Relevant Press Releases

FOR IMMEDIATE RELEASE
Media Contacts: Yasuhiro Fukagawa, International PR, Tokyo
                (Tel: 03-3578-1237, Fax: 03-5472-7608)

 
   Matsushita Electric Industrial Co., Ltd. (NYSE and PCX symbol: MC) today announced an upward revision of its earlier forecast, made on April 26, 2002, for non-consolidated (parent company alone) first half earnings for the current fiscal year, ending March 31, 2003 (fiscal 2003). The revision reflects approval recently obtained from Japan's Ministry of Health, Labour and Welfare (the Ministry) for exemption from the future benefit obligation with respect to the portion that the company operates for the Government (the so-called "substitutional portion"), related to social security tax calculated in accordance with the Welfare Pension Insurance Law, of the Matsushita Electric Welfare Pension Funds. Regarding the substitutional portion, Matsushita Electric Welfare Pension Funds had applied for the aforementioned exemption with the Ministry, following the enactment in April 2002 of the new law concerning the defined benefit pension plans in Japan, for which approval has been granted.

   As a result of this approval, Matsushita recognizes a one-time gain before taxes of approximately 38 billion yen as a non-recurring profit on a parent company alone basis for the first half of fiscal 2003. Accordingly, the company today revised its previous forecast for a parent-alone net income of 10 billion yen, to approximately 30 billion yen for the fiscal first half. Since today's revision reflects only the above-mentioned pension program change, the company maintained its earlier six-month forecasts for parent-alone sales and recurring profit of 1,990 billion yen and 13 billion yen, respectively.

   Meanwhile, Matsushita has not revised its forecasts of consolidated financial results, which the company prepares in conformity with U.S. generally accepted accounting principles. Under U.S. GAAP, the relevant one-time profit may be recognized only on the settlement of the substitutional portion when the company returns the past benefit obligation to the Government, which Matsushita currently expects to occur during the year ending March 31, 2004.

   Matsushita Electric Industrial Co., Ltd. is one of the world's leading producers of electronic and electric products for consumer, business and industrial use, which it markets around the world under the "Panasonic," "National," "Technics" and "Quasar" brand names. Matsushita's shares are listed on the Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, New York, Pacific, Euronext Amsterdam, Euronext Paris, Frankfurt and Dusseldorf stock exchanges. For more information, visit the Matsushita web site at the following URL: http://www.panasonic.co.jp/global/

 

Disclaimer Regarding Forward-Looking Statements
   This press release 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 press release 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 them, 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 press release. 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 and its other filings.
   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 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, 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 realize expected benefits of various restructuring activities in its business and organization, including the share exchanges with five subsidiaries currently in progress; 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; any changes in the Matsushita Group's financial and operational position or business environment due to its business restructuring; current and potential, direct and indirect trade restrictions imposed by other countries; and fluctuations in market prices of securities and other assets in which the Matsushita Group has holdings, as well as future changes or revisions to accounting policies, or accounting rules.

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