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   Date: 2nd Sept 2010

Sony to increase production capacity of its CMOS image sensors

Sony has announced that it would invest about 40 billion yen into Sony Semiconductor Kyushu Corporation's Kumamoto Technology Center (hereafter, "Kumamoto TEC"), to increase production capacity for "Exmor" and "Exmor R" CMOS image sensors. This investment comprises of an amount previously determined to be invested in the second half of fiscal year 2010, which was included in the forecast for the capital expenditures announced at the earnings announcement for the first quarter ended June 30, 2010, in addition to an amount to be invested in fiscal year 2011.

This investment will strengthen Sony's production capacity for image sensors. Sony says that the present market conditions have led to greater demand for larger image sensors and image sensors with higher image capabilities. To meet the market demands Sony provides two CMOS image sensor models. They are:
--"Exmor" , which adopts the "Column-Parallel A/D Conversion Technique", providing each column within the sensor with its own A/D converter to reduce noise.
--"Exmor R", which applies a back-illuminated structure to enhance image characteristics through high sensitivity and reduced noise.

Since 2009, Sony has been mass-producing "Exmor R" for Digital Still Cameras and Digital Video Camcorders on wafer lines (with diameter of 200mm) at Sony Semiconductor Kyushu Corporation's Nagasaki Technology Center. At the end of this year Sony plans to start the mass production of "Exmor R" on wafer lines (with diameter of 300mm) at Kumamoto TEC for mobile phone and compact Digital Still Camera markets.

The "Exmor R" is used in smartphones and in a wide range of digital imaging products for consumer and professional use, including compact Digital Still Cameras. In addition, Sony also plan to increase production capacity for mainly large sized "Exmor" used in Digital Single Lens Reflex cameras.

Investment Overview:

Purpose of investment:                     Increase production capacity to meet the increasing demand of                                                                 CMOS image sensors
Investment site:                                  Kumamoto Technology Center, Sony Semiconductor Kyushu                                                                Corporation (Kikuchi-gun, Kumamoto Prefecture)
Investment details:                             Wafer processing equipment for CMOS image sensor production,                                                                etc.
Investment time frame:                     From the second half of fiscal year 2010 through fiscal year 2011
Investment amount:                           Approximately 40 billion yen
Production Capacity (Wafer Process/300mm wafers):

--25,000 wafers per month  (Before investment this time: 18,500 wafers per  month)

--Of them, the capacity for image sensors will be 22,500 wafers per month
(Before investment this time: 16,000 wafers per month)
(Total production capacity of Kumamoto TEC Fab 1 and 2)

Outline of Sony Semiconductor Kyushu Corporation

(1) Head office:              2-3-2 Momochihama, Sawara-ku Fukuoka-shi Japan
(2) Establishment:        April 1, 2001
(3) Representative Director (President): Masanori Okayama
(4) Capital:                     24.25 billion yen, fully owned by Sony Corporation
(5) Production Bases: Kagoshima, Oita, Nagasaki and Kumamoto
(6) Number of employees: Approximately 9,000 (including contract and temporary employees) as of                                                 March 31, 2010
(7) Business Activities: Development, design and production of semiconductors, etc.


Kumamoto Technology Center
(1) Location:                             4000-1 Haramizu, Kikuyomachi Kikuchigun, Kumamoto, Japan
(2) Establishment:                    October 1, 2001
(3) Site area:                             256,000-square-meter
(4) Floor area:                         195,000-square-meter
(5) Main products:                    Image sensors (CCD and CMOS), micro display devices (H-LCD and                                                    "SXRD", etc.)

          
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