Fiscal 2008 First Quarter Financial Results (ended June 30, 2007) Q&A Summary

	What do you think of the shipment volume of plasma TVs against the target? How much was the price decline?

	The result of the shipment volume was a little under the target for the first quarter, but the extent of the declined shipment was not so large. Matsushita's annual sales target is 5 million units. Although there have been some negative effects due mainly to a delay in the launch of new models of plasma TVs in the Americas, Matsushita is optimistic about sales in July. Price declines in Matsushita's plasma TVs on a consumption demand basis were 21% in Japan, slightly lower compared with the whole industry's average of 23%. Overseas, price declines of Matsushita's plasma TVs were approximately 30%, the same as the whole industry's average.

	Sales of flat-panel TVs including plasma TVs have been declining both in Japan and the Americas. Do you think that this trend will continue, or do you expect an upturn of the sales amount in the future? Global sales also show a slowdown. What do you think of the concern that sales in Europe and Asia may also decline, as per Japan and the Americas in the near future?

	A decrease in the sales amount in the Americas for the first quarter was only temporary. This decrease in sales was due mainly to a delay in the launch of the 42-inch full HD model, while the mainstream market demand was for 40-inch or above. In Japan, the percentage of demand for full HD plasma TVs has been increasing, and Matsushita expects to further increase the sales of these products. Also in Europe, demand for full HD TVs and larger-sized TVs is expected to increase.

	The sales amount of plasma TVs declined in Japan and the Americas, compared with last year. Did sales units also decline from the previous year? What do you think of the earnings in plasma TVs in the first quarter?

	While the sales amount declined both in Japan and the Americas, the sales units increased, compared with the previous year's same period. The sales units in Japan showed double-digit growth and sales units both in the Americas and in all regions including the Americas also increased. Profit in plasma TVs remained mostly unchanged from the same period last year. The negative effects of price declines were offset by cost reductions, as well as an increase in average selling prices following the launch of larger-sized or full HD models.

	What led to sales declines in flat-panel TVs in Japan and the Americas compared with the same period last year, and what is the current sales situation?

	Sales declined from the same period last year partly because of last year's World Cup effect of a sales increase of approximately 20 billion yen. Another reason is a delay in the launch of 42-inch full HD plasma TVs in the Americas. In Japan, 42-inch full HD plasma TVs were launched in mid April, but in the Americas not until the end of June. In Japan, however, we had double-digit sales growth on a unit basis and maintained a 70% share in plasma TV market. Also in overall 37-inch or larger flat-panel TVs, Matsushita secured approximately a 30% share in the Japanese market. The effects of price declines are not so serious. In the Americas, the total amount of shipping to five nationwide mass-retailers, including Best Buy and Circuit City in July, was about twice as large as that recorded in the same period last year, and the Company secured the second largest share in 37-inch or larger flat-panel TVs in the U.S. In the future, while increasing the percentage of full HD models, Matsushita will strive to further expand sales to local retailers as well as to nationwide mass-retailers.

	You mentioned that the major factor of sales declines in the Americas in the first quarter was a delay in the launch of full HD plasma TVs. While it seems that American consumers are not so demanding about picture quality, what do you think is the background of the increase in demand for full HD plasma TVs in the American market?

	The percentage of full HD models is still large in the Americas. Also, in LCD TVs, full HD models account for around 40% of demand. In Matsushita, sales units of plasma TVs in the Americas almost doubled after the launch of full HD models. These results show that some consumers are more price-conscious while others are more interested in high-definition.

	Sales of digital cameras grew significantly. How much was the growth on a unit basis?

	Sales of digital cameras increased 37% to approximately 60 billion yen, which is 2.13 million units, up 40% compared with the same period last year.

	You mentioned that the market share in digital cameras increased in France due mainly to marketing initiatives. Do you plan to expand these marketing initiatives in other countries?

	In France, strategic marketing was made by the collaboration between sales and manufacturing. Matsushita's sales company and manufacturing company collaborated with mass-retailers mainly on pricing, timing and marketing methods, and promoted sharing of PSI information for product delivery. Matsushita implemented these initiatives in France, and also plans to apply them in Germany and the U.K.

	The benefit of a weaker yen in the first quarter was around 12.3 billion yen. Does this show an increase in operating profit? How much sales increase do you estimate to be due to a weaker yen?

	The 12.3 billion yen was an increase in operating profit. Sales gains, which were caused by a weaker yen, were estimated to be approximately 88 billion yen. Matsushita expects that the influence of a weaker yen on profit will be about the same in the second quarter.

	What measures does Matsushita plan to take with regard to the increase of 50 billion yen in inventory?

	One of the reasons for this increase was an increase in inventories of plasma TVs associated with the launch of new models. Also, there are stocks of semiconductors which require a lead time of approximately 3 months. In addition, inventory in PanaHome is increasing due to an increase of land for sales in lots. Although the inventory increased temporarily in June for these reasons, the inventory amount as of September 2007 is expected to be smaller than the planned figure.

	Cash and cash equivalents and treasury stocks have been increasing. In order to achieve 10 trillion yen sales, M&As need to be taken into consideration. What is your policy for the future?

	As for treasury stocks, Matsushita has announced its policy of canceling surplus treasury stocks which exceed 10% against the total number of shares issued. However, even though Matsushita's current treasury stocks amounts to 13%, Matsushita considers that such a surplus amount will not be canceled but shall be prepared for M&As in the future during the three fiscal years under the GP3 plan.

	You mentioned that Matsushita has M&As in mind for the use of financial resources. Do you consider M&As in order to achieve the target of 10 trillion yen sales under the GP3 plan? Or, do you plan to achieve 10 trillion yen sales mainly by expanding the current businesses and expect to utilize M&As as a supplemental strategy? Please tell us about Matsushita's mid-term outlook.

	As for the mid-term plan, Matsushita estimated approximately 10 trillion yen sales based on the assumption of annual business growth of around 3%. Specific M&As and other factors are not included in the plan. However, in consideration of not only sales but also several aspects such as technology, M&As, business alliances or other initiatives will be necessary in order to enhance profitability and financial structure of Matsushita. Therefore, Matsushita strives to discuss M&As from several aspects besides sales.

	What is the purpose and future schedule of crossholding of shares?

	Matsushita's policy about crossholding of shares is based on business alliances with other companies. When competition between companies becomes intensified, it will not be easy to continue the business without any alliances. In order to establish closer relationships with other companies, Matsushita may choose capital alliances. Matsushita regards it not as countermeasures against large-scale purchasers, but as necessary measures in operating business.

	In the press conference regarding the capital and business alliance between JVC and Kenwood, President Ohtsubo remarked that Matsushita would consider the sale of JVC's shares after ensuring the strong development of JVC's business. What management benchmark do you currently consider as a criterion for making such decisions?

	At present, Matsushita does not consider the sale of JVC's shares. The most important point is to turn JVC's earnings into profit. The four companies involved believe that the first priority is JVC's business recovery. The future policy will thus be discussed after the integration is realized.

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 the sales situation of plasma TVs and LCD TVs.

	Sales of plasma TVs were 128.9 billion yen, down 1%, and the shipment volume was 800 thousand units, up approximately 10%, compared with the same period last year, respectively. Sales of LCD TVs were 57.1 billion yen, up 9%, and the shipment volume was 740 thousand units, up approximately 40% from the same period last year, respectively.

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