Fiscal 2007 Financial Results (ended March 31, 2007) Q&A Summary

	What are Matsushita's sales targets for flat-panel plasma TVs and LCD TVs in fiscal 2008?

	The sales target for plasma TVs for fiscal 2008 is more than 5 million units on a shipment basis. As for LCD TVs, we are aiming to sell about 4 million units consisting mainly of 32-inch and 26-inch models. (President Ohtsubo)

	For flat-panel TVs, LCD TV manufacturers have been expanding their market share even in 37-inch and larger-sized models. What is Matsushita's marketing strategy for plasma TVs?

	Demand for large-sized flat-panel TVs has been significantly expanding in world markets, partly because LCD TV manufacturers have launched large-sized LCD TVs since last fiscal year. For plasma TVs, demand for large-sized models has been increasing more than we had expected and Matsushita's production condition of plasma TVs is becoming tight. Regarding marketing strategy, Matsushita is collaborating in activities such as sales campaigns with other plasma TV manufacturers in various areas and countries. The marketing of plasma TVs has been quite successful, as shown by a recent announcement of the Chinese government that plasma TVs are more eye-friendly than LCD TVs. (President Ohtsubo)

	Does Matsushita plan to bring forward the start of operations of the fourth domestic PDP plant in Amagasaki, and the fifth domestic plant that was announced in January 2007?

	The latest model of plasma TVs, which was released recently, has been receiving high market acclaim. The Company will therefore accelerate the production schedule of the fourth domestic plant now under construction, to commence mass production in June 2007, although Matsushita announced that the fourth domestic plant would commence production in July 2007. (President Ohtsubo)

	One of Matsushita's competitors announced plans to launch organic electroluminescence (OEL) TVs. Please tell us Matsushita's view on OEL TVs.

	Although I have not precisely examined the details of the announcements of our competitors, I think that none of them have clearly announced their launches of large-screen OEL TVs. I believe that plasma TVs will sufficiently meet customer requirements with the excellent picture quality. (President Ohtsubo)

	Please tell us about profits in the semiconductor business.

	The semiconductor business is contributing to Matsushita's vertically integrated business model. By its capacity to develop and manufacture both digital AV products and semiconductors, Matsushita can engage in their joint development, which allows it to further improve research and development efficiency, shorten development lead time and remove bottlenecks in manufacturing processes. It is difficult to evaluate the overall operation of the semiconductor business on profits alone, as Matsushita is facilitating close cooperation between its semiconductor divisions and finished product divisions. The Company believes that it is important to succeed in the global market with finished products. However it should be noted that Matsushita is realizing profits in devices for analog products and LSIs for general products. (President Ohtsubo)

	Inventories rose for three consecutive fiscal years since March 31, 2005. The inventory turnover period also remained unchanged. Do you think that it is difficult to further reduce inventories?

	Considering the increase in sales, I do not think that the pace of inventory reductions is becoming slower. Still, Matsushita will continue to reduce inventories of work-in-process products as well as finished products from a global standpoint. (Vice President Kawakami) Through cell production, Matsushita is promoting the reduction of inventories of components and work-in-process products. Regarding bought-in components, departments responsible for materials and each business domain company are taking the lead in the reduction of inventories. Matsushita's logistics-related expenses are estimated to be several hundred billion yen. In order to reduce such expenses for logistics as well as to curb inventories, Matsushita is working to realize global logistics innovation through its Manufacturing Innovation Division. By continuing worldwide efforts for reducing the inventories of components and work-in-process products through cell production, and for curbing the inventories in procurement through VMI, Matsushita expects to further reduce its inventories in fiscal 2008 onwards. (President Ohtsubo)

	What kind of measures will you take to expand overseas sales in fiscal 2008?

	We are collaborating with mass retailers in Europe and the United States. For example, in one region, Matsushita and a major mass retailer have established a system which enables us to jointly forecast consumer demand in the coming months. Matsushita automatically supplies just sufficient products amounts according to actual demand based on mutually agreed inventories. In India, Matsushita Electric Works, Ltd. recently acquired Anchor Electricals Private Ltd., for approximately 50 billion yen. Although there are still some issues to be addressed such as brand issues, I hope that Matsushita can expand sales of Panasonic products in India by utilizing Anchor's very effective sales network. As for digital cameras, we achieved double-digit market share in 19 countries including Japan. Matsushita even gained 30% market share in one of the countries. We expect to utilize the measures and policies which were taken in sales of digital cameras to other products in order to increase overseas sales. As just described, we are carrying out various measures in each area. (President Ohtsubo)

	Depreciation expenses for fiscal 2008 are estimated to increase by about 30 billion yen to 310 billion yen. Do you think that there is any effect from tax reforms, by which the maximum depreciation amount increased from 95% to 100% of the costs of manufacturing facilities?

	The latest tax reform had no impact on depreciation expenses since Matsushita's financial statements are prepared in conformity with U.S. generally accepted accounting principles and the residual value rate was zero under the internal depreciation system. The approximately 30 billion yen increase was due mainly to an increase in capital investment in plasma TVs and semiconductor businesses. (Vice President Kawakami)

	Please tell us about your policies on JVC if there are any changes after the announcement of the Company's management policy in January 2007.

	As I mentioned before, Matsushita is watching JVC's management based on autonomous management. Since Matsushita is competing with JVC in many business areas, the Company is studying all kinds of options from the viewpoint of JVC's autonomous management and the enhancement of Matsushita's corporate value. There is nothing more I can say about this issue beyond what I stated in the 2007 Management Policy report in January 2007. (President Ohtsubo)

	Please summarize financial structural reforms of the past several years.

	Matsushita started financial structural reforms in fiscal 2001 and has implemented various efforts since then. For example, the pension reserve was initially in short of 1 trillion yen. However, with respect to this fiscal year, it has turned 100 billion yen plus, making the first accumulated other comprehensive income plus in the balance sheet. I believe that Matsushita succeeded in clearing up its negative legacy of the bubble economy in Japan by implementing various initiatives including structural reforms, disposal of Matsushita Real Estate Co., Ltd., the sale of leasing businesses and the shares of stock in Vivendi Universal. (Vice President Kawakami)

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.

	Please tell us about Matsushita's market share for flat-panel TVs and units of sales in fiscal 2007, ended March 31, 2007.

	In fiscal 2007, the market share for 37-inch and larger-sized flat-panel TVs is estimated to be about 18%, recording sales of about 3.5 million units for plasma TVs and about 2.4 million units for LCD TVs. (President Ohtsubo)

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