For the three months ended December 31, 2006, sales of Audio-Visual and Communication Equipment were 402.4 billion yen, up 28.2% over the same period last year, thanks to increased sales of LCD TVs and mobile phones.

Sales of LCD TVs were 192.5 billion yen, up 45% over the same period in the previous year. On a unit basis, sales were 1.81 million units, up 49% compared to the same period last year, and for the nine-month period, sales were 4.34 million units, up 47% compared to the same period last year. For fiscal 2006 as a whole, we are aiming for sales of 6.00 million units, in line with initial projections.
In the third quarter period ended December 31, 2006, prices for LCD TVs at retailers continued to decline. Nevertheless, the average selling price (the blended price for all sizes) of Sharp LCD TVs rose by 9% compared to the first half of the fiscal year, reflecting an increase in the percentage of large-screen models sold. In the third quarter, the percentage of models 30-inches and larger rose 12 percentage points to 59% from 47%, and 40-inches and larger increased to 13% from 4%, both compared to the first half of the fiscal year.
In October 2006, Sharp began sales of 46- and 52-inch full high-definition LCD TVs equipped with panels manufactured at the Kameyama No. 2 Plant. In the Japanese and US markets, sales increased steadily from the beginning, with temporary product shortages at the end of the year. We started a second phase of the Kameyama No. 2 Plant in January 2007, increasing input capacity for glass substrates to 30,000 per month, double the previous level. This enables Sharp to respond to the increase in demand for large-screen models 40-inches and larger.
In the European market, distribution of the Kameyama No.2 models to retail outlets was still underway at year end. However, the new models have been highly rated and are expected to lead to significant sales growth in the future. Production of LCD modules for large-screen LCD TVs started at our new plant in Poland in January 2007. Initial production capacity at this plant is 100,000 units per month, and we are planning to expand capacity to 300,000 units per month by the end of 2007.

Sales of mobile phones were 150.4 billion yen, up 32% over the same period last year. On a unit basis, sales were 3.55 million units, up 18% over the same period last year, and for the nine-month period, sales were 9.75 million units, up 10% compared to the same period last year. In the third quarter, sales of high value-added models expanded, including the AQUOS mobile phones for SOFTBANK MOBILE Corp., capable of receiving One Segment Broadcasting, or One Seg, a new type of digital terrestrial broadcasts. New models for NTT DoCoMo, Inc. are also doing extremely well, and we also began supplying handsets to KDDI CORPORATION for the first time. The average selling price for Sharp models rose by 9% compared to the first half of the fiscal year.

Sales of Home Appliances were 5.99 billion yen, up 5.4% over the same period last year. Refrigerators and air conditioners continued to sell well.

Sales of Information Equipment were 106.8 billion yen, up 3.8% over the same period last year. Mobile communications handsets and full-color MFPs continued strong sales.

As a result, sales of these three product groups comprising Consumer/Information Products were 569.3 billion yen, up 20.1% over the same period last year.

Sales of LSIs were 42.9 billion yen, up 3.1% from the same period last year. Sales of flash memory declined, but CCD/CMOS imagers intended for mobile phones and digital cameras grew.

Sales of LCDs were 241.4 billion yen, up 17.7% over the same period last year.
Strong sales of AQUOS LCD TVs equipped with panels manufactured at the Kameyama No. 2 Plant led to a significant increase in sales of large-size LCDs. For small- and medium-size LCDs, sales of System LCDs continued strong, centered primarily on units for mobile phones.

Sales of Other Electronic Components were 81.7 billion yen, up 5.3% over the same period last year. Sales increased for devices such as laser diodes.
Sales of solar cells were affected by the shortage of raw material, and were 35.0 billion yen, down 9% over the same period last year. Sharp is expanding procurement of raw materials through long-term contracts with material manufacturers, and in addition, our Toyama site began production of silicon for use in solar cells in January 2007. Through these measures, we will be working to boost sales in the fourth quarter.

As a result, sales of Electronic Components comprising these three product groups were 366.1 billion yen, up 12.8% over the same period in the previous year.