Panasonic Mobile and NTT DATA Reach Basic Agreement to Form Business Alliance

- Reinforcing Development Capabilities for Embedded Software -

Jul. 2, 2008

Panasonic Mobile Communications Co., Ltd.
NTT DATA Corporation

Tokyo, July 2, 2008 – Panasonic Mobile Communications Co., Ltd. (Tsuzuki-ku, Yokohama City, President: Osamu Waki, “Panasonic Mobile”) and NTT DATA Corporation (Koto-ku, Tokyo, President: Toru Yamashita, “NTT DATA”) announced today that both companies reached a basic agreement on a capital and business alliance on Panasonic Mobile & System Engineering Co., Ltd. (Tsuzuki-ku, Yokohama City, President: Ryoichi Wada, “PMSE”), a wholly- owned subsidiary of Panasonic Mobile. NTT DATA will take over 60 percent of the shares issued of PMSE.

Through this alliance, Panasonic Mobile and NTT DATA intend to form a new partnership and establish cooperative structure to enhance the corporate values of all three companies involved, including PMSE.

Panasonic Mobile will gain its competitiveness in both qualities and cost advantages in the field of software development of mobile phone, which requires greater sophisticated and diversification of functions, by introducing NTT DATA Group’s technologies and know-how of system development and experience in the solution business. This partnership will enable Panasonic Mobile to strengthen its development capabilities in the technology of product differentiation and reinforce its competitiveness in the mobile phone business which is one of core businesses in Matsushita Group.

NTT DATA regards this capital and business alliance as the significant partnership in the field of embedded software which is the “Growth Engine” in its Medium-Term Management Plan. Through this strategic partnership with Panasonic Mobile, NTT DATA will contribute to the business expansion of Panasonic Mobile and strive to expand its embedded software business for a broader customer base by PMSE with its considerable experience and expertise in the field of embedded software.

PMSE will maintain its contribution to Panasonic Mobile as well as other business domains in Matsushita Group with its embedded software technology and expand the customer base through this strategic partnership with NTT DATA Group.

Outline of the New Company (Tentative)

Company name

TBD

Date of Establishment

October, 2008

Headquarters

600, Saedo-cho, Tsuzuki-ku, Yokohama City, Kanagawa Prefecture

Capital

200 million yen

Ownership
  • NTT DATA Corporation (60%)
  • Panasonic Mobile Communications Co., Ltd. (40%)
Main Business

Embedded software development

Employees

Approximately 1,000

Management structure

Four directors and one corporate auditor will be appointed by NTT DATA and three directors by Panasonic Mobile.

Outline of PMSE (as of March 31, 2008)

Company name

Panasonic Mobile & System Engineering Co., Ltd.

Date of Establishment

July, 1979

Headquarters

600, Saedo-cho, Tsuzuki-ku, Yokohama City, Kanagawa Prefecture

Capital

200 million yen

Ownership

Panasonic Mobile Communications Co., Ltd. (100%)

Main Business

Embedded software development

Employees

Approximately 1,000

President

Ryoichi Wada (Vice President of Panasonic Mobile)

Sales

Approximately 13 billion yen (Forecast of sales for the fiscal 2009 ending March 31, 2009)

About NTT DATA Corporation

As a leading company in the telecommunications industry, NTT DATA is contributing to Japan’s society and economy by developing telecommunications systems in accordance with our customers’ individual needs. For more information, please visit http://www.nttdata.com/

About Panasonic Mobile Communications

Panasonic Mobile Communications Co., Ltd., whose headquarters are based in Yokohama, Japan, is a leading company in the development and manufacture of mobile communications products. As one of the main business domains for Matsushita Electric Industrial Co., Ltd., best known for its Panasonic brand digital electronics, Panasonic Mobile has been developing cutting edge technologies since its establishment in 1958, including the world’s first 3G video handset for the Japanese market in 2001. Panasonic Mobile is committed in providing added-value solutions to end-users through its mobile communication products. For more information, please visit http://www.panasonic.co.jp/pmc/en

For more information, please contact:

Junji Kanegawa
Panasonic Mobile Communications Co., Ltd.
+81-45-939-6455

Takanori Iwauchi, Norihiko Sugimoto
NTT DATA Corporation
+81-3-5546-8051

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