Matsushita to Close Panasonic AVC Networks Germany GmbH

Business Wire, June 13, 2006

OSAKA, Japan -- Matsushita Electric Industrial Co., Ltd. (NYSE: MC), best known for its Panasonic brand, announced plans to discontinue operations at its subsidiary Panasonic AVC Networks Germany GmbH (PAVCG) at the end of March 2007, after which it will begin closing/liquidation procedures.

PAVCG, mainly responsible for the manufacture and product development for the European DVD recorder market, currently faces ever-intensifying global competition and severe price declines. Under these circumstances, Matsushita decided this closing as part of the company's global restructuring initiatives in the DVD recorder business. Accordingly, future product development of DVD recorders for the European market will be shifted to Japan. Matsushita will continue production for the European DVD recorder market at Panasonic AVC Networks Slovakia s.r.o. (PAVCSK), its consolidated subsidiary and a manufacturing subcontractor of PAVCG.

(Reference)

Panasonic AVC Networks Germany GmbH Overview
--------------------------------------------

(As of March 31, 2006)

Company name                Panasonic AVC Networks Germany GmbH

Representative              Hidenobu Kakihara, President

Principal office            Hesebergweg 49, 31228 Peine, F.R. Germany

Date of incorporation       December 22, 1982

Principal lines of business Development of DVD recorders

Share capital               23,008 thousand Euro

Financial closing date      March 31

Number of employees         151

Total assets                101,840 thousand Euro

Shareholders (% ownership)  Panasonic Europe Co., Ltd. 75%, MEI 25%,

Principal customers         Sales companies of Matsushita in Europe


Financial Results (for the most recent three fiscal years)
----------------------------------------------------------

(Thousands of euros)

                                              March   March   March
                       Fiscal year ended:      2004    2005    2006
----------------------------------------------------------------------
Sales *                                       226,259 213,520 219,795
----------------------------------------------------------------------
Income (loss) before taxes *                    1,894   1,208   3,500
----------------------------------------------------------------------
Net income (loss) *                             1,481  -3,527     579
----------------------------------------------------------------------

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

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

Editor's note: This press release was distributed in Japan Friday, June 9, 2006.