Matsushita Announces Board Decisions Relating to Stock

Option Plan Osaka, Japan (ots-PRNewswire) - Matsushita Electric IndustrialCo., Ltd. (NYSE: MC; PX) today announced that its board ofdirectors has made decisions relating to the Company's proposedstock option plan. The decisions, as follow, are subject toapproval of the proposal, "Purchase of own shares for transfer todirectors and employees," at the annual shareholders' meeting tobe held on June 29, 1999. 1. Particulars of the stock option plan

(1) Transferees: 32 directors on the board and 4 selectsenior executives in office as at the closing of the above-mentioned shareholders' meeting

(2) Class of shares to be transferred: Par value commonstock of the Company

(3) Number of shares to be transferred: 2,000 to 10,000shares per qualified individual

(4) Transfer price per share: An amount equal to 1.05 timesthe monthly average closing price of the Company's common stockon the Tokyo Stock Exchange ("TSE") during the month prior to themonth in which stock option rights will be granted, unless thatamount is lower than the closing price of the Company's commonstock on the TSE on the date when stock option rights aregranted, in which case the transfer price per share shall beequal to that day's closing price.

(5) Period during which rights are exercisable: July 1, 2001through June 30, 2005

(6) Conditions for the exercise of rights: To be provided byagreements entered into between the Company and the qualifieddirectors and senior executives pursuant to resolutions adoptedat the shareholders' meeting and subsequent board of directors'meetings. 2. Purchase of own shares to be used for aforementioned options

(1) Class of shares to be purchased: Par value common stockof the Company

(2) Maximum number of shares in aggregate to be purchased:120,000 shares

(3) Maximum amount in aggregate to be spent for the sharepurchase: 350 million yen Matsushita Electric Industrial Co., Ltd. is one of the world'sleading producers of electronic and electric products forconsumer, business and industrial use, which it markets aroundthe world under the "Panasonic," "National," "Technics" and"Quasar" brand names. Matsushita's shares are listed outsideJapan on the Amsterdam, Dusseldorf, Frankfurt, New York, Pacificand Paris stock exchanges. ots Original Text Service: MatsushitaElectric Industrial Co., Ltd. Internet: http://www.newsaktuell.deContact: Akihiro Takei of Panasonic Finance, America, Inc.(USA) 212-371-5447

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