Fujitsu Ltd.'s top executive took the unusual step of publicly apologizing for his company's making bids of just one yen for several local government projects, while computer rival NEC Corp. made a written apology for indulging in the same practice. Meanwhile, business and government leaders rebuked the computer makers, and fretted about the broader statement the companies' actions make about Japanese cutthroat pricing. Fujitsu said it bid the equivalent of less than a U.S. penny on three separate municipal contracts during the past two years. The company also disclosed that during that period it offered 10,000 yen, or about $70, for another contract. But Fujitsu, Japan's No. 1 computer maker, isn't alone. NEC, one of its largest domestic competitors, said it bid one yen in two separate public auctions since 1987. In both cases, NEC lost the contract to Fujitsu, which made the same bid and won a tie-breaking lottery. All the contracts were for computer-system-design contracts and involved no hardware or software. The Ministry of International Trade and Industry summoned executives from the companies to `` make sure they understood '' the concern about such practices, according to a government spokesman. `` These cases lead to the loss of the firms' social and international credibility, '' a ministry statement said. Japan's Fair Trade Commission has said it is considering investigating the bids for possible antitrust-law violations. `` We would like to apologize for having caused huge trouble, '' Fujitsu President Takuma Yamamoto, read from a prepared statement as he stood before a packed news conference at his company's downtown headquarters. The bids, he added, were `` contrary to common sense. '' NEC released a statement saying, `` We feel sorry for having caused trouble to society, '' a form of apology common in Japan for companies caught in embarrassing situations. Japanese companies have long had a reputation for sacrificing short-term profits to make a sale that may have long-term benefits. But the growing controversy comes as many practices historically accepted as normal here -- such as politicians accepting substantial gifts from businessmen or having extramarital affairs -- are coming under close ethical scrutiny. The fire is also fueled by growing international interest in Japanese behavior. So far there have been no public overseas complaints about the issue. But in one of the auctions in question, International Business Machines Corp. made a bid substantially higher than the Fujitsu offer, according to the municipality. The low-ball bids touch on issues central to the increasingly tense trade debate. Foreigners complain that they have limited access to government procurement in Japan, in part because Japanese companies unfairly undercut them. The U.S. government in recent years has accused Japanese companies of excessively slashing prices on semiconductors and supercomputers -- products Fujitsu and NEC make. Asked whether the bidding flap would hurt U.S.-Japan relations, Mr. Yamamoto said, `` this will be a minus factor. '' The `` one-yen '' controversy first came to a head last week when the city of Hiroshima announced that Fujitsu won a contract to design a computer system to map its waterworks. The city had expected to pay about 11 million yen $77,000, but Fujitsu essentially offered to do it for free. Then Wednesday, Fujitsu said it made a similar bid to win a library contract in Nagano prefecture two weeks earlier. It also said that in July, it bid 10,000 yen to design a system for the Saitama prefectural library, and two years ago, it bid one yen to plan the telecommunications system for Wakayama prefecture. The company said it has offered to withdraw its bids in Hiroshima and Nagano. The municipalities said they haven't decided whether to try to force the company to go through with the contracts. Fujitsu and NEC said they were still investigating, and that knowledge of more such bids could emerge. Mr. Yamamoto insisted that headquarters hadn't approved the bids, and that he didn't know about most of the cases until Wednesday. Other major Japanese computer companies contacted yesterday said they have never made such bids. `` One yen is not ethical, '' Michio Sasaki, an official at Keidanren, the Japan Federation of Economic Organizations, said. `` Profit may be low, but at least costs should be covered. TEXT Fujitsu Ltd. 