Fujitsu and Mitsui Launch Optical Device Venture for Commercialization of Quantum Dot Lasers

QD Laser, Inc. established

Tokyo, April 20, 2006 — Quantum dots, from which the new venture takes its name, are semiconductor particles that are a single nanometer (one billionth of a meter) in size. Quantum dots and technology utilizing quantum dots were developed through an academic-industrial research collaboration by Fujitsu Limited, Fujitsu Laboratories, and Professor Yasuhiko Arakawa’s laboratory at the University of Tokyo. Quantum dot lasers, which use this technology, are revolutionary lasers that are significantly superior to conventional semiconductor lasers in that they feature higher performance in such aspects as temperature-independent operation, low power consumption, long-distance transmission, and high speed. It is anticipated that quantum dot lasers will become a core technology to realize high-performance light sources for optical telecommunication, for which data traffic is continuing to increase rapidly.

Utilizing quantum dot semiconductor crystallization leading-edge technology developed thus far by Fujitsu, and laser design and process technologies, QDL will offer quantum dot lasers to the optical telecommunication light source market for use in optical access and optical LAN within buildings. The new company aims to leverage the superior performance of its technologies to expand its share in the market and become the leader in the industry.

By achieving commercialization of its world-class quantum dot laser technology through the growth of QDL, Fujitsu expects that in addition to its current leading share of the optical transmission device markets in the United States and Japan, that Fujitsu will also be able to enhance its competitiveness in the optical access market, for which full-fledged global expansion is anticipated. In addition to providing technical support through joint research, Fujitsu will also offer business management support. Fujitsu’s capital investment to QDL will be made through a corporate venture capital fund managed by Fujitsu.

Through Mitsui Ventures, a fund managed by its wholly-owned subsidiary headquartered in Tokyo, MVC Corporation, Mitsui has made equity investments to support start-up companies in various ways from a global perspective. The establishment of QDL is an example of a new company creation by carving out Fujitsu’s world-class technology and human resources.

Mitsui’s equity investment in QDL will be made from Mitsui’s principal funds that are managed by Mitsui Ventures. In addition to supporting QDL through strategy planning, operational management, capitalization and fund-raising strategy, Mitsui Ventures will also support global marketing of QDL’s technologies, enhancing growth and expansion of the new venture.

Through its Financial Markets Business Unit, Mitsui is broadly active in the field of private equity investing. As in the case of QDL, which as a business model effectively leverages the core technologies and human resources of a major Japanese IT company with third-party equity, Mitsui aims to promote this structure as one type of model for the formation and nurturing of start-up ventures.

Overview of QD Laser, Inc.

Company Name:
QD Laser, Inc.

Business Operations:
Development, production, and marketing of high-performance quantum dot lasers and optical devices

Representatives:

President & CEO:
Mitsuru Sugawara (Fujitsu Laboratories, Limited)

Executive Vice President:
Kiyoshi Ohkubo (MVC Corporation: Mitsui Ventures)

Director:
Seiichi Yoshikawa (Fujitsu Laboratories, Limited)

Director:
Nobuhide Yamaguchi (Fujitsu Limited)

Director:
Osamu Nagao (MVC Corporation: Mitsui Ventures)

Establishment:
Scheduled for April 2006

Capital:
290 million yen
*Includes capital reserves. Fujitsu and Mitsui will invest in increments, with Fujitsu’s ownership ratio to be 61%, and Mitsui’s to be 39% through its fund.
About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers’ success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.7 trillion yen (US$44.5 billion) for the fiscal year ended March 31, 2005. For more information, please see: www.fujitsu.com

About Mitsui

Mitsui & Co., Ltd.(TSE:8031), together with its subsidiaries and associated companies, is one of Japan’s largest general trading companies, and trades in a diverse range of goods with business partners in every region of the world, and also engages in major international infrastructure and other projects. Mitsui undertakes sales and marketing, import and export, and international trading and manufacturing in business segments including metal products & minerals, machinery, electronics & information, chemicals, energy, and consumer products & services. Mitsui provides comprehensive services in areas such as retail, logistics and transportation, and finance, and is actively involved in natural resource development. Mitsui’s strategic business investments include IT and emerging technologies, and undertakes a broad range of other business initiatives. For more information, please see: http://www.mitsui.co.jp/tkabz/english/index.html

Contact Information

Corporate Communications Division

Mitsui & Co., Ltd.

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