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News Release

Epson Opens New Projector Panel Fab at Chitose

- TOKYO, Japan, July 22, 2004 -

Seiko Epson Corporation ("Epson") announced today that construction has been completed on schedule at the company's once-delayed Chitose Plant, a high-temperature polysilicon TFT LCD panel ("HTPS panel") fabrication facility located in the Chitose Bibi World industrial park in Hokkaido, Japan. A ribbon-cutting ceremony was held today at the site to commemorate the company's first 300-mm quartz-wafer line for manufacturing the state-of-the-art HTPS panels used in liquid crystal projectors.

Demand for HTPS panels used in business projectors has been steadily rising along with increased demand for presentations in business and, more recently, increased projector use in the education market. Meanwhile, the spread of DVD players and digital broadcasts has sparked burgeoning consumer demand for front projectors and large-screen LCD projection TVs for the home. (Refer to Attachment 2.)

Epson is currently manufacturing HTPS panels on 200-mm (8-inch) wafers at its Suwa Minami Plant in Fujimi, Nagano Prefecture. However, with demand predicted to outstrip capacity, Epson decided to resume construction on the Chitose fab in August 2003. Construction was completed on schedule.

Epson has long led the projection market with its 3-LCD projection systems. And, as the liquid-crystal light-valve industry's number one manufacturer, Epson maintained its grip on an approximately 55% (*1) share of the global market for the 2003 fiscal year ending March 2004. Underpinning this strength is the company's proprietary, advanced liquid crystal and high-aperture ratio technologies, which enable it to offer low-power HTPS products that provide unrivaled light efficiency, outstanding brightness and superior color reproduction—and to do so without straining the eyes or the environment.

Epson, which launched full-fledged volume production of HTPS panels in 1994, reached the 10-million unit cumulative shipment milestone in October 2002. Less than two years later, in July 2004, the company shipped its 20-millionth panel.

The new fabrication facility has been outfitted with state-of-the-art technology for manufacturing HTPS panels on a 300-mm quartz wafer line, Epson's first. Operations will get under way in 2004, gradually ramping to full-scale production volume of 2,000 wafers per month (300 mm) in 2005. Capacity will gradually be increased thereafter in line with market trends. The new fab features an environmentally conscious design that was conceived on the basis of a lifecycle assessment and that emphasized the adoption of energy saving equipment, the use of recycled materials, and the reduction of construction waste. In addition, with the primary energy used on-site limited to electricity and natural gas, Epson aims to reduce its CO₂ emissions and live up to its reputation as a leading environmental company by achieving harmony between its business activities and the global environment. New plant construction will also coexist with the surrounding rich natural environment.

An overview of the Chitose plant is provided in Attachment 1.

*1: Including liquid crystal and other projection systems. Figures are Epson estimates based on documents from Techno Systems, Display Research, Fuji Chimera, etc.

Click here for more information on Epson's HTPS and other imaging technologies.

Press release: Epson Announces Resumption of Construction at Chitose Plant (August 6, 2003)

Press release: Epson Announces Next-Generation High-Temperature Polysilicon TFT Panel (June 28, 2004)

Press release: Epson Ships Twenty Millionth Liquid Crystal Panel for Projection Systems (July 20, 2004)

About Epson
The Epson Group increases its corporate value through its innovative and creative culture. Dedicated to providing its customers with digital image innovation, its main product lines comprise information-related equipment such as printers and projectors, electronic devices including displays, liquid crystal panels for projectors, semiconductors and quartz devices, and precision products such as watches. Epson products are known throughout the world for their superior quality, functionality, compactness and energy efficiency.
The Epson Group is a network of 84,899 employees in 110 companies around the world, and is proud of its ongoing contributions to the global environment and to the communities in which it is located. Led by the Japan-based Seiko Epson Corp., which is listed on the First Section of the Tokyo Stock Exchange, the Group had consolidated sales of 1,413 billion yen in fiscal 2003.

Contacts
Seiko Epson Corp.
Corporate Communications
Contact us by e-mail
http://www.epson.co.jp/

Attachment 1

Chitose Plant overview
Name: Seiko Epson Corporation Chitose Plant
Address: 758-173 Bibi, Chitose, Hokkaido
Tel: 0123-22-5000; Fax: 0123-22-5001
Start of construction: August 2003
Completion of clean room: July 2004
Production launch: October 2004 (start of pilot run for 300-mm wafers)
Products: High-temperature polysilicon TFT LCD panels
Site area: 160,213.56 m²
Fab
   Structure: Steel-frame construction
   Floors: Above ground 7 floors, tower 1 floor
   Building area: 20,149.84 m²
   Total floor area: 82,971.65 m²
Initial production capacity: 2,000 wpm (300 mm)
Initial production workforce: Approximately 200 people
Initial investment: 35 billion yen.

Attachment 2

Seiko Epson estimates based on TSR, hearings with finished product manufacturers, etc.