Hitachi and Matsushita Electric Industrial have announced that they have agreed to strengthen their partnership in the PDP (plasma display panel) TV business. Under the agreement, the two companies will supply each other with PDPs, according to both companies.

In February 2005, Hitachi and Panasonic agreed to move forward with a wide-ranging partnership in the PDP TV business, in the areas of R&D, production, marketing, and intellectual property*. The agreement announced today is focused on strengthening the partnership by deepening the cooperation to include the cross-supply of 85- and 103-inch PDPs.

Panasonic will start to supply Hitachi with 103-inch PDPs in fiscal 2007 (April 2007- March 2008) while Hitachi will start to supply Panasonic with 85-inch PDPs in fiscal 2008.

Through this partnership agreement, the two companies will strengthen their flat-panel TV business operations by supplying each other with panels and other components and by sharing development assets, and will thereby provide the market with more attractive products.

*Hitachi Plasma Patent Licensing is a company in which Hitachi and Panasonic have a joint investment that was established on July 1, 2006, to form a stable licensing arrangement between Hitachi and Panasonic and manage their joint developments.