PC Panasonic Corp.

Panasonic Corporation1 (Panasonic)(NYSE:PC) today reported its consolidated financial results for the year ended 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 Results

Consolidated group sales for fiscal 2009 decreased 14% to 7,765.5 billion yen, from 9,068.9 billion yen in the previous fiscal year. Of the consolidated group total, domestic sales amounted to 4,082.2 billion yen, down 10% from 4,544.8 billion yen a year ago. Overseas sales decreased 19% to 3,683.3 billion yen, from 4,524.1 billion yen in fiscal 2008, ended March 31, 2008.

During the year under review, the current financial crisis, which originated in the United States, spread across the world and the company�s outlook of the business environment was extremely uncertain. The company�s business conditions worsened considerably from last October, due mainly to the sharp appreciation of the yen, rapidly shrinking demand worldwide and ever-intensified price competition. Under these severe circumstances, in an attempt to get out of this difficult situation and get growth back on its original track, Panasonic implemented initiatives for achieving further progress and strengthening management structure. In particular, the company accelerated the business restructuring initiatives on the basis of business selection and concentration such as integration and closure of manufacturing sites, from the view point of global optimal production, withdrawal from unprofitable businesses, and reassigning and downsizing of workforce.

Regarding earnings, operating profit2 for this fiscal year was down 86%, to 72.9 billion yen, from 519.5 billion yen in the previous year. Although the company implemented thorough streamlining of material and fixed costs, this result was due mainly to the effect of a sharp sales decline, rising prices for crude oil and other raw materials, and ever-intensified global price competition. In other income (deductions), the company incurred 367.4 billion yen as business restructuring expenses and 92.0 billion yen as a write-down of investment securities. As a result of these and other factors, the company regrettably incurred a pre-tax loss of 382.6 billion yen. Accordingly, net income turned to a loss of 379.0 billion yen.

2 For information about operating profit, see Note 2 of the Notes to consolidated financial statements on page 14.

Consolidated Sales Breakdown by Product Category

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

Digital AVC Networks3

Digital AVC Networks sales decreased 13% to 3,492.0 billion yen, from 4,001.8 billion yen in the previous year. Sales of video and audio equipment decreased 6% from the previous year, due mainly to sluggish sales in digital AV products such as plasma TVs and digital cameras. In information and communications equipment, weak sales of automotive electronics led to a 19% decrease overall from a year ago.

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

Home Appliances

Sales of Home Appliances decreased 9% to 1,166.3 billion yen, compared with 1,283.0 billion yen in the previous year, due mainly to a sales decline of air conditioners and compressors.

PEW and PanaHome4

Sales of PEW and PanaHome decreased 9% to 1,581.2 billion yen, from 1,730.7 billion yen a year ago. At Panasonic Electric Works Co., Ltd. (PEW)5 and its subsidiaries, sales decreased mainly in electronic materials, automation controls and health-enhancing products. At PanaHome Corporation and its subsidiaries, a rapid deterioration of housing market conditions after September 2008 led to a decrease 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 also down 21% to 907.6 billion yen, compared with 1,150.3 billion yen in the previous year, due mainly to a sales downturn of semiconductors and general electronic components.

Other

Sales of Other totaled 618.4 billion yen, down 14 % from 722.6 billion yen in the same period a year ago, due mainly to weak sales in factory automation equipment.

Consolidated Financial Condition

Net cash provided by operating activities in fiscal 2009 amounted to 116.6 billion yen. This was attributable primarily to depreciation and a decrease in trade receivables, despite a net loss and a decrease in trade payables. Net cash used in investing activities amounted to 469.4 billion yen. Despite having proceeds from disposition of investments and advances, this was due primarily to capital expenditures for tangible fixed assets of 521.6 billion yen, mainly consisting of manufacturing facilities for priority business areas such as plasma and liquid crystal display panels, and semiconductors. Net cash provided by financing activities was 148.7 billion yen, due mainly to an increase in long-term debt by issuing unsecured straight bonds, despite repurchase of the company�s common stock and the payment of cash dividends. All these activities, as well as a net decrease in cash and cash equivalents of 36.8 billion yen associated with the effect of exchange rate fluctuations, resulted in cash and cash equivalents of 973.9 billion yen at the end of fiscal 2009, down 240.9 billion yen, compared with the end of the last fiscal year.

The company�s consolidated total assets as of March 31, 2009 decreased 1,040.3 billion yen to 6,403.3 billion yen, compared with 7,443.6 billion yen at the end of the last fiscal year (March 31, 2008). This was due mainly to a decrease on trade receivables and a reduction of inventories affected by deteriorated market conditions, and a decrease in investments and advances affected by a decline of stock price. Stockholders� equity decreased 958.3 billion yen, compared with the end of the last fiscal year, to 2,784.0 billion yen as of March 31, 2009. This result was due primarily to decreases in retained earnings and accumulated other comprehensive income.

Year-end Dividend

The company paid an interim dividend of �22.5 per share on November�28, 2008. However, the company regrettably plans to pay a year-end dividend of �7.5 per share, due mainly to the deterioration of consolidated financial results, making a total annual cash dividend of �30 per share.

Outlook for Fiscal 2010

Regarding the business environment for fiscal 2010 ending March 31, 2010, the company currently expects to encounter severe conditions because two trends are developing simultaneously. One is the world recession and shrinking demand, and the other is the changes in market structure such as the expanding emerging markets and a demand shift to lower-priced products. Under these environments, the company will rebuild its management structure thoroughly, as well as make preparations for the next phase of development and growth simultaneously, aiming to be in a strong position when the market recovers. Although the management environment of the final year of the GP3 plan will be different from the conditions that we previously expected, the company will not change the direction of the GP3 plan. The company currently expects fiscal 2010 sales on a consolidated basis to total 7,000 billion yen, a decrease of 10% from the previous fiscal year. Consolidated operating profit is forecast to increase by 3% to 75 billion yen. Consolidated loss before income taxes6 is anticipated to be 95 billion yen, with net loss attributable to the company7 expected to be 195 billion yen.

