Toshiba to Boost Fab Capacity

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Toshiba Corporation today announced that it would reinforce its
leadership in fab capacity by constructing two state-of-the-art fabs,
in Yokkaichi, Mie Prefecture, and in Kitakami, Iwate Prefecture. One
of the new fabs will initially fabricate advanced generations of NAND
flash memory, and it is also expected to produce future memory. The
other fab will provide capacity to meet Toshiba´s future semiconductor
requirements.

By building two production facilities in parallel, Toshiba will be
positioned for a timely response to surges in demand, and will further
strengthen its competitiveness in the semiconductor business.

The new fabs will be built on the site of Iwate Toshiba
Electronics Co., Ltd. (Iwate Toshiba), a Toshiba consolidated
subsidiary, and adjacent to Toshiba´s Yokkaichi Operations, where four
NAND flash fabs are already in operation. Following completion of all
required procedures, construction of the new fabs is expected to start
in the spring of 2009, targeting completion in 2010. Details of
construction schedules will be finalized in due course, in light of
progress in approvals and market trends.

Separately today, Toshiba and SanDisk Corporation also signed a
non-binding memorandum of understanding on one of the new fabs,
targeting a production start-up date in 2010, and a related production
joint venture. Details of the fab, including site location, will be
finalized as planning progresses.

In the future, Toshiba plans to discuss with SanDisk their
interest in participating in the other new fab.

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