Sales of LCD TVs in the third quarter were 254.8 billion yen, up 32% over the same period in the previous year. On a unit basis, sales were 2.58 million sets, up 43% compared to the same period last year. In the third quarter, the percentage of all Sharp models sold with screen sizes 30-inches and larger rose to 66% from 62% in the first half, and for screen sizes 40-inches and larger, from 20% to 23%. Moving toward full-scale global business expansion, Sharp launched integrated production from assembly of LCD modules to finished TV sets at plants in Mexico and Poland in