For Further Information SANYO Electric Co., Ltd. Corporate Communications Team Tel: (03) 3837-6206 Fax: (03) 3837-6381 E-mail: tokyo-pr@svnet.sanyo.co.jp 10.Dec.2002 SANYO Electric Co., Ltd. announces plan to begin production of its HIT Photovoltaic Modules in North America -Aim to increase market share in the North American Market-

Tokyo December 10, 2002---SANYO Electric Co., Ltd. the world's top rechargeable battery maker and a leader in the photovoltaic cells and modules field has announced it will begin production of HIT (Heterojunction with Intrinsic Thin-layer) photovoltaic modules at SANYO Energy S.A. de C.V.'s Monterrey, Mexico plant beginning in the summer of 2003. Japan's domestic Solar power market is progressing steadily as a result of subsidies provided by the Japanese government for household solar energy generating systems. Overseas markets for solar power such as North America and Europe are growing steadily and anticipate continued rapid expansion for these markets in the future. SANYO has not only increased sales of its solar power generating systems in Japan's domestic market but has also moved forward aggressively in expanding overseas sales. SANYO in moving ahead with expansion of photovoltaic module sales in North America will produce photovoltaic modules at SANYO Energy (Mexico) with SANYO Energy (USA) in charge of sales. This will allow SANYO to strengthen its link between the customer and the manufacturing base further improving response time speed to meet customer needs. At SANYO Energy (USA) where SANYO previously manufactured and sold rechargeable batteries, will now be able to utilize this sales infrastructure for photovoltaic modules. Favorable cost merits for distribution and shipment to both America's west and east coasts, local procurement of parts and materials and inexpensive labor costs in comparison with such costs in the United States, make production at SANYO Energy S.A. de C.V. factory in Monterrey an ideal location. By starting production in North America will move ahead to increase sales in overseas markets such as the United States aiming to further expand SANYO's photovoltaic business segment.

Status of Sales in North America

In March of 2002 acquired the UL certification*1 and began sales of Solar Energy systems in North America in April 2002. Though SANYO entered the North American market after other photovoltaic modules manufacturers, the SANYO HIT photovoltaic module with the world top cell energy conversion rate of 18.5% has increased market share in the high-end product market. SANYO's HIT photovoltaic module has been chosen to provide 482kW worth of solar power for the Solar Power system's total of 675kW to be installed on the Moscone Center*2, located in San Francisco, California. This Solar power generation system is the first stage of the reusable energy project to be implemented by the city of San Francisco. *1  UL Certification Represents conformity with a standard for electronic products and production process requirements established by the UL (Underwriters Laboratories Inc.) a certification and testing organization. *2  Moscone Center A convention center located in central downtown San Francisco. A facility similar in size to Japan's Makuhari Messe, the sight of many large events such as "Mac World". The city of San Francisco plans to build a 675kW solar power generation system (annual projected power output of 825,000kWh) on the roof of the "Mosone Center" to be completed in the spring of 2003.

Photovoltaic Module Production Outline

1) Manufacturing Process : HIT photovoltaic cell to be sent from Japan with module assembly done in North America. 2) Manufacturing Scale : Annual manufacturing capability of 10MW using a production line system in alignment with North America Market needs. 3) Investment : Approximately 250 million Yen 4) Models to be manufactured : Production to focus mainly on 190W, 180W, 167W type models

For Reference

SANYO Energy (USA) Corporation Outline 1) Location : San Diego, California, U.S.A. 2) Established : April 1987 3) Capitalization : US$ 10,000,000 4) Representative : president Motoi Matsuura 5) Business Content : Rechargeable batteries (lithium ion battery, nickel metal hydride battery, nickel cadmium battery production and sale) SANYO Energy, S.A. de. C.V. Outline 1)Company Name : SANYO Energy, S.A. de. C.V. Outline 2)Location : Tijuana B.C., Baja California, Mexico 3)Established : January 2002 4)Capitalization : 50,000 Mexico $ 5)Representative : president Yoshinobu Nakatani 6)Business Content : Rechargeable batteries (lithium ion, nickel metal hydride battery production.) Monterrey Factory Outline 1) Location : Escobedo Nuevo Leon, Mexico 2) Established : March 2001 3) Area : ground area: 93,000m2 , Plant Area: 16,000m2 4) Employees : 880 (As of October 2002) 5) Business Content : Rechargeable batteries (lithium ion, nickel metal hydride battery production.) Outline of the City of San Francisco's "Reusable Energy Introduction Project" In November 2001, the city council of San Francisco in response to rising energy costs and changes in global climate patterns approved the issue of city bonds for $100 million dollars to raise the necessary funds to promote the "clean reusable energy" (solar, wind etc) project. Scheduled to use various types of clean reusable energy sources on city and county buildings. The creation of the solar power generating system on the Moscone Center is the first step towards the implementation of this plan for the city of San Francisco. UL (Underwriters Laboratories Inc.) The UL was established 100 years ago as an organization to oversee and regulate insurance companies. The private organization currently carries out the same function of standardization and certification. The regulations established by the UL play an important role in assuring product and consumer safety. Currently almost all electronic products are approved by the UL and carry the UL mark to indicate that it has been approved for safety. As a result most law at that state, county, and city level require that products be UL approved. The UL mark is known to many consumers as a mark representing safety and plays an important part in determining whether or not the product is purchased. The standard for photovoltaic modules is stipulated in UL1703.

Press Contact

SANYO Electric Co., Ltd. Corporate Communications Team Derek Wentz, Akihiko Oiwa TEL: 03-3837-6206 Email: tokyo-pr@svnet.sanyo.co.jp

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