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Wednesday, April 01, 2009
Toshiba and Panasonic Agree on LCD Joint Venture Transfer


Toshiba and Panasonic announced that today the two companies have signed a share transfer agreement under which Toshiba will acquire all of Panasonic's shares in Toshiba Matsushita Display Technology Co., Ltd. (TMD).

TMD is a joint venture that develops, manufactures and sells liquid crystal displays (LCDs) and organic light emitting displays (OLEDs). The share transfer is scheduled to take place on April 28, the companies said.

After completion of the share transfer transaction, TMD will become a wholly-owned subsidiary of Toshiba Group, and will change its name to "Toshiba Mobile Display Co., Ltd."

Established in 2002, TMD is an industry leader in small- and medium-sized LCDs for application in such products as mobile phones, portable PCs and in-vehicle displays. However, the company is now facing a very tough business environment: weak demand that is sharply down from last year, and continuous price erosion in small- and medium-sized LCD panels. In these circumstances, and as part of the Action Programs to improve profitability announced by Toshiba this January, TMD is now implementing restructuring initiatives in its LCD business, including closing certain manufacturing lines.

Looking to the future, TMD aims to establish OLEDs as an engine for growth and to enhance its display business in the medium- to long-term.


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