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/

6 Factors affecting the forecast for other income (deductions) of 170 billion yen (the difference between operating profit and income before income taxes) include business restructuring expenses of 88 billion yen.

7 From fiscal 2010 onwards, in accordance with SFAS No.160, the term �net income (loss)� will change to �net income (loss) attributable to the company.�

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 Operations *

(Year ended March 31) � � Yen � �

(millions)

Percentage

2009

�

2008

2009/2008

� Net sales � 7,765,507 � 9,068,928 86 % Cost of sales (5,667,287 ) (6,377,240 ) Selling, general and � administrative expenses (2,025,347 ) (2,172,207 ) Interest income 23,477 34,371 Dividend income 11,486 10,317 Interest expense (19,386 ) (20,357 ) Expenses associated with the implementation of early retirement programs ** (38,351 ) (32,644 ) Other Income (loss), net (432,733 ) (76,175 ) Income (loss) before income taxes (382,634 ) 434,993 -- � � Provision for income taxes (37,358 ) (114,573 ) Minority interests 24,882 (28,637 ) Equity in earnings (losses) of associated companies 16,149 � (9,906 ) Net income (loss)

� (378,961

)

� 281,877 � -- Net income (loss), basic per common share (182.25) yen 132.90 yen per ADS (182.25) yen 132.90 yen Net income (loss), diluted per common share (182.25) yen 132.90 yen per ADS (182.25) yen 132.90 yen � (Parentheses indicate expenses, deductions or losses.) � * ** See Notes to consolidated financial statements on pages 14-16. � �

Supplementary Information

(Year ended March 31)

Yen

(millions)

2009

2008

Depreciation (tangible assets) � 325,835 � 282,102 Capital investment *** � 494,368 � 449,348 R&D expenditures � 517,913 � 554,538 � Number of employees (March 31) 292,250 305,828 � *** These figures are calculated on an accrual basis. � Panasonic Corporation

Consolidated Balance Sheet **

March 31, 2009 With comparative figures for March 31, 2008 � � � Yen

(millions)

Assets

March 31, 2009

�

March 31, 2008

Current assets: Cash and cash equivalents � 973,867 � 1,214,816 Time deposits 189,288 70,108 Short-term investments 1,998 47,414 Trade receivables: Notes 42,766 59,060 Accounts 743,498 1,046,991 Allowance for doubtful receivables (21,131 ) (20,868 ) Inventories 771,137 864,264 Other current assets 493,271 � 517,409 � Total current assets 3,194,694 � 3,799,194 � � Investments and advances 551,751 842,156 Property, plant and equipment, net of accumulated depreciation 1,574,830 1,757,373 Other assets 1,082,041 � 1,044,891 � Total assets � 6,403,316 � � 7,443,614 � �

Liabilities, Minority Interests and Stockholders' Equity

Current liabilities: Short-term borrowings � 94,355 � 156,260 Trade payables: Notes 38,202 37,175 Accounts 641,166 903,379 Other current liabilities 1,226,705 � 1,464,145 � Total current liabilities 2,000,428 � 2,560,959 � Noncurrent liabilities: Long-term debt 651,310 232,346 Other long-term liabilities 538,997 � 393,360 � Total noncurrent liabilities 1,190,307 � 625,706 � � Minority interests 428,601 514,620 � Common stock 258,740 258,740 Capital surplus 1,217,764 1,217,865 Legal reserve 92,726 90,129 Retained earnings 2,479,416 2,948,065 Accumulated other comprehensive income (loss) * (594,377 ) (173,897 ) Treasury stock (670,289 ) (598,573 ) Total stockholders' equity 2,783,980 � 3,742,329 � Total liabilities, minority interests and stockholders' equity � 6,403,316 � � 7,443,614 � � * Accumulated other comprehensive income (loss) breakdown: � Yen

(millions)

March 31, 2009

March 31, 2008

Cumulative translation adjustments

� (341,592

)

� (228,792

)

Unrealized holding gains (losses) of available-for-sale securities (10,563 ) 45,442 Unrealized gains (losses) of derivative instruments (4,889 ) 4,326 Pension liability adjustments (237,333 ) 5,127 � ** See Notes to consolidated financial statements on pages 14-16. � Panasonic Corporation

Consolidated Sales Breakdown *

(Year ended March 31) � � � Yen � � � �

(billions)

Percentage

2009

�

2008

2009/2008

Digital AVC Networks

Video and audio equipment � 1,699.7 � 1,799.2 94% � Information and communications equipment 1,792.3 2,202.6 81% � Subtotal 3,492.0 4,001.8 87%

�

Home Appliances

1,166.3 1,283.0 91% �

PEW and PanaHome

1,581.2 1,730.7 91% �

Components and Devices

907.6 1,150.3 79% �

Other

618.4 722.6 86% �

JVC

-- 180.5 -- � Total � 7,765.5 � 9,068.9 86% � Domestic sales 4,082.2 4,544.8 90% � Overseas sales 3,683.3 4,524.1 81% � � [Overseas Sales by Region] Yen

(billions)

Percentage

2009

2008

2009/2008

North and South America � 996.7 � 1,250.7 80% � Europe 963.0 1,212.9 79% � Asia, China and others 1,723.6 2,060.5 84% � Total � 3,683.3 � 4,524.1 81% � � [Domestic/Overseas Sales Breakdown] Domestic sales Overseas sales

Yen (billions)

Percentage

Yen (billions)

Percentage

2009

2009/2008

2009

2009/2008

Digital AVC Networks

Video and audio equipment � 493.2 102% � 1,206.5 92% � Information and communications equipment 934.5 85% 857.8 77% � Subtotal 1,427.7 91% 2,064.3 85%

