Sanyo Electric and Yanmar to Collaborate in the Gas Engine Cogeneration Business to Strengthen their Competitiveness in Chinese Market

Dalian Sanyo Refrigeration Co., Ltd. based in Dalian, China, a subsidiary of Sanyo Electric Co., Ltd. and Yanmar Co., Ltd. recently agreed to collaborate in the gas engine cogeneration business.

Under the collaboration agreement, the gas engine cogeneration equipment (for power generation and hot water supply) manufactured by Yanmar and absorption refrigerators manufactured by Dalian Sanyo Refrigeration will be combined for sale as a single system.Dalian Sanyo Refrigeration, which has 26 bases across China, will perform sales, installation and after-sale service.The development of this new business should expand operations for both companies in the Chinese market by strengthening Sanyo Electric’s competitive footing in the refrigeration and commercial sectors and enlarging Yanmar’s energy system business through use of the Dalian Sanyo Refrigeration sales network.

Marketing preparations will start as early as in the fall and sales will commence in Shanghai, Beijing and other major cities across China in January 2007.The sales targets are 50 units in 2007, 100 units in 2008 and 200 units in 2009.

China’s rapid economic growth is happening against a backdrop of a still unstable power supply that depends heavily on coal, which places a heavy load on the environment.Chinese corporations have long been looking for decentralized, dispersed power generation options but these have remained very limited due to the lack of rules and standards for interconnected power system technologies and the poorly developed infrastructure for the environmentally friendlier power source of natural gas.

Sanyo Electric and Yanmar will endeavor to disseminate the use of gas cogeneration systems throughout China, starting in Shanghai where infrastructure for natural gas use is already being prepared.

Both companies also aim to expand their respective gas air-conditioning businesses while working in this manner to expand the natural gas cogeneration business in China.

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Media Inquiries:

Corporate Public Relations Unit, Corporate Communications Div.,
Sanyo Electric Co., Ltd.Tel.: 06-6994-3546

Public Relations Group, General Affairs Dept., Yanmar Co., Ltd.
Tel.: 06-6376-6212

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Dalian Sanyo Refrigeration Co., Ltd.

Dalian Sanyo Refrigeration Co., Ltd. was established in 1992 as a joint venture company of Sanyo Electric and the Dalian Bingshan Enterprise Group of Dalian, China. It manufactures large commercial-use air conditioning units (absorption type refrigerators) operated on steam and natural gas. Its integrated manufacturing, sale and service business has acquired the No.1 market share in China and won the high trust of customers.

The company also inaugurated the manufacture, sale and servicing of commercial-use gas heat pump air conditioners in 2005 and expects large expansion of this business in the years to come in tandem with the dissemination of gas-related infrastructure across China.

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Yanmar Co., Ltd.

Yanmar has delivered many cogeneration systems using own engines, enjoying an over 70% market share in Japan for small and medium gas cogeneration systems (5kW ~ 500kW).

Yanmar started the sale and servicing of commercial-use gas heat pump air conditioners in China in 2003 and is promoting micro-cogeneration systems, already popular in Japan, as the core product for expanding the use of gas engine cogeneration in the Chinese market.

System Outline

<Power Generation and Air-conditioning>

<Power Generation and Hot water Supply>

The content of this news release dates from the press presentation.Some of the information contained herein may no longer be valid.