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Toshiba Corporation and ORIX Corporation Establish Business Planning Operation for Power Generation Business

15 April, 2003

Toshiba Corporation
ORIX Corporation

Tokyo--Toshiba Corporation and leading financial services company ORIX Corporation today announced their collaboration in a newly established joint venture that will guide the planning and start-up of an independent power-generation business in Yamaguchi prefecture in western Japan.

The new company, SIGMA POWER Yamaguchi Corporation, will undertake all essential planning for construction of a coal-fired power plant, including environmental assessments and engineering simulations, and for business development, including sales of electricity. Plans call for a new plant with generating capacity of between 500 and 1,000 megawatts to be constructed in Ube City in Yamaguchi prefecture and to come on line in 2008.

Toshiba, a major presence in Japan’s thermal power plant industry, will provide the company with technological know-how required for plant planning, construction and maintenance. ORIX will provide financial know-how gained in such areas as leasing, lending and investment banking, and from its experience gained from investing in wind power and other electricity generation projects. The combination of the two companies’ expertise is expected to lead the way to more cost-efficient power generation.

The Two Companies and Power Generation Business

About Toshiba:
Toshiba, a world-leading supplier of power generation systems, positions power-related activities as a core business and a source of stable, long-term profit. In June 2002, in line with deregulation of Japan’s power-generation industry, Toshiba revised its articles of association to enter the power generation business. Drawing on its skills in the construction of essential power generation systems, in control systems for power plants, and its experience in supporting plant management, Toshiba will work with selected partners to cultivate a new business that is expected to assure a stable profit stream in coming years.

The company is already installing two 5.7MW gas engine generators at its Keihin Product Operations, in Yokohama, and they are slated to start operation in the spring of 2004. Almost half the power generated will be supplied to retailers.

About ORIX:
ORIX Corporation is an integrated financial services provider and is pursuing a wide range of business opportunities emerging from deregulation of Japan’s power-generation industry. Through joint ventures or alliances with selected partners, ORIX has been involved in financing the establishment of an Energy Service Company (ESCO), on-site power generation and wind power generation.

Company Outline

Company Name SIGMA POWER Yamaguchi Corporation
President Takashi Mozumi (appointed from Toshiba)
Headquarters Minato-ku, Tokyo
Capital 350 million yen (initially)
Shareholders Toshiba Corp. 66.8%; ORIX Corp. 33.2%
Established April 1, 2003
Business 1. Business planning and development
2. Planning for power plant construction
3. Environmental assessments for power plant construction

Media Contacts

Toshiba Corporation
Corporate Communications Office
Makoto Yasuda
Tel: +81-3-3457-2105

ORIX Corporation
Corporate Communications
Leslie Hoy
Tel: +81-3-5419-5102

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