Operating income for Audio-Visual and Communication Equipment was 12.7 billion yen, up 32.9% over the same period last year. On-going price drops for digital appliances were offset by growth in mobile phones for the Japanese market and large-screen LCD TVs.

Operating income for Home Appliances was affected by the high cost of raw materials, and was slightly less than 0.3 billion yen, down 49.1% from the same period last year.

Operating income for Information Equipment was 7.5 billion yen, up 23.3% over the same period last year, reflecting growth for wireless PDAs and a decline in sales of personal computers, which had a low profitability.

As a result, operating income for these three product groups comprising Consumer/Information Products was 20.5 billion yen, up 26.4% over the same period last year, reflecting the contribution of Audio-Visual and Communication Equipment and Information Equipment to the rise in profits.

Operating income for LSIs was 0.7 billion yen, down 55.9% compared to the same period of the previous year. Although sales grew, income was affected by a decline in unit prices and fell below the level of the same period last year. In addition, changes in the method of depreciation and amortization had a material impact on operating income of this product group. If the impact was adjusted as described in Financial Review for the First Quarter Ended June 30, 2007 (Consolidated), operating income would be down 15%, compared to the same period last year.

Operating income for LCDs was 17.2 billion yen, up 7.0% over the same period last year. Increased sales of large-size LCD panels for TVs and continued cost-reduction led to the rise in income.

Operating income for Other Electronic Components was 3.2 billion yen, a decline of 50.2% compared to the same period last year reflecting a decline in profitability of solar cells.

As a result, operating income for these three product groups comprising Electronic Components was 21.2 billion yen, down 12.5% over the same period last year.

By segment, Consumer/Information Products accounted for 48.7% and Electronic Components 50.2% of operating income, with the percentage of Consumer/Information Products increasing 8.4 percentage points from the 40.3% of the same period last year.

In the period ended June 30, 2007, both sales and operating income for Consumer/Information Products grew by more than 20%, reflecting growth in LCD TVs and mobile phones, which consequently became the engine driving positive financial results for the entire company.