Net sales for the 1st half of the fiscal year ending March 2008 increased by 10.1 billion yen to 708.8 billion yen. Major factors behind the increase included the positive effect of a weak yen against the U.S. dollar, resulting in an exchange gain of 14.4 billion yen, as well as a gain of 5.4 billion yen due to the improved sales volume & mix resulting from the increase in the overseas sales volume. The increase came despite a sales loss of 9.7 billion yen at our other three internal companies and etc.

Operating income edged up 0.8 billion yen to 18.9 billion yen. This increase was due to a decrease in SG&A expenses and others, foreign exchange gains as a result of a weak yen against the U.S. dollar as well as a reduction in materials cost, which all successfully offset the deterioration of the sales volume and mix and increase in R&D expenses. This will be explained in further detail later on.

Ordinary income increased 0.3 billion yen to 14.2 billion yen on a year-on-year basis. Further details will follow.

Net income fell 3.8 billion yen to 7.8 billion yen.