�

Home Appliances

656.5 97% 509.8 84% �

PEW and PanaHome

1,298.4 92% 282.8 90% �

Components and Devices

319.0 80% 588.6 78% �

Other

380.6 88% 237.8 82% � Total � 4,082.2 90% � 3,683.3 81% � * See Notes to consolidated financial statements on pages 14-16. � Panasonic Corporation

Consolidated Information by Business Segment *

(Year ended March 31)

By Business Segment:

� � �

�

Yen (billions)

� � Percentage [Sales]

2009

2008

2009/2008

Digital AVC Networks � 3,749.0 � 4,319.6 87 % Home Appliances 1,222.9 1,316.4 93 % PEW and PanaHome 1,766.3 1,910.3 92 % Components and Devices 1,127.3 1,398.7 81 % Other 1,071.7 1,084.3 99 % JVC -- � 183.1 � -- Subtotal 8,937.2 10,212.4 88 % Eliminations (1,171.7 ) (1,143.5 ) -- Consolidated total � 7,765.5 � � 9,068.9 � 86 % � [Segment Profit]** Digital AVC Networks � 3.2 � 252.3 1 % Home Appliances 49.0 86.4 57 % PEW and PanaHome 40.1 96.4 42 % Components and Devices 7.1 105.0 7 % Other 23.9 64.2 37 % JVC -- � (9.7 ) -- Subtotal 123.3 594.6 21 % Corporate and eliminations (50.4 ) (75.1 ) -- Consolidated total � 72.9 � � 519.5 � 14 % �

By Domestic and Overseas Company Location:

�

Yen (billions)

Percentage [Sales]

2009

2008

2009/2008

Japan � 6,053.6 � 6,789.5 89 % North and South America 964.7 1,213.1 80 % Europe 969.5 1,218.2 80 % Asia, China and others 2,457.6 � 2,960.0 � 83 % Subtotal 10,445.4 12,180.8 86 % Eliminations (2,679.9 ) (3,111.9 ) -- Consolidated total � 7,765.5 � � 9,068.9 � 86 % � [Segment Profit]** Japan � 72.7 � 422.1 17 % North and South America (2.8 ) 22.1 -- Europe (30.4 ) 20.4 -- Asia, China and others 82.6 � 125.1 � 66 % Subtotal 122.1 589.7 21 % Corporate and eliminations (49.2 ) (70.2 ) -- Consolidated total � 72.9 � � 519.5 � 14 % � * ** See Notes to consolidated financial statements on pages 14-16. �

[For Reference]

Panasonic Corporation

Consolidated Information by Business Field (unaudited) *

(Year ended March 31, 2009) �

By Business Field**:

�

Yen (billions)

[Sales]

2009

� Digital AVC Networks Solution � 3,749.0 Solutions for the Environment and Comfortable Living 2,989.2 Devices and Industry Solution 2,199.0 � Subtotal 8,937.2 Eliminations (1,171.7 ) Consolidated total � 7,765.5 � � � [Business Field Profit]*** � Digital AVC Networks Solution � 3.2 Solutions for the Environment and Comfortable Living 89.1 Devices and Industry Solution 31.0 � Subtotal 123.3 Corporate and eliminations (50.4 ) Consolidated total � 72.9 � � � * *** See Notes to consolidated financial statements on pages 14-16. �

** For definition of business fields of the Group, see Note 12 ofNotes to consolidated financial�statements on page 16.

� Panasonic Corporation

Consolidated Statement of Stockholders' Equity *

(Years ended March 31, 2009 and 2008)

Yen (millions)

� � � � Common

stock

� Capital

surplus

� Legal

reserve

� Retained

earnings

�

Accumulated

other

comprehensive

income (loss)

� Treasury

stock

� Total

stockholders'

equity

(Year ended March 31, 2009) Balances at beginning of period

prior to adjustment

� 258,740 � 1,217,865 � � 90,129 � 2,948,065 �

� (173,897

)

� (598,573) � 3,742,329 � � Effects of changing the pension plan

measurement date pursuant to

the provisions of SFAS No.158

(3,727 ) (73,571 ) (77,298 ) Balances at beginning of period

as adjusted

� 258,740 � 1,217,865 � � 90,129 � 2,944,338 �

� (247,468

)

� (598,573) � 3,665,031 � � Gain (loss) from sale of treasury stock (101 ) (101 ) Transfer from retained earnings 2,597 (2,597 ) -- Cash dividends (83,364 ) (83,364 ) Disclosure of

comprehensive income (loss)

Net income (loss) (378,961 ) (378,961 ) Translation adjustments (112,800 ) (112,800 ) Unrealized holding gains (losses)

of available-for-sale securities

(56,005 ) (56,005 ) Unrealized gains (losses) of

derivative instruments

(9,215 ) (9,215 ) Pension liability adjustments (168,889 ) (168,889 ) Total comprehensive income (loss) (725,870 ) Repurchase of common stock, net � � � � � � � � (71,716 ) (71,716 ) Balances at end of period � 258,740 � 1,217,764 � � 92,726 � 2,479,416 �

� (594,377

)

� (670,289) � 2,783,980 � � � (Year ended March 31, 2008) Balances at beginning of period � 258,740 � 1,220,967 � � 88,588 � 2,737,024 � � 107,097 � � (495,675) � 3,916,741 � � Gain (loss) from sale of treasury stock 59 59 Increase (decrease) mainly in

capital transactions

(3,161 ) (3,161 ) Transfer from retained earnings 1,541 (1,541 ) -- Cash dividends (69,295 ) (69,295 ) Disclosure of

comprehensive income (loss)

