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. |
| President: | Toru Katsurada |
| 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.
Homepage: http://www.fujitsu.com/
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/
| Press Contacts: |
|---|
Isao Hirano, Bob Pomeroy, Scott Ikeda
Fujitsu Limited, Public Relations
Tel: +81-3-3215-5236 (Tokyo)
Fax: +81-3-3216-9365
e-mail: pr_mailbox@hq.fujitsu.co.jp
Yukiaki Ina
Hitachi, Ltd., Public Relations
Corporate Communications, Secretary's Office
Tel: +81-3-3258-2055 (Tokyo)
Fax: +81-3-3258-5480
Aki Shimazu
Sony Corporation
Public Relations Department
Tel: +81-3-5448-2200 (Tokyo)
Fax: +81-3-5448-3061
Koichi Takahashi
Fujitsu Hitachi Plasma Display Limited
Business Promotion Division
Tel: +81-44-850-2416 (Kawasaki)
Fax: +81-44-850-2441
|