Tokyo, November 29, 2007 - Nippon Oil Corporation (Nippon Oil) and SANYO Electric Co., Ltd. (SANYO) announce together today that they have agreed to create a new company for stationary fuel cell systems planned for establishment in April 2008.

　While Nippon Oil and SANYO have been in partnership in fuel cell development for several years, after examining various options and ways to optimize their joint efforts, the decision was made that establishing a new joint venture would be the best answer. By creating this joint venture, both companies aim at enhancing efforts to shorten the development period, improve performance and reliability of the systems, and reduce costs through optimal production efficiency.

　Toshikazu Kobayashi, Representative Director, Executive Vice President of Nippon Oil, commented on the new business venture saying, "Stationary fuel cell systems are currently in the final stages of commercialization, and are set for early distribution, with the aim of lower cost and improved reliability." He continued, "Through establishing this new company, the Nippon Oil Group will prepare a new structure that includes the fuel cell business. Hereafter, with the grand mission of fuel cell distribution serving as a measure to combat global warming, it is our every intention to unite with all related parties and cooperate in pushing forward this business."

　Tadao Shimada, Senior Vice President of SANYO, Company President of Clean Energy Company, said about the new company, "Having collaborated closely in the past with Nippon Oil, a major player in the industry, on developing the world's first home-use fuel cell system employing liquefied petroleum gas, we are proud to have this new opportunity to work even closer with them on the establishment of this new joint venture." He added, "Hereafter, by combining the strengths of both companies, and increasing the pace of a low-cost, highly reliable stationary fuel cell system, home-use fuel cell systems will become commercialized more quickly. SANYO and Nippon Oil aim at becoming global leaders in the world-wide stationary fuel cell market.

　As the Japanese Government-subsidized large-scale stationary fuel cell demonstration project that started in FY2005 comes to an end in FY2008, and from the growing interest in environmental conservation, a wide spread of stationary fuel cell systems is anticipated. Full-scale commercialization of stationary fuel cell systems is expected to start in FY2009.

　Nippon Oil and SANYO will make use of their various technologies and know-how developed to date in continued efforts to remain leaders in fuel cell technology and systems.

SANYO will first establish and spin off a new company dedicated to stationary fuel cell business, and then Nippon Oil will acquire 81 percent of the shares issued.

The company will be created for stationary fuel cell systems.

• (1) Development and planning of fuel cell systems, system design, and production management will be done by the new joint venture.
• (2) Production and assembly will be consigned to SANYO Tokyo Manufacturing Co., Ltd. (STMC)
• (3) Nippon Oil will purchase the systems from the new company and sell them to customers.

Nippon Oil Corporation:
Public Relations Department
Tel: +81-3-3502-1124
Fax: +81-3-3502-9351

SANYO Electric Co., Ltd.
Global Communications Department
Tel: +81-3-6414-8615
Fax: +81-3-6414-8720
E-mail: i_press.1014390@sanyo.co.jp