Update on the sale of Toshiba Memory Corporation

Toshiba Corporation (TOKYO:6502) (Toshiba) is in continuing negotiations with three consortia of potential purchasers of Toshiba Memory Corporation (TMC): the Innovation Network Corporation of Japan, Bain Capital Private Equity LP and Development Bank of Japan consortium; a consortium that includes Western Digital; and a consortium that includes Hon Hai. At this point, Toshiba has not made any decision to reduce the pool of candidate purchasers of TMC.

There have been media reports speculating that Toshiba will make a decision on Aug 31 at Toshiba’s Board of Directors meeting. While Toshiba exercised its best efforts to reach a mutually satisfactory definitive agreement with one of the consortia seeking to purchase TMC, the negotiation with each consortium has not reached the point which will allow Toshiba’s Board of Directors could make a decision regarding the sale of TMC.

The memory business requires timely investments, accelerated product development, and the ability to quickly ramp-up large-scale production capacity; Highly reliable memory devices are essential to meet growing demand for storage. Accordingly, Toshiba is looking for a purchaser of TMC that is able to deliver flexible, rapid decision-making and enhanced financial options, and to promote further growth of TMC’s memory business, while also being capable of contributing enough value from the sale of TMC to return the Toshiba group to positive equity.

Toshiba intends to continue negotiations with possible bidders to reach a definitive agreement which meets Toshiba’s objectives at the earliest possible date, and will announce material changes in status in a timely manner.

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