PC Panasonic Corp.

Panasonic Corporation1 (Panasonic)(NYSE:PC) today reported its consolidated financial results for the third quarter and nine months ended December 31, 2008, of the current fiscal year ending March 31, 2009 (fiscal 2009).

1 As of October 1, 2008, the company changed its name from �Matsushita Electric Industrial Co., Ltd.� to �Panasonic Corporation.�

Consolidated Third-quarter Results

Consolidated group sales for the third quarter decreased 20% to 1,879.9 billion yen, from 2,344.6 billion yen in the same three-month period a year ago. Of the consolidated group total, domestic sales decreased 10% to 1,023.4 billion yen, from 1,138.3 billion yen a year ago. Overseas sales decreased 29% to 856.5 billion yen, from 1,206.3 billion yen in the third quarter of fiscal 2008.

The current financial crisis originated in the United States has spread across the world and the company�s outlook of the business environment has been extremely uncertain. The company�s business conditions have worsened particularly since last October, due mainly to the rapid appreciation of the yen, sluggish consumer spending worldwide and ever-intensified price competition. Under these severe circumstances, aiming at getting out of this difficult situation and getting growth back on original track, Panasonic is implementing initiatives for achieving further progress and strengthening management structure.

Regarding earnings, operating profit2 for the third quarter was down 84%, to 26.4 billion yen, from 165.4 billion yen in the same period a year ago. This decrease was due mainly to the negative effects of sales declines caused by a sharp downturn of consumer spending both in Japan and overseas, ever-intensified global price competition, rising prices for raw materials and a stronger yen. The company�s comprehensive cost reduction activities including materials costs and fixed costs were not sufficient to offset these negative factors. In other income (deductions), the company incurred impairment losses of tangible fixed assets. As a result of these and other factors, pre-tax income for this period turned to a loss of 59.1 billion yen, compared with a profit of 176.6 billion yen in the same period a year ago. Accordingly, net income turned to a loss of 63.1 billion yen, compared with a profit of 115.2 billion yen in the same quarter of the previous year.

2 For information about operating profit, see Note 2 of Notes to consolidated financial statements on page 15.

Consolidated Nine-month Results

Consolidated group sales for the nine months ended December 31, 2008 decreased 9% to 6,223.7 billion yen, compared with 6,869.9 billion yen in the same nine-month period a year ago. Domestic sales amounted to 3,134.1 billion yen, down 6% from 3,326.1 billion yen in the previous year�s nine months, while overseas sales decreased 13% to 3,089.6 billion yen from 3,543.8 billion yen a year ago.

For reasons similar to those given for third quarter results, the company�s operating profit for the nine months decreased 34% to 254.5 billion yen, from 385.4 billion yen in the comparable period a year ago. In other income (deductions), the company incurred impairment losses of tangible fixed assets. These and other factors resulted in pre-tax income of 144.2 billion yen, down 60% from 364.2 billion yen in the same period a year ago. Net income decreased 70% to 65.4 billion yen, compared with 220.3 billion yen in the nine months of the previous year. The company�s net income per common share was 31.40 yen on a diluted basis, versus 103.65 yen in the nine months of last year.

Consolidated Nine-month Sales Breakdown by Product Category

The company�s nine-month consolidated sales by product category, compared with prior year amounts, are summarized as follows:

Digital AVC Networks3

Digital AVC Networks sales decreased 7% to 2,838.9 billion yen, from 3,051.5 billion yen in last year�s nine months. Within this category, despite increased sales of flat-panel TVs and DVD recorders, overall sales of video and audio equipment decreased 1% from the previous year�s nine months, due mainly to a sales decline of digital cameras and audio equipment.

In information and communications equipment, sluggish sales of PCs and peripherals, and automotive electronics led to a 13% decrease in overall sales.

3 From fiscal 2009, the name of �AVC Networks� was changed to �Digital AVC Networks.�

Home Appliances

Sales of Home Appliances decreased 4% to 932.5 billion yen, compared with 972.9 billion yen in last year�s nine months, due mainly to sluggish sales of compressors, microwave ovens and electric lamps.

PEW and PanaHome4

Sales of PEW and PanaHome decreased 4% to 1,222.0 billion yen, from 1,277.4 billion yen last year. At Panasonic Electric Works Co., Ltd. (PEW)5 and its subsidiaries, sales decreased mainly in home appliances such as health-enhancing products, electronic and plastic materials, and automation controls. At PanaHome Corporation and its subsidiaries, steady demand for housing construction led to an increase in sales.

4 The name of �MEW and PanaHome� was changed to �PEW and PanaHome� as of October 1, 2008.

5 The name of Matsushita Electric Works, Ltd. (MEW) was changed to Panasonic Electric Works Co., Ltd. (PEW) as of October 1, 2008.

