Sanyo Epson Imaging Devices Corporation (Sanyo Epson) today announced the implementation of organizational reforms and a redeployment of human resources with effect from December 21, 2006. These changes are part of structural reforms aimed at realizing a flatter and slimmer organization at Sanyo Epson.

Recent intensified competition in the market for small- and medium-sized LCDs has resulted in severe and continued price erosion beyond forecasted levels. As a result, Sanyo Epson has been unable to achieve the business plans created at the time of its establishment. Based on the Creativity & Challenge 1000 mid-range business plan announced on March 16 by Seiko Epson Corp. (Epson), Sanyo Epson has since committed itself to exploring every possibility in honing business strategies aimed at maximizing profitability and corporate value as an Epson group company.

Following on from Epson's announcement earlier today that it would make Sanyo Epson a wholly-owned Epson subsidiary, Sanyo Epson is planning to implement organizational reforms and reorganize its deployment of human resources with effect from December 21.

Organizational reforms include realizing a slim organization consisted of 12 divisions instead of the existing structure of 8 administrative offices and 36 departments, and reducing the number of management positions to make a flat organization with the ability to make quick decisions and achieve efficient organizational management. Sales, development and design functions will also be changed to develop an organization that brings manufacturing and sales closer together, and which improves the speed, quality, and level of support for our customers and business partners. Product development efforts will concentrate mainly on low-temperature polysilicon LCDs.

Accompanying these organizational reforms and personnel changes, Sanyo Epson will change its name to Epson Imaging Devices Corp. on December 28, and will continue with its efforts to become the No.1 supplier of small- and medium-sized LCD displays.

Contact: Corporate Communications, Sanyo Epson Imaging Devices Corporation
e-mail: www@epson-imaging.com