Sharp Electronics To Add Capacity To Large-Format LCD Panel Production Line At Kameyama Plant No. 1 In Japan

15 Billion Yen Investment Response to Growing Global Demand for Large-Format LCD Panels

March 21, 2006

Sharp Corporation, in response to a growing global demand for large-screen LCD televisions, will expand and enhance its production system to supply large-format LCD panels by investing an additional 15 billion yen (approximately $150 million Cdn) in its LCD panel production line at Kameyama Plant No. 1 in Japan. As broadcast infrastructure rapidly shifts from analog to digital signal format, Sharp foresees a dramatic growth in worldwide demand for LCD televisions - from 20 million units in fiscal 2005 to 36 million units in fiscal 2006, an 80-per-cent increase. According to a leading display market research and consulting firm(i), in 2006, demand for LCD and plasma televisions will equal that of non-flat panel high-definition models having screens 37 inches and larger. And by 2008, LCD TVs are projected to overtake plasma TVs among all models 37-inch and larger. In this light, Sharp is forecasting that demand for high-definition LCD TVs with large screens and high resolution will increase markedly. "This global demand for superior-performing, high-definition LCD panels rings true for the Canadian market," says Carmine Cinerari, Vice President, Sharp Electronics of Canada. "Sharp is forecasting huge growth in this market and we are confident that we can respond to this demand with our state-of-the-art, industry-leading LCD TVs. Nothing but the best LCD technology is being manufactured in the Kameyama facility." With the 15 billion yen investment in Kameyama, Sharp will augment its production equipment and improve its production efficiency, which will increase capacity of its glass substrate (the "motherglass" used in the production of LCD televisions) from 51,000 glass substrates per month to 60,000 per month. A single glass substrate can be used to produce six 37-inch LCD TV panels. Kameyama Investment Details: Substrate input capacity Current: 51,000 substrates/month -- 60,000 substrates/month Investment amount 15 billion yen Operational timeframe March 2006 Reference data Growth in substrate input capacity at Kameyama Plant No. 1 -0- (Units: substrates per month) --------------------------------------------------------------------- January August April October March 2004 2004 2005 2005 2006 --------------------------------------------------------------------- Increase in glass substrate input capacity - +12,000 +18,000 +6,000 +9,000 --------------------------------------------------------------------- Total input capacity 15,000 27,000 45,000 51,000 60,000 --------------------------------------------------------------------- (i) Research report by DisplaySearch (USA); as of January 2006 About Kameyama Plant No. 1 Sharp's Kameyama Plant No. 1, located in Kameyama City, Japan, is a state-of-the-art, 3.5 million square foot production plant responsible for the complete production process of colour LCD TVs. Production lines in Kameyama Plant No.1 are built around proprietary Sharp process technologies that are now two to three times more efficient than previous techniques, allowing for 100,000 LCDs to be produced in a month. In October 2006, Sharp Corporation will commence operations at its Kameyama Plant No. 2 facility, which will produce glass for the production of LCD panels intended for large-screen LCD TVs of 40 inches and larger. About Sharp Electronics of Canada Sharp Electronics of Canada Ltd. is a wholly owned subsidiary of Sharp Corporation of Osaka, Japan, a worldwide developer of the core technologies that are integral to shaping the next generation of home entertainment, appliance and digital office equipment systems. A world leader in Liquid Crystal Display (LCD), Sharp is the developer of the revolutionary AQUOS(R) LCD Televisions and SharpVision(R) line of projection products. Sharp continues to demonstrate its home entertainment leadership by advancing technologies such as High Definition Television (HDTV) and Blu-ray technology. Sharp Electronics of Canada Ltd. is located in Mississauga, Ontario. For more information, visit http://www.sharp.ca.

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