Tokyo, September 30, 2008 – SANYO Electric Co., Ltd. (SANYO) and Kyocera Corporation (Kyocera) announced today that an agreement has been reached regarding the amount for the sale of SANYO’s mobile phone business, which was transferred according to the definitive agreement announced on January 21, 2008 through an absorption-type merger on April 1, 2008 (the start of FY 2008). The effects that this will have on SANYO’s financial results are outlined below:.

43.7 billion yen
(Book value on unconsolidated balance sheet: 17.8 billion yen ,
book value on consolidated balance sheet: 9.2 billion yen)
*In the equivalent value based on the absorption-type de-merger as outlined in the contract as of January 30, 2008, the 43.7 billion yen business acquisition equivalent value did not include some of the inherited debts for the business to be transfered to Kyocera. The total amount has been calculated including the right to claim payment (approximately 16.4 billion yen) regarding the payments to each creditor after the de-merger date for some of the accounts payable and accrued liabilities, etc.

Hereafter, in accordance with USGAAP, the business results of the mobile phone business will be separately indicated as discontinued operations. The net consolidated income from discontinued operation for the whole term will be approximately 28.0 billion yen. The unconsolidated results are expected to increase by 21.0 billion yen due to the transfer of the mobile phone business.

The earnings forecast will not be affected by this business transfer.