Net income 281,877 281,877 Translation adjustments (129,254 ) (129,254 ) Unrealized holding gains (losses)

of available-for-sale securities

(115,389 ) (115,389 ) Unrealized gains (losses) of

derivative instruments

3,464 3,464 Pension liability adjustments (39,815 ) (39,815 ) Total comprehensive income (loss) 883 Repurchase of common stock, net � � � � � � � � (102,898 ) (102,898 ) Balances at end of period � 258,740 � 1,217,865 � � 90,129 � 2,948,065 �

� (173,897

)

� (598,573) � 3,742,329 � � * See Notes to consolidated financial statements on pages 14-16. � Panasonic Corporation

Consolidated Statement of Cash Flows *

(Year ended March 31) � � � � Yen

(millions)

Cash flows from operating activities:

2009

�

2008

Net income (loss)

� (378,961

)

� 281,877 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 364,806 320,534 Net (gain) loss on sale of investments (13,512 ) (14,402 ) Minority interests (24,882 ) 28,637 (Increase) decrease in trade receivables 249,123 (56,677 ) (Increase) decrease in inventories 21,011 (37,372 ) Increase (decrease) in trade payables (199,176 ) (41,568 ) Increase (decrease) in retirement and severance benefits (107,196 ) (128,937 ) Other 205,434 � 113,966 � Net cash provided by operating activities � 116,647 � � 466,058 � �

Cash flows from investing activities:

(Increase) decrease in short-term investments -- 697 Proceeds from disposition of investments and advances 221,127 313,947 Increase in investments and advances (34,749 ) (160,423 ) Capital expenditures (521,580 ) (418,730 ) Proceeds from sale of fixed assets 40,476 151,279 (Increase) decrease in time deposits (136,248 ) 166,750 Purchase of shares of newly consolidated subsidiaries -- (68,309 ) Other (38,503 ) (46,582 ) Net cash used in investing activities

� (469,477

)

� (61,371

)

�

Cash flows from financing activities:

Increase (decrease) in short-term borrowings (34,476 ) (5,815 ) Increase (decrease) in deposits and advances from employees (86 ) (252 ) Increase (decrease) in long-term debt 359,258 (45,406 ) Dividends paid (83,364 ) (69,295 ) Dividends paid to minority interests (20,803 ) (19,807 ) (Increase) decrease in treasury stock (71,817 ) (102,839 ) Proceeds from issuance of shares by subsidiaries -- � 39,866 � Net cash provided by (used in) financing activities � 148,712 �

� (203,548

)

� Effect of exchange rate changes on cash and cash equivalents (36,831 ) (129,521 ) Effect of changes in consolidated subsidiaries -- � (93,441 ) Net increase (decrease) in cash and cash equivalents (240,949 ) (21,823 ) Cash and cash equivalents at beginning of period 1,214,816 � 1,236,639 � Cash and cash equivalents at end of period � 973,867 � � 1,214,816 � � * See Notes to consolidated financial statements on pages 14-16. �

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 3 for U.S. GAAP reconciliation.

3. 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.

4. 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.

5. Corporate bond and long-term debt include unsecured straight bonds of 400 billions yen, which were issued upon the resolution of the Board of Directors� meeting held on December 19, 2008.

6. Comprehensive income (loss) was reported as a loss of 725,870 million yen for fiscal 2009, and a gain of 883 million yen for fiscal 2008. Comprehensive income includes net income (loss) and increases (decreases) in accumulated other comprehensive income (loss).

�

7. Per share data (Years ended March 31)

�

2009

�

2008

Net income (loss) (millions of yen) (378,961) 281,877 Average common shares outstanding

(number of shares)

2,079,296,525

2,120,986,052

Dilutive effect: Stock Options - 3,818 Diluted common shares outstanding 2,079,296,525 2,120,989,870 Net income (loss) per share: Basic (182.25 yen) 132.90 yen Diluted (182.25 yen) 132.90 yen �

8. 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.

9. 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.

10. 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.

11. 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 March 31, 2009 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.*

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

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. � �

12. 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

13. Number of consolidated companies: 540 (including parent company)

14. Number of associated companies reflected by the equity method: 182

Significant Accounting Policies:

1. Basis of Presentation of Consolidated Financial Statements

The company's consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles. See Note 2 of Notes to consolidated financial statements on page 14.

2. Inventories

Finished goods and work in process are stated at the lower of cost (average) or market. Raw materials are stated at cost, principally on a first-in, first-out basis, not in excess of current replacement cost.

3. Marketable Securities

The company accounts for debt and equity securities in accordance with Statement of Financial Accounting Standards (SFAS) No.115, "Accounting for Certain Investments in Debt and Equity Securities."

4. Property, Plant and Equipment, and Depreciation

Property, plant and equipment are stated at cost. Depreciation is computed primarily using the declining balance method.

5. Leases

The company accounts for leases in accordance with SFAS No. 13, "Accounting for Leases."

6. Income Taxes

Income taxes are accounted for under the asset and liability method. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the fiscal year that includes the enactment date.

7. Retirement and Severance Benefits

"The company accounts for retirement and severance benefits in accordance with SFAS No. 87," "Employers' Accounting for Pensions" "and SFAS No. 158," "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans."

8. Derivative Financial Instruments

The company accounts for derivative financial instruments in accordance with SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities."

�

Please Note: The following are financial statements on a parent company alone basis, which are inconformity with Japanese generally accepted accounting principles, and should not be confusedwith the aforementioned consolidated results.

� � � � � Panasonic Corporation (Parent Alone)

Statement of Operations

(Year ended March 31)

Yen (millions)

Percentage

2009

2008

2009/2008

Net sales � 4,249,233 � 4,862,220 87 % Cost of sales (3,453,765 ) (3,931,596 ) Gross profit 795,468 930,624 Selling, general and administrative expenses (853,191 ) (797,852 ) Interest income 7,113 8,921 Dividend income 191,924 75,316 Other income 53,853 57,159 Interest expense (6,295 ) (6,814 ) Other expenses (71,746 ) (56,211 ) Recurring profit 117,126 � 211,143 � 55 % Non-recurring profit 127,228 7,777 Non-recurring loss (222,819 ) (84,556 ) Income before income taxes 21,535 134,364 16 % Provision for income taxes Current (11,165 ) (14,708 ) Deferred (66,682 ) (19,356 ) Net income (loss)

� (56,312

)

� 100,300 � -- Net income (loss) per common share: Basic (27.11) yen 47.29 yen Diluted - 47.29 yen � Panasonic Corporation (Parent Alone)

Balance Sheet

(March 31, 2009) With comparative figures for March 31, 2008 � � � �

Yen (millions)

Assets

March 31, 2009

March 31, 2008

Current assets: Cash and deposits � 3,670 � 23,795 Trade receivables 378,400 543,123 Inventories 213,404 210,259 Other current assets 1,174,108 962,610 Total current assets 1,769,582 1,739,787 � Fixed assets: Tangible fixed assets 408,211 319,502 Intangibles 49,170 54,163 Investments and advances, and other assets 2,215,327 2,490,989 Total fixed assets 2,672,708 2,864,654 � Total assets � 4,442,290 � 4,604,441 �

�

Liabilities and Net Assets

Current liabilities: Trade payables � 321,888 � 497,679 Accrued income taxes 912 2,095 Other current liabilities 1,316,178 1,297,649 Total current liabilities 1,638,978 1,797,423 � Long-term debt and employee retirement and severance benefits 669,772 333,123 Total liabilities 2,308,750 2,130,546 � Net assets Capital 258,740 258,740 Capital surplus 569,981 570,082 Retained earnings 2,022,552 2,177,430 Treasury stock (671,182 ) (599,466 ) Total net assets 2,180,091 2,406,786 Difference of valuation, translation and other adjustments (46,551 ) 67,109 Total liabilities and net assets � 4,442,290 � 4,604,441 � Panasonic Corporation (Parent Alone)

Statement of Changes in Shareholders' Equity

(Year ended March 31, 2009) � � � � � � � � � Yen (millions) Shareholders' equity

�

Capital surplus Retained earnings

�

�

�

�

Other retained earnings

Capital

Capital

reserve

Other

capital

surplus

Total

Legal

reserve

Reserve for

advanced

depreciation

Reserve for

dividends

Contingent

reserve

Balances at

beginning of period

� 258,740 � � 568,212 � � 1,870 � � 570,082 � � 52,749 � � 18,464 � � 81,000 � � 1,918,680 � Changes in the period Dividends from retained

earnings

Net income (loss) Repurchase of common

stock

Sales of treasury stock (101 ) (101 ) Decrease due to business

split-off

Net changes of items other

than shareholders' equity

� � � � � � � � � � � � � � � � Total changes in the period -- � -- � (101 ) (101 ) -- � -- � -- � -- � Balances at end of period � 258,740 � � 568,212 � � 1,769 � � 569,981 � � 52,749 � � 18,464 � � 81,000 � � 1,918,680 � � � Shareholders' equity Difference of valuation, translation

and other adjustments

Total

net assets

Retained earnings

�

�

Unrealizedholdinggains of available-for-salesecurities,etc

�

�

Unappropriated

retained

earnings

Total

Treasury

stock

Total

Deferred profit on hedges

Total

Balances at

beginning of period

� 106,537 � � 2,177,430 �

� (599,466

)

� 2,406,786 � � 55,429 � � 11,680 � � 67,109 � � 2,473,895 � Changes in the period Dividends from retained

earnings

(83,364 ) (83,364 ) (83,364 ) (83,364 ) Net income (loss) (56,312 ) (56,312 ) (56,312 ) (56,312 ) Repurchase of common

stock

(72,416 ) (72,416 ) (72,416 ) Sales of treasury stock 700 599 599 Decrease due to business

split-off

(15,202 ) (15,202 ) (15,202 ) (15,202 ) Net changes of items other

than shareholders' equity

� � � � � � � � (71,342 ) (42,318 ) (113,660 ) (113,660 ) Total changes in the period (154,878 ) (154,878 ) (71,716 ) (226,695 ) (71,342 ) (42,318 ) (113,660 ) (340,355 ) Balances at end of period

� (48,341

)

� 2,022,552 �

� (671,182

)

� 2,180,091 �

� (15,913

)

� (30,638

)

� (46,551

)

� 2,133,540 � �

Management Policy

(1) Basic Policy for Corporate Management

Since its establishment, Panasonic has operated its businesses under its basic management philosophy, which sets forth that the mission of a business enterprise is to contribute to the progress and development of society and the well-being of people through its business activities, thereby enhancing the quality of life throughout the world. Aiming to grow further to become a global excellent company, Panasonic will work to deliver sustained growth in corporate value to satisfy its shareholders, investors, customers, business partners and all other stakeholders.

(2) Basic Policy for Providing Return to Shareholders

Since its establishment, Panasonic has managed its businesses under the concept that returning profits to shareholders is one of its most important policies. Along with the implementation of mid-term growth strategies since fiscal 2005, the company has implemented a proactive and comprehensive profit return to shareholders through dividend payments and own share repurchases, upon careful consideration of its consolidated business performance.

From the perspective of return on the capital investment made by shareholders, Panasonic, in principle, distributes profits to shareholders based on its business performance and is aiming for stable and continuous growth in dividends, targeting a dividend payout ratio of between 30% and 40% with respect to consolidated net income. Regarding share buybacks, the company is repurchasing its own shares as it considers appropriate, taking comprehensively into consideration strategic investments and the company�s financial condition, with the aim of increasing shareholder value per share and return on capital.

The company paid an interim dividend of �22.5 per share on November�28, 2008. However, the company regrettably plans to pay a year-end dividend of �7.5 per share, due mainly to the deterioration of consolidated financial results, making a total annual cash dividend of �30 per share. For fiscal 2010, ending March 31, 2010, Panasonic plans to pay an interim cash dividend of �5 per share, a decrease from �22.5 per share in fiscal 2009. The company also plans to pay a year-end cash dividend of �5 per share, a decrease from �7.5 per share in fiscal 2009. If implemented, total cash dividends for fiscal 2010 will be �10 per share. Meanwhile, the company repurchased some of its own shares at a cost of approximately �70 billion in fiscal 2009. Although Panasonic expects severe business conditions to continue, the company will strive to improve its performance as soon as possible and distribute earnings to shareholders.

(3) Corporate Management Strategies and Challenges

Panasonic expects that the economic environment in fiscal 2010 will be more severe than the past fiscal year, as the global recession and shrinking demand triggered by the financial crisis coincide with changes in market structure, including the expansion of emerging markets and a shift to lower-priced products. Responding to these business conditions, the company will simultaneously rebuild its management structure while preparing and taking action for future growth. Fiscal 2010 is the final year of the GP3 plan and although the current business environment is significantly different from the plan�s initial assumptions, Panasonic will continue to push ahead with initiatives set forth in the GP3 plan without changing it, and aims to ready itself to leap ahead when the market recovers.

In order to rebuild its management structure, Panasonic will implement drastic business structural reforms. Guided by the policies of selection and concentration and the strategic placement of overseas sites, Panasonic will strive for new growth by clarifying which businesses to withdraw from and shifting resources to growing businesses based on the results of its examinations. Furthermore, the company will ensure �Itakona� becomes standard practice and accelerate initiatives to reduce procurement costs. It will also step up actions including implementing comprehensive cost rationalization efforts, curbing capital expenditures and reducing inventories.

Regarding preparations and actions for future growth, the cornerstone is strengthening products. The company�s approach is to create products that are unique to Panasonic, products that link well with one another, have superior energy-efficiency and are based on universal design concepts. These products will incorporate its customer�s viewpoint, as well as excel in terms of safety, quality and environmental performance. On top of that, Panasonic will push steadily ahead with the four major themes of the GP3 plan: double-digit growth for overseas sales, four strategic businesses, manufacturing innovation and the eco ideas strategy.

In the digital AV business, one of the four strategic businesses, Panasonic has decided to reduce major capital investment for the 5th domestic PDP plant in Amagasaki and the IPS Alpha plant in Himeji, because of lower growth in the flat-panel TV markets caused by the economic recession. However, the company aims to outgrow its competitors by strengthening product development to maintain growth momentum in its flat-panel TV business.

In addition to these activities, Panasonic will start operating the New Business Promotion Support System in fiscal 2010. The Head Office will assist in creating new businesses by providing financial, technical and personnel assistance when the priority projects of business domain companies and company-wide common projects are launched commercially.

Regarding the capital and business alliance with SANYO, a Collaboration Committee, which was set up to form a close alliance after completing the TOB, is looking at wide-ranging themes, while giving sufficient consideration to competition laws. Panasonic has positioned the energy business as a business field with extremely high growth potential. Therefore, Panasonic intends to broaden this business as its fifth strategic business to drive the company�s future growth.

�

Supplemental Consolidated Financial Data for Fiscal 2009

ended March 31, 2009

� � � � � � � �

1. Sales Breakdown

yen (billions) � � � � � � � � Fiscal 2009 Results � Total � 09/08 �

Localcurrencybasis 09/08

� Domestic � 09/08 � Overseas � 09/08 �

Localcurrencybasis 09/08

�

Video and Audio Equipment

� 1,699.7 � 94% � 104% � 493.2 � 102% � 1,206.5 � 92% � 104%

�

Information and CommunicationsEquipment

� 1,792.3 � 81% � 86% � 934.5 � 85% � 857.8 � 77% � 87% Digital AVC Networks � 3,492.0 � 87% � 94% � 1,427.7 � 91% � 2,064.3 � 85% � 96% Home Appliances � 1,166.3 � 91% � 96% � 656.5 � 97% � 509.8 � 84% � 94% PEW and PanaHome � 1,581.2 � 91% � 94% � 1,298.4 � 92% � 282.8 � 90% � 105% Components and Devices � 907.6 � 79% � 84% � 319.0 � 80% � 588.6 � 78% � 87% Other � 618.4 � 86% � 87% � 380.6 � 88% � 237.8 � 82% � 86% Total � 7,765.5 � 86% � 91% � 4,082.2 � 90% � 3,683.3 � 81% � 92% yen (billions) � � � � � � � � Fiscal 2010 Forecast � Total � 10/09 �

Localcurrencybasis 10/09

� Domestic � 10/09 � Overseas � 10/09 �

Localcurrencybasis 10/09

�

Video and Audio Equipment

� 1,600.0 � 94% � 104% � 500.0 � 101% � 1,100.0 � 91% � 105%

�

Information and CommunicationsEquipment

� 1,550.0 � 86% � 91% � 850.0 � 91% � 700.0 � 82% � 92% Digital AVC Networks � 3,150.0 � 90% � 98% � 1,350.0 � 95% � 1,800.0 � 87% � 100% Home Appliances � 1,105.0 � 95% � 100% � 640.0 � 97% � 465.0 � 91% � 103% PEW and PanaHome � 1,500.0 � 95% � 97% � 1,260.0 � 97% � 240.0 � 85% � 95% Components and Devices � 805.0 � 89% � 94% � 305.0 � 96% � 500.0 � 85% � 93% Other � 440.0 � 71% � 72% � 295.0 � 78% � 145.0 � 61% � 64% Total � 7,000.0 � 90% � 95% � 3,850.0 � 94% � 3,150.0 � 86% � 96% 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 Results � Fiscal 2010 Forecast � � � � � � � � � � � � 09/08 �

Localcurrencybasis 09/08

� � � 10/09 �

Localcurrencybasis 10/09

North and South America � 996.7 � 80% � 91% � 890.0 � 89% � 98% Europe � 963.0 � 79% � 91% � 760.0 � 79% � 96% Asia � 868.3 � 78% � 90% � 730.0 � 84% � 97% China � 855.3 � 91% � 95% � 770.0 � 90% � 93% Total � 3,683.3 � 81% � 92% � 3,150.0 � 86% � 96% �

3. Sales by Products

yen (billions) Product Category Products � Fiscal 2009

Results

� Sales � 09/08 Digital AVC Networks � VCRs � 75.7 � 74% � Digital cameras � 207.8 � 85% � TVs � 998.1 � 100% Plasma TVs � 575.9 � 92% � LCD TVs � 338.5 � 129% � DVD recorders � 129.8 � 102% � Audio equipment � 94.2 � 74% � Information equipment � 1,179.9 � 80%

Communicationsequipment

� 612.4 � 84% �

Mobile communicationsequipment

� 330.4 � 89% Home Appliances � Air conditioners � 245.0 � 90% � Refrigerators � 108.7 � 98% Components and Devices � General components � 343.2 � 76% � Semiconductors * � 392.9 � 85% � Batteries � 275.4 � 89% Other � FA equipment � 139.5 � 68%

* Information for semiconductors is on a production basis.The annual forecast for fiscal 2010 is 328.5 billion yen, down 16% from fiscal 2009.

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

4. Segment Information

yen (billions) � Fiscal 2009 Results � Fiscal 2010 Forecast � � Sales � 09/08 �

Segment

Profit

� % of sales � 09/08 � Sales � 10/09 � Segment

Profit

� % of sales � 10/09 Digital AVC Networks � 3,749.0 � 87% � 3.2 � 0.1% � 1% � 3,373.0 � 90% � 16.0 � 0.5% � 500% Home Appliances � 1,222.9 � 93% � 49.0 � 4.0% � 57% � 1,180.0 � 96% � 55.0 � 4.7% � 112% PEW and PanaHome � 1,766.3 � 92% � 40.1 � 2.3% � 42% � 1,672.0 � 95% � 34.0 � 2.0% � 85% Components and Devices � 1,127.3 � 81% � 7.1 � 0.6% � 7% � 1,002.0 � 89% � 25.0 � 2.5% � 352% Other � 1,071.7 � 99% � 23.9 � 2.2% � 37% � 860.0 � 80% � 5.0 � 0.6% � 21% Total � 8,937.2 � 88% � 123.3 � 1.4% � 21% � 8,087.0 � 90% � 135.0 � 1.7% � 109% Corporate and eliminations � -1,171.7 � - � -50.4 � - � - � -1,087.0 � - � -60.0 � - � - Consolidated total � 7,765.5 � 86% � 72.9 � 0.9% � 14% � 7,000.0 � 90% � 75.0 � 1.1% � 103% 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 Results

� yen (billions) � � Sales � Domain Company Profit � Capital Investment � � � � � � � � � � � � � 09/08 � � � % of Sales � 09/08 � � � 09-08 AVC Networks Company � 1,898.5 � 96% � -50.1 � -2.6% � - � 205.6 � +45.6 Panasonic Mobile Communications Co., Ltd. � 389.7 � 86% � 23.7 � 6.1% � 172% � 4.0 � +0.1 Panasonic Electronic Devices Co., Ltd. � 400.6 � 79% � -2.5 � -0.6% � - � 37.3 � -0.1 Factory Automation Business � 153.0 � 69% � 1.6 � 1.1% � 5% � 2.3 � -1.9 �

Fiscal 2010 Forecast

� yen (billions) Sales Domain Company Profit Capital Investment � � � � � � � � � � 10/09 � � � % of Sales � 10/09 � � � 10-09 AVC Networks Company � 1,745.8 � 92% � -18.5 � -1.1% � - � 180.4 � -25.2 Panasonic Mobile Communications Co., Ltd. � 336.5 � 86% � 4.4 � 1.3% � 19% � 3.0 � -1.0 Panasonic Electronic Devices Co., Ltd. � 360.0 � 90% � 0.0 � 0.0% � - � 19.7 � -17.6 Factory Automation Business � 98.5 � 64% � -10.9 � -11.1% � - � 2.9 � +0.6 * These figures are calculated on an accrual basis. Note: The name of "Panasonic AVC Networks Company" was changed to "AVC Networks Company" as of October 1, 2008. �

6. Capital Investment, Depreciation and R&D Expenditures

Capital Investment*

� yen (billions) Fiscal2009 Results � Fiscal2010 Forecast � � � � � � � � 09-08 � � � 10-09 Digital AVC Networks � 243.1 � +33.4 � 198.0 � -45.1 Home Appliances � 54.1 � +7.1 � 33.0 � -21.1 PEW and PanaHome � 37.1 � -2.6 � 27.0 � -10.1 Components and Devices ** � 136.4 � +0.8 � 83.5 � -52.9 Other � 23.7 � +9.4 � 8.5 � -15.2 JVC � - � -3.0 � - � - Total � 494.4 � +45.1 � 350.0 � -144.4 < 60.9 > +1.2 < 14.5 > -46.4 * 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. �

Depreciation(tangible assets)

� � � � � � yen (billions) Fiscal2009 Results Fiscal2010 Forecast � � � � 09-08 � � � 10-09 325.8 � 43.7 � 240 � -85.8

�

R&D Expenditures

� � � � � � yen (billions) Fiscal2009 Results Fiscal2010 Forecast � � � � 09-08 � � � 10-09 517.9 � -36.6 � 480 � -37.9 �

7. Foreign Currency Exchange Rates

� Export Rates � Rates Used for Consolidation �

Foreign Currency Transaction *

� � � � � �

(billions)

� �

Fiscal 2009Results

�

Fiscal 2010Forecast

�

Fiscal 2009Results

�

Fiscal 2010Forecast

�

Fiscal 2009Results

�

Fiscal 2010Forecast

U.S. Dollars � �103 � �93 � �101 � �93 � US$2.4 � US$2.0 Euro � �153 � �118 � �143 � �118 � � 1.4 � � 1.3 * These figures are based on the net foreign exchange exposure of the company. � � �

8. Number of Employees

� � � �

(persons)

� � End of March 2008 � End of March 2009 Domestic � 135,563 � 132,144 Overseas � 170,265 � 160,106 Total � 305,828 � 292,250 � � � Disclaimer Regarding Forward-Looking Statements �

This document 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 document 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 document. 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.

� Reference � � � � � Segment information for fiscal 2008

Sales

� Yen(billions) � � 1st Quarter

(Apr. to Jun.)

� 2nd Quarter

(Jul. to Sept.)

� 3rd Quarter

(Oct. to Dec.)

� 4th Quarter

(Jan. to Mar.)

� Full year

(Apr. to Mar.)

Digital AVC Networks � 996.1 � 1,063.5 � 1,207.7 � 1,052.3 � 4,319.6 Home Appliances � 349.4 � 317.6 � 339.2 � 310.2 � 1,316.4 PEW and PanaHome � 431.9 � 505.3 � 472.5 � 500.6 � 1,910.3

Components andDevices

� 348.2 � 364.1 � 357.3 � 329.1 � 1,398.7 Other � 260.4 � 281.9 � 249.8 � 292.1 � 1,084.2 JVC � 138.0 � 45.1 � -- � -- � 183.1 Total � 2,524.0 � 2,577.5 � 2,626.5 � 2,484.3 � 10,212.3 Eliminations � -284.5 � -291.7 � -281.9 � -285.3 � -1,143.4 Consolidated total � 2,239.5 � 2,285.8 � 2,344.6 � 2,199.0 � 9,068.9 �

Segment profit

� � 1st Quarter

(Apr. to Jun.)

� 2nd Quarter

(Jul. to Sept.)

� 3rd Quarter

(Oct. to Dec.)

� 4th Quarter

(Jan. to Mar.)

� Full year

(Apr. to Mar.)

Digital AVC Networks � 38.9 � 71.2 � 84.3 � 57.9 � 252.3 Home Appliances � 18.0 � 19.3 � 25.9 � 23.2 � 86.4 PEW and PanaHome � 9.9 � 31.2 � 27.3 � 28.0 � 96.4

Components andDevices

� 18.4 � 31.1 � 27.8 � 27.7 � 105.0 Other � 13.8 � 21.1 � 12.1 � 17.2 � 64.2 JVC � -6.7 � -3.0 � -- � -- � -9.7 Total � 92.3 � 170.9 � 177.4 � 154.0 � 594.6

Corporate andeliminations

� -18.4 � -24.8 � -12.0 � -19.9 � -75.1 Consolidated total � 73.9 � 146.1 � 165.4 � 134.1 � 519.5 Notes:

1. JVC and its consolidated subsidiaries became associated companies under

the equity method from August 2007.

2. 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.

3. The name of "AVC Networks" was changed to "Digital AVC Networks" in April 2008. 4. The name of "MEW and PanaHome" was changed to "PEW and PanaHome"as of October 1, 2008. � Reference � � � � �

Segment information for fiscal 2009

Sales

�

Yen(billions)

� � 1st Quarter

(Apr. to Jun.)

� 2nd Quarter

(Jul. to Sept.)

� 3rd Quarter

(Oct. to Dec.)

� 4th Quarter

(Jan. to Mar.)

� Full year

(Apr. to Mar.)

Digital AVC Networks � 1,046.4 � 1,056.5 � 937.3 � 708.8 � 3,749.0 Home Appliances � 352.1 � 333.4 � 292.1 � 245.3 � 1,222.9 PEW and PanaHome � 432.8 � 495.9 � 432.7 � 404.9 � 1,766.3

Components andDevices

� 334.5 � 335.7 � 278.3 � 178.8 � 1,127.3 Other � 289.4 � 309.2 � 222.4 � 250.7 � 1,071.7 Total � 2,455.2 � 2,530.7 � 2,162.8 � 1,788.5 � 8,937.2 Eliminations � -303.2 � -339.0 � -282.8 � -246.7 � -1,171.7 Consolidated total � 2,152.0 � 2,191.7 � 1,880.0 � 1,541.8 � 7,765.5 �

Segment profit

� � 1st Quarter

(Apr. to Jun.)

� 2nd Quarter

(Jul. to Sept.)

� 3rd Quarter

(Oct. to Dec.)

� 4th Quarter

(Jan. to Mar.)

� Full year

(Apr. to Mar.)

Digital AVC Networks � 55.0 � 47.8 � -4.9 � -94.7 � 3.2 Home Appliances � 31.5 � 15.4 � 18.2 � -16.1 � 49.0 PEW and PanaHome � 10.5 � 25.3 � 10.3 � -6.0 � 40.1

Components andDevices

� 19.5 � 29.5 � 5.0 � -46.9 � 7.1 Other � 13.9 � 14.9 � 0.1 � -5.0 � 23.9 Total � 130.4 � 132.9 � 28.7 � -168.7 � 123.3

Corporate andeliminations

� -20.8 � -14.3 � -2.4 � -12.9 � -50.4 Consolidated total � 109.6 � 118.6 � 26.3 � -181.6 � 72.9 �

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