's top executive took the unusual step of publicly apologizing for his company 's making bids of just one yen for several local government projects , while computer rival NEC Corp. made a written apology for indulging in the same practice . Meanwhile , business and government leaders rebuked the computer makers , and fretted about the broader statement the companies ' actions make about Japanese cutthroat pricing . Fujitsu said it bid the equivalent of less than a U.S. penny on three separate municipal contracts during the past two years . The company also disclosed that during that period it offered 10,000 yen , or about $ 70 , for another contract . But Fujitsu , Japan 's No. 1 computer maker , is n't alone . NEC , one of its largest domestic competitors , said it bid one yen in two separate public auctions since 1987 . In both cases , NEC lost the contract to Fujitsu , which made the same bid and won a tie-breaking lottery . All the contracts were for computer-system-design contracts and involved no hardware or software . The Ministry of International Trade and Industry summoned executives from the companies to `` make sure they understood '' the concern about such practices , according to a government spokesman . `` These cases lead to the loss of the firms ' social and international credibility , '' a ministry statement said . Japan 's Fair Trade Commission has said it is considering investigating the bids for possible antitrust-law violations . `` We would like to apologize for having caused huge trouble , '' Fujitsu President Takuma Yamamoto , read from a prepared statement as he stood before a packed news conference at his company 's downtown headquarters . The bids , he added , were `` contrary to common sense . '' NEC released a statement saying , `` We feel sorry for having caused trouble to society , '' a form of apology common in Japan for companies caught in embarrassing situations . Japanese companies have long had a reputation for sacrificing short-term profits to make a sale that may have long-term benefits . But the growing controversy comes as many practices historically accepted as normal here -- such as politicians accepting substantial gifts from businessmen or having extramarital affairs -- are coming under close ethical scrutiny . The fire is also fueled by growing international interest in Japanese behavior . So far there have been no public overseas complaints about the issue . But in one of the auctions in question , International Business Machines Corp. made a bid substantially higher than the Fujitsu offer , according to the municipality . The low-ball bids touch on issues central to the increasingly tense trade debate . Foreigners complain that they have limited access to government procurement in Japan , in part because Japanese companies unfairly undercut them . The U.S. government in recent years has accused Japanese companies of excessively slashing prices on semiconductors and supercomputers -- products Fujitsu and NEC make . Asked whether the bidding flap would hurt U.S.-Japan relations , Mr. Yamamoto said , `` this will be a minus factor . '' The `` one-yen '' controversy first came to a head last week when the city of Hiroshima announced that Fujitsu won a contract to design a computer system to map its waterworks . The city had expected to pay about 11 million yen $ 77,000 , but Fujitsu essentially offered to do it for free . Then Wednesday , Fujitsu said it made a similar bid to win a library contract in Nagano prefecture two weeks earlier . It also said that in July , it bid 10,000 yen to design a system for the Saitama prefectural library , and two years ago , it bid one yen to plan the telecommunications system for Wakayama prefecture . The company said it has offered to withdraw its bids in Hiroshima and Nagano . The municipalities said they have n't decided whether to try to force the company to go through with the contracts . Fujitsu and NEC said they were still investigating , and that knowledge of more such bids could emerge . Mr. Yamamoto insisted that headquarters had n't approved the bids , and that he did n't know about most of the cases until Wednesday . Other major Japanese computer companies contacted yesterday said they have never made such bids . `` One yen is not ethical , '' Michio Sasaki , an official at Keidanren , the Japan Federation of Economic Organizations , said . `` Profit may be low , but at least costs should be covered . 2~4 2~4~6~8~10 14~16~18~20~22~24~26~28~30~32~34~36~38~40~42~44~46~48~50~52~54 22~24 28 28~30 34~36~38~40~42~44~46~48~50~52~54 36~38~40~42~44 42~44 48~50~52~54 50~52 60~62~64~66 70~72~74 82~84~86 95~97~99~101 105~107~109 119~121~123 125~127~129~131 127 137~139~141 146 150 154~156~158~160~162~164~166~168 172~174~176~178 182~184~186~188 193~195 205~207 209 213~215 221~223~225 231~233 240~242~244~246~248~250~252~254 244 252 267~269~271~273~275~277~279~281 275 287 291~293 297~299~301~303~305~307 307 314~316 320 324~326 330 338~340~342 348~350~352 357~359~361 367~369 375~377~379~381 386~388~390~392~394~396~398 402~404~406~408 406~408 418 424~426~428~430~432 440~442~444 451~453 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1080 1086~1088~1090 1097~1099~1101~1103~1105 1101 1113~1115 1117~1119 1123~1125~1127~1129 1135 1139~1141~1143~1145~1147~1149~1151~1153~1155~1157~1159 1147~1149~1151~1153~1155~1157~1159 1157 1157~1159 1164~1166 1176~1178~1180~1182~1184~1186 1192 1202 1206 1213 1217 1221 1225~1227~1229 1235~1237~1239 1243 1243~1245 1247~1249~1251 1256 1266 1270 1274~1276 1282~1284 1288~1290~1292~1294 1290 1300~1302~1304 1308 1312~1314 1320~1322~1324 1328~1330 1335~1337 1341 1351 1351~1353 1357 1361 1366~1368 1372 1390~1392 1402~1404 1409 1409~1411~1413 1413 1417 1431~1433~1435~1437~1439 1437~1439 1448~1450 1456 1464~1466 1474 1484~1486~1488~1490 1494 1499~1501~1503~1505~1507 1511 1515 1523~1525 1532~1534 1546~1548~1550~1552~1554~1556~1558~1560~1562~1564~1566~1568~1570 1558~1560~1562~1564~1566~1568~1570 1564 1583 1599 Fujitsu Ltd.