TOKYO —

Toshiba Corp and Panasonic Corp announced Wednesday that the two companies have signed a share transfer agreement under which Toshiba will acquire all of Panasonic’s shares in Toshiba Matsushita Display Technology Co (TMD), a joint venture that develops, manufactures and sells liquid crystal displays (LCDs) and organic light emitting displays (OLEDs). The share transfer is scheduled to take place on April 28.

After completion of the share transfer transaction, TMD will become a wholly-owned subsidiary of Toshiba Group, and will change its name to Toshiba Mobile Display Co Ltd.

Established in 2002, TMD is an industry leader in small- and medium-sized LCDs
for application in such products as mobile phones, portable PCs and in-vehicle
displays. However, the company is now facing a very tough business environment:
weak demand that is sharply down from last year, and continuous price erosion in
small- and medium-sized LCD panels. In these circumstances, and as part of the
Action Programs to improve profitability announced by Toshiba this January, TMD
is now implementing restructuring initiatives in its LCD business, including closing
certain manufacturing lines.

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