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TOKYO–Toshiba Corporation (TOKYO: 6502) today announced that it will establish a new in-house company in its Digital Products Group, the Digital Products & Services Company, that will integrate two current in-house companies: the Visual Products Company, which handles LCD TVs, HD recorders and other products, and the Digital Products & Network Company, which handles PCs and related products. Digital Products & Services Company will start operation on April 1, the first day of Toshiba's fiscal year 2011.

This aim of the reorganization is to secure an optimum business structure in digital products and the speed and responsiveness necessary to accelerate businesses in high growth emerging economies. The new structure will also promote synergies in the convergence of LCD TVs, PCs and slate-type terminals and facilitate the creation of distinctive products and services based on the fusion of advanced digital products and technologies. The new company will leave behind the product-based structure of the companies it replaces to introduce a regionally based, cross-product organization. This approach will secure the ability to meet market needs in each region in a more prompt and timely manner.

The Digital Products & Services Company will undertake business and product planning and development, procurement, manufacturing and sales and marketing of LCD TVs, HD recorders, PCs, slate-type terminals, and other related digital products,  taking advantage of Toshiba's current strengths in the visual product business and PC business on a global basis. The company will particularly emphasize cultivation of fast growth emerging markets and optimize its sales force and brand strengths in such markets, with the aim of boosting unit sales in emerging countries to approximately 50% of all sales by fiscal year 2013.

Toshiba will also use the momentum of the reorganization to proactively promote internet-based services, including "Toshiba Places" [1] and "Regza Apps Connect"[2], which allow users to enjoy a wide variety of content on TVs, PCs and slate-type terminals, and also to enhance linkage between products in expanding business in Japan, Europe and North America.

In order to reinforce the network service solution businesses for corporate customers, the reorganization will also see the establishment of a Network & Solution Control Center. The current Digital Products & Network Company's IP Network & Solution Division, which handles servers, business communication systems and IP networks, and the corporate Network Services Division, which promotes internet service businesses, will be integrated into a single organization and become a new member of the Digital Products Group.

Moving forward, Toshiba will continue to accelerate the development of its digital products business, toward becoming a global leader in this key product area.

Note:

[1]

Toshiba Places is a user-friendly online content and service portal that allows users of Toshiba's PCs to access various web-based content and services, including distribution of e-books, video and games and online shopping.

[2]

Regza Apps Connect is a cloud-based service that allows users to control digital TVs from smartphones and slate-type terminals.