Relevant Press Releases

FOR IMMEDIATE RELEASE

Media Contacts:                Investor Relations Contacts:

Yoshihiro Kitadeya (Japan)     Ryuichi Tsuruta
(Tel: 06-6949-2293)            Investor Relations
                               (Tel: 06-6908-1121)

                               Akihiro Takei
                               Panasonic Finance (America), Inc.
                               (Tel: +1-212-698-1365)

                               Norio Iino
                               Panasonic Finance (Europe) plc
                               (Tel: +44-20-7562-4400)

Matsushita to Close Vacuum Cleaner Company in Spain

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    Osaka, Japan, May 21, 2004 -- Matsushita Electric Industrial Co., Ltd. (NYSE symbol: MC), best known for its "Panasonic" brand products, today announced plans to discontinue operations at its subsidiary Matsushita Electric España S.A. (MAES) at the end of December, 2004, after which it will begin closing/liquidation procedures.

    MAES, which is responsible for production of vacuum cleaners for the European market, recorded decreased profitability due to intensified competition and price declines in its market. To further expand sales of vacuum cleaners in the European market, Matsushita will shift production to factories in China.

    MAES was established in Barcelona in September 1973 through the purchase of shares of Anglo Española, a Spanish manufacturer of TVs and other electric appliances. MAES has supplied approximately 13.5 million vacuum cleaners over the past 28 years, since its start of production in 1975.

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[Reference]

1. Basic Information (as of March 31, 2004)

Company name		Matsushita Electric España S.A.
Representative		Norikazu Yamada, Managing Director
Location of head office		Poligono Industrial de Celra, 17460, Celra(Girona), España
Date of incorporation		September 7, 1973
Principal business		Manufacture and sales of vacuum cleaner
Share capital		Euros 3,000,000
Financial closing date		March 31
Number of employees		216
Total number of outstanding shares		1,000,000 shares
Shareholder's equity		Euros 29,328,654
Total assets		Euros 60,032,934
Shareholders (% ownership)		Matsushita Electric Industrial Co., Ltd. (99.99%) Matsushita Electric Europe (Headquarters) Ltd. (0.01%)
Principal customers		Panasonic sales companies in Europe
Bank references		Bankinter. Girona

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

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

Fiscal year ended:	March 2002	March 2003	March 2004
Sales *	73,513	54,663	28,484
Income (loss) before taxes *	1,131	(3,097)	(3,359)
Net income (loss) *	1,090	(2,545)	(3,948)
Net income (loss) per share	1.09	(2.54)	(3.95)
Cash dividends per share	0.22	21.88	0.00
Shareholders' equity per share	57.92	55.16	29.33

(Note) * Amounts less than 1,000 Euros have been omitted.

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

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