Matsushita to Close MT Picture Display (M) Sdn. Bhd.

OSAKA, Japan -- Matsushita Electric Industrial Co., Ltd. (MEI (NYSE: MC)), best known for its Panasonic brand, today announced plans to discontinue operations at MT Picture Display (M) Sdn. Bhd. - MTPDM in August 2006, and to begin closing/liquidation procedures. MTPDM is a subsidiary in Malaysia of Matsushita Toshiba Picture Display Co., Ltd. (MTPD), a joint venture of MEI and Toshiba Corporation.

MTPDM, which manufactures cathode ray tubes (CRTs) for 21- to 32- inch TVs exporting for the Japanese and North American markets, has faced declines in demand for CRTs and intensified price competition, due to increasing sales of flat-panel TVs in their respective markets. This closing is a part of MTPD's restructuring initiatives in order to establish an optimum CRT manufacturing structure in Asia and China.

MEI has not revised its consolidated, or non-consolidated financial forecasts (announced on April 28, 2006) for the year ending March 31, 2007.

(Reference)
MTPDM Company Overview

1.  Basic Information (as of June 30, 2006)

  Company name                        MT Picture Display (M) Sdn. Bhd.
  Representative                      Tetsuo Hasegawa, Managing
                                       Director
  Location of head office             Shah Alam, Selangor Darul Ehsan,
                                       Malaysia
  Date of incorporation               October 9, 1990
  Principal business                  Manufacture and sales of CRTs
                                       for TVs
  Share capital                       RM 1,025,000,000
  Number of employees                 2,162
  Total number of outstanding shares  1,025,000,000 shares
  Shareholder's equity                RM 1,025,000,000
  Total assets                        RM 200,428,000
  Financial closing date              March 31
  Shareholders (% ownership)          Matsushita Toshiba Picture
                                       Display Co., Ltd.  100%
  Principal customers                 Group companies of MEI, Toshiba
                                       and JVC, and others
  Financial Institution               Panasonic Financial Centre
                                       (Malaysia) Sdn. Bhd.

2. Financial Results (for the most recent three fiscal years)

(thousands of RM, except per share amounts, which are in RM)

        Fiscal year ended:         March 2004  March 2005  March 2006
----------------------------------------------------------------------
Sales *                               743,331    1,102,884    972,959
----------------------------------------------------------------------
Income (loss) before taxes *          (38,640)     (65,583)  (114,266)
----------------------------------------------------------------------
Net income (loss) *                   (38,640)    (158,365)  (969,422)
----------------------------------------------------------------------
Net income (loss) per share             (0.04)       (0.15)     (0.95)
----------------------------------------------------------------------
Cash dividends per share                  ---          ---        ---
----------------------------------------------------------------------
Shareholders' equity per share          0.002        (0.15)     (1.10)
----------------------------------------------------------------------
(Note) * Amounts less than RM 1,000 have been omitted.