Tokyo, January 21, 2008 — SANYO Electric Co., Ltd. (SANYO) announces today that it has reached a definitive agreement with Kyocera Corporation (Kyocera) to transfer its mobile phone business, following the announcement on October 11, 2007 of a basic agreement to begin transfer negotiations.

The definitive agreement reached today outlines the process of transferring SANYO’s mobile phone business operations* to Kyocera. The business and its assets-included value have been agreed upon by both SANYO and Kyocera at 50 billion yen. However, regarding the transfer amount, it will be calculated by subtracting the amount of outstanding debts accruing interest and adding the amount of cash and deposits to be transferred on the effective date. Therefore, the total value of the transferred business will be approximately 40 billion yen after these deductions are made. The final amount will be announced once it has been fixed and negotiations are concluded. The business is tentatively set to be transferred to Kyocera on April 1, 2008 through an absorption-type demerger.

*The entire CDMA handsets business (excluding Tottori SANYO) as well as the PHS handset, base station business and other operations related to the wireless communications system business.

Ever since SANYO entered the mobile phone manufacturing business in 1994, SANYO has developed and grown the business into one of its key businesses, and supplies several key telecommunications carriers both domestically and overseas with handsets primarily using CDMA technology. Since that time, however, the business operating environment surrounding the mobile phone business has changed, receiving intensified competition from rival companies. In order to meet the best interests of the business and its stakeholders, SANYO has explored all options regarding the further expansion and development of the business, and has concluded that a transfer of the business to Kyocera would be the ideal solution for both business value and ease-of-succession.