Panasonic Further Expands its Business Operations in Vietnam

Hanoi, Vietnam, April 5, 2007 - Panasonic Vietnam Co., Ltd., (PV) the holding company of Panasonic Group companies in Vietnam and a subsidiary of Matsushita Electric Industrial Co., Ltd (MEI), today announced the Grand Opening ceremony for its two new manufacturing operations: Panasonic Communications Vietnam Co., Ltd (PCV) which makes high-tech electric and electronic products, and Panasonic Electronic Devices Vietnam Co., Ltd (PEDV) which makes electronic components. Both PCV and PEDV are located in the same premises located in the Thang Long Industrial Park, Dong Anh district, Hanoi, Vietnam. The facilities were built last year, and have been in manufacturing their respective products.

"It is my great honor to launch our new operations in Vietnam, a country which we consider a key to Panasonic's business worldwide," said Shinya Abe, General Director of Panasonic Vietnam.

"We anticipate rapid economic growth of the country because of Vietnam's membership of The World Trade Organization. Accordingly, this grand opening symbolizes our commitment to continued development of our operations in Vietnam. I am also looking forward to welcoming highly qualified Vietnamese employees to our company. Our ultimate goal is to contribute to the Vietnamese society through our business operations here," he said.

Panasonic Vietnam (PV), the pilot holding company of Panasonic Group companies in Vietnam, is the first foreign investor approved by the Vietnamese Government to establish a holding company with 100% foreign-owned capital. The company was licensed by the Ministry of Planning and Investment (MPI) on July 29, 2005. PV holds the shares of Panasonic Group companies in Vietnam, provides integrated marketing, sales and after-sales services for locally manufactured products and imported products, in addition to provide financial and administrative supports as shared services to its subsidiaries in Vietnam.

Currently, the new facility is providing office and manufacturing areas for Panasonic Vietnam Co., Ltd (the Holding company), Panasonic Communications Vietnam co., Ltd (subsidiary) and Panasonic Electronic Devices Vietnam Co., Ltd (subsidiary). Panasonic Communications Vietnam Co., Ltd. produces high-tech electric and electronic products such as PBXs and Optical disk driver, with approximately three hundred employees; Panasonic Electronic Devices Vietnam Co., Ltd. produces tuners, encoders, and speakers with approximately five hundred employees, as of March 31, 2007. The products of both companies are for export. The operation will continue to expand, and the employees are expected to count approximately eight thousand by 2009.

Before the establishment of the Holding company, Panasonic was operating in Vietnam with two companies, one in Hanoi, and another in Ho Chi Minh City. Panasonic Home Appliances Vietnam Co., Ltd. (PHAV) was established in 2003 in Hanoi, responsible for manufacture and sales of home appliance products. Panasonic AVC Networks Vietnam Co., Ltd. (PAVCV) was established in Ho Chi Minh City in 1996 for manufacture and sales of audio visual products such as color TV sets.

Matsushita Electric Industrial Co., Ltd, as Panasonic headquarters based in Osaka, Japan, has announced its new mid-term plan called the "GP3 Plan," namely, "Global Progress, Global Profit, and Global Panasonic" which took effect from April 1, 2007. With this plan, the company aims to achieve double-digit growth in sales outside Japan, and thereby transform overseas operations into its corporate growth engine. Since the company expects Vietnam as one of the emerging markets, Panasonic Vietnam will continue to play a key role in the development of Panasonic's global business operation.