|2888,2893,2908,2909,2913,2915,2919,2923,2931,2952,2959,3008,3020,3027,3031,3032,3038,3040,3046,3050,3051,3052,3058,3060 Fujitsu Ltd.'s top executive|2889,2892,2954,2956,2958,2962,3012,3066,3069 the unusual step of publicly apologizing for his company's making bids of just one yen for several local government projects|2890 publicly apologizing|2891 making bids of just one yen for several local government projects|2894,2901,2905,2943,2987 bids of just one yen|2895,2950,2961,2993 one yen|2896,2910,2925,3016,3047,3076 several local government projects|2897 local government|2898 computer rival NEC Corp.|2899,2922,2924,2929,2964,2966,3009,3062 a written apology|2900 business and government leaders|2902 Fujitsu and NEC|2903,2906,2939,2940,2945,3061,3063 the broader statement|2904 Japanese cutthroat pricing|2907 three separate municipal contracts|2911 the past two years|2912,2914 10,000 yen|2916,2917 another contract|2918 Japan|2920,2947,2970,2978,2999,3079 computer|2921 two separate public auctions since 1987|2926,2928 1987|2927 the contract|2930 the same bid|2932 a tie-breaking lottery|2933 All the contracts|2934 computer-system-design contracts|2935 no hardware or software|2936 The Ministry of International Trade and Industry|2937 executives from the companies|2938 the concern about such practices|2941 a government spokesman|2942 the loss of the firms' social and international credibility|2944 a ministry statement|2946 Japan's Fair Trade Commission|2948,2949 possible antitrust-law violations|2951 huge trouble|2953 a prepared statement|2955 a packed news conference|2957 his company's downtown headquarters|2960 common sense|2963 a statement|2965 trouble to society|2967 society|2968 a form of apology common in Japan for companies caught in embarrassing situations|2969 companies caught in embarrassing situations|2971 Japanese companies|2972,3000,3005 a reputation|2973 short-term profits|2974 a sale that may have long-term benefits|2975 the growing controversy|2976,2984,3015 many practices historically accepted as normal here|2977 politicians|2979 substantial gifts|2980 businessmen|2981 extramarital affairs|2982 close ethical scrutiny|2983 growing international interest in Japanese behavior|2985 no public overseas complaints about the issue|2986 one of the auctions in question|2988 International Business Machines Corp.|2989 a bid substantially higher than the Fujitsu offer|2990 the Fujitsu offer|2991 the municipality|2992 issues central to the increasingly tense trade debate|2994 the increasingly tense trade debate|2995 Foreigners|2996,2997,3001 limited access to government procurement in Japan|2998 The U.S. government|3002 The U.S.|3003 recent years|3004 prices on semiconductors and supercomputers|3006 semiconductors and supercomputers|3007 the bidding flap|3010,3013 U.S.-Japan relations|3011 a minus factor|3014 a head|3017 last week|3018 the city of Hiroshima|3019,3023,3025,3054 a contract to design a computer system to map its waterworks|3021 a computer system to map its waterworks|3022,3028 its waterworks|3024 about 11 million yen|3026 free|3029 Wednesday|3030,3071 a similar bid|3033 a library contract|3034 Nagano prefecture|3036 Nagano|3035,3055 two weeks earlier|3037 July|3039 10,000 yen|3041 a system|3042 the Saitama prefectural library|3043 Saitama|3044 two years ago|3045 the telecommunications system|3048 Wakayama prefecture|3049 its bids|3053,3065,3068,3075 The municipalities|3056,3057 the contracts|3059 knowledge of more such bids|3064 headquarters|3067 most of the cases|3070 Other major Japanese computer companies|3072,3074 yesterday|3073 Michio Sasaki|3077 Keidanren|3078 Profit|3080 costs|3081 2888|NUC:DIST:2~4 2889|MOD:DIST:2~4~6|MOD:DESC:8|NUC:DIST:10 2890|MOD:DIST:14|MOD:DESC:16|NUC:DIST:18|MOD:DIST:20~22~24~26~28~30~32~34~36~38~40~42~44~46~48~50~52~54 2891|MOD:DIST:22|NUC:DIST:24 2892|NUC:DIST:28 2893|MOD:DESC:28|NUC:DIST:30 2894|NUC:DIST:34|MOD:DIST:36~38~40~42~44|MOD:DIST:46~48~50~52~54 2895|NUC:DIST:36|MOD:DIST:38~40~42~44 2896|MOD:DIST:42|NUC:DIST:44 2897|MOD:DESC:48|MOD:DIST:50~52|NUC:DIST:54 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3064|NUC:DIST:1431|MOD:DIST:1433~1435~1437~1439 3065|MOD:DIST:1437|NUC:DIST:1439 3066|MOD:DIST:1448|NUC:DIST:1450 3067|NUC:DIST:1456 3068|MOD:DIST:1464|NUC:DIST:1466 3069|NUC:DIST:1474 3070|MOD:DIST:1484~1486|MOD:DIST:1488|NUC:DIST:1490 3071|NUC:DIST:1494 3072|MOD:DESC:1499|MOD:DIST:1501|MOD:DIST:1503|MOD:DIST:1505|NUC:DIST:1507 3073|NUC:DIST:1511 3074|NUC:DIST:1515 3075|MOD:DIST:1523|NUC:DIST:1525 3076|MOD:DIST:1532|NUC:DIST:1534 3077|NUC:DIST:1546~1548|MOD:DESC:1552~1554~1556~1558~1560~1562~1564~1566~1568~1570 3078|NUC:DIST:1558|MOD:DESC:1562~1564~1566~1568~1570 3079|NUC:DIST:1564 3080|NUC:DIST:1583 3081|NUC:DIST:1599