Components and Devices

Sales of Components and Devices were down 14% to 760.8 billion yen, compared with 881.4 billion yen in the same period of the previous year. Sluggish sales in general electronic components and semiconductors led to a decrease in overall sales.

Other

Sales of Other totaled 469.5 billion yen, down 7% from 506.2 billion yen in the same period a year ago, due mainly to a sales decline in factory automation equipment.

Consolidated Financial Condition

Net cash provided by operating activities in the fiscal 2009 nine months ended December 31, 2008 amounted to 123.9 billion yen. Despite an increase in inventories, this result was due mainly to cash inflows from net income, depreciation and a decrease in trade receivables. Net cash used in investing activities amounted to 355.6 billion yen. This was due primarily to capital expenditures for tangible fixed assets, mainly consisting of manufacturing facilities for priority business areas such as plasma and liquid crystal display panels, and semiconductors. Net cash used in financing activities was 198.2 billion yen. Major factors included the repurchase of the company�s own shares and the payment of cash dividends. All these activities resulted in cash and cash equivalents of 724.1 billion yen at the end of the third quarter of fiscal 2009, down 490.7 billion yen from the end of the last fiscal year (March 31, 2008).

The company�s consolidated total assets as of December 31, 2008 amounted to 6,590.9 billion yen, a decrease of 852.7 billion yen compared with the end of the last fiscal year. This result was due primarily to a decrease of cash and cash equivalents as a consequence of implementing capital investment and return to shareholders, and a decrease of investments and advances due to a decline in stock prices. Stockholders� equity decreased 429.0 billion yen, compared with the end of the last fiscal year, to 3,313.3 billion yen as of December 31, 2008. This was due mainly to a decrease in accumulated other comprehensive income and an increase in treasury stock on repurchases of the company�s own shares.

Outlook for the Full Fiscal Year 2009

On November 27, 2008, the company announced a revision of financial results forecast for fiscal 2009, ending March 31, 2009. However, both domestic and overseas markets conditions have further deteriorated since then, therefore the company expects a further sales decrease. The company also expects a profit decrease due to changes in expected foreign exchange rates, caused by continuous appreciation of the yen. Considering these and other factors, including an additional implementation of business restructuring initiatives for improving profitability, Panasonic today announced a downward revision of the consolidated financial forecast for the full fiscal year 2009, ending March 31, 2009, from the previous forecast announced on November 27, 2008. Regarding net sales on a consolidated basis, the company has revised its previous forecast of 8,500 billion yen downward to 7,750 billion yen. Consolidated operating profit is expected to amount to 60 billion yen, down from the previous forecast of 340 billion yen. Consolidated income before income taxes6 is forecast to be a loss of 380 billion yen, down from the previous forecast of a profit of 100 billion yen. Net income is now expected to be a loss of 380 billion yen, down from the previous forecast of a profit of 30 billion yen.

6 Factors affecting the forecast for other income (deductions) of 440 billion yen (the difference between operating profit and income before income taxes) include 345 billion yen as business restructuring expenses and 78 billion yen as a write-down of investment securities. The business restructuring expenses of 345 billion yen, in particular, mainly consists of the expenditures related to the integration or the closure of the company�s operating sites in Japan and abroad, impairment losses of fixed assets and expenses associated with the employment structural reforms.

Outlook for the Year-end Dividend

Panasonic, in principle, distributes profits to shareholders based on its consolidated business performance, and will aim for stable and continuous growth in dividends, targeting a consolidated dividend payout ratio of between 30% and 40%. Regarding the year-end dividend, considering the downward revision of the fiscal 2009 financial forecast as mentioned above, the company plans to decrease the year-end dividend from 22.5 yen per common share to 7.5 yen per common share. Total dividends for fiscal 2009 ending March 31, 2009, including an interim dividend of 22.5 yen per common share paid November 2008, are expected to be 30.0 yen per common share, down from 35.0 yen per common share for fiscal 2008.

Panasonic Corporation is one of the world's leading manufacturers of electronic and electric products for consumer, business and industrial use. Panasonic�s shares are listed on the Tokyo, Osaka, Nagoya and New York stock exchanges.

For more information, please visit the following web sites:

Panasonic home page URL: http://panasonic.net/

Panasonic IR web site URL: http://panasonic.net/ir/

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.

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 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; 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 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.

