Operating Loss of $650 Million for the HD DVD Business of Toshiba in FY07

Toshiba Corporation announced the following revision to its
business forecast for FY2007, ending March 31, 2008. This replaces the
previous forecast announced on October 29, 2007: "Net sales are expected to be lower than previously forecast,
reflecting the discontinuation of the HD DVD business and the decline
in sales prices of NAND flash memories. While the PC business
and Social Infrastructure segment are moving forward strongly, the
Semiconductor business has seen a significant decrease in operating
income due to a larger than anticipated declines in sales prices of
NAND flash memories. Given this, the overall operating income is
anticipated to see a decrease from the previous forecast. Income before
income taxes and minority interest and net income are also expected to
decrease from the previous forecast, primarily on costs incurred in the
discontinuation of the HD DVD business."

For its fiscal 2007, the company revised its HD-DVd sales from ¥65 billion to ¥26 billion, to be compared to ¥16 billion in FY06, and operating loss from ¥50 billion to ¥65 billion (or U.S$ 650 million). It was already ¥34 billion in FY06.

Toshiba Corp.