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Thursday, June 13, 2002
Toshiba reorganizes Video recording equipment business

Toshiba Corporation today announced a reinforcement of its visual imaging business that will unify its analogue and digital imaging businesses in a single business organization. The move will integrate Toshiba Video Products Pte., Ltd. (TVPP), which manages Toshiba's international VCR business, in the Visual Media Network Division of Toshiba's Digital Media Network Company, and is expected to bring new strength and agility to Toshiba's video recording equipment business.

TVPP was established as a Singapore-based, wholly owned subsidiary of Toshiba in 1995. The company is responsible for sales and marketing of VCRs and video CD players, and for global management of Toshiba's VCR business. In a market that is moving quickly to a new generation of digital products and combinations of digital and analogue products--DVD recorders, HDD recording equipment and high definition videos--demand for standard analogue VCRs easing.

Toshiba has consistently optimized its VCR business in response to a changing market. The company phased out International Video Products Pte., Ltd, its Singapore-based VCR manufacturing joint venture with Thomson Multimedia of France, through a progressive shift to outsourcing production. Building on this cost-saving measure, Toshiba integrated the business operations of Toshiba Video Products Japan Co., Ltd., the wholly owned subsidiary of TVPP responsible for VCR development and sales in Japan, into Toshiba's Digital Media Network Company, to increase management efficiency.

The integration of the VCR business into the Visual Media Network Division will support development of integrated strategies for analogue and digital products, avoid duplication of marketing activities, and assure optimized deployment of management and personnel resources in a management structure able to quickly meet changing market needs.

TVPP, after transferring its operations to Digital Media Network Company in the period to December 2002, will cease operation in February 2003.

Outline of Toshiba Video Products Pte., Ltd.

Established: February 1995
Start of Operation: April 1995
Location: Alexandra Technopark, Singapore
Capital: S$47 million
Sales: S$480 million
President: Masakazu Shimazu
Employees: 45 (as of March 2002)

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