Annual Management Policy Announcement - Q&A Summary

	Matsushita's brand name for overseas markets has already been unified under "Panasonic." Does the company name change aim to enhance brand awareness in Japan, where the names "Matsushita" and "National" are also used in the market? In addition, does the name change reflect Matsushita's concern that the brand awareness of "Matsushita" is weaker than that of its competitors in overseas markets?

	The purpose of this company name change is not to enhance the image of the brand in Japan. The activities of the Matsushita group have been decentralized under the three names of "Matsushita," "National" and "Panasonic." It is rare, among so-called global excellent companies, for one company to have multiple names. Looking forward, Matsushita, by unifying its brand name and company name, strives to concentrate the abilities and efforts of all employees on one brand "Panasonic" toward achieving global excellence.

	How much, in expenses, does Matsushita expect to be incurred with respect to the company name change?

	All general related procedures, including the change of billboards, will take one to two years to complete and will cost approximately 30 billion yen. However, Matsushita has at its disposal an estimated 20 billion yen per annum, which such funds have been used for announcements or advertisements under the names of "Matsushita" or "National" brand.

	Why does Matsushita stick to a vertically-integrated business model?

	TVs are the products of the highest priority for Matsushita. By realizing in-house manufacturing of TV panels, which are the core of flat-panel TVs, Matsushita can reflect its entire technology in manufacturing TVs, thereby creating more competitive products.

	Are there any concerns that new investments in LCD TVs or semiconductors may lead to decentralization of investment?

	Investment centered on semiconductors and plasma TVs in the amount 1.5 trillion yen over a three-year period is the main pillar of the GP3 plan. Regarding LCD TVs, the business alliance with Hitachi, Ltd. and Canon Inc. enables integrated manufacturing of LCD panels by providing Matsushita with technical resources from outside companies. There is no concern about decentralization of investment.

	Which generation of panels are being considered to be produced at the new plant of IPS Alpha Technology, Ltd. ("IPS Alpha")? Also, as a result of this new investment in a LCD plant, will Matsushita reschedule the construction of the third PDP plant in Amagasaki (the fifth PDP plant in Japan)? Furthermore, when will Matsushita launch Organic Light Emitting Diodes (OLED) TVs, since you mentioned that this investment in a LCD plant is also aimed at future development of OLED TVs?

	We consider that seventh or eighth generation LCD TV panels in the 30-inch and 40-inch class sizes will be the focal point of the new IPS Alpha plant. Construction of the third PDP plant in Amagasaki is progressing as scheduled and will not be influenced by the investment in the IPS Alpha plant. Indeed, flat-panel TVs are the products of highest priority for Matsushita. For larger-sized TV panels, Matsushita focuses on plasma TVs, while, with regard to the TV panels in sizes in which plasma TVs are not available, Matsushita provides LCD TVs to fully meet the market demand for flat-panel TVs. As for OLED TV panels, Matsushita regards them as panels for larger-screen TVs and forecasts that large-sized OLED TVs will gradually begin to be launched around the year 2015.

	Adding to the lineup of LCD TVs in the 40-inch class size will provide more options for consumers. However, seventh and eighth generation panels do not seem to be competitive enough, because other companies are promoting tenth generation panels.

	The LCD panels that Matsushita plans to develop through its alliance with Hitachi, Ltd. and Canon Inc. are IPS panels, which boast superior permeability and lower material costs. The difference in the generation of panels is not important in determining the competitiveness of panels.

	What do you think of the earnings recovery of IPS Alpha?

	IPS Alpha improved its earnings by increasing production from the second quarter of fiscal 2008, and more improvement is expected after fiscal 2009. Investment and depreciation will be at its peak during the three-year period from fiscal 2011, ending March 31, 2011.

	When and to what extent will the home appliances business expand in Europe? And, does Matsushita plan to establish some local R&D bases in Europe?

	At present, air-conditioners show favorable sales in Spain and other countries, and in fiscal 2009, Matsushita will begin selling washing machines and refrigerators in Europe. Matsushita anticipates a full-scale expansion of its home appliances business in Europe after fiscal 2010. Matsushita aims to achieve sales of over 10 billion yen after fiscal 2011. Matsushita does not plan to establish local R&D bases, but strives to gather accurate and detailed information from local employees at the R&D bases centered in Japan.

	You mentioned that Matsushita aims to achieve 10 trillion yen in sales, even without Victor Company of Japan, Ltd. Does Matsushita plan to cover the gap by expanding its sales of digital AV products centered on TVs, the estimated demand of which was revised upward this time?

	Matsushita will not change the target of 10 trillion yen in sales. Matsushita will endeavor to realize the target with its own products, technologies or marketing. However, there is a possibility that a M&A may be utilized to achieve the target, if necessary. The Company will make every effort to increase sales not only in its digital AV business, but also in all other businesses.

	Regarding the 300,000 ton (7.5%) reduction in CO2 emissions, does it mean that Matsushita will reduce its CO2 emissions to 3,700,000 tons, compared with the 4,000,000 tons of CO2 emissions in fiscal 2007? Please tell us the breakdown of the 300,000 tons of CO2 emissions to be reduced.

	Matsushita intends to reduce CO2 emissions as you mentioned. Reduction Initiatives will be made in several areas, including inventory, logistics and utility costs. Efforts to reduce CO2 emissions, such as the development of smaller or lighter products, will lead to strengthening product competitiveness and cost reduction. Other approaches, such as promoting e-work programs or teleconferencing, will also contribute to the reduction of CO2 emission involved in commuting or traveling.

	Other Companies will also develop CO2 reduction programs in the future. What are the main features of Matsushita's CO2 emission reduction initiatives?

	Matsushita developed an IT system through which it can collect an index of twenty three items monthly at major bases in Japan and overseas. We are confident that such system is more precise and advanced than the emission reduction initiatives of other companies. Based on the reduction of CO2 emissions over the three-year period from fiscal 2005 to 2007 and the relevant investment, approximately 45 billion yen will be required to reduce 300,000 tons of CO2 emissions. However, most of the investment will lead to the enhancement of product competitiveness.

Disclaimer Regarding Forward-Looking Statements
This Q&A includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) about Matsushita and its Group companies (the Matsushita Group). To the extent that statements in this Q&A do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Matsushita Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Matsushita Group's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Matsushita undertakes no obligation to publicly update any forward-looking statements after the date of this Q&A. Investors are advised to consult any further disclosures by Matsushita in its subsequent filings with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.
The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the United States, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; currency rate fluctuations, notably between the yen, the U.S. dollar, the euro, the Chinese yuan, Asian currencies and other currencies in which the Matsushita Group operates businesses, or in which assets and liabilities of the Matsushita Group are denominated; the ability of the Matsushita Group to respond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price and technology; the ability of the Matsushita Group to achieve its business objectives through joint ventures and other collaborative agreements with other companies; the ability of the Matsushita Group to maintain competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Matsushita Group; the possibility that the Matsushita Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Matsushita Group has holdings or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, and deferred tax assets; future changes or revisions to accounting policies or accounting rules; as well as natural disasters including earthquakes and other events that may negatively impact business activities of the Matsushita Group. The factors listed above are not all-inclusive and further information is contained in Matsushita's latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

Annual Management Policy Announcement - Q&A Summary

Stock Quote