Sumitomo Electric Networks, Inc. established a subsidiary in Shanghai. The new company, Suminet Communication Technologies (Shanghai) Co., Ltd. (Suminet), started its operations today.

Suminet will engage in the development of the products and services for broadband access market. The product lines will include ADSL products and contents distribution services.

In December 2003, Sumitomo Electric Networks has established a 100% subsidiary in Shanghai Zhangjiang High-Tech Park. Today the new company, Suminet, started its operations as a research and development subsidiary that engages in the development of the products related to DSL and other broadband Internet services. For the time being, Suminet will cooperate with Sumitomo Electric Networks in the development of broadband Internet equipment and next-generation Internet applications (content delivery networks, etc.) for the Japanese market.

Mainland China, which has the second-largest Internet population in the world, is forecast to experience rapid expansion of the broadband Internet market. In the future, Suminet will develop the products for the broadband Internet market overseas, especially in China.