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Toshiba Invests in a Subsidiary of LG.Philips LCD in Poland (30/10/2006)

The Strategic Partnership Strengthens Toshiba TV Business in Europe

Toshiba today announced that it would make an equity investment in LG.Philips LCD Poland Sp. zo. o (LPLWR), a Polish subsidiary of LG.Philips LCD (LPL), a leading manufacturer of LCD panels. Toshiba will invest approximately 5.5 billion yen in LPLWR, giving it a stake approaching 20% of its equity.

Toshiba is reinforcing its European TV operations with Toshiba Television Central Europe Sp. zo. o. (TTCE), a new LCD TV production and sales company in Kobierzyce, near Wroclaw in southwest Poland. TTCE was established in September 2006 and will start operation in August 2007, on a site adjacent to LPLWR. Toshiba's investment in LPLWR will allow Toshiba to secure long-term, stable procurement of LCD panels at competitive prices and with highly efficient supply logistics.

"Our partnership with LPL is an important step toward reinforcing Toshiba's presence in the trans-European TV business," said Toshio Yonezawa, Corporate Senior Executive Vice President of Toshiba Corporation. "LPL is a leading supplier in the global market for LCD panels and we will leverage this relationship to build an advantageous position in Europe and to provide high quality and competitive products to the market."

"Through this strategic partnership, both LG.Philips LCD and Toshiba will build a strong foundation for growth in the European market," said Bon Joon Koo, Vice Chairman and CEO at LG.Philips LCD. "We hope it will serve as a model case of strategic alliance between a panel producer and TV manufacturer."

Demand for LCD TV is growing fast in Europe, and Toshiba targets total European production of some three million units by fiscal year 2009 at two manufacturing sites, TTCE and Toshiba Information Systems (UK) Ltd. in the UK. That plan will be bolstered by the investment in LPLWR.

TTCE expects to procure large-sized panels of over 50-inches from LPLWR in future, which will position the company to produce LCDs across a wide range of sizes, from 26 inches to 50 inches and more. Toshiba and LPL will also cooperate closely in developing high quality LCD panels, particularly in fine tuning image reproduction to maximize Toshiba's cutting-edge digital imaging technologies of TV, and in enhancing product quality to reflect Toshiba's feedback as a panel user.

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