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FOR IMMEDIATE RELEASE
Media Contacts: Akira Kadota / Wilson Solano
                International PR, Tokyo
                (Tel: 03-3578-1237, Fax: 03-5472-7608)

Matsushita Announces Restructuring at Refrigeration Unit

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     Matsushita Electric Industrial Co., Ltd. (MEI [NYSE and PCX: MC]), best known for its "Panasonic" brand products, today announced that the Board of Directors of Matsushita Refrigeration Company (MARCO), a wholly-owned subsidiary of MEI, resolved to implement business restructuring initiatives, which will include establishment of an optimum global manufacturing structure and employee relocations/early retirement initiatives.

     Details of the business restructuring are as follows:

1. Establishment of an optimum global manufacturing structure

Background

     A severe management environment has persisted in consumer-use refrigerators, MARCO's principal product line, due mainly to intensified competition in global markets, particularly by Chinese and South Korean manufacturers, and continuing price declines in the domestic market.
     In response to such severe market conditions, MARCO will strengthen its overseas operations, which are viewed as a "growth engine," aiming to increase profitability on a global basis. MARCO will also concentrate management resources into such areas as HFC-free refrigerators and high value-added components and devices, while carrying out business restructuring of its manufacturing locations to achieve an optimum global manufacturing structure.

Details of Restructuring

1)	Integration of refrigerator production To meet expected increases in demand for the company's popular HFC-free refrigerators, domestic production of compressor-type refrigerators will be concentrated into the Kusatsu factory, where MARCO intends to establish a highly efficient operation.
2)	Establishment of a new components and devices division MARCO will merge its compressor division with its cooling and heating components division to form a new components and devices division, with the aim of expanding operations under a unified strategy on a global basis, particularly in cutting-edge technology areas such as compressors for HFC-free refrigerators and vacuum insulation panels. While maintaining its two domestic factories at Kusatsu and Fujisawa, MARCO will use the advantage of its established global marketing networks to expand business in components and devices.
3)	Other details of restructuring Regarding refrigerated food display cases and other food-related equipment, MARCO will review in-house production from the perspective of optimum allocation of management resources, implementing outsourcing and OEM purchasing as deemed necessary, while placing a higher priority on vending machines and new product lines.

Implementation period and employee relocation

1)

Implementation period The aforementioned business restructuring will be implemented from December 2003 through March 2004.

2)

Employee relocation Employees affected by the business restructuring will be relocated to other divisions within MARCO or to Matsushita Home Appliances Company (an internal divisional company of MEI). However, for employees who wish to pursue careers outside of the Matsushita Group, MARCO will provide support through various initiatives, including an early retirement program, which is outlined below.

2. MARCO early retirement program

     The early retirement program will provide employees seeking outside employment with a special retirement allowance, which is in addition to standard retirement benefits. MARCO will also offer assistance in the form of job searches and other support for employees choosing early retirement.

3. Effect of business restructuring on MEI's financial results

     The aforementioned business restructuring is not expected to have any material effect on MEI's consolidated financial results forecast for the year ending March 31, 2004 (fiscal 2004). MEI announced its forecast for fiscal 2004 consolidated financial results on April 28, 2003.

<Reference>

Outline of MARCO factories in Japan

Fujisawa factory

	Location	:	Fujisawa City, Kanagawa Prefecture
	Products	:	Consumer-use refrigerators
	Date of incorporation	:	December 1961
	Number of employees	:	320 (as of June 30, 2003)

Other factories

     MARCO's factories for refrigerators, vending machines, food-related equipment and heating and cooling components are located in Kusatsu, while its compressor factory is located in Fujisawa.

Disclaimer Regarding Forward-Looking Statements
     This press release 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 press release 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 them, 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 press release. 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 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, 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 realize expected benefits of various restructuring activities in its business and organization; 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; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; and fluctuations in market prices of securities and other assets in which the Matsushita Group has holdings; as well as future changes or revisions to accounting policies or accounting rules.

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