(Financial Tables and Additional Information Attached)

Panasonic Corporation

Consolidated Statement of Income *

(Three months ended December 31) � � � � Yen

(millions)

Percentage

2008

2007

2008/2007

Net sales

� 1,879,940

� 2,344,565 80 % Cost of sales (1,369,297 ) (1,640,169 )

Selling, general andadministrative expenses

(484,281 ) (539,004 ) Interest income 5,939 9,128 Dividend income 4,616 3,895 Interest expense (5,035 ) (4,735 )

Expenses associated withthe implementation ofearly retirement programs **

(1,900 ) (3,362 ) Other Income (loss), net (89,122 ) 6,272 � Income (loss) before income taxes (59,140 ) 176,590 -- � Provision for income taxes (25,243 ) (47,036 ) Minority interests 25,642 (11,062 )

Equity in earnings (losses) ofassociated companies

(4,375 ) (3,309 ) Net income (loss)

� (63,116

)

� 115,183 � -- Net income (loss), basic � per common share (30.48) yen 54.49 yen per ADS (30.48) yen 54.49 yen Net income, diluted per common share -- 54.49 yen per ADS -- 54.49 yen � (Parentheses indicate expenses, deductions or losses.) � * ** See Notes to consolidated financial statements on pages 15-17. � �

Supplementary Information

(Three months ended December 31) Yen

(millions)

2008

2007

� Depreciation (tangible assets) � 80,789 � 68,552 Capital investment *** � 112,380 � 92,487 R&D expenditures � 130,855 � 130,708 Number of employees (Dec. 31) 307,444 305,622 � *** These figures are calculated on an accrual basis. � Panasonic Corporation

Consolidated Statement of Income *

(Nine months ended December 31) � � � Yen � �

(millions)

Percentage

2008

�

2007

2008/2007

Net sales

� 6,223,651

� 6,869,870 91 % Cost of sales (4,468,001 ) (4,865,737 )

Selling, general andadministrative expenses

(1,501,134 ) (1,618,747 ) Interest income 20,684 26,443 Dividend income 10,847 9,463 Interest expense (16,349 ) (15,315 )

Expenses associated withthe implementation ofearly retirement programs **

(2,493 ) (19,201 ) Other Income (loss), net (123,049 ) (22,545 ) Income before income taxes 144,156 364,231 40 % � Provision for income taxes (91,420 ) (117,900 ) Minority interests 13,538 (16,074 )

Equity in earnings (losses) ofassociated companies

(898 ) (9,952 ) Net income � 65,376 � � 220,305 � 30 % Net income, basic per common share 31.40 yen 103.65 yen per ADS 31.40 yen 103.65 yen Net income, diluted per common share 31.40 yen 103.65 yen per ADS 31.40 yen 103.65 yen � (Parentheses indicate expenses, deductions or losses.) � * ** See Notes to consolidated financial statements on pages 15-17. � �

Supplementary Information

(Nine months ended December 31) Yen

(millions)

2008

2007

Depreciation (tangible assets) � 246,768 � 205,052 Capital investment *** � 352,237 � 309,649 R&D expenditures � 395,997 � 410,624 Number of employees (Dec. 31) 307,444 305,622 � *** These figures are calculated on an accrual basis. � � Panasonic Corporation

Consolidated Balance Sheet **

December 31, 2008 With comparative figures for March 31, 2008 � � Yen

(millions)

Assets

Dec. 31, 2008

March 31, 2008

Current assets: Cash and cash equivalents � 724,125 � 1,214,816 Time deposits 75,159 70,108 Short-term investments 17,245 47,414 Trade receivables: Notes 49,357 59,060 Accounts 855,669 1,046,991 Allowance for doubtful receivables (19,885 ) (20,868 ) Inventories 927,092 864,264 Other current assets 560,287 � 517,409 � Total current assets 3,189,049 � 3,799,194 � Investments and advances 628,817 842,156 Property, plant and equipment, net of accumulated depreciation 1,713,732 1,757,373 Other assets 1,059,346 � 1,044,891 � Total assets � 6,590,944 � � 7,443,614 � �

Liabilities, Minority Interests and Stockholders' Equity

Current liabilities: Short-term borrowings � 125,199 � 156,260 Trade payables: Notes 39,956 37,175 Accounts 719,228 903,379 Other current liabilities 1,319,884 � 1,464,145 � Total current liabilities 2,204,267 � 2,560,959 � Noncurrent liabilities: Long-term debt 254,936 232,346 Other long-term liabilities 361,084 � 393,360 � Total noncurrent liabilities 616,020 � 625,706 � � Minority interests 457,369 514,620 � Common stock 258,740 258,740 Capital surplus 1,217,782 1,217,865 Legal reserve 92,318 90,129 Retained earnings 2,924,162 2,948,065 Accumulated other comprehensive income (loss) * (509,442 ) (173,897 ) Treasury stock (670,272 ) (598,573 ) Total stockholders' equity 3,313,288 � 3,742,329 � Total liabilities, minority interests and stockholders' equity � 6,590,944 � � 7,443,614 � � * Accumulated other comprehensive income (loss) breakdown: � Yen

