Kyocera Reaches Definitive Agreement to Acquire Mobile Phone Business of SANYO Electric Co., Ltd.

Kyocera Corporation today announced that it has reached a
definitive agreement with SANYO Electric Co., Ltd. (“SANYO”)
to acquire SANYO’s mobile phone business. The
agreement was approved by both companies’
boards of directors today and is planned to become effective April 1,
2008.

Kyocera’s goal for the acquisition is to
strengthen its global telecommunications equipment business. Under the
agreement, Kyocera acquires a comprehensive set of assets from SANYO
relating to the research, development, design, materials procurement,
manufacture, sales and marketing of CDMA handsets; PHS handsets; PHS
base stations; and wireless communications systems; as well as a range
of related technologies, intellectual property and patents. The
acquisition is forecasted to grow worldwide annual revenues from Kyocera’s
global telecommunications equipment business to approximately 400
billion Japanese yen (approximately US$3.7 billion).

"This transaction will yield great synergies and economies of scale in
areas such as technology portfolios, R&D, procurement, design, marketing
and sales,” said Makoto Kawamura, president
of Kyocera Corporation, the group's global parent. “Furthermore,
the Kyocera and SANYO product portfolios are highly complementary, and
will allow us to offer a broader lineup of handsets and data devices to
all of our carrier customers.”

To ensure a smooth transition in the market, Kyocera plans to offer both
Kyocera- and SANYO-branded products in Japan and abroad for the
foreseeable future. Kyocera also plans to offer continued employment to
all affected SANYO employees, totaling approximately 2,000 workers.

Kyocera will pay cash for the unit. The acquisition price will be
determined through finalizing processes after April 1, 2008, based on
the unit’s total business value of 50 billion
Japanese yen (approximately US$467 million) as agreed upon by Kyocera
and SANYO, before subtracting the unit’s
notional business cash equivalent on hand and adding/deducting
interest-bearing transfer debt and transfer cash equivalents as of April
1, 2008, as well as adjustment items agreed to separately, which could
result in a final acquisition price approximating 40 billion Japanese
yen (about US$375 million).

In North America, the acquisition will result in the creation of a new
wholly-owned Kyocera subsidiary on April 1, 2008 that will assume the
operations of the U.S.-based SANYO business units and will commence
operations separate from San Diego-based Kyocera Wireless Corp., in
order to maintain immediate continuity with its existing distribution
network.

About Kyocera

Kyocera Corporation,
the parent and global headquarters of the Kyocera Group, was founded in
1959 as a producer of advanced ceramics. By combining these engineered
materials with metals and plastics, and integrating them with other
technologies, Kyocera has become a leading supplier of
telecommunications equipment, semiconductor packages, electronic
components, laser printers, copiers, solar energy systems and industrial
ceramics. During the year ended March 31, 2007, Kyocera Corporation's
consolidated net sales totaled approximately US$10.8 billion (JPÂ¥1,283,897
million) with net income of approximately US$895 million (JPÂ¥106,504
million).

About Sanyo

SANYO Electric Co., Ltd. is a leading solutions provider for the
environment, energy and lifestyle, based on its Brand Vision 'Think
GAIA.' SANYO's businesses cover a broad range of products and services
such as rechargeable batteries, photovoltaic systems, HVAC/R equipment,
digital imaging devices, telecommunications equipment, home appliances,
electronic components and others. For further information, please visit
SANYO's web site at http://www.sanyo.com [1].