News Release

Toshiba Elevator to Take Equity Interest in Chevalier International

TOKYO, December 1, 2008 -- Toshiba Elevator and Building Systems Corporation (TELC) today announced that it has reached a basic agreement with Hong Kong-based Chevalier International Holdings Limited (CIHL) on further promoting and expanding the elevator and escalator business in the global market, with a special emphasis on the buoyant markets of China and Southeast Asia.

Under the agreement, the companies will reinforce business cooperation and coordination through an equity-based partnership. By the end of March 2009, TELC will acquire from CIHL a 49% shareholding in Chevalier (HK) Limited, CIHL's elevator business subsidiary in Hong Kong, and extend this to a 51% majority holding by the end of March 2010. At the same time, CIHL will acquire 20% minority shareholdings in TELC's Chinese subsidiaries, Toshiba Elevator (China) Co., Ltd. and Toshiba Elevator (Shenyang) Co., Ltd., by the end of March 2009. Under this arrangement, TELC will have the right to appoint directors to Chevalier (HK) Limited.

CIHL operates a wide range of businesses in various categories (including construction & engineering, property, insurance & investment, information technology and others) with a worldwide network extending from China, South East Asia to North America, Europe and the Middle East. TELC and CIHL have enjoyed a positive relationship since 1970, when CIHL became the sole overseas distributor of Toshiba elevators in Hong Kong and Singapore, with responsibility for sales and engineering in those areas. With the new cross-shareholding relationship, TELC will collaborate with CIHL to further expand the elevator business in China, the largest elevator equipment market in the world. Building further on this, TELC will also seek to extend its already strong presence in Hong Kong and Singapore, and to reinforce its ability to meet demand for elevator renewal projects in the region

TELC is a recognized leader in elevator technologies and systems. The company provided Taiwan's Taipei 101 tower with the world's fastest elevators (speed: 1,010 meters per minute) in 2004, and this year installed ultra high-speed elevators (speed: 600 meters per minute) and high-speed double deck elevators with adjustable floor heights in the Shanghai World Financial Center. Drawing on its world-class technological capabilities, TELC is proactively expanding its operations in the global market, particularly in growing markets such as China and the Middle East.

About Chevalier International Holdings Limited
Chevalier International Holdings Limited, a listed company in Hong Kong, is engaged in construction and engineering, insurance and investment, property and hotel, information technology and other diversified businesses including automobile and trading. Its businesses have grown on a worldwide scale, spanning China, South East Asia, Europe, North America, Australia and the Middle East.

About TELC
Toshiba Elevator and Building Systems Corporation was established in 2001, when Toshiba span off its elevator and escalator business as an independent subsidiary. Today, the company is one of the world's leading companies in elevators, escalators and moving walks, with a network of 6 affiliates in 3 countries. TELC's core strategy of delivering total solutions for buildings is reflected in a steady stream of high-value products that make full use of Toshiba's advanced control technologies. A rich product line-up and a commitment to providing systems support a fast expanding overseas presence.

2008-12-01