Toshiba Corporation Set to Enter Indian Thermal Power Industry

-- Toshiba JSW Signs MOU with the Government of Tamil Nadu to Manufacture Steam
Turbines and Generators in Chennai --

TOKYO--(Business Wire)--
Toshiba Corporation (TOKYO:6502) announced that Toshiba JSW Turbine and
Generator Pvt. Ltd. (Toshiba JSW), a joint venture with JSW that will
manufacture and market steam turbines and generators in India, has today signed
a Memorandum of Understanding (MOU) with the government of Tamil Nadu. The MOU
allows Toshiba JSW to lease land for the construction of manufacturing
facilities on a site in Chennai, the capital of Tamil Nadu state.

Established in September last year, Toshiba JSW will manufacture and market mid-
to large-sized steam turbines and generators, ranging in size from 500-megawatts
(MW) to 1,000MW, for highly efficient super-critical thermal power plants in
India.

Located about 18km north of downtown Chennai, the major gateway to south-east
India, the site has a ground area of some 400,000 square meters, and Toshiba JSW
expects to invest some US$160 million in plant and manufacturing equipment over
5 years from fiscal year 2009. Facility construction is scheduled to start in
this month, and manufacturing is expected to start in January 2011. Keihin
Operations, Toshiba`s power equipment production facility in Yokohama, will
support Toshiba JSW in ramping up manufacturing, and in working toward
establishing an independent production scale of 3,000MW a year. Toshiba JSW
anticipates sales of US$400 million by the end of fiscal year 2015.

Toshiba JSW will now begin to recruit staff, and expects to have 500 employees
by 2014.

With support from the government of Tamil Nadu, Toshiba will build a
state-of-the-art heavy equipment manufacturing facility in Chennai, and hopes to
contribute to the further development of local industry and to help India in its
efforts to promote stable electricity supply.

Strong Growth in the Indian Market for Thermal Power Generation Equipment

Driven by strong economic growth, the Indian power generation equipment market
is expected to see demand growth of 15,000-16,000 MW a year for the next decade,
according to the Eleventh (2007-2012) and Twelfth (2012-2017) Five- Year
National Electricity Plans published by the Indian government. Coal-fired
thermal power stations will account for over 60 percent of the capacity growth,
far surpassing other energy sources, and 80 percent of those power stations will
be highly efficient super-critical thermal power plants.

Consistent with its long-term growth strategy of enhancing its thermal power
plant business in India, Toshiba India Private Ltd. will establish a new
in-house company in Gurgaon, Haryana state in August, which will initially
provide engineering capabilities for thermal power plants in India. With time,
the new company is expected to provide a full engineering, procurement and
construction (EPC) functions for the thermal and hydro power plant business in
India, and to support customers in Southeast Asia and the Middle East.

The new company will work closely with Toshiba JSW and with another Toshiba
Group company in India, TPSC (India) Private Limited in Hyderabad, Andhra
Pradesh, a wholly owned subsidiary of Toshiba Plant Systems & Services
Corporation that undertakes construction of power plants, and will be charged
with channeling Toshiba`s comprehensive capabilities in thermal power plant
toward meeting growing demand in India.

Outline of Toshiba JSW Turbine and Generator Pvt. Ltd.
Location: Chennai, Tamil Nadu, India
Established: September 2008
Capital: 2.2 billion in Indian rupees (approximately US$50 million)
Ownership: Toshiba Group 75%, JSW Energy 20%, JSW Steel 5%
Managing Director: Itaru Ishibashi
Employee: Approximately 500 (in 2014, plan)
Business: Design, manufacture, marketing and maintenance services for steam turbines and generators

About Toshiba

Toshiba is a world leader and innovator in pioneering high technology, a
diversified manufacturer and marketer of advanced electronic and electrical
products spanning information & communications systems; digital consumer
products; electronic devices and components; power systems, including nuclear
energy; industrial and social infrastructure systems; and home appliances.

Toshiba delivered its first steam turbine in 1927, and today is one of the
world`s leading providers of steam turbines and generators, with over 1800 units
with a total capacity of some 150GW installed in over 40 countries worldwide.
Toshiba currently operates a steam turbine and generator manufacturing facility
in Yokohama, near Tokyo; Toshiba JSW will be the company`s second such
manufacturing base and will strongly support the long-term development of
Toshiba`s power systems business.

Toshiba was founded in 1875, and today operates a global network of more than
730 companies, with 199,000 employees worldwide and annual sales surpassing
US$67 billion. Visit Toshiba`s web site at www.toshiba.co.jp/index.htm

Toshiba Corporation
Kaori Hiraki, +81-3-3457-2105
Corporate Communications Office
International Media Relations Group
http://www.toshiba.co.jp/contact/media.htm

Copyright Business Wire 2009