Kinden Corporation subsidiary Preminet Inc. won an order for 2,000 households' worth of power line communication (PLC) equipment from FibrLINK Networks CO., LTD., the communication carrier subsidiary of the State Grid Corporation of China^*1.

Since March 2003, Preminet and Kansai Electric Power Co., Inc. subsidiary Linecom Company Inc. have been jointly conducting PLC verification tests in apartment buildings of 150 households in Beijing. The stable performance and high speed capability of the system was highly praised by the State Grid Corporation of China, who promoted the tests, which led to their decision to expand testing to 2,000 households using equipment from the Preminet and Linecom Group^*2. Alongside this decision, an agreement was reached for the sale of 2,000 households' worth of equipment needed for the expanded tests. Actually other competitor groups have also participated in the experiment, but only the Preminet and Linecom group has succeeded in transmission by constructing a complete PLC network; competitors had networks that combined the PLC with coaxial cable or LAN cable, hence failing to construct a complete PLC network. The State Grid Corporation of China has also given us a very high assessment of the good sensitivity, operation stability and low cost that have come from the adoption of high modulation technology^*3developed by ITRAN Communications of Israel.

As outlined below, the two companies will continue to provide technical support after the sale of the PLC equipment, as verification tests will continue under FibrLINK Networks. Preminet and Linecom will also conduct tests to measure radiation fields from the PLC system targeting the realization of PLC technology in Japan.

PLC in the next few years. Because it is predicted that China may soon launch a full scale equipment procurement bidding, Preminet and Linecom will continue to develop a high speed communication system in cohort with parent companies Kinden Corporation and Kansai Electric Power, Co., Inc. so that this sales agreement constitutes the first step towards their entry in this mammoth market. *4 In the first half of 2003, China had 68 million Internet users, of which 9.8 million used broadband access. Of this latter, 32% are on an indoor LAN connected by optical fibers. It is predicted that these indoor LANs will be replaced by PLC. Annual growth in the broadband market is currently about 200%.

Profile of Concerned Companies

	Established:	November 22, 2001
	Capital:	50 million
	Shareholders:	Kinden Corporation (51%), ITRAN Communications Ltd. (32%), ALPS ELECTRIC CO., LTD. (8%), MACNICA, Inc. (8.5%)
	CEO:	Yuji Minamitani (Deputy Manager of Intelligence Communication Systems Div., Kinden Corporation)
	Line of business:	Development, manufacture, sales, import and export of PLC equipment, etc.

	Established:	August 29, 2001
	Capital:	60 million
	Shareholders:	Kansai Electric Power Co., Inc. (51%), ITRAN Communications Ltd. (43%), Matsushita Electric Works, Ltd. (6%)
	CEO:	Keishi Yoshimoto (Vice President ofw Kansai Electric Power Co., Inc.)
	Line of business:	Investigative research, subcontracting and development of high-speed PLC system, PLC-related products, and so on.

	Established:	December 1996
	Capital & Reserves:	US$11,880,000 (Approx. 1.25 billion)
	President & CEO:	Avner Matmor
	Line of business:	Design and development of PLC chips and boards

	Established:	August 26, 1944
	Capital:	26.4 billion
	Shareholders:	Kansai Electric Power Co., Inc. (33.4%), Kanden Industries, Inc. (5.5%), etc.
	CEO:	Osami Nakatani

	Established:	May 1, 1951
	Capital:	489.3 billion
	CEO:	Yohsaku Fuji