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Matsushita Electric (Panasonic) Completes Switch to Lead-Free Solder Used for Printed Circuit Boards

May 28, 2003

Osaka, Japan-Matsushita Electric Industrial Co., Ltd. (NYSE: MC), best known for its Panasonic brand digital electronics and National brand home appliances, today announced that it has completed a switchover to the use of lead-free solder for printed circuit boards used in Panasonic and National brand products as of the end of FY 2002.1 Aiming to promote its environmental activities on a global basis, the use of lead-free solder conforms to the European Union's regulation on restrictive use of toxic substances.

In 1998, Matsushita became the world's first company to introduce and mass-produce lead free solder used for printed circuit boards in its portable MD player. Since then, the company has been introducing the use of lead-free solder in other products such as headphone stereos and VCRs. A company wide project was implemented in FY 2000 to introduce printed circuit boards with lead-free solder in all Matsushita products manufactured at plants and affiliated companies in Japan and overseas by the end of FY 2002.

By the end of March 2003, printed circuit boards using lead-free solder was employed in approximately 12,000 models manufactured in 22 domestic facilities and 79 overseas facilities of the Matsushita Group. Of the 2,400 tons of solder used in FY 2002, about 856 tons (36%) used lead-free solder. With the switchover to lead-free solder now complete, Matsushita expects more than 80% of the solder produced to be lead-free. Since the company first introduced lead-free solder, Matsushita has produced a total of approximately 70 million units that contain printed circuit boards with lead-free solder.

The development of the necessary lead-free soldering technology included the development of solder materials and production processes tailored to the characteristics of specific products, the development of equipment for ensuring stable quality, and efforts to create circuit board designs that improve junction quality. Matsushita has submitted 337 patent applications related to new technologies developed in conjunction with the project, and the intellectual property rights it has accumulated in the process puts the company in a leading position in the field.

In the years ahead, Matsushita plans to promote the introduction of lead-free solder with the cooperation of suppliers and customers. In addition, efforts are presently underway to eliminate lead from the metal plating on component electrodes.

About Matsushita Electric Industrial Co., Ltd.

Matsushita Electric Industrial Co., Ltd., best known for its Panasonic, National, Technics, and Quasar brand names, is a worldwide leader in the development and manufacture of electronics products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated sales of US$61.68 billion for the fiscal year ended March 31, 2003. Matsushita's shares are listed on the Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, New York, Pacific, Euronext Amsterdam, Euronext Paris, Frankfurt and Dusseldorf stock exchanges. For more information, please visit Matsushita web site at http://www.panasonic.co.jp/global/top.html

1 Does not pertain to some OEM products supplied to other companies, and some components purchased from other companies.

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