Sales of LCD TVs for the first half of fiscal 2007 were 383.1 billion yen, up 55.2%, and unit sales were 3.74 million, up 48% over the same period last year. Sales of large-screen TVs, centering on full high-definition models, grew significantly compared to the same period last year. In the first half, sales of models over 30 inches accounted for 62% of total sales, in contrast to 47% for the same period in the previous year. Further, sales of models 40 inches and larger increased from 4% to 20% during the same period. In July 2007, we installed a third production line at the Kameyama No. 2 Plant and doubled our previous substrate input capacity to 60,000 per month. We also established a worldwide integrated production system for LCD TVs, from LCD modules to finished TV sets, which will enable Sharp to mount a full-fledged market expansion around the globe. In the second half, Sharp will take maximum advantage of this vertically integrated business model to pursue drastic cost reductions. We will also strengthen the competitiveness of our LCD TVs by working to distinguish our products from those of our competitors by expanding our lineup of high-end models that employs Sharp's proprietary technologies, such as Double-Speed 120-Hz Frame Rate Conversion LCD Technology. Other efforts include utilizing our advanced technologies to produce thinner and lighter TVs. And, in conjunction with expanding our LCD TV business, Sharp will be working to enhance the AQUOS brand. For fiscal 2007 as a whole, we are aiming for LCD TV sales of 850.0 billion yen, up 38.5% over the previous year, and unit sales of 9.00 million, 1.5 times the level of fiscal 2006, both in line with initial projections. As for large-size LCD panels, the supply/demand balance continues to remain extremely tight as a result of increased demand for panels for the year-end shopping season. In the first half of the fiscal year, inquiries for Sharp?s large-size LCD panels were extremely active. Specifically to meet strong market demand for 32-inch panels, we started production of this size at the Kameyama No. 2 Plant, which has outstanding cost competitiveness. Over the second half, we expect the extremely tight supply/demand situation for large-size LCDs to continue. To meet such a brisk demand, in the second half, we are considering to further increase substrate input capacity at the Kameyama No. 2 Plant from the 60,000-sheet monthly capacity in effect since July 2007, by taking measures such as reducing production time. Sharp will be taking steps to further expand business and improve profitability by working aggressively to strengthen sales to leading TV manufacturers around the globe, based on strategic partnership with them. This is to be achieved by taking full advantage of the unparalleled production capacity and cost competitiveness of our Kameyama Plants. At the same time, in the second half, we anticipate an increase in orders for LCD panels for mobile equipment, centered mainly on high-value-added types such as our new Mobile ASV LCD which achieves high-definition images rivaling those of LCD TVs. Sales are expected to grow in applications such as for use inside automobiles, in mobile phones whose functions are becoming increasingly sophisticated, and in mobile media players for which the market is continuing to expand. For total sales of LCD panels for fiscal 2007 as a whole, we are aiming for sales of 1,200.0 billion yen, up 15.1%. Regarding our plans to construct a new plant in Sakai, we are strengthening our ties with related businesses and government entities to ensure a smooth launch according to plan.

Sales for the first half of fiscal 2007 were 336.5 billion yen, up 27.6% compared to the same period last year, with unit sales of 8.04 million, an increase of 17%. In Japan, Sharp deployed One-Seg-compatible models in multiple lines for three carriers: SOFTBANK MOBILE Corp., NTT DoCoMo, Inc., and KDDI CORPORATION. We enjoyed extremely high sales, and for the first half of the fiscal year, we were able to hold on to the top market share in the Japanese domestic market. In the second half, we will further strengthen our lineup of One-Seg-compatible models, and will aim to capture new Sharp users by working to create stylish, thin mobile phones corresponding to market demands. For fiscal 2007 as a whole, we are aiming for mobile phone sales of 650.0 billion yen, up 7.0% over the previous year and an upward revision of 37.0 billion yen from initial projections, and unit sales of 15.50 million, up 5% over the previous year and in line with initial projections.

Sales for the first half of fiscal 2007 were 68.2 billion yen, down 15.5% over the same period last year due to shortages of raw materials. As a result, we have updated our initial projections for fiscal 2007 as a whole from 160.0 billion yen to 150.0 billion yen, nearly at the same level as the previous year. In the second half, we project improved profitability as we move forward with producing the silicon raw materials, while at the same time, prospects are bright for increased procurement from outside raw material manufacturers. In addition, regarding thin-film solar cells, we plan a full-scale expansion in the future, which will be linked to our development of a new plant in Sakai.