(millions)

Dec. 31, 2008

March 31, 2008

� Cumulative translation adjustments

� (388,048

)

� (228,792

)

Unrealized holding gains (losses) of available-for-sale securities (54,804 ) 45,442 Unrealized gains (losses) of derivative instruments (552 ) 4,326 Pension liability adjustments (66,038 ) 5,127 � ** See Notes to consolidated financial statements on pages 15-17. � � � � Panasonic Corporation

Consolidated Sales Breakdown *

(Three months ended December 31) � � Yen

(billions)

Percentage

2008

2007

2008/2007

Digital AVC Networks

Video and audio equipment � 465.1 � 588.2 79% � Information and communications equipment 404.7 543.1 75% � Subtotal 869.8 1,131.3 77% �

Home Appliances

278.5 331.0 84% �

PEW and PanaHome

384.8 428.3 90%

�

Components and Devices

218.8 295.5 74% �

Other

128.0 158.5 81% � Total � 1,879.9 � 2,344.6 80% � Domestic sales 1,023.4 1,138.3 90% � Overseas sales 856.5 1,206.3 71% � (Nine months ended December 31) Yen

(billions)

Percentage

2008

2007

2008/2007

Digital AVC Networks

Video and audio equipment � 1,427.9 � 1,435.9 99% � Information and communications equipment 1,411.0 1,615.6 87% � Subtotal 2,838.9 3,051.5 93%

�

Home Appliances

932.5 972.9 96% �

PEW and PanaHome

1,222.0 1,277.4 96% �

Components and Devices

760.8 881.4 86% �

Other

469.5 506.2 93% �

JVC

-- 180.5 -- � Total � 6,223.7 � 6,869.9 91% � Domestic sales 3,134.1 3,326.1 94% � Overseas sales 3,089.6 3,543.8 87% � * See Notes to consolidated financial statements on pages 15-17. � � � � � � Panasonic Corporation

Consolidated Sales Breakdown *

(Nine months ended December 31) � � [Overseas Sales by Region] Yen

(billions)

Percentage

2008

2007

2008/2007

� North and South America � 840.7 � 1,012.7 83% Europe 805.4 947.5 85% Asia and China 1,443.5 1,583.6 91% Total � 3,089.6 � 3,543.8 87% � � � [Domestic/Overseas Sales Breakdown] � Domestic sales Overseas sales

Yen (billions)

Percentage

Yen (billions)

Percentage

2008

2008/2007

2008

2008/2007

Digital AVC Networks

Video and audio equipment � 407.0 108% � 1,020.9 97% � Information and communications equipment 691.6 91% 719.4 84% � Subtotal 1,098.6 97% 1,740.3 91% �

Home Appliances

515.9 100% 416.6 92% �

PEW and PanaHome

983.7 95% 238.3 100% �

Components and Devices

267.0 88% 493.8 86% �

Other

268.9 96% 200.6 89% � Total � 3,134.1 94% � 3,089.6 87% � * See Notes to consolidated financial statements on pages 15-17. � � � Panasonic Corporation

Consolidated Information by Business Segment *

(Nine months ended December 31)

By Business Segment:

�

Yen (billions)

Percentage

[Sales]

2008

2007

2008/2007

� Digital AVC Networks � 3,040.2 � 3,267.3 93 % Home Appliances 977.6 1,006.2 97 % PEW and PanaHome 1,361.4 1,409.7 97 % Components and Devices 948.5 1,069.6 89 % Other 821.0 792.2 104 % JVC -- � 183.1 � -- Subtotal 7,148.7 7,728.1 93 % Eliminations (925.0 ) (858.2 ) -- Consolidated total � 6,223.7 � � 6,869.9 � 91 % � [Segment Profit]** � Digital AVC Networks � 97.9 � 194.4 50 % Home Appliances 65.1 63.1 103 % PEW and PanaHome 46.1 68.4 67 % Components and Devices 54.0 77.3 70 % Other 28.9 47.1 61 % JVC -- � (9.7 ) -- Subtotal 292.0 440.6 66 % Corporate and eliminations (37.5 ) (55.2 ) -- Consolidated total � 254.5 � � 385.4 � 66 % � * ** See Notes to consolidated financial statements on pages 15-17. �

[For Reference]

Panasonic Corporation

Consolidated Information by Business Field (unreviewed) *

(Nine months ended December 31, 2008) �

By Business Field**:

�

Yen (billions)

[Sales]

2008

� Digital AVC Networks Solution � 3,040.2 Solutions for the Environment and Comfortable Living 2,339.0 Devices and Industry Solution 1,769.5 � Subtotal 7,148.7 Eliminations (925.0 ) Consolidated total � 6,223.7 � � � [Business Field Profit]*** � Digital AVC Networks Solution � 97.9 Solutions for the Environment and Comfortable Living 111.2 Devices and Industry Solution 82.9 � Subtotal 292.0 Corporate and eliminations (37.5 ) Consolidated total � 254.5 � � * *** See Notes to consolidated financial statements on pages 15-17.

