Note: Sales by Product Group include internal sales between segments (Consumer/Information Products and Electronic Components).

Net sales of Audio-Visual and Communication Equipment products were 215.6 billion yen, an increase of 13. 8% over the same period last year, and were fueled by continued strong growth in sales of LCD color TVs as well as steady increases in sales of camera-equipped mobile phones.

Sales of LCD color TVs totaled 56.2 billion yen, double the figure for the same period last year.
Domestic sales accounted for 32.6 billion yen of this amount, with overseas sales of 23.6 billion yen accounting for the remainder.

On a unit sales basis, we recorded worldwide sales of 460 thousand units, approximately 1.8 times higher than the same period last year. Among these, sales of large- size wide- screen models showed steady growth. Sales of 22-inch-and-larger LCD color TVs accounted for around 30% of all Sharp LCD color TVs sold during this first quarter.
For fiscal year 2004 as a whole, we estimate this figure will be around 45%.

Beginning in the second quarter, in Japan, we will be working to further increase LCD color TV sales by expanding our line-up of large-screen models through the introduction of new 32V-inch and 37V-inch models, as well as a new 45V-inch 6.22-million dot model announced last month. Overseas, we plan to further expand sales by introducing a full line-up of our Kameyama models.

Sales of mobile phones were 95.8 billion yen, an increase of 18% over the same period last year. Of this, sales in Japan were 68.0 billion yen, up 15%, and overseas sales of 27.8 billion yen, up 27%, compared to the same period last year. In Japan, the introduction of 3G mobile terminals has begun in earnest, and we have achieved a steady increase in sales. Among mobile phones sold in Japan in the first quarter, 3G mobile terminals accounted for over 40% of sales on a revenue basis. For fiscal 2004 as a whole, we estimate that this figure will be around 50%, and we are continuing to strengthen the development of uniquely featured 3G mobile terminals. Overseas, we achieved sales growth as a result of steady sales of GSM handsets.

Net sales of Home Appliances were 54.3 billion yen, down 5.7% from the same period last year due to negative impacts such as the continuing decline in prices. However, in Japan, we believe we can look forward to a recovery as a result of the heat wave that arrived in July.

Net sales of Information Equipment increased to 102.8 billion yen, up 7.6% compared to the same period last year, as a result of sales increases in copier/printers as well as LCD color monitors.

Overall, net sales of Consumer/Information Products comprising the total of these three product groups grew to 372.8 billion yen, up 8.8% over the same period last year.

Net sales of ICs were 57.4 billion yen, an increase of 9.3% over the same period last year.

Sales of CCD and CMOS imagers increased significantly, centered mainly on units specifically intended for use in camera-equipped mobile phones, while net sales of flash memory were lower than the same period last year reflecting impact of continued price erosion.

Net sales of LCDs grew dramatically to 168.0 billion yen, up 61.8% over the same period last year.

By panel size, sales revenue from large- size LCDs accounted for 40% of the total, with sales from small- and medium- size LCDs accounting for 60%. Regarding large-size LCDs, sales of those for use in LCD color TVs grew as a result of the start of operations at our new Kameyama Plant. Consequently, sales of large-size LCD panels intended for TVs as a percentage of Sharp's total sales of large-size LCD panels were around 57% for this first quarter, including those manufactured at our Mie No. 2 Plant. In addition, we are working to meet demand by starting a second production phase at our Kameyama Plant this August, thereby expanding monthly mother glass input capacity from the current 15,000 units to 27,000 units per month.

Regarding small- and medium- size LCDs, sales of System LCDs grew significantly, centered primarily on units for use in mobile phones. In March of this year, we commenced a second production phase at our Mie No. 3 Plant, our primary production facility for System LCDs. Orders continue steady and we will be working to expand sales even further in the future.

Net sales of Other Electronic Components increased to 63.2 billion yen, up 20.1% over the same period last year, as a result of considerable sales increases in solar cells.

Overall, net sales for the Electronic Components comprising these three device groups totaled 288.7 billion yen, up 38.1% compared to the same period last year.