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SANYO Has Successfully Reached a Landmark Agreement with the Toshiba Group Cementing Its Position as the World's Top Battery Manufacturer

4 October, 2000

SANYO Electric Co., Ltd.
Toshiba Corporation
Toshiba Battery Co., Ltd

Tokyo, October 4, 2000--SANYO Electric Co., Ltd., the world's leading manufacturer of rechargeable batteries announced they have reached a memorandum of understanding (MOU) with the Toshiba Corporation and Toshiba Battery Co., Ltd. for the transfer of the Toshiba Group's nickel metal hydride businesses to SANYO.

SANYO is the world's leading manufacturer of commercial, small, rechargeable batteries. SANYO began mass-producing nickel cadmium batteries in 1964 followed by nickel metal hydride batteries in 1990. SANYO then began production of the lithium ion batteries in 1994 leading up to the production of the latest lithium polymer batteries, which began in 1999. Much of the demand for nickel metal hydride batteries is growing rapidly overseas, for its use as a power source in notebook type PC's and portable phones. The nickel metal hydride battery stands at the very center of SANYO's commercial, small, rechargeable battery businesses, alongside SANYO's nickel cadmium and lithium ion battery businesses. SANYO has been working hard on strengthening its supply capabilities by actively investing in new battery plants and equipment. SANYO expects the scale of these businesses to expand in the near future.

SANYO considered the dispersion of battery production bases to manage any risks and to quickly achieve much greater increases in its battery production system.

Toshiba, in comparison, began manufacturing nickel metal hydride batteries in 1991 and currently ranks third in the nickel metal hydride battery industry, having already expanded its businesses in the electric products. The Toshiba Group began to seek out a stronger partner in the nickel metal hydride battery business once it realized that it needed to find a partner in the industry. Toshiba made its best effort to try to continue developing these businesses despite severe competition for nickel metal hydride batteries in the portable phone field.

Therefore, this agreement coincides with the respective aims of SANYO and Toshiba.

SANYO will acquire assets by March 2001 transferred from Toshiba Battery Co., Ltd. related to Toshiba Battery's nickel metal hydride battery businesses based on this agreement. SANYO, in reinforcing its own principles, is committed to and cares for the employees who are currently working at Toshiba Battery and would be affected by this acquisition. They will all be invited to continue working with SANYO under the current terms of employment of Toshiba Batteries Co., Ltd. if they prefer.

The factory in Takasaki City, Gunma Prefecture, Japan, which is the current production base of Toshiba Battery Co., Ltd. for nickel metal hydride batteries, will be inaugurated as a SANYO company for the production of nickel metal hydride batteries.

SANYO will actively promote the development of business enterprises as a general manufacturer of commercial, small, rechargeable batteries in the future while also cementing its position as the world's leader in nickel metal hydride batteries with the conclusion of this agreement.

For Reference

Profile of Toshiba Battery Co., Ltd.
Company NameToshiba Battery Co., Ltd.
Location4-10 Minami-Shinagawa 3-chome
Shinagawa-Ku, Tokyo 140-0004, Japan
RepresentativeMr. Yoshiro Suzuka, President
Capitalization¥10.504 billion
InvestmentsToshiba Corporation invests 100% of capital
Manufactured ProductsPrimary batteries, nickel metal hydride batteries, rechargeable battery packs
Sales¥79.6 billion (fiscal year 1999)

For Further Information

SANYO Electric Co., Ltd.
Corporate Communications Department
Osaka Headquarters
Tel: 06-6994-3546

Toshiba Corporation
Corporate Communications Office
Tel: 03-3457-2105

Toshiba Battery Co., Ltd.
General Affairs Department
Tel: 03-5460-5322

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