Panasonic Automotive Systems Company of America and Fender Musical Instruments Corp. to Collaborate On In-Vehicle Entertainment Systems

Industry-leading car audio supplier and famed guitar and amplifier maker agree to jointly develop custom automotive audio equipment

DETROIT, Jan. 9 -- With the recent success of the acclaimed ELS Surround(R) in-car audio system under its belt, Panasonic Automotive Systems Company of America has formed a working agreement with Fender Musical Instruments Corporation to develop custom audio systems for the automotive market.

Fender has a 60-year history of product innovation and trendsetting design of stylish guitars and amplifiers for the music industry. Even more, Fender has long been able to capture the imagination and mood of successive generations of youth involved with the music industry by producing custom, classic and vital products that are able to communicate "The Spirit of Rock and Roll(R)."

The exclusive agreement provides the framework for the two powerhouses in their respective industries to work together to create customized products for the global automotive industry.

As electronics continue to play an ever-growing role in the automobile, and as more and more vehicles are equipped with increasingly advanced systems for in-car entertainment, high-end sound system suppliers to the auto industry, such as Panasonic Automotive, seek to develop products that will provide superior technology as well as communicate a passion for music and sound reproduction.

"Technology, innovation and lifestyle are key differentiators," said Tom Dunn, marketing group manager for Panasonic Automotive Systems. "The next generation of car buyers is going to be more independent and individual in their tastes and preferences; as a group they already show a high level of brand awareness and enthusiasm for music."

"Most audio suppliers don't have a lifestyle associated with their products," Dunn added, "but the Fender name does. It's intertwined with rock, pop, country, blues and jazz musicians because Fender makes the world's leading electric and acoustic guitars, electric bass guitars, and amplifiers that these artists play. Fender's instruments are a 'platform for creativity.' By working together with Fender, Panasonic Automotive hopes to bring a similar 'platform for creativity' to the automotive market."

"We are known for creating the instruments and amplifiers for the musicians actually creating the music. Panasonic has the expertise in developing car audio equipment that reproduces those sounds as the artists intended them to be heard," said Ritchie Fliegler senior vice president of Market Development for Fender Musical Instrument Corp. "Together, this will create a synergy that will be very powerful."

Fliegler believes that by working with Panasonic, Fender's legendary status in the musical instruments industry can be brought into the automotive in-car audio market to create something very special. "The chance to work with Panasonic, a leader in consumer electronics, is a wonderful opportunity to apply Fender's expertise, passion and technology to a totally new market. Cars and guitars, it's a classic combination," said Fliegler.

Dunn said that the Panasonic-Fender audio system collaboration would bring a unique identity to a carmaker's offerings and would particularly appeal to a wide range of consumers, including youthful buyers, many of whom are musicians themselves.

Fliegler thinks that, in addition to North American customers, the global brand strength of the Panasonic and Fender car audio system will have tremendous appeal for European and Asian customers. With the Fender name and technology, the system will designate an image and level of performance that is uniquely American.

About Panasonic Automotive Systems

Based in Peachtree City, Georgia, and with Detroit-area operations located in Southfield, Mich., Panasonic Automotive Systems Company of America is a division of Secaucus, New Jersey-based Panasonic Corporation of North America, the principal North American subsidiary of Matsushita Electric Industrial Co., Ltd. of Osaka, Japan, one of the world's leading developers and producers of innovative digital and other electronic products for consumer, business and industrial use. Panasonic Automotive Systems Company of America also acts as the North American operating company of Panasonic Automotive Systems Company, a division of Matsushita Electric Industrial Co., Ltd., which coordinates global automotive industry systems and components operations. For more information on Panasonic and Matsushita Electric, visit www.panasonic.com.

About Fender Musical Instruments Corporation

Fender Musical Instruments Corporation (FMIC) is the world's foremost manufacturer of electric guitars, amplifiers and related equipment since 1946, and its name has become synonymous with all things rock 'n' roll. Iconic Fender(R) instruments such as the Telecaster(R), Stratocaster(R), Precision Bass(R) and Jazz Bass(R) guitars are known worldwide as the instruments that started the rock revolution, and they continue to be highly prized by today's guitarists and collectors. FMIC markets using the brand names Fender(R), Squier(R), Guild(R), Gretsch(R), Jackson(R), Charvel(R), SWR(R), Tacoma(R), Olympia(R) and Brand X(R). Further information on FMIC can be found at the company's website, www.fender.com.