August 5 ,2009

Concerning Investment in Chinese Liquid Crystal Manufacturers

Toshiba Mobile Display Co., Ltd., (President: Yoshio Ooida, hereinafter referred to as “TMD”) is pleased to announce that it signed today agreements on a merger with Heyuan Greentech Electronic Technology Co., Ltd. (Hereinafter referred to as “Heyuan Greentech”), a company in Guangdong Province, China engaged in the manufacture and sale of liquid crystal display (Hereinafter referred to as “LCD”) modules, and Favor High Holding Ltd. (Hereinafter referred to as “Favor High”), a company in Hong Kong engaged in flat panel display related business to form a new company for the manufacture and sale of small to medium sized LCDs.

Green Mobile Display Technology Co., Ltd. (provisional name of the new company) will have a capital of 100 million U.S. dollars (Approximately 9.5 billion yen) with investment by Heyuan Greentech, TMD and Favor High of 58.0%, 19.9% and 22.1% respectively.

TMD’s domestic amorphous silicon (See Note 1) LCD production lines will be transferred to the new company in the Heyuan Greentech factory of Heyuan city, Guangdong province, which will also be equipped with a clean room and, with manufacturing and production technical support provided by TMD, the manufacture and sale of amorphous silicon LCDs, principally for mobile phones, is scheduled to be launched during the first half of FY2010.

TMD is shifting its own business focus to low-temperature poly-silicon LCDs (See Note 2) that feature high definition, high image quality and low power consumption and discontinuing its existing multiple amorphous silicon LCD production lines. As well as selling its amorphous silicon LCD production lines through a specialized trading firm (Keiraku Trading Co., Ltd.) to the new company, TMD will provide manufacturing and production technical support to enable the new company to utilize TMD’s existing amorphous silicon LCD resources.

Meanwhile, while Heyuan Greentech is currently engaged in the manufacture of LCD modules, TFT liquid crystal cells themselves are purchased externally. The establishment of the new company will enable realization internalization of LCD production.

Additionally, the Favor High Group is in the process developing its business with the focus on the sale of flat display-related materials, products and equipment, and through investment in the new company, aims to expand its business into the manufacturing sector.

Located in the northeast of Guangdong province, formerly an agricultural region, Heyuan city, where the new company will be established, is blessed with a natural environment that provides water and electric power in abundance, and recent years have seen the rapid expansion of the mobile phone assembly industry in this area due to the availability of cheap labor. The establishment of the new liquid crystal cell manufacturing company is expected to lead to further expansion in future of the mobile phone manufacturing industry. The local government is actively engaged in initiatives to attract businesses to the region and intends to provide positive support for the new company.

• Note 1: Amorphous silicon LCD: Amorphous silicon is used on the thin film transistor (TFT) that controls liquid crystal material and accounts for production of the majority of active drive LCDs.
• Note 2: Low-temperature poly-silicon LCD: Low-temperature poly-silicon is used on the thin film transistor that controls liquid crystal material and, compared to amorphous silicon, features high definition, high image quality and low power consumption.

[Profile of New Company]

Company Name: Green Mobile Display Technology Co., Ltd. (Provisional)

Capital: 100 million U.S. dollars (Approximately 9.5 billion yen): Heyuan Greentech 58.0%, Favor High 22.1%, TMD 19.9%
Address: Electron Ecopark, Jiantou town, Dongyuan country, Heyuan city, Guangdong Province, China

[Profiles of Investing Companies]

Heyuan Greentech Electronic Technology Co., Ltd.

Capital: 21 million U.S. dollars (Approximately 2 billion yen)
Date of establishment: 2005
Representative: Zhang Jin-jing, Chairman
Address: Heyuan city, Guangdong Province, China
Business: Manufacture and sale of LCD modules

Favor High Holding Co., Ltd.

Capital: 5 million U.S. dollars (Approximately 480 million yen)
Date of establishment: 2006
Representative: John Ruan , Executive Chairman
Address: Hong Kong
Business: Sale of flat panel display-related materials, products and equipment, etc.