** For definition of business fields of the Group, see Note 11 ofNotes�to consolidated�financial statements on page 17.

� � Panasonic Corporation Consolidated Statement of Cash Flows * (Nine months ended December 31) � Yen

(millions)

Cash flows from operating activities:

2008

2007

Net income � 65,376 � 220,305 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 275,260 233,278 Net (gain) loss on sale of investments (15,546 ) (7,956 ) Minority interests (13,538 ) 16,074 (Increase) decrease in trade receivables 117,157 (67,622 ) (Increase) decrease in inventories (138,064 ) (83,032 ) Increase (decrease) in trade payables (96,059 ) (45,226 ) Increase (decrease) in retirement and severance benefits (81,284 ) (89,594 ) Other 10,600 � 70,451 � Net cash provided by operating activities � 123,902 � � 246,678 � �

Cash flows from investing activities:

(Increase) decrease in short-term investments -- 697 Proceeds from disposition of investments and advances 105,671 191,410 Increase in investments and advances (31,270 ) (123,658 ) Capital expenditures (397,121 ) (314,668 ) Proceeds from sale of fixed assets 19,121 129,857 (Increase) decrease in time deposits (26,018 ) 130,091 Purchase of shares of a newly consolidated subsidiary -- (50,465 ) Other (25,934 ) (41,675 ) Net cash used in investing activities

� (355,551

)

� (78,411

)

�

Cash flows from financing activities:

Increase (decrease) in short-term borrowings 2,311 (8,476 ) Increase (decrease) in deposits and advances from employees (39 ) (109 ) Increase (decrease) in long-term debt (26,682 ) (38,304 ) Dividends paid (83,364 ) (69,295 ) Dividends paid to minority interests (18,683 ) (16,502 ) (Increase) decrease in treasury stock (71,782 ) (82,515 ) Proceeds from issuance of shares by subsidiaries -- � 39,866 � Net cash used in financing activities

� (198,239

)

� (175,335

)

� Effect of exchange rate changes on cash and cash equivalents (60,803 ) (13,370 ) Effect of changes in consolidated subsidiaries -- � (93,441 ) Net increase (decrease) in cash and cash equivalents (490,691 ) (113,879 ) Cash and cash equivalents at beginning of period 1,214,816 � 1,236,639 � Cash and cash equivalents at end of period � 724,125 � � 1,122,760 � � * See Notes to consolidated financial statements on pages 15-17.

Notes to consolidated financial statements:

1. The company's consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP).

2. In order to be consistent with generally accepted financial reporting practices in Japan, operating profit is presented as net sales less cost of sales and selling, general and administrative expenses. The company believes that this is useful to investors in comparing the company's financial results with those of other Japanese companies. Please refer to the accompanying consolidated statement of income and Note 5 for U.S. GAAP reconciliation.

3. The company changed the measurement date to March 31 for those postretirement benefit plans with a December 31 measurement date in conformity with the provisions regarding the change in the measurement date of postretirement benefit plan of SFAS No. 158, �Employers� Accounting for Defined Benefit Pension and Other Postretirement Plans � an amendment of FASB Statement No. 87, 88, 106, and 132(R).� With the change in the measurement date, beginning fiscal 2009 balance of �retained earnings� and pension liability adjustments of �accumulated other comprehensive income (loss)� has been reduced by 3,727 million yen and 73,571 million yen, respectively.

4. Comprehensive income was reported as a loss of 196,598 million yen for the nine months ended December 31, 2008. Comprehensive loss includes net income and increases (decreases) in accumulated other comprehensive income (loss) for this period.

5. Under U.S. GAAP, expenses associated with the implementation of early retirement programs at certain domestic and overseas companies are included as part of operating profit in the statement of income.

6. Victor Company of Japan, Ltd. (JVC) issued and allocated new shares of common stock to third parties on August 10, 2007 for a cash consideration of 35 billion yen. As a result, the company�s shareholding in JVC decreased from 52.4% to 36.8%. JVC and its subsidiaries became associated companies under the equity method from consolidated subsidiaries from August 2007. JVC and Kenwood Corporation integrated management by establishing JVC KENWOOD Holdings, Inc. (JVC KENWOOD HD) as of October 1, 2008 through a share transfer. The company has 24.4% of total issued shares of JVC KENWOOD HD. JVC KENWOOD HD and its subsidiaries became associated companies under the equity method from October 1, 2008.

