Panasonic Announces the Change in Significant Subsidiaries

As Panasonic Corporation (NYSE:PC)(TOKYO:6752), ("Panasonic") notified in the announcement titled "Panasonic Announces the Result of the Tender Offer for SANYO Shares" dated December 10, 2009, the tender offer through which Panasonic acquired the Shares for SANYO Electric Co., Ltd. ("SANYO") ended on December 9, 2009 (the "Tender Offer"). Today, Panasonic exercised the right to request SANYO to issue common shares of SANYO, in exchange for its acquisition of all of the Class A preferred shares and Class B preferred shares that Panasonic acquired through the Tender Offer and Panasonic received the corresponding common shares (hereinafter referred to as the "Conversion"). As a result of the Conversion of the Class B preferred shares on which no voting rights are granted, into common shares, SANYO and a part of SANYO's subsidiaries have become Panasonic's significant subsidiaries.

1. Reason for and Method of the Change

As a result of Panasonic's Conversion of the Class B preferred shares of SANYO which Panasonic acquired through the Tender Offer into common shares, SANYO and a part of SANYO's subsidiaries have become Panasonic's significant subsidiaries.

2. Outline of the Subsidiaries, Number of Shares Acquired, Acquisition Cost and Status of Shares Owned before and after Acquisition

(1) SANYO Electric Co., Ltd.

Note 1) The shareholding ratio against the total number of voting rights of shareholders of SANYO before acquisition is calculated by setting the denominator to the total number of voting rights (4,876,837 units) which is the sum of (a) the total number of voting rights (4,735,373 units) as of September 30, 2009, and (b) the increase in the number of voting rights (141,464 units) due to the Conversion of the Class B preferred shares into common shares during the period from October 1, 2009, to December 20, 2009. The shareholding ratio against the total number of voting rights of shareholders of SANYO after acquisition is calculated by setting the denominator to the total number of voting rights (6,130,442 units) which is the sum of (a) the total number of the voting rights before acquisition (4,876,837 units), and (b) the increase in the number of voting rights (1,253,605 units) due to the Conversion of the Class B preferred shares into common shares by Panasonic dated December 21, 2009 (including the increase in the number of voting rights (1 unit) by adding the common shares less than one unit which Panasonic has owned before the Conversion and the common shares less than one unit which Panasonic received due to the Conversion).

Note 2) Since one unit of voting right is granted per every 100 shares on the Class A preferred shares, no change has occurred in the number of Panasonic's voting rights, at the time of acquisition of common shares due to the Conversion of the Class A preferred shares.

Note 3) The acquisition cost is not the acquisition cost at the time of the acquisition of common shares due to the Conversion of the Class A preferred shares, but the acquisition cost at the time of the acquisition of the Class A preferred shares through the Tender Offer on December 16, 2009.

Note 4) The acquisition cost is not the acquisition cost at the time of the acquisition of the common shares due to the Conversion of the Class B preferred shares, but the acquisition cost at the time of the acquisition of the Class B preferred shares through the Tender Offer on December 16, 2009.

(2) SANYO ASIA PTE LTD

(3) SANYO NORTH AMERICA CORPORATION

(4) SANYO EUROPE LTD.

4. Schedule of the Change

December 21, 2009 (Monday)

5. Future prospects

The expected impact of the change in significant subsidiaries on Panasonic's consolidated business results for the Fiscal Year ending March 2010 (April 1, 2009, through March 31, 2010) is currently under close investigation and will be announced as soon as it becomes clear.

Disclaimer Regarding Forward-Looking Statements

This press release includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) about Panasonic and its Group companies (the Panasonic Group). To the extent that statements in this press release do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Panasonic Group's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes no obligation to publicly update any forward-looking statements after the date of this press release. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 and its other filings.

The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the United States, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; currency rate fluctuations, notably between the yen, the U.S. dollar, the euro, the Chinese yuan, Asian currencies and other currencies in which the Panasonic Group operates businesses, or in which assets and liabilities of the Panasonic Group are denominated; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the ability of the Panasonic Group to respond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price and technology; the possibility of not achieving expected results on the alliances or mergers and acquisitions including the acquisition of SANYO Electric Co., Ltd.; the ability of the Panasonic Group to achieve its business objectives through joint ventures and other collaborative agreements with other companies; the ability of the Panasonic Group to maintain competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Panasonic Group has holdings or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, deferred tax assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in Panasonic's latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission.