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  7. Fujitsu Announces Agreement with Hitachi on Plasma Display Panel Business

Fujitsu Announces Agreement with Hitachi on Plasma Display Panel Business

Fujitsu Limited

Tokyo, February 02, 2005

Fujitsu Limited today announced that it has reached a basic agreement with Hitachi, Ltd. regarding Fujitsu's transfer to Hitachi of 30.1% of the issued shares in their joint venture company, Fujitsu Hitachi Plasma Display Limited (FHP), along with related plasma display panel (PDP) intellectual property rights. The companies intend to sign a formal agreement finalizing the arrangements by the end of March, at which time the specified intellectual property rights will be transferred to Hitachi. After providing financial support aimed at eliminating FHP's excessive debt, the companies plan to complete the transfer of shares, following which FHP will become a consolidated subsidiary of Hitachi.

Fujitsu pioneered PDP research in 1968 and over the years has consistently been at the vanguard of technological advances - such as the development of the world's first 21-inch color PDP in 1992 - and their commercialization, in the process garnering numerous patents in fundamental PDP technologies. Leveraging that technological foundation to develop its business, FHP has since its establishment in 1999 continued to advance the frontiers of PDP technology, including development and mass production of the world's first high-definition PDPs (42-inch/37-inch/32-inch), as a PDP industry leader and driving force in the market.

Going forward, although the market for PDPs is expected to greatly expand, competition in the flat-screen television market has become severe, and it will be necessary to develop and manufacture panels offering even greater cost performance and higher added value. The agreement reached by Fujitsu and Hitachi reflects their recognition of these market dynamics and the belief that transferring management control of FHP to longtime partner and plasma television leader Hitachi will enable the necessary restructuring and strengthening of FHP's operations under a new business model that will allow FHP to utilize Hitachi's know-how to an even greater extent than before.

Fujitsu's business centers on providing customers with comprehensive solutions comprising highly reliable, high-performance products and services based on powerful information technologies. The agreement announced today is expected to help enable Fujitsu to further consolidate and effectively allocate its resources in order to strengthen its business.

Supplementary Information

1. About FHP

Trade name:
President:
Headquarters:
Established:
Shareholders:
Business activity:
Fiscal year:
Employees:
Capital:
Recent financial results:
Fujitsu Hitachi Plasma Display Limited
Yoichi Morimoto
Kawasaki City, Kanagawa Prefecture, Japan
April 1999
Fujitsu Limited (50%), Hitachi, Ltd. (50%)
Development, production and marketing of plasma display panels
April 1 - March 31
About 1,100 (as of March 2004)
30.0 billion yen

(million yen)

FY 2002
(Apr. 1, 2002 - Mar. 31, 2003)
FY 2003
(Apr. 1, 2003- Mar. 31, 2004)
Sales 49,448 78,546
Ordinary Income (Loss) (2,359) 5,145
Net Income (Loss) (1,551) 6,909
Total Assets 27,173 32,846
Shareholders' Equity (15,818) (8,908)

2. Composition of Shareholding

Prior to proposed transfer of shares:
Following proposed transfer of shares (planned):
Hitachi (50.0%)
Hitachi (80.1%)
Fujitsu (50.0%)
Fujitsu (19.9%)

3. Planned Timing of Share Transfer

April 2005

4. Effect on Fujitsu's Financial Results

From FY 2005 FHP's results will no longer be consolidated on Fujitsu's financial statements. 

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting technologies, highly reliable computing and communications platforms, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.7 trillion yen (US$45 billion) for the fiscal year ended March 31, 2004.
For more information, please see: http://www.fujitsu.com/

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Company:Fujitsu Limited

Date: 02 February, 2005
City: Tokyo
Company: Fujitsu Limited, , , , ,