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                               Panasonic Finance (Europe) plc
Brendon Gore (Europe)          (Tel: +44-20-7562-4400)
(Tel: +44-20-8899-2217)

Matsushita to Close Panasonic Electronic Devices U.K. Ltd.

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Osaka, Japan, August 28, 2006 -- Matsushita Electric Industrial Co., Ltd. (MEI [NYSE symbol: MC]), best known for its Panasonic brand, today announced plans to discontinue operations at Panasonic Electronic Devices U.K. Ltd. - PEDUK at the end of December 2006, and to begin closing/liquidation procedures. PEDUK is a manufacturing site in the U.K. of Panasonic Electronic Devices Co., Ltd. (PED), as well as a consolidated subsidiary of MEI.

PEDUK, which manufactures car speakers for European automobile manufacturers, has faced severe price declines due to intensified competition. This closing is a part of PED's global restructuring initiatives, thereby manufacturing of the car speakers is scheduled to be transferred to PED's overseas factories in Asia and Slovakia.

[Reference]

PEDUK Company Overview

1.Basic Information (as of March 31, 2006)

Company name	Panasonic Electronic Devices U.K. Ltd.
Representative	Yoshimitsu Hioki, Managing Director
Location of head office	Port Talbot, U.K.
Date of incorporation	March 3, 1988
Principal business	Manufacture of car speakers
Share capital	GBP 9,000,000
Number of employees	242
Total number of outstanding shares	9,000,000 shares
Stockholders’ equity	GBP 4,780,000
Total assets	GBP 8,772,000
Financial closing date	March 31
Shareholders (% ownership)	Panasonic Europe Ltd. 100%
Principal customers	Group sales companies in Europe
Financial Institution	Panasonic Finance (Europe) plc

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

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

Fiscal year ended:	March 2004	March 2005	March 2006
Net sales	11,169	11,526	15,615
Income (loss) before income taxes	(1,872)	(934)	175
Net income (loss)	(1,872)	(257)	175
Net income (loss) per share	(0.208)	(0.029)	0.019
Cash dividends per share	---	---	---
Stockholders’ equity per share	0.54	0.51	0.53

This matter will have no material effect on Matsushita's consolidated or parent-alone financial position or performance.

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