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Toshiba Commits to Strengthening White Goods Business in China

25 December, 2002

New Joint Venture to Manufacture Fully Automatic Washing Machines

Tokyo -- Toshiba Corporation today announced that it would reinforce its commitment to the Chinese white goods market in 2003, in order to meet growing demand from increasingly discerning and demanding consumers seeking products that add to the quality of life. The first step to a heightened market presence will be taken in spring next year with the launch of fully automatic washing machines carrying the Toshiba brand name.

The washing machines will be developed and designed in Japan and manufactured in China by Toshiba Washing Machine (Wuxi) Co., Ltd., a joint venture between Toshiba and Wuxi Little Swan Co., Ltd., China's leading white goods manufacturer. Following formal signing of the agreement between the two partners today in Wuxi Jiangsu, China, the new joint venture will be incorporated in January 2003. It will undertake the manufacture, sales and after-sales service of washing machines and clothes dryers, their main parts and accessories.

Toshiba Washing Machine (Wuxi) Co., Ltd. will have complete access to Toshiba's technological and manufacturing capabilities and bring them to products targeting mid- to high-income consumers. Department stores and other outlets in China's coastal fringe will provide the main sales channel, and the company anticipates sales of 100,000 units in the first year of operation, rising to 700,000 units in 2005.

Toshiba started exporting refrigerators to the Chinese market in the 1980s and is today a highly regarded brand. OEM production of Toshiba-brand refrigerators started in 2001, and is supporting expanded sales and market share. The decision to start manufacturing Toshiba-brand washing machines in China builds on the success of this the strategy and will strengthen Toshiba's position in a highly promising market.

Outline of new company

Company name Toshiba Washing Machine (Wuxi) Co., Ltd.
Incorporation Scheduled for January 2003
Start of operation Scheduled for March 2003
Ownership Toshiba Corporation 65%; Toshiba China Co., Ltd. 10%; Wuxi Little Swan Co., Ltd. 25%.
Location Wuxi Jiangsu, China
President To be decided (appointed by Toshiba)
Business manufacture, sales and after-sales services of washing machines and clothes dryers, their parts and accessories

Outline of Wuxi Little Swan Co., Ltd.

Incorporation November 1993
Capital 5.8 billion yen
Location Wuxi Jiangsu, China
Area 82,200 square meters
Employees 912
Sales RMB 2054.23 million (2001)
Fully-automatic washing machines: 1.2 million;Twin-tub washing machines: 1.5 million
ISO acquisition ISO 9001 certification in 1995; ISO14001 certification in 1999

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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