1.For the four terms spanning from Fiscal Year 2000 (ended March 2001) through Fiscal Year 2003 (ended March 2004), SANYO will conduct a comprehensive review ensuring compliance to accounting standards and practical guidelines in order to decide which subsidiaries and affiliates will be subject for review for impairment losses and which companies have the potential of recoverable performance, particularly in the semiconductor business which has been subject to market fluctuations.

As a result, regarding the total impairment losses allocated for the given period, SANYO plans to amend the appropriate allocation period for each subsidiary/affiliate and make additional allocations for certain parts. Along with these actions, SANYO will recalculate impairment losses for subsidiaries/affiliates and deferred tax assets for each fiscal year after Fiscal Year 2004. The revisions will be limited to non-consolidated financial results.

2.There is no expected impact on the SANYO Group's consolidated financial results for Fiscal Year 2005.

Regarding revisions to previous financial statements, Grant Thornton Taiyo ASG will conduct the audit. Since the audit will cover an extended period from Fiscal Year 2000 to Fiscal Year 2006, the current outlook is that the audit will be completed by November or December 2007. Upon receiving the official auditor's opinion, SANYO plans to make a decision whether or not to revise previous fiscal year securities reports among the board of directors, after which the decision will then be disclosed.

For the given period, SANYO has requested to and gained acceptance from Grant Thornton Taiyo ASG to conduct the audit revision. Previously SANYO used Chuo Aoyama Audit Corporation (currently Misuzu Audit Corporation) as the auditing firm, and currently changed the audit firm to Azsa & Co. on a temporary basis.

Fiscal Year 2006 financial results will be announced on May 28 and currently, Azsa & Co. are in the midst of auditing the results. Following the General Shareholders Meeting to be held on June 28, SANYO plans to submit its securities report. At present, significant impact on the Fiscal Year 2006 financial results is not expected; however, as previous Fiscal Year audits are as yet unfinished, it is expected that these results will be issued having received qualified opinion by the auditors.

As of May 12, 2007, in order to prevent problems from reoccurring and in order to uncover the cause of the problem, SANYO will establish an internal "Investigation Committee for Previous Financial Results".

In order to improve transparency, three new persons from outside the company will be appointed to this committee, including Ichiro Kawamoto (Lawyer, Corporate Law), Chitoshi Koga (Accountant), and Takaharu Dohi (Lawyer, previous Attorney General) as the committee chairman. Additionally, the committee's executive office will be aided by a number of lawyers, accountants, and SANYO in-house law and auditing staff.

The committee plans to present a summary report of the findings if and when there are revisions of the securities report for previous fiscal years.