Toshiba and Kaga Toshiba Celebrate the New Opening of the New 200mm Wafer-Based Production Fab

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Toshiba Corporation and Kaga Toshiba Electronics Corporation (Kaga
Toshiba) today marked the official opening of a new semiconductor
production fab based on 200mm wafers at Kaga Toshiba, a consolidated
subsidiary of Toshiba based in Ishikawa prefecture, Japan. The new fab
will enhance production capacity for power devices.

Demand is growing for power devices that control current flow and
voltage conversion in digital consumer products, including TVs and
personal mobile equipment, and hybrid vehicles. Toshiba and Kaga
Toshiba's investment in the new production fab will increase capacity
for these key devices.

The new fab came on-line at the end of September, completing the
first phase of an investment program in a new building and production
equipment that is expected to be total 55 billion yen in the five
years from FY2006 to FY2010. The new fab is planned to ramp up to
60,000 wafers a month, and capacity may be further expanded to meet
market growth. This new fab will reinforce Toshiba's drive to become
the world's leading manufacturer of power devices.

Toshiba Group's well-balanced semiconductor business covers three
major product areas: system LSIs, memories and discrete devices. Kaga
Toshiba operates as a key Toshiba Group facility for discrete devices,
carrying out product development and front- and back-end processes for
small-signal devices and power devices.

"We promote investments that reinforce our position and
capabilities in our core markets," said Mr. Keizo Tani, Executive Vice
President of Toshiba's Semiconductor Company and Vice President of
Discrete Semiconductor Division. "Alongside our proactive investments
in NAND Flash memory at Yokkaichi Operations and cutting-edge LSI at
Oita Operations, we are promoting this investment in Kaga Toshiba in
order to expand our businesses in power devices, a key product area,
and to reinforce the overall profitability of the semiconductor
business."

Mr. Tatsuro Mitani, President of Kaga Toshiba Electronics, also
welcomed the new facility: "Power devices have a very promising
future," he said, "and this market-appropriate investment will
strengthen our discrete business and allow us to generate sustained
profit. Our goal now is to use this new fab to position Toshiba as the
world leader in power devices."

Overview of Kaga Toshiba Electronics Corporation:

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*T
Location: 1-1, Iwauchi-cho, Nomi-shi, Ishikawa Pref., Japan
Established: December 6, 1984
President and
Representative Tatsuro Mitani
Director:
Employees: Approx. 850
Capitalization: 3.3 billion yen (Wholly-owned subsidiary of Toshiba)
Main Products: Discrete semiconductors (small-signal devices and
power devices)
*T

Overview of new production fab:

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*T
Structure of Building: Steel frame concrete, two stories
Total Floor Area: approx. 23,000m2
Start Construction: September, 2006
Completion: May, 2007
*T

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