Sales for the first half in fiscal 2005 were 184.6 billion yen, an increase of 40.2% over the same period last year. On a unit volume basis, sales were 1.73 million sets, up 56% over the same period last year. Of these, sales of large-size models continued to grow, with models 30 inches and larger accounting for 35% of total LCD TV sales, compared to 20% for the same period last year.
Sales in fiscal 2005 are projected to be 400.0 billion yen, up 29.5% over the previous year, and total unit sales of 4.00 million sets, up 47% over the previous year, in line with initial estimates.

In Japan, terrestrial digital broadcasts are forecasted to be available for more than 50% of households by the end of this year, ushering in a full-fledged era of digital high-definition TVs. At CEATEC Japan 2005, held at the beginning of October, numerous manufacturers exhibited full high-definition TVs, and the trend toward those TVs is expected to accelerate even more in 2006. In this light, we will introduce full high-definition models of TVs larger than 37 inches, and intend to set the standard for the large-screen TV market.
Overseas, Sharp plans to introduce a range of full high-definition TVs, including a 65V-inch model. Specifically, it is expected that competition will become even tougher in overseas markets as a result of entry of new manufacturers and a surge in non-brand products. In Europe, for example, Sharp intends to win the intense competition by moving forward with deploying products specifically designed to accommodate regional needs, such as strengthening our line-up of LCD TVs optimized for PAL broadcasts, the existing analog broadcast standard in Europe, and by implementing further cost-reduction measures.

Regarding large-size LCDs, demand for TV panels is strong and the tight demand/supply situation continues. Last April, Sharp increased production capacity at the Kameyama Plant, expanding glass substrate input capacity from 27,000 sheets to 45,000 sheets per month. From last summer, Sharp also took steps such as reducing production time to improve production efficiency. These efforts are designed to increase panel supply, with monthly production capacity at the Kameyama Plant reaching 51,000 sheets in October.
Given continued strong demand, Sharp is planning further steps to enhance and increase production capacity for large-size LCDs.

Total sales for LCDs in the first half of fiscal 2005 were 403.2 billion yen, up 12.0% over the same period last year.
In the second half of the fiscal year, we are forecasting continued steady sales of large-size LCD panels for TVs. For small- and medium-size LCDs, as demand for Sharp high-resolution LCDs for mobile phones are increasing and orders for our new products such as controlled viewing-angle LCDs are strong, we project that both large-size as well as small- and medium-size LCDs will continue to perform well.
For fiscal 2005 as a whole, we are projecting total LCD sales of 830.0 billion yen, up 15.3% over the previous year.

Sales for the first half of fiscal 2005 were 220.0 billion yen, up 8.7% over the same period last year, with unit sales of 5.89 million sets, an increase of 17%.
For fiscal 2005 as a whole, we are forecasting sales of 420.0 billion yen, up 10.0 billion yen over our initial estimates and up 4.4% over the previous year. On a unit volume basis, we project sales of 11.00 million sets, an increase of 10%.
In Japan, the domestic mobile phone market is leveling off. In this environment, Sharp was nevertheless able to increase sales and boost market share by focusing on high-value-added models equipped with 3.2-megapixel CCD cameras and proprietary Mobile ASV LCDs. At the same time, sales of models destined for overseas markets were affected by price erosion. Nevertheless, total sales of mobile phones increased thanks to the contribution of models for the Japanese market.
For the second half of fiscal 2005, in anticipation of the start of Mobile Number Portability in Japan scheduled to go into effect in 2006, Sharp is aiming to expand sales by introducing new high-end models taking full advantage of Sharp's proprietary device technology. Overseas, we will move aggressively to set ourselves apart from the other competitors by taking measures to add even higher value to our products. These measures include migrating to 3G handsets and promoting thinner, more compact handsets.

Sales for the first half of fiscal 2005 were 74.2 billion yen, up 40.9% over the same period last year.
Total sales for fiscal 2005 as a whole are projected at 150.0 billion yen, up 27.7% compared to the previous year.
In the first half of the fiscal year, demand for photovoltaic power systems continued to grow strong, with demand continuing to outstrip production. Annual production capacity at the Katsuragi Plant reached 415 MW thanks to the additional output of thin-film solar cells for which production began in September. In November, we will further expand our production capacity for crystalline solar cells, creating an annual production capacity of 500 MW.

Significant price erosion continues, due to a deteriorating market for devices, which began last year. Sales of flash memory in the first half of fiscal 2005 were 27.7 billion yen, down 28.0%, from the same period last year, and sales of CCD/CMOS imagers were 38.2 billion yen, down 6.0%. Total sales of flash memory for all of fiscal 2005 are estimated at 55.0 billion yen, a decline of 13.7% compared to the previous year.
Sales of CCD/CMOS imagers are expected to exceed those of the previous year at 76.0 billion yen, up 5.3%.
Total sales for the IC segment are estimated at 203.0 billion yen, a decline of 1.8% compared to the previous year.
Sharp will be taking positive steps to build our IC business in the future. Specifically, regarding System LSIs, we will focus on LCD drivers and LSIs for LCD TVs. We anticipate that this business segment will contribute to strengthening our competitiveness in the area of LCD application products, in particular, Sharp's LCD TVs, and we expect significant growth in this area. We will also be further strengthening our sensor business, particularly devices intended for use in mobile phones and digital cameras. At the same time, we will be expanding future applications such as units designed for in-vehicle use. In this way, we intend to build a business structure that will be less subject to market fluctuations. For the medium term, Sharp is pushing ahead with the modularization of analog ICs by fusing them with opto electronic devices and creating one-of-a-kind devices that will generate new added value, such as LED backlight modules for use in LCD TVs.

By diligently implementing the business strategy outlined above, Sharp is aiming to achieve the projections laid out for fiscal 2005 as a whole.