(2) Along with increased production capacity, SANYO will strengthen photovoltaic
products and further increase product differentiation by raising its world’s highest HIT
solar cell conversion efficiency. SANYO plans to increase solar cell conversion
efficiency above 22%. SANYO will make thinner wafers to deal with the silicon
material problem and at the same time increase solar cell conversion efficiency. In
normal conditions making thinner multi-crystal silicon solar cells decreases efficiency
but SANYO plans by FY 2010, to have wafers thinner than 150 micrometers and cell
conversion efficiency higher than 22%, thus further differentiating SANYO products.

(3) SANYO will add a new type HIT solar cell that uses multi-crystal silicon-based
wafers to meet a wide range of customer needs. SANYO has previously used single-
crystal silicon wafers but now will also use multi-crystal silicon wafers as well. In FY
2007, SANYO will sell multi-crystal silicon based photovoltaic modules which cells
have 15%-16% cell conversion efficiency, but by 2008 will aim to sell photovoltaic
modules with cell conversion efficiency higher than 18%, by building on SANYO’s
hybrid technology of amorphous and crystalline. SANYO will expand its solar business
on two pillars of multi-crystal silicon HIT solar cells and single-crystal silicon HIT solar
cells.

In addition, SANYO will look at forming a new alliance to expand procurement of
silicon material which will clear any bottlenecks for business expansion. SANYO will
examine the realignment of production bases in Japan and overseas to optimize
production. Such actions will further differentiate HIT products and strengthen the
business foundation.

*: HIT (Heterojunction with Intrinsic Thin-layer) hybrid solar cells are composed of a thin single-crystal silicon
wafer surrounded by ultra thin amorphous silicon layers.