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Panasonic Officially Opens the Worlds Largest PDP Plant in Japan

The company brings forward the second phase of production by four months to July 2006

Osaka, JapanPanasonic, the leading brand for which Matsushita Electric Industrial Co., Ltd. is best known, today held an opening ceremony of the Amagasaki Plant of Matsushita Plasma Display Panel Company Ltd. (MPDP)1) in Hyogo Prefecture, western Japan. The Amagasaki Plant, the company’s third PDP facility in Japan, started production on September 16, 2005, two months earlier than originally planned. By the end of November, the Plant reached its full capacity of 125,000 units a month. Production at the plant remains consistent, achieving over 90 percent of the yield.

The Amagasaki Plant is the largest PDP production facility in the world. It incorporates next-generation technology to process large substrates to optimize production yields of display panels. The Plant uses Panasonic’s “black-box” technologies to realize high-yield ratios which make the Plant highly efficient and maximize production. All these factors enabled the Plant to quickly achieve full capacity.

As a result, the company’s total PDP production capacity is 300,000 units a month, combining all four PDP plants including the First Ibaraki Plant (30,000 units), Second Ibaraki Plant (120,000 units) and Shanghai Plant (25,000 units)2).

Amid the growing world demand for PDPs, large-size flat-panel TVs are expected to gain further popularity with improvements in digital broadcasting services expected during 2006. In 2006, two big sporting events, the Torino Winter Olympic Games in February and the FIFA World Cup in Germany in June, will drive the expansion of the large-screen TV market.

Panasonic expects the global PDP demand to reach 10 million units in 2006 and 25 million units in 2010. To meet the accelerating demand, the company plans to bring forward the second phase of production at the Amagasaki Plant by four months to July 2006.

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The Plant also reflects Panasonic’s commitment to efficient and high-quality production while protecting the environment. Environmentally protective measures are incorporated during the production process as well as outside the building. Exterior walls of the building are covered with a photocatalytic coating, made by Matsushita Electric Works Ltd., to reduce the level of nitrogen oxide (NOx) in the air. The coating’s NOx-removing ability is comparable to the volume that 1,800 poplar trees can eliminate a day. The Plant uses rainwater for watering of lawns, parking areas and pavements on the premises. Panasonic’s own hybrid solar and wind powered streetlights are installed to self-generate clean energy for lighting.

By implementing PDP production and environmental protection measures, Panasonic acts responsively and responsibly to the markets and its customers in the world.

1) MPDP is a joint venture of Panasonic and Toray Industries, Inc. established in October 2000.
2) Starting October 2005, the production capacity of the Shanghai Plant was raised from 20,000 units to 25,000 units per month.

Profile of the Amagasaki Plant
Name: Matsushita Plasma Display Panel Company Ltd. Amagasaki Plant
Location: Amagasaki City, Hyogo Prefecture, Japan (Lot area: approx. 142,000 square meters)
Investment: 95 billion yen including plant construction and equipment costs
President: Ken Morita, Senior Vice President, Panasonic AVC Networks Company Executive Officer, Matsushita Electric Industrial Co., Ltd.
Business Activites: Production and sales of plasma display panels, plasma display modules and related products
Production Capacity: 250,000 units per month (1st phase: 125,000 units, 2nd phase: 125,000 units per month)
Construction: Groundbreaking in September 2004
Operation: Production started on September 16, 2005
Employees: Approx. 800
Floor Space: Approx. 147,000 square meters

About Panasonic
Best known by its Panasonic brand name, Matsushita Electric Industrial Co., Ltd. is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated net sales of US$81.44 billion for the year ended March 31, 2005. The company’s shares are listed on the Tokyo, Osaka, Nagoya, New York (NYSE:MC), Euronext Amsterdam and Frankfurt stock exchanges. For more information on the company and the Panasonic brand, visit the company’s website at http://panasonic.co.jp/global/index.html.

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