Matsushita and Toyota
Establish Panasonic EV Energy Co., Ltd.
for Ni-MH EV Batteries

Matsushita Electric Industrial Co., Ltd. (MEI), Matsushita Battery Industrial Co. (MBI), Ltd. (collectively called "Matsushita"), both of Osaka, Japan, and Toyota Motor Corporation ("TMC") of Aichi, Japan, today announced that they have established Panasonic EV Energy Co., Ltd. for the development, manufacturing and sales of nickel metal hydride (Ni-MH) rechargeable batteries for electric vehicles (EVs). The new company will start business from January 1997, Matsushita and TMC agreed in May 1996 to establish the joint venture, whose Board of Directors consists of the following:

President

Tetsunari Kawoae(MBI)

Executive Vice President

Yuichi Fujii(TMC)

Managing Director

Toshio Kawahara(MBI)

Directors

Yoichi Morishita(MEI)
Hiroshi Okuda(TMC)
Yukinobu Yasuda(MBI)
Shinichi Katoh(TMC)

Senior Corporate Auditor

Masatada Mitaku(TMC)

Corporate Auditors

Kazuichi Morita(MBI)
Masahiko Terada(MEI)

Combining Matsushita's R&D and production technologies for batteries and Toyota's technologies for EV battery applications, the new company will work towards improving the performance of Ni-MH rechargeable EV batteries and lowering manufacturing costs. As a result, the company aims to actively expand the EV market into the 21st century by selling and sharing its achievements to the worldwide EV industry.

New Company Outline

1. Company name

   Panasonic EV Energy Co., Ltd.

2. Establishment

   December 11,1996

3. Start of business

   January 1997

4. Location

   On the premises of the Hamanako factory,
   Matsushita Battery Industrial Co., Ltd.
   555 Sakaijuku, Kosai, Shizuoka

5. Contents of business

   Development, manufacturing and sales of nickel metal hydride rechargeable batteries and battery management systems

6. Capital

   2 billion yen

   Matsushita

   60% (MEI24%, MBI36%)

   TMC

   40%

7. Board members

   Directors

   4 from Matsushita including President
   3 from TMC (for a total of 7)

   Auditors

   2 from Matsushita, 1 from TMC
   (for a total of 3)

8. Employees

   Approx. 100

9. Production Quantity
   (planned)

   5,000-10,000 units/year over three years
   (fiscal 1997~1999)

10. Investment in Machinery
    and Equipment

    5 billion yen oyer three years (fiscal 1997~1999)
    (land and buildings leased by MBI)