NEC Corp. has disclosed that it was notified by the NASDAQ Stock Market of the United States that trading of NEC's American Depositary Receipts (ADR) would be suspended from Sept. 27, 2007.

"Although the trading suspension doesn't immediately represent that NEC shares are delisted, we are aware that NEC shares have entered the first phase of delisting," NEC's PR Department commented. As for future prospects, "If NASDAQ starts delisting procedures, our ADRs will be removed from trading in about ten days. We don't know when NASDAQ will start the procedures or how we could stop it," NEC said.

The Securities and Exchange Commission (SEC) of the United States has investigated NEC for its delayed submission of an annual report to the SEC since the fall of 2006. Required to validate its IT solution business transaction by the SEC, NEC has continued efforts to complete a report, but was facing serious challenges since it was extremely difficult to justify its pricing policy and so on.

Just before the due date of Sept. 25, 2007, NEC announced September 21 that it had given up on filing the report. Not receiving the report by September 25, NASDAQ started moving toward the removal of NEC ADRs from trading.