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Schneider Electric and Toshiba to Establish Joint Ventures for General Purpose Inverters

23 June, 2000

Schneider Electric
Toshiba Corporation

Tokyo-- Schneider Electric and Toshiba Corporation today announced that they will establish international joint ventures for product marketing, development, design, materials procurement and manufacturing of general purpose inverters for industrial-use. Four new companies will be established under the plan, and the first of them are expected to start operations in early 2001.

The new companies will draw their resources from their parents' strengths in developing and manufacturing general purpose inverters, ranging from 0.1 to 630kW models. Three facilities, in Europe, Japan and U.S., will all share in concurrent development, a move that will cut the time taken to develop new products and get them to market. A strong presence in the major markets will enhance competitiveness by supporting global product platforms and global procurement. The new companies will supply products to both Schneider and Toshiba, for sale under their own brands.

The new companies will be joint ventures of Schneider Electric and Toshiba Corporation. It will be composed of a holding company and three regional subsidiaries established in France, Japan and U.S. The holding company and the French regional operating company will be located near Paris, France, and their chairmen will be proposed by Schneider Electric. The Japanese regional operating company will be established by Toshiba and the holding company, and will be located in Toshiba's Mie Operations, in Japan. The U.S. regional operating company will be established by the holding company and located in Houston, Texas. The presidents of both will be proposed by Toshiba. The establishment of the U.S. regional operating company will take effect a year later than that of the other companies and its initial business will be limited to product marketing and development.

Background of Joint Venture Company
There is still room for further development in general purpose inverters for industrial use, in line with the development of new semiconductor technology, such as power devices and microprocessors. Demand is expanding with increasing requirements for leading-edge control technology in industrial machines and systems, small capacity applications and energy saving equipment. The world market will continue to expand.

The new companies will achieve a synergy of Toshiba's motor and power electronics technology and high quality products, and Schneider Electric's electrical distribution control technology, marketing capability and global sales channels. They will satisfy the market needs in terms of meeting de facto standards, energy saving and variable speed applications, with the goal of becoming the world's leader in inverters.

Toshiba and Schneider Electric have long collaborated in industrial equipment, and established their first joint-venture company, for electromagnetic contractors, in 1991. A joint development company for general purpose inverters for specific product lines followed in 1998, and a joint venture for low voltage distribution equipment in 1999. The companies also collaborate in high voltage power transmission equipment.

Outline of Joint Venture Company

Holding company
Company nameSchneider Toshiba Inverter S.A.S.
Established1Q, 2001 (target)
ChairmanProposed by Schneider Electric
CapitalApproximately 92MFF
Schneider: 60%
Toshiba: 40% (including Toshiba International Corp.:5%)
Head officeNear Paris, France

French regional operating company
Company nameSchneider Toshiba Inverter Europe S.A.S.
Established1Q, 2001 (target)
ChairmanProposed by Schneider Electric
CapitalApproximately 70MFF
Holding company: 100%
Head officeNear Paris, France

Japanese regional operating company
Company nameToshiba Schneider Inverter Corporation
Established1Q, 2001 (target)
PresidentProposed by Toshiba
CapitalApproximately 490MJPY
Toshiba: 51%, Holding company: 49%
Head officeMie prefecture, Japan

U.S. regional operating company
Company nameNot decided
EstablishedApril, 2002 (target)
PresidentProposed by Toshiba
CapitalApproximately 1MUS$
Holding company: 100%
Head officeHouston, Texas, U.S.A.

Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.

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