NEW YORK, N.Y, and SAN JOSE, CALIF. (September 1, 2006) – The world leader in consumer cordless phones, Panasonic Communications Co., Ltd., a subsidiary of Matsushita Electric Industrial Co., Ltd. (NYSE: MC), is working to develop a Panasonic Wi-Fi phone for use with Skype. This is the first Wi-Fi product in a series of planned products for use with Skype’s service. With this new product, consumers will be able to make and receive Skype™ calls to Skype users from Wi-Fi Access points in the home, office or elsewhere.

“This new Wi-Fi phone for use with Skype follows the shift toward Internet calling entering the mainstream consumer market,” said Mike Timar, national marketing manager, Panasonic Consumer Electronics Company. “This exciting product will enable greater flexibility in communications for home and business users.”

The Panasonic Wi-Fi Phone will give consumers access to core Skype features including SkypeOut™, SkypeIn™, Skype Voicemail and call forwarding via the Wi-Fi phone. The Panasonic Wi-Fi Phone is also great for making and receiving calls in free public Wi-Fi access zones that do not require browser authentication. The Panasonic Phone will be Skype Certified™ and is expected be launched in the fourth quarter of 2006 in the United States.

“This Wi-Fi phone from Panasonic marks another milestone in the growing ecosystem of Skype Certified products,” said Don Albert, North America general manager, Skype. “New and exciting product from a major consumer electronics leader like Panasonic enables the expansion of Skype beyond the desktop, and helps us to continue to provide innovative and forward-looking products to our growing consumer base.”

The Skype community has grown to more than 113 million people in almost every country around the world, and Skyping has become a global phenomenon. Skype enables the world’s conversations, making it easier for people to connect with family, friends and colleagues anywhere in the world.

The Panasonic Wi-Fi phone joins the growing family of Panasonic Voice over IP (VoIP) products, including the recently launched Panasonic KX-TGA575S. The KX-TGA575S USB adaptor is an optional accessory for Panasonic 5.8GHz Digital Expandable Cordless Systems KX-TG5761S, KX-TG5771S, and KX-TG5776S. Using the adaptor with these systems means the user doesn’t have to be in front of a computer. The Skype contact list and call log are available on any of the cordless handsets in the system.

About Panasonic Communications Co., Ltd. (PCC) Panasonic Communications Co., Ltd. is a wholly owned subsidiary of Matsushita Electric Industrial Co., Ltd. The company specializes in development, manufacturing and sales in the fixed-line communications equipment areas of operation, including document related equipment and the provision of network and system services and solutions. For more information, please visit the Panasonic Communications Web site at http://panasonic.co.jp/pcc/en/ .

About Panasonic Consumer Electronics Company Based in Secaucus, N.J., Panasonic Consumer Electronics Company is a division of Panasonic Corporation of North America, the principal North American subsidiary of Matsushita Electric Industrial Co. Ltd. (NYSE: MC) and the hub of Panasonic’s U.S. marketing, sales, service and R&D operations. Information about Panasonic and its products is available at www.panasonic.com. Additional company information for journalists is available at www.panasonic.com/pressroom.

Skype is the world’s fastest-growing Internet communication offering, allowing unlimited free voice and video communication between Skype users. Skype is available in 27 languages and is used in almost every country around the world. Skype generates revenue through its premium offerings such as making and receiving calls to and from landline and mobile phones, voicemail, call forwarding and personalization including ringtones and avatars. Skype also has relationships with a growing network of hardware and software providers.

Skype is an eBay company (NASDAQ: EBAY). To learn more visit skype.com.

Skype is not a replacement for your ordinary telephone and cannot be used for emergency calling.

Skype, SkypeIn, SkypeOut, Skype Me, Skype Certified, Skypecasts, associated logos and the “S” symbol are trademarks of Skype Limited.

Wi-Fi is a trademark of the Wi-Fi Alliance.