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Toshiba and Matsushita Kotobuki Electronics to Cooperate in the Small-Form-Factor HDD Business

21 January, 2003

Toshiba Corporation
Matsushita Kotobuki Electronics Industries, Ltd.

Tokyo--Toshiba Corporation and Matsushita Kotobuki Electronics Industries, Ltd. (MKE) today announced cooperation in the production of 1.8-inch and 2.5-inch hard disk drives (HDD). Under the terms of an agreement signed today, MKE will manufacture HDD for Toshiba at its Indonesian subsidiary, PT Matsushita Kotobuki Electronics Peripherals Indonesia. Production of 1.8-inch HDD will start in April 2003, with production of 2.5-inch HDD scheduled to start in the latter half of the year.

The demand for small-form-factor HDD has been increasing steadily due to the popularity of portable PCs, car navigation systems and mobile AV products, all of which demand high capacity storage in a compact design. Worldwide shipments of HDD reached 29 million units in 2001 and 35 million in 2002. Toshiba forecasts that demand for these products will continue to grow to 43 million in 2003.

Toshiba has been concentrating its resources for HDD development and production on small-form-factor models, including original development of 1.8-inch models. In order to meet further growth in demand, the company has now entered into an agreement with MKE that will strengthen its small form factor HDD business. MKE will manufacture HDD and provide Toshiba with products that are made with MKE's sophisticated production technology and high-quality manufacturing expertise.

All manufactured products will be sold under the Toshiba brand, and in the future Toshiba and MKE will work together to continually improve the design and manufacturing process of small form factor HDD.

About Toshiba Corporation

Toshiba Corporation is a leader in information and communications systems, electronic components, consumer products, and power systems. The company's integration of these wide-ranging capabilities assures its position as a leader in semiconductors, HDDs, PCs, mobile consumer products, and other electronic devices. Toshiba has 176,000 employees worldwide and annual sales of over US$40 billion. Visit Toshiba's website at

About Matsushita Kotobuki Electronics Industries, Ltd.

Matsushita Kotobuki Electronics Industries, Ltd. (MKE) is a subsidiary of Matsushita Electric Industrial Co., (MEI),and is one of world-famous manufactures of hard disc drives and storage products such as DVD MULTI drives. MKE's other products include TV/DVD/VCR combinations, Video camcorders (DVC/VHS-C) and health care & medical equipment. For more information, please visit MKE's website at

Press Contacts:

Toshiba Corporation:
Midori Suzuki
International Media Relations Group
Corporate Communications Office
Tel: ++81-3-3457-2105
Fax: ++81-3-5444-9202

Matsushita Kotobuki Electronics Industries, Ltd.
Yoshihide Higaki
Corporate Planning & Public Relations Group
Tel: ++81-89-966-1508
Fax: ++81-89-966-6031

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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