HAIER SIGNS MOU TO ACQUIRE REFRIGERATOR, WASHING MACHINE AND OTHER CONSUMER ELECTRIC APPLIANCES BUSINESS OF SANYO ELECTRIC CO., LTD.

Qingdao, China/Osaka, Japan, 28 July 2011 – Haier Group Corporation (“Haier”) and SANYO Electric Co., Ltd. (“SANYO Electric”) today signed a Memorandum of Understanding (MOU) setting out the terms regarding Haier’s intention to acquire SANYO’s refrigerator, washing machine and other consumer electric appliances business in Japan, Indonesia, Malaysia, the Philippines and Vietnam.  The acquisition will cover the research and development (R&D) and manufacturing facilities of SANYO Electric’s refrigerator and washing machine business, as well as the sales and service business of SANYO Electric consumer electric appliances in the above countries, including the washing machine brand “AQUA” and other “AQUA” related brands.  At the same time, Haier and SANYO Electric have reached an agreement on the use of the “SANYO” brand.   Upon completion of the transaction, Haier will adopt a dual-brand strategy in Japan with “Haier” and “AQUA” brands.  Haier will use the “Haier” brand in Vietnam, Indonesia, the Philippines and Malaysia, and simultaneously use the “SANYO” brand in these markets for a specified period of time.

 “Haier aims to be a leader in the global white goods business. SANYO Electric has already amassed excellent technological capabilities and a strong talent pool in the consumer electric appliances sector in Japan and South East Asia with its outstanding R&D, manufacturing and sales bases. Acquiring the refrigerator, washing machine and other consumer electric appliances business of SANYO Electric is an important part of Haier’s overall growth strategy. Today’s announcement has laid the foundation for Haier’s strategic structure in Japan and South East Asia with two R&D centers, four manufacturing bases and six localized marketing centers, which can better cater to the ever-growing and dynamic needs of consumers in the region, as well as contribute to our sustainable growth. We look forward to working with SANYO Electric’s team for the successful completion of this important milestone for both companies,” said Mr. Du Jingguo, Vice President of Haier Group.

Mr. Mitsuru Homma, Executive Vice President of SANYO Electric Co., Ltd. commented, “Through the transfer of our washing machine and consumer refrigerator businesses to the Haier Group, we will secure employment opportunities of the employees engaged in the businesses and ensure the continuity of the business, and we believe that we are able to offer an unchanged service to our customers in each region.”

Haier expressed that, after the transaction, it will maintain and further strengthen SANYO’s R&D capabilities, and further invest on expanding product lines and market share.

Please note that the points outlined above reflect the intentions expressed today. Henceforth, please note that the contents may be subject to change based on ongoing negotiation by both parties.

Both parties intend to sign official agreements by the end of September 2011. It is business as usual for Haier and SANYO from now through the completion of the transaction, and there will be a seamless transition in customer service.

About Haier Group:

Established in 1984, Haier Group is a multinational consumer electric and home appliances company headquartered in Qingdao, Shandong, People’s Republic of China.  In 2010, its global revenue was USD$ 20.7 billion.  Haier Group’s home appliances and consumer electric business cover the research & development, manufacturing and sales of refrigerators, washing machines, air conditioners, water heaters, kitchen appliances, color TV, computers, mobile phones and U-HOME Series products.

About SANYO Electric Co., Ltd.:
 

SANYO Electric Co., Ltd., a member of the Panasonic Group, is a global company with leading energy and environmental technology and products for commercial and consumer use. SANYO offers products and services that focus on energy generation, energy storage and efficient energy usage, such as photovoltaic (solar) systems, small- to large-scale-use rechargeable batteries, as well as other energy-efficient products and electronic components that are designed with the environment in mind.

For further information, please contact:

Burson-Marsteller

Contact Person:              Ms. Xing Yang / Ms. Wendy Loh

Tel:                     (86-10) 5816 2522 / (86-10) 5816 2601

Email:                         xing.yang@bm.com / wendy.loh@bm.com