On April 26, 2002, Standard & Poor's placed the ratings on Toshiba Corp. on CreditWatch with negative implications, reflecting concerns over the company's ability to strengthen its business profile to an extent sufficient to maintain adequate credit measures. Toshiba's credit measures are currently weak for the rating category. Toshiba is facing difficulties in its major business segments including its electronic device business and IT-related equipment and system businesses amid a prolonged economic downturn in Japan and intensifying competition, and the prospects for a consistent earnings recovery remain highly uncertain. Despite its broadly diversified business portfolio, the company's earning performance is vulnerable to cyclical swings in the electronic devices market. Although earnings are expected to recover somewhat in fiscal 2002 (ending
