Osaka, December 19, 2006-----SANYO Electric Co., Ltd. (SANYO) announced today that it will considerably expand the HIT Solar Photovoltaic Cell production capacity at the Nishikinohama Plant (Osaka, Japan) and Shimane SANYO Electric Co., Ltd. (Shimane, Japan), in order to respond to the huge and growing demand for solar photovoltaic systems.

SANYO produces its HIT Solar Photovoltaic Cells at two major locations: Nishikinohama Plant and Shimane SANYO, with a total production capacity of 165 MW (as current of December 19, 2006). In Fiscal Year 2007, by investing approximately 9 billion yen in new production equipment at the Nishikinohama Plant, SANYO will increase cell production capacity at the plant from its current level of 115 MW to 210 MW. Therefore the total production capacity in Fiscal Year 2007, including that of Shimane SANYO, will increase to 260 MW.

In Fiscal Year 2008, SANYO will invest approximately 10 billion yen in Shimane SANYO, and establish new production facilities with a view to start operations in September 2008. As a result, cell production capacity at Shimane SANYO will increase from the current level of 50 MW to 140 MW. Accordingly, total cell production capacity, including that of the Nishikinohama Plant, will increase to 350 MW.

In June of this year, SANYO announced the ‘Next Generation Program for HIT Solar Cells’* in order to expand the solar photovoltaic cell business, one of the company’s core businesses. Based on this program, SANYO is unveiling a large scale increase in HIT Solar Photovoltaic Cells with an aim to become a world-leading business entity within this sector by the end of Fiscal Year 2010.

* About the ‘Next Generation Program for HIT Solar Cells’
This program is a business development strategy aiming to expand the solar cell business by threefold compared to Fiscal Year 2005 levels, by positive investment and product differentiation.
The main details are: 1. Investment of a total 40 billion yen by Fiscal Year 2010. 2.Aim to reach a 22% energy conversion efficiency with the HIT Solar Photovoltaic Cell by Fiscal Year 2010.

Plan to Increase Mono Crystalline HIT Solar Photovoltaic Cell Production Capacity

	FY 2006	FY2007	FY 2008
Nishikinohama Plant	115 MW	210 MW	210 MW
Shimane SANYO Electric	50 MW	50 MW	140 MW
Total Cell Production Capacity	165 MW	260 MW	350 MW

Outline of New Facility at Shimane SANYO Electric

Company Name:	Shimane SANYO Electric Co., Ltd.
Location:	320-1, Yamagata, Kisuki-cho, Unnan City, Shimane Prefecture
Site area:	6500 m² (area of new facility)
Production Capacity:	Increase to 90 MW in FY 2008 (Total cell production capacity of 140 MW including existing plant)
Investment Amount:	Approximately 10 billion yen in Fiscal Year 2008
Start of Operations:	September 2008 (planned)