7. Panasonic and SANYO Electric Co., Ltd. (SANYO), upon the resolutions of the meetings of their respective Boards of Directors held on December 19, 2008, have entered into the capital and business alliance agreement. Panasonic will aim to acquire the majority of the voting rights of SANYO assuming full dilution, by means of a public tender offer bid.

8. As of December 19, 2008, the Board of Directors of the company resolved to issue unsecured straight bonds. The total amount of bonds is up to 400 billions yen and the period of issuance is after January 2009 by public offering in Japan. The purpose of funding is capital expenditures, purchases of investment securities including M&A and working capital.

9. Regarding consolidated segment profit, expenses for basic research and administrative expenses at the corporate headquarters level are treated as unallocatable expenses for each business segment, and are included in Corporate and eliminations.

10. The company's business segments are classified according to a business domain-based management system, which focuses on global consolidated management by each business domain, in order to ensure consistency of its internal management structure and disclosure. The company has changed the transaction between Global Procurement Service Company and other segments since April 1, 2008. Accordingly, segment information for Other and Corporate and eliminations of fiscal 2008 has been reclassified to conform to the presentation for fiscal 2009.

Principal internal divisional companies or units and subsidiaries operating in respective segments as of December 31, 2008 are as follows:

Digital AVC Networks

AVC Networks Company*, Panasonic Communications Co., Ltd.

Panasonic Mobile Communications Co., Ltd., Automotive Systems Company*,

System Solutions Company*, Panasonic Shikoku Electronics Co., Ltd.

Home Appliances

Home Appliances Company*, Lighting Company,

Panasonic Ecology Systems Co., Ltd.*

PEW and PanaHome

Panasonic Electric Works Co., Ltd.*, PanaHome Corporation

Components and Devices

Semiconductor Company, Panasonic Electronic Devices Co., Ltd.,

Energy Company, Motor Company

Other

Panasonic Factory Solutions Co., Ltd., Panasonic Welding Systems Co., Ltd.*

Matsushita Battery Industrial Co., Ltd., which used to be a wholly-owned subsidiary, has become an internal divisional company (Energy Company) of Panasonic Corporation as a result of the merger by Panasonic, effective on October 1, 2008.

*Upon the company name change to Panasonic Corporation, some group companies and divisions have changed their names on October 1, 2008.

� Previous Name � Present Name Panasonic AVC Networks Company � AVC Networks Company Panasonic Automotive Systems Company � Automotive Systems Company Panasonic System Solutions Company � System Solutions Company Matsushita Home Appliances Company � Home Appliances Company Matsushita Ecology Systems Co., Ltd. � Panasonic Ecology Systems Co., Ltd. Matsushita Electric Works, Ltd. � Panasonic Electric Works Co., Ltd. Matsushita Welding Systems Co., Ltd. � Panasonic Welding Systems Co., Ltd. �

From fiscal 2009, the name of �AVC Networks� was changed to �Digital AVC Networks.�

11. In a new phase of further growth, Panasonic has been accelerating initiatives to achieve global excellence. From fiscal 2009 onward, in order to further clarify its business fields for investors, Panasonic discloses three new business fields of the group which consist of five segments as shown below. Sales and profits by business fields are calculated as the simple total of business segments making up each business field.

Digital AVC Networks Solution

Digital AVC Networks

Solutions for the Environment and Comfortable Living

Home Appliances, PEW and PanaHome

Devices and Industry Solution

Components and Devices, Other

12. Number of consolidated companies: 529 (including parent company)

13. Number of companies reflected by the equity method: 182

� � � � � � �

Supplemental Consolidated Financial Data for Fiscal 2009

Third Quarter and Nine Months ended December 31, 2008

�

1. Sales Breakdown

yen (billions)

Fiscal 2009

Third Quarter

� � � � � � � � � Total 09/08 �

Localcurrencybasis 09/08

� Domestic 09/08 � Overseas 09/08 �

Localcurrencybasis 09/08

Video and Audio Equipment � 465.1 � 79% � 92% � 149.2 � 98% � 315.9 � � 73% � 91%

Information andCommunications Equipment

� 404.7 � 75% � 82% � 210.2 � 84% � 194.5 � � 67% � 81% � Digital AVC Networks � 869.8 � 77% � 88% � 359.4 � 89% � 510.4 � � 70% � 87% � Home Appliances � 278.5 � 84% � 91% � 175.4 � 95% � 103.1 � � 71% � 86% � PEW and PanaHome � 384.8 � 90% � 93% � 321.5 � 93% � 63.3 � � 78% � 96% � Components and Devices � 218.8 � 74% � 82% � 85.6 � 78% � 133.2 � � 72% � 85% � Other � 128.0 � 81% � 84% � 81.5 � 88% � 46.5 � � 70% � 77% � Total � � 1,879.9 � 80% � 88% � 1,023.4 � 90% � 856.5 � � 71% � 86% yen (billions)

