TOKYO(May15,2002)--On May 15 in Cairo, Egypt, Sharp Corporation and Nissho Iwai Corporation entered into an agreement with El-Araby Co., the largest comprehensive home electric appliance manufacturer in the Middle Eastern and African regions, for the licensing of air conditioner manufacturing technology, delivery of production facilities/components, and for cooperation in sales.

A contract for air conditioner component supply has been signed between Sharp, Nissho Iwai and El-Araby, and a contract for brand leasing and technical assistance has been signed between Sharp and El-Araby. El-Araby will commence production of Sharp-brand air conditioner products from November 2003, at a newly established factory in the Quesna Industrial Zone. From January 2004, air conditioner products will be sold in Egypt and in African countries, where El-Araby has a strong distribution network, and sales in the Middle Eastern region are also planned.

El-Araby, which will undertake air conditioner production for the first time since the company was founded in 1964, has an established corporate image of being trusted by its users, as can be understood from the fact that it has a strong distribution service network for home electric appliance sales in Egypt. Following Egypt, El-Araby brings African countries, one of the original targeted sales regions, into view as a promising market, and will make maximum use of the Common Market for Eastern and Southern Africa (COMESA) agreement which was introduced in 2001. Also, in the Middle Eastern region, centered on oil-producing countries, economic circumstances are taking a turn for the better and there is an increase in the number of materials & equipment procurement business matters concerning various infrastructures. An expansion of the demand for consumer goods is expected, arising from increases in income and growth of the young population.