The surround-sound software did not turn on and off correctly; a Toshiba spokesman says the problem has been fixed.

A Toshiba spokesman, Hiroyuki Izuo, immediately denied the report.

"We have a close relationship with Motorola," said Tetsuo Kadoya, a Toshiba spokesman.

A Toshiba spokesman declined to give further details about the talks, adding that an announcement would be made once an agreement was reached.

Similarly, a Toshiba spokesman here said the company was looking for partners in flash memories but did not mention names.

The program seemed to go so smoothly that the company expanded it to include 400 managers, according to Keisuke Oomori, a Toshiba spokesman.

A Toshiba spokesman in Tokyo said the company did not know about the defect.

A Toshiba spokesman said the company will get earlier access to information about Microsoft's operating systems, allowing the company to develop products quicker.

A Toshiba spokesman said the new chips would be available in October.

A Toshiba spokesman said his company would prefer to continue production in America because "our policy is manufacturing as close to our customers as possible."