Fiscal 2009 Nine Months

ended December 31, 2008

� � � � � � � � � Total 09/08 �

Localcurrencybasis 09/08

� Domestic 09/08 � Overseas 09/08 �

Localcurrencybasis 09/08

Video and Audio Equipment � 1,427.9 � 99% � 108% � 407.0 � 108% � 1,020.9 � � 97% � 108%

Information andCommunications Equipment

� 1,411.0 � 87% � 93% � 691.6 � 91% � 719.4 � � 84% � 94% � Digital AVC Networks � 2,838.9 � 93% � 100% � 1,098.6 � 97% � 1,740.3 � � 91% � 102% � Home Appliances � 932.5 � 96% � 100% � 515.9 � 100% � 416.6 � � 92% � 102% � PEW and PanaHome � 1,222.0 � 96% � 98% � 983.7 � 95% � 238.3 � � 100% � 112% � Components and Devices � 760.8 � 86% � 92% � 267.0 � 88% � 493.8 � � 86% � 94% � Other � 469.5 � 93% � 95% � 268.9 � 96% � 200.6 � � 89% � 94% � Total � � 6,223.7 � 91% � 96% � 3,134.1 � 94% � 3,089.6 � � 87% � 97%

Notes: The name of "AVC Networks" was changed to "Digital AVC Networks" from fiscal 2009.

The name of "MEW and PanaHome" was changed to "PEW and PanaHome" as of October 1, 2008.

� � � � � �

2. Overseas Sales by Region

yen (billions) � Fiscal 2009 Third Quarter Fiscal 2009 Nine Months

ended December 31, 2008

� � � � � � � � � � � 09/08 �

Localcurrencybasis 09/08

� � � 09/08 �

Localcurrencybasis 09/08

� North and South America � 256.0 � 72% � 86% � 840.7 � 83% � 94% � Europe � 230.1 � 67% � 88% � 805.4 � 85% � 95% � Asia � 189.5 � 69% � 87% � 730.4 � 85% � 97% � China � 180.9 � 78% � 83% � 713.1 � 98% � 103% � Total � 856.5 � 71% � 86% � 3,089.6 � 87% � 97% � � � � � �

3. Sales by Products

� yen (billions) Product Category Products Fiscal 2009 Third Quarter � Nine Months

ended December 31

� Sales � 09/08 � Sales � 09/08 � Digital AVC Networks � VCRs � 14.0 � 54% � 63.3 � 77% � Digital cameras � 49.5 � 68% � 177.2 � 89% TVs � 276.4 � 80% � 841.9 � 105% Plasma TVs � 169.1 � 75% � 487.5 � 97% � LCD TVs � 87.9 � 102% � 286.8 � 139% � DVD recorders � 45.6 � 99% � 109.9 � 107% � Audio equipment � 27.3 � 66% � 79.6 � 75% � Information equipment � 263.7 � 73% � 924.1 � 85%

Communicationsequipment

� 141.0 � 79% � 486.9 � 93% � �

Mobile communicationsequipment

� 72.0 � 88% � 251.0 � 102% Home Appliances � Air conditioners � 40.6 � 83% � 204.0 � 99% � � Refrigerators � 25.0 � 98% � 88.3 � 102% Components and Devices � General components � 79.0 � 68% � 287.9 � 83% � Semiconductors * � 92.6 � 81% � 336.6 � 98% � � Batteries � 72.6 � 89% � 225.0 � 93% � Other � FA equipment � 23.0 � 54% � 125.5 � 79%

* Information for semiconductors is on a production basis.

Note: The name of "AVC Networks" was changed to "Digital AVC Networks" from fiscal 2009. � � � � � � � � � �

