Ten full years before soaring gas prices and rolling blackouts became daily headlines, Panasonic marked itself as a global environmental leader.

Since the June 1991 establishment of its landmark ''Environmental Charter'' -- a document through which Matsushita Electric Industrial Co., Ltd. and its affiliated companies (''Panasonic'') pledge ''the prudent, sustainable use of the earth's resources and the protection of the natural environment'' -- outstanding results have been achieved. And based on current successes and exciting future plans, the best is yet to come.

''On this tenth anniversary of the Environmental Charter, Panasonic now has the opportunity to review the progress we have made in sustaining the earth's resources as we carry out our corporate mission of serving society by producing high-quality, affordable products,'' says Kunio Nakamura, president of Matsushita Electric Industrial Co., Ltd. ''But we certainly cannot rest on what we've already achieved. Rather, awareness of our results during the past decade only encourages us to forge ahead with new developments and improvements that fulfill our obligation to maintain the planet's ecosystem.''

A Decade of Success

Since the 1991 creation of the Environmental Charter, Panasonic companies have recorded several groundbreaking and award-winning environmental milestones, including total elimination of specified ozone-depleting chemicals (CFCs) in the manufacturing process, an achievement which earned an award of excellence from the U.S. Environmental Protection Agency (EPA) in 1993-94. In addition, Panasonic played a leading role in establishing, in 1994, the Rechargeable Battery Recycling Corporation (RBRC). This organization is now recognized as a model recycling program in both the U.S. and Canada.

In 1999, the EPA and the U.S. Department of Energy presented its prestigious Energy Star award in recognition of the extensive lineup of Panasonic energy-saving products. Additional Energy Star awards followed in 2000 and 2001, marking Panasonic as a clear industry leader in producing electronics products that safeguard the environment.

In 2000, the Japanese government recognized Panasonic's worldwide environmental efforts, presenting the company in Japan with the Minister of International Trade and Industry Award. Panasonic has also received a wide range of additional honors, including awards for energy-saving products, promotion of recycling, energy management, preservation of water quality and global warming prevention, among others.

On the R&D front, Panasonic's sustainability efforts enabled the launch, in 1999, of the world's first wide screen television with halogen-free wiring and components.

Current Efforts

Since the end of fiscal year 1998, a total of six million Panasonic product units have been manufactured using lead-free solder. Now, demonstrating its continued commitment to policies outlined in the Environmental Charter, Panasonic has announced its commitment to completely remove lead solder from all its products by the end of fiscal year 2002.

In terms of clean, reduced-emissions factories, Panasonic is a worldwide leader in total number of ISO 14001 certified production plants. Each of these almost 250 certified Panasonic production facilities reflects the highest global standards in waste reduction. In addition, in August 2000, Panasonic announced two ambitious environmental targets for all its manufacturing plants in Japan. By fiscal year 2004, Panasonic has set a goal of reducing use and discharge of chemical substances by 50% over fiscal year 1998 levels. And, by fiscal year 2010, Panasonic intends to counter the serious industry-wide trend of increasing CO2 emissions and consumption by actually achieving a seven- percent decrease in CO2 emissions/consumption from levels recorded in fiscal year 1990.

Panasonic also maintains a strong focus on developing environmentally- conscious products -- which aim to reduce the environmental burden throughout a product's full lifecycle -- and establishing recycling systems that reduce the environmental impact of industrial production. One standard-setting recycling practice developed by Panasonic, the application of an original plastic-molding technique to metals, enabled Panasonic in 1998 to be the first in the world to utilize magnesium alloys in televisions, PCs and MD players.

Looking to the Future

But what has been achieved previously is only the foundation for the future.

Panasonic is taking an aggressive, proactive stance toward recycling with the April 2 opening of its Eco Technology Center, a high-tech facility in Yashiro, Japan, devoted exclusively to the recycling of Panasonic televisions, refrigerators, washing machines and air conditioners, the product categories outlined in Japan's new Electric Appliance Recycling Law. In addition, the company also works with a network of independent recycling firms throughout Japan, just as Panasonic units are also doing in the United States, Europe and Asia.

Another key for the future of corporate environmental efforts will be utilizing post-consumer and post-industrial recycled content to maximum efficiency. While this is a relatively new process for all electronics manufacturers, Panasonic is moving quickly to incorporate previously used material into its products. In the United States, as an example, the large funnel components of the cathode-ray TV tubes manufactured at Panasonic's massive Troy, OH, plant already contain seven percent post-industrial and one percent post-consumer glass.

Of course, the overall environmental goal for major producers of electronics is the ''sustainable product,'' one that is easily recycled, contains little or no toxic substances and is highly energy efficient. Panasonic has created two specific product assessment processes to analyze all these criteria in great detail. Engineers throughout Panasonic are evaluating everything from raw materials to finished product to assess levels of environmental-friendliness. There have already been many positive results, including products with no embedded screws and easily removable labels. These design additions will help to significantly accelerate and simplify the recycling process, and many other design improvements are in development.

About Panasonic

Established in Osaka, Japan in 1918, Matsushita Electric Industrial Co., Ltd. (NYSE: MC - news), a worldwide leader in the development of technologies and the production of electronics and electric products for consumer, business and industrial use, recorded sales of $61.45 billion for the fiscal year ended March 2001. Matsushita Electric and its affiliates (''Panasonic'') have over 290,000 employees in 46 countries. In North America, Panasonic has marketing, production, research and development and service operations that employ more than 25,000 people. Panasonic has 21 North American manufacturing sites in the United States, Mexico and Puerto Rico. Additional information is available at http://www.panasonic.com.

Matsushita Electric Industrial Co., Ltd.

Matsushita Electric Industrial Co., Ltd.

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