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Establishment of Overseas Intra-group Financial Subsidiary
Osaka, Japan, March 27, 2006 -- Matsushita Electric Industrial Co., Ltd. [NYSE symbol: MC], best known for its Panasonic brand, today announced that its Board of Directors has decided to establish an intra-group overseas finance company as hereinafter described.
1. Purpose of establishment
Matsushita currently conducts finance and foreign currency exchange operations on a regional basis at the head office of the company in Osaka, Japan, and various overseas financial subsidiaries. To meet the needs of more sophisticated global operations, Matsushita will establish a new overseas financial subsidiary with in-house banking functions that will facilitate various finance and foreign exchange transactions worldwide.
The new company aims at enhancing efficiency and reducing costs on a consolidated-basis through global centralization of funds and foreign exchange transactions in Japanese yen, US dollars and Euros, which transactions are currently on a regional basis. Along with the establishment of the new company, Matsushita will further enhance the efficiency of group-wide treasury transactions by introducing a new round-the-clock global treasury system.
In addition, Matsushita will become the first Japanese non-financial institution to utilize the SWIFT* service, which enables the exchange of global financial transaction data among financial institutions, thereby ensuring more rapid and efficient financial operations. The new system will allow effective management of information regarding bank account balances, transaction information, payment instructions and confirmation of foreign exchange contracts for companies throughout the Matsushita group.
In this way, Matsushita will establish a global treasury infrastructure connecting approximately 600 group companies including domestic and overseas subsidiaries, thereby further strengthening consolidated cash flow management.
|*SWIFT (Society for Worldwide Interbank Financial Telecommunication)|
2. Basic information about the new overseas financial subsidiary
|1) Corporate name:||Panasonic Global Treasury Center B.V.|
|3) Principal office:||Amsterdam, The Netherlands|
|4) Date of incorporation:||May 2006 (planned)|
|5) Principal lines of business:||Various financial and foreign currency exchange operations in Japanese yen, US dollars and Euros.|
-Funds and foreign exchange transactions including deposits and loans with the head office of Matsushita Electric Industrial Co., Ltd. and its overseas financial subsidiaries.
-Investment, funding and foreign exchange transactions with financial institutions.
|6) Financial closing date:||March 31|
|7) Number of employees:||5 (planned)|
|8) Capital stock:||500 million US dollars|
|9) Percentage of shareholdings:||100% funded by a subsidiary, “Panasonic Holding Netherlands B.V.,” Matsushita’s wholly-owned subsidiary|