4. Segment Information

� yen (billions) �

�

Fiscal 2009 Third Quarter

� Fiscal 2009 Nine Months ended December 31 � �

�

Sales

� 09/08 �

SegmentProfit

�

% of sales

� 09/08 � Sales � 09/08 �

SegmentProfit

� % of sales � 09/08 � Digital AVC Networks � 937.3 � 78% � -4.9 � -0.5% � - � 3,040.2 � 93% � 97.9 � 3.2% � 50% � Home Appliances � 292.0 � 86% � 18.2 � 6.2% � 70% � 977.6 � 97% � 65.1 � 6.7% � 103% � PEW and PanaHome � 432.7 � 92% � 10.4 � 2.4% � 38% � 1,361.4 � 97% � 46.1 � 3.4% � 67% � Components and Devices � 278.3 � 78% � 5.0 � 1.8% � 18% � 948.5 � 89% � 54.0 � 5.7% � 70% � Other � 222.4 � 89% � 0.1 � 0.0% � 1% � 821.0 � 104% � 28.9 � 3.5% � 61% � Total � 2,162.7 � 82% � 28.8 � 1.3% � 16% � 7,148.7 � 93% � 292.0 � 4.1% � 66% � Corporate and eliminations � -282.8 � - � -2.4 � - � - � -925.0 � - � -37.5 � - � - � Consolidated total � 1,879.9 � 80% � 26.4 � 1.4% � 16% � 6,223.7 � 91% � 254.5 � 4.1% � 66% Notes: The name of "AVC Networks" was changed to "Digital AVC Networks" from fiscal 2009. The name of "MEW and PanaHome" was changed to "PEW and PanaHome" as of October 1, 2008. � � � � � � �

5. Financial Data for the Primary Domain Companies

(Business Domain Company Basis)

Fiscal 2009 Third Quarter

� yen (billions) � Sales Domain Company Profit Capital Investment � � � � � � � � � � 09/08 � � � 09/08 � % of Sales � � � 09-08 AVC Networks Company � 519.4 � 85% � -23.4 � - � -4.5% � 50.0 � +24.1 Panasonic Mobile Communications Co., Ltd. � 85.7 � 85% � 6.7 � 160% � 7.8% � 0.8 � -0.3 Panasonic Electronic Devices Co., Ltd. � 92.7 � 70% � -2.0 � - � -2.1% � 8.8 � +0.3 Factory Automation Business � 25.6 � 55% � -4.7 � - � -18.5% � 0.5 � 0.0 �

Fiscal 2009 Nine Months ended December 31, 2008

� yen (billions) Sales Domain Company Profit Capital Investment � � � � � � � � � � 09/08 � � � 09/08 � % of Sales � � � 09-08 AVC Networks Company � 1,602.4 � 103% � 12.5 � 13% � 0.8% � 146.6 � +43.7 Panasonic Mobile Communications Co., Ltd. � 294.9 � 96% � 28.0 � 549% � 9.5% � 2.8 � +0.2 Panasonic Electronic Devices Co., Ltd. � 338.1 � 86% � 15.1 � 47% � 4.5% � 27.8 � +1.8 Factory Automation Business � 137.6 � 80% � 10.6 � 38% � 7.7% � 1.5 � -1.5 * These figures are calculated on an accrual basis. � �

6. Capital Investment by Segments *

yen (billions)

Nine Months endedDecember 31, 2008

� � � � � � 09-08 � Digital AVC Networks 176.9 � � +35.5 � Home Appliances 36.0 � � +2.4 � PEW and PanaHome 29.1 � � +0.1 � Components and Devices ** 92.3 � � -4.2 � Other 17.9 � � +11.7 � JVC - � � -3.0 � Total 352.2 � � +42.5 �

< 39.7

>

* These figures are calculated on an accrual basis. Notes: The name of "AVC Networks" was changed to "Digital AVC Networks" from fiscal 2009. The name of "MEW and PanaHome" was changed to "PEW and PanaHome" as of October 1, 2008. � � � � �

7. Foreign Currency Exchange Rates

Fiscal 2008 � Fiscal 2009 � � Third Quarter �

Nine Months endedDecember 31

� Full Year � Third Quarter �

Nine Months endedDecember 31

U.S. Dollars � �115 � �117 � �115 � �104 � �104 Euro � �161 � �159 � �160 � �155 � �158 Fiscal 2008 � Fiscal 2009 � � Third Quarter �

Nine Months endedDecember 31

� Full Year � Third Quarter �

Nine Months endedDecember 31

U.S. Dollars � �113 � �117 � �114 � �96 � �103 Euro � �164 � �163 � �162 � �127 � �151 *(billions) Fiscal 2008 � Fiscal 2009 � � Third Quarter �

Nine Months endedDecember 31

� Full Year � Third Quarter �

Nine Months endedDecember 31

U.S. Dollars � US$0.7 � US$1.9 � US$2.5 � US$0.6 � US$2.1 Euro � � 0.3 � � 0.9 � � 1.2 � � 0.4 � � 1.2 * These figures are based on the net foreign exchange exposure of the company. �

8. Number of Employees

�

(persons)

�

� � End of December 2007 � End of March 2008 � End of September 2008 � End of December 2008 � Domestic � 136,042 � 135,563 � 134,481 � 132,715 � Overseas � 169,580 � 170,265 � 179,113 � 174,729 � Total � 305,622 � 305,828 � 313,594 � 307,444 � �

�

Quarterly segment information for the past two years is shown on the company's website (http://panasonic.net/ir/).