Pioneer and Matsushita have agreed on a comprehensive business alliance on PDP technology development and panel production.

Matsushita will absorb Pioneer?s PDP development team, while it becomes responsible for volume production of PDP panels and modules used in the two companies? independently branded large screen TV products.

Under the agreement, Matsushita will take a lead in developing new PDP panels. Pioneer will share with Matsushita the company?s proprietary PDP-related technologies. Under the new structure, Pioneer?s PDP R&D team will be transferred to Matsushita.

Matsushita will be also in charge of PDP panel production. The company will start volume production of the newly-developed panels in June. Matsushita will then supply the new panels and modules to Pioneer in time for Pioneer?s own branded new PDP products?scheduled for launch in the fall of 2009. Matsushita will then integrate the same technologies in their own TV receivers for later release.