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Matsushita Electric Industrial Co., Ltd.
Consolidated Statement of Income *
(Six months ended September 30)
                                              Yen                     U.S. Dollars
                                           (millions)       Percentage (millions)
                                       2001          2000    2001/2000    2001
Net sales                         ¥3,385,609    ¥3,737,041      91%     $28,450
Cost of sales                     (2,513,324)   (2,634,180)             (21,120)
Selling, general and
  administrative expenses           (947,992)   (1,003,237)              (7,966)
Operating profit (loss)              (75,707)       99,624      --         (636)

Other income (deductions):
Interest income                       18,403        21,534                  155
Dividend income                        6,323        12,139                   53
Interest expense                     (20,928)      (22,364)                (176)
Restructuring charges **              (8,537)      (10,120)                 (72)
Write-down of investment securities  (18,608)       (1,583)                (156)
Other income (loss), net              11,797         5,870                   99
Income (loss) before
  income taxes                       (87,257)      105,100       --        (733)

Provision for income taxes            (8,771)      (50,562)                 (74)
Minority interests                    26,903       (10,207)                 226
Equity in earnings (losses) of
  associated companies                  (348)        7,041                   (3)

Net income (loss)                  ¥ (69,473)   ¥   51,372       --     $  (584)

Net income (loss)
  per common share, basic          (33.41) yen    24.71 yen             $ (0.28)
Net income (loss)
  per common share, diluted        (33.41) yen    23.70 yen             $ (0.28)
Consolidated Statement of Surplus *
(Six months ended September 30)
                                              Yen                     U.S. Dollars
                                           (millions)                  (millions)
                                       2001          2000                 2001
Retained earnings
  at beginning of period          ¥2,924,071    ¥2,911,665              $24,572
Net income (loss)                    (69,473)       51,372                 (584)
Cash dividend                        (12,995)      (12,890)                (109)
Transfer to legal reserve               (993)         (863)                  (8)
Transfer to capital surplus due
  to a merger of a subsidiary         (3,995)           --                  (34)
Retained earnings
  at end of period                ¥2,836,615    ¥2,949,284              $23,837

* ** See notes to consolidated financial statements.
Supplementary Information
(Six months ended September 30)
                                              Yen                     U.S. Dollars
                                           (millions)                  (millions)
                                       2001          2000                 2001
Depreciation (tangible assets):   ¥  159,186    ¥  161,457              $  1,338
Capital investment:               ¥  180,357    ¥  242,344              $  1,516
R&D expenditures:                 ¥  282,566    ¥  271,512              $  2,375

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