News Releases

TOKYO–Toshiba Corporation (TOKYO: 6502) today announced that it has concluded a definitive agreement to transfer ownership of Toshiba Electromex, S.A. de C.V. (TMX), its LCD TV production site for the North American and Mexican markets, to Compal Electronics, Inc. of Taiwan (Compal). In a global TV business characterized by intensifying competition, Toshiba is promoting an LCD TV business strategy of optimized global production and procurement in order to streamline its operating structure and reinforce cost competitiveness. The transfer of ownership is expected to be completed in September this year.

Even after the transition, Toshiba plans to utilize the facility as an important source of high-quality, cost-competitive products destined for the North American and Mexican markets. Total employment at TMX will be transferred and the expertise nurtured at TMX will be continuously utilized.

Compal has been one of Toshiba’s ODM (original design manufacturer) partners for products, mainly destined for the North American market. Through the synergistic combination of Compal’s cost-competitive production expertise and Toshiba’s capabilities to develop differentiated products, Toshiba aims to further increase its competitiveness for the North American and Mexican markets; expand the size of business and the presence in these markets.

Toshiba aims to optimize its global production and to enhance product development capabilities to assure immediate responsiveness to demand changes in markets around the world. In order to expand its LCD business in the global market, Toshiba will continue to enhance its product line-ups and cost competitiveness by producing and supplying LCD TVs in major regions.

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Outline of TMX

Company name: Toshiba Electromex, S.A. de C.V.

Established: November, 1986

Address: Ave. Rio Bravo 1230, Parque Industrial Rio Bravo, Zaragoza, D.B.

Chihuahua, Mexico

Business: Production of LCD TVs