a segment that is expected to grow by more than 10%. The new plant in Singapore will further enhance the company's global business operations.

About FMAL
Company name	FUJITSU MICROELECTRONICS ASIA PTE. LTD
Address	No.2, Second Chin Bee Road, Jurong Town, Singapore 619818
President	Satoru Igarashi
Establishment	May 1986
Headcount	267
Capital	S$23,000,000

About FMAL's Jurong plant
Address	No.2, Second Chin Bee Road, Jurong Town, Singapore 619818
Head	Kunihiko Hayashi
Production Start	October 1986
Site Area	21,027m2 (5.2 acres)
Bldg. Area	5,950 m2 (Production Area: 5,446 m2, Utility: 504 m2)
Headcount	197

About FQDS (temporary name):
Company name	FUJITSU QUANTUM DEVICES SINGAPORE PTE. LTD
Address	No.2, Second Chin Bee Road, Jurong Town, Singapore 619818
Establishment	February 1999
Operations	Development, manufacturing and sales of compound semiconductors
Production Plan	1999 : S$54M 2000 : S$60M

Fujitsu Limited

Fujitsu Limited is a leading provider of information technology products and solutions for the global marketplace. Founded in Japan in 1935 as a telephone equipment maker, the Fujitsu Group had consolidated revenues of $37.7 billion in the fiscal year ended March 31,1998.

With over 500 group companies, including Amdahl and ICL, Fujitsu is one of the world's largest suppliers of computers and information systems solutions, telecommunications and semiconductor products, software and services. The Fujitsu Group has over 180,000 employees worldwide and operations in more than 100 countries. Homepage: http://www.fujitsu.com/

Press Contacts: Isao Hirano, Bob Pomeroy Fujitsu Limited, Public Relations Tel: +81-3-3215-5236 (Tokyo) Fax: +81-3-3216-9365

Catherine Lee, Ronnie Lau Fujitsu Microelectronics Asia Pte. Ltd. Tel: +65-281-0770 (Singapore) Fax: +65-281-0220