TOKYO--Toshiba Corporation today announced that Mr. Tadashi Okamura will succeed Mr. Taizo Nishimuro as President and Chief Executive Officer of the company in late June. The announcement was made at a press conference at Toshiba's Tokyo headquarters, at which Mr. Nishimuro introduced Mr. Okamura as his successor. Mr. Okamura, currently a Corporate Senior Vice President and Director of Toshiba, is also President and CEO of the Information and Industrial Systems and Services Company, one of Toshiba's nine in-house companies. His appointment is subject to approval at the annual general meeting of the company's shareholders and to ratification at the board meeting that will follow it, both of which are scheduled for late June. Mr. Nishimuro will become Chairman of the Board, a position that is currently vacant.

Tadashi Okamura joined Toshiba Corporation in 1962, following his graduation from the Faculty of Law of Tokyo University. The early years of his career were devoted to the planning and sales and marketing of computerized process control systems for the manufacturing sector, including the paper, steel and petrochemical industries. He later extended his expertise to embrace information processing systems, other industrial equipment and telecommunications systems.

Mr. Okamura currently heads Toshiba's Information and Industrial Systems and Services Company. The company's coverage embraces a wide range of information systems businesses, among them plant control and supervisory systems, traffic control systems, broadcasting equipment, airport systems, space systems and other industrial-automation systems. This key in-house company also has a major role in promoting Internet-based businesses, especially B2B services in such areas as application service provider (ASP) activities and knowledge management.

Drawing on his multi-faceted background in international business, Mr. Okamura has taken strong initiatives in promoting close alliances with international IT and telecommunications companies, such as Sun Microsystems, IBM, Oracle and Alcatel. He currently serves as chairman of the Privacy Issues Group for the Global Business Dialogue for e-commerce (GBDe). This consortium of the world's leading IT-related companies aims to develop policies fostering global electronic commerce for the benefit of both business and consumers. Mr. Okamura is 61 years old.

Background to Succession

Mr. Taizo Nishimuro has led Toshiba Corporation since June 1996. Subject to approval by the June annual general meeting of shareholders and the subsequent board meeting, he will become chairman of the board. By this June, he will have completed two full terms as president, a total of four years.

Two major reasons underline Mr. Nishimuro's decision to retire as President and CEO.

1) Path to Strong Growth Identified
While Toshiba, one of the world's largest electronic companies, is expected to record a second consecutive year of losses in fiscal 1999, ended March 2000, Mr. Nishimuro has nonetheless laid solid foundations for growth during the period of his presidency. He has executed extensive programs to reshape the company and its operations, including divestitures, alliances and joint ventures, and driven a dynamic shift of managerial resources to high-growth areas. Although a net loss is forecast for fiscal 1999 as a whole, the second half saw Toshiba start to make a sharp recovery, a trend strongly backed by a firm recovery in its electronic components businesses, including semiconductor operations.

On March 21, 2000, Toshiba announced its mid-term business plan for fiscal years 2000 to 2002, ended March 2003. The major targets of the plan call for a sharp increase of consolidated sales, from 5.7 trillion yen projected for fiscal 1999 to 7.8 trillion yen by March 2003, while net income of 200 billion yen is forecast for the final year, against minus 30 billion projected for fiscal 1999.

Mr. Nishimuro explains, "The year 2000 has a two-fold significance for Toshiba; the company reaches the major milestone of its 125th anniversary, and starts the first year of the mid-term plan. The first celebrates what we have achieved, the second will provide the momentum for achieving the consistent growth Toshiba expects in the 21st century.

"The diverse restructuring and growth programs that I have initiated in the last few years are now beginning to produce tangible results, including substantial improvements in cash flow. I believe we are on the right path, and I want to see a younger president strongly drive our ambitious initiatives and establish Toshiba's position as a leader in the global IT industry."

2) Balance of Corporate Governance and Execution of Businesses
In June 1998, Toshiba reduced the number of board members by two-thirds, and simultaneously introduced its executive officer system. These moves met the twin objectives of allowing the board to be fully engaged in corporate governance and substantial decision-making, while giving greater autonomy and responsibility to individual business entities. The result is a system under which corporate governance is overseen by the Chairman of the Board, while the President and CEO is given ultimate responsibility for decision-making.

Since June 1998, the post of chairman has been vacant, and Mr. Nishimuro has presided over both the board and the executive officers. The new appointments will allow Mr. Nishimuro to represent the board, while Mr. Okamura will serve as head of the executive officers, restoring the original concept of a dual management structure.

Biographical highlights of Mr. Tadashi Okamura