Sales of LCD TVs for the first half in fiscal 2006 were 246.8 billion yen, up 33.6%, and unit sales were 2.52 million, up 46% over the same period last year.
Especially, sales for 37-inch and larger sizes, centering on full high-definition models, increased steadily. While the past half year saw selling prices for each LCD TV drop about 20%, the average selling price (the blended price for all sizes) of Sharp LCD TVs dropped only 2% compared to the second half of last year.

In August 2006, the Kameyama No. 2 Plant started operations and in October Sharp began sales of 46-inch and 52-inch full high-definition LCD TVs equipped with panels from this plant.
This gives Sharp the lineup of large-size models needed to increase its share in overseas markets. These new models have benefited from AQUOS brand campaigns in major world markets, resulting in healthy shipments. Sharp is confident as the company embarks upon a full-fledged entry into overseas markets.

On the production front, Sharp is gradually shifting module production and TV assembly processes to its local bases, with LCD panel production conducted at the Kameyama Plant.
In September 2006, Mexico joined Japan, China, and Malaysia, where Sharp manufactures LCD modules. Sharp will also start LCD module production at a plant in Poland in January 2007.
This highly efficient five-base global production system will shorten lead-time, reduce inventory, and decrease shipping costs, thus boosting Sharp's competitiveness in LCD TVs.

At the Kameyama No. 2 Plant, glass substrate input is currently 15,000 sheets per month. With brisk sales of large-size LCD panels, we plan to increase the input to 30,000 sheets by March 2007 with the launch of the second phase.
In addition to being the first facility in the world to use eighth-generation glass substrates (2,160X2,460mm), the Kameyama No. 2 Plant incorporates innovative production processes, such as using an ink-jet production method to form LCD color filters. We believe that increased input capacity for glass substrates will bring even better cost competitiveness.
The Kameyama No. 2 Plant is the only plant in the world to use eighth-generation glass substrates. As we will have been at least one year in advance of competitors when they start the eighth generation, we believe we can stay ahead in the LCD TV market.

We are aiming for LCD TV sales in fiscal 2006 of 550.0 billion yen, up 33.9% over the previous year, and unit sales of 6.00 million, 1.5 times the level of fiscal 2005.
The percentage of our unit sales for models over 30 inches was 47% in the first half of fiscal 2006, and we estimate this will rise to 55% in the second half. Models over 40 inches accounted for 4% in the first half, and we estimate this figure will rise to 17% in the second half. We will enhance the global sales of these TVs incorporating Kameyama No.2 panels.

As for total sales of LCD panels, we expect sales of 1,030.0 billion yen, up 20.1%, exceeding our original estimate by 50.0 billion yen. This is due to the smooth startup of the Kameyama No.2 Plant.

Sales for the first half of fiscal 2006 were 240.7 billion yen, up 9.4% compared to the same period last year, with unit sales of 6.20 million, an increase of 5%.
In Japan, high-value-added products like the AQUOS mobile phones, capable of receiving One Segment Broadcasting, or One Seg, a new type of digital terrestrial broadcasts, and the new FOMA^® model sold briskly. Both sales and the average selling price of mobile phones increased.
Although models aimed at overseas markets were affected by price drops, overall mobile phones enjoyed increased sales and higher average selling price.

In Japan, with One Seg broadcasts scheduled to cover the entire country by the end of this year, demand is growing for models compatible with this service.
In addition, with the start of Mobile Number Portability on October 24, 2006, the manufacturer's brand is becoming a major factor.
Sharp plans to introduce high-value-added models best suited for enjoying One Seg broadcasts, making the most of its LCDs and other proprietary cutting-edge device technologies. We will also try to separate ourselves from the competition and gain new Sharp users. This is to be accomplished by measures including making phones thinner and lighter.

We are aiming for mobile phones sales in fiscal 2006 of 470.0 billion yen, up 5.6% over the previous year, and unit sales of 130.0 million, up 10% over the previous year.

Sales for the first half of fiscal 2006 were 80.8 billion yen, up 8.8% over the same period last year.
Factors like high expectations for new energy and high crude oil prices are leading to increased demand for photovoltaic power systems.
In November 2006, we will enhance production capacity at the Katsuragi Plant to 600 MW per year, from the present 500 MW.
Furthermore, Sharp will take measures to reduce the use of silicon material, such as making cells thinner and increasing production of thin-film solar cells, in order to deal with the shortage of supply.
We will also focus on research and development of new products, such as concentrator photovoltaic systems, which combine concentrator lenses and compound solar cells.

We are aiming for solar cells sales in fiscal 2006 of 200.0 billion yen, up 26.6% over the previous year.

*FOMA is a registered trademark of NTT DoCoMo, Inc.