Osaka and Taipei, March 17, 2006---SANYO Electric Co., Ltd. (SANYO) and Quanta Computer Inc. (Quanta), have agreed to form a joint venture company for the Flat Panel TV business. The new company will manufacture and sell Flat Panel TVs for the SANYO brand. The new company will also continue to expand upon Quanta’s FP-TV ODM business. This joint venture targets for a material worldwide share in the Flat Panel TV industry in the foreseeable future.

SANYO (RIC: 6764.T) currently manufactures and sells 6.5 million TV sets annually all over the world with major bases in Japan, US, Europe, China, Indonesia and India. Quanta (RIC: 2382.TW) is a leading provider of IT products with over 30% world production share of notebook PCs and has recently expanded into the rapidly growing Flat Panel TV business.

The new joint venture will leverage the strengths of both companies. It will succeed SANYO’s R&D teams and manufacturing sites as well as maintain access to SANYO’s global sales and service network. It will also continue to take full advantage of Quanta’s efficient manufacturing base in China, and its well-developed and integrated supply chain. In addition, the new joint venture will benefit from increased economies of scale, standardized product platforms and shared know-how from both companies. As a result, the new entity will be optimally positioned to supply high-quality products at competitive prices to TV vendors and consumers worldwide. Final ownership structure of the new company will be determined after completion of Due Diligence.

With this principle agreement, Toshimasa Iue, SANYO’s President commented, “We have outlined a major realignment of our TV business, within our structural reform and mid-term business plan. SANYO is aiming at improving business efficiency by undergoing business model changes. Quanta Computer Inc. is well recognized as an industry leader in the technology space, and by combining Quanta’s strengths with SANYO’s capabilities in the TV business, I’m confident as we conclude this principle agreement that we will produce added value for our stakeholders.”

Barry Lam, Chairman and CEO of Quanta also expressed his aspirations, “Using the know-how that we have developed manufacturing a multitude of IT products over the years, a goal has surfaced to launch into the TV business. By partnering with SANYO, a well known and experienced player with a solid track record in this field, it will enable us to improve efficiencies from procurement of parts to sales. We will strive to become the world’s major TV maker.”

About SANYO
SANYO is a leading provider of Environment and Energy-related products, with a new vision - ‘Think GAIA’, which aims to create solutions for a sustainable Earth by synergizing SANYO’s core technologies, such as photovoltaic systems, rechargeable batteries, CO2 compressors, HEV battery systems as well as digital cameras, mobile phones, electronic devices and components, etc. For further information, please visit SANYO's web site at http://www.global-sanyo.com/.

About Quanta
Quanta Computer is the world’s largest notebook design and manufacturing company with revenues reaching a record high of NT$403BN in 2005 (YoY +24%). Quanta Computer is the flagship of the Quanta Group which also includes Quanta Display, Quanta Storage and others. The Quanta Group employs more than 40,000 persons worldwide and has major operations set up in Asia, America and Europe. Products that the Group provide range from information, communication, consumer electronics, electronic display to storage. Please refer to website for more information. http://www.quantatw.com