The following information is true and accurate at the time of publication.|
April 26, 2000
Fujitsu Hitachi Plasma Display Limited to Receive
Equity Participation from Sony
- Cooperation to Further Boost Plasma Display Panel (PDP) Business -
Tokyo, April 26, 2000 -- Fujitsu Limited, Hitachi, Ltd. and Sony Corporation today announced that they have reached a basic agreement on Sony's equity participation in Fujitsu Hitachi Plasma Display Limited (FHP), the joint venture established by Fujitsu and Hitachi in April 1999 to develop, manufacture and market plasma display panels (PDPs). Following Sony's capital injection, the investment ratio among the three shareholders will be 42.5% Fujitsu, 42.5% Hitachi and 15% Sony. Further details will be decided by July of this year, and the three companies plan to conclude a shareholders' agreement.
Demand is expanding rapidly for PDPs, which, with their large screen size yet thin profile and light weight, have become a main component of commercial-use information displays. In addition to self-luminescence, digital operation and a wide viewing angle, they are distinguished by their ability to display both video and still images - including those with small characters or numbers -- in precise detail. Moreover, still greater demand for PDPs is foreseen as the market for high-quality, wall-hung televisions for home use expands in response to the launch of digital broadcasting. By 2003, the worldwide PDP market is estimated to reach 2.3 million units per year.
Anticipating this market expansion, Fujitsu and Hitachi jointly established FHP in April 1999 as the world's first manufacturer specializing in PDPs. FHP, which has focused on the commercial display sector, holds the top share of today's PDP market. The company is now adding a second volume production facility to its manufacturing complex in Miyazaki, Kyushu, and full production will commence at the beginning of 2001.
In addition to its capital investment, Sony brings to FHP a broad portfolio of world-class display technology and know-how, ranging from devices to monitors and television sets. Taking advantage of these assets, and through further technological cooperation, FHP will be able to expand its business and accelerate the pace of return on investment.
Recognizing the highly promising future of FHP's plasma display panel business, Sony expects that this cooperative venture will make it possible for it to procure highly competitive PDP devices from FHP. And through its capital participation as a minority shareholder, Sony will also participate in planning of the company's PDP activities.
As the leading company in the PDP device field, FHP will continue supplying a wide range of PDP devices to monitor and television manufacturers worldwide.
--Fujitsu Hitachi Plasma Display Limited (FHP) at a Glance--
(following capital injection by Sony)
|Headquarters||:||Kanagawa Science Park, 3-2-1- Sakado, Takatsu-ku,|
Kawasaki, Kanagawa-ken Japan 213-0012
|Capital||:||23.5 billion yen (42.5%: Fujitsu, 42.5%: Hitachi, 15%: Sony)
|Note:|| Sony's 5 billion yen investment will consist of 3.5 billion yen of capital and 1.5 billion yen of capital reserves. FHP will continue to be accounted for as a consolidated subsidiary of Fujitsu Limited.|
|Employees||:||approx. 840 (including manufacturing subsidiary)|
|Sales projections||:||30 billion yen in FY2000|
(130 billion yen in FY 2003)
* All company/product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purpose only.
[About Fujitsu limited]
Fujitsu Limited (TSE: 6702) is a leading provider of comprehensive information technology and network solutions for the global marketplace. Comprising over 500 group companies and affiliates worldwide -- including ICL, Amdahl and DMR Consulting Group -- the Fujitsu Group had consolidated revenues of 5.24 trillion yen ($43.3 billion) in the fiscal year ended March 31, 1999. With world-class hardware and software technology in computers, telecommunications and microelectronics, and a corps of 55,000 systems and services experts around the world, Fujitsu is uniquely positioned to harness the power of the network to help its customers succeed. Altogether, the Fujitsu Group has 188,000 employees and operations in over 100 countries.
Home page: http://www.fujitsu.co.jp/en/
[About Hitachi, Ltd.]
Hitachi, Ltd. (TSE: 6501, NYSE: HIT), headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated sales of 7,977 billion yen ($65.9 billion*). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment.
For more information on Hitachi, Ltd., please visit Hitachi's website at http://www.hitachi.co.jp. * At an exchange rate of 121 yen to the dollar.
[About Sony Corporation]
Sony Corporation is a leading manufacturer of audio, video, communications and information technology products for the consumer and professional markets.
Its music, pictures and computer entertainment operations make Sony one of the most comprehensive entertainment companies in the world.
Sony recorded consolidated annual sales of over $56 billion for the fiscal year ended March 31, 1999. Sony's Home Page URL: http://www.sony.co.jp/