Sony to establish ST Mobile Display Corporation

March 31, 2005

Second Manufacturing Base for Low-Temperature Polysilicon TFT LCD Panels for Mobile Products

Sony Corporation today announced the establishment of "ST Mobile Display Corporation". This follows Sony's purchase of the LCD panel manufacturing business previously owned by International Display Technology (hereafter IDTech). The new company will produce low-temperature polysilicon thin film transistor liquid crystal displays (hereafter LTPS-TFT-LCD) panels for mobile products.

LTPS-TFT-LCD panels are used in various mobile products such as video cameras, digital still cameras and mobile telephones and Sony expects these markets to grow even further from now on. Following ST Liquid Crystal Display Corp (hereafter STLCD), a joint venture between Sony and Toyota Industries Corporation established in October 1997, Sony will position STMD as the second manufacturing base of LTPS-TFT-LCD panel for mobile products. It will address customer's various needs through the technological cooperation of STMD and STLCD.

The company will inherit production equipment, facilities, and personnel from IDTech's plant in Yasu-shi, Shiga prefecture in Japan. Sony will invest approx. 27 billion yen on equipment and facility modification and this will enable STMD to have a production capacity of 25,000 units/month (550x650mm circuit board base). The mass production of LTPS-TFT-LCD panels is scheduled to start from April 2006.

Furthermore, it has also been decided that Toyota Industries Corporation will be investing 20% of STMD's capital.

Executive Deputy President and COO of Sony Corporation, Dr. Ryoji Chubachi stated:
"I am delighted that we have completed the purchase agreement and the establishment of the LCD display panel plant previously owned by IDTech on schedule. Together with Toyota Industries Corporation, Sony will fully utilize both STLCD and STMD to create superb quality LTPS-TFT-LCD panels for mobile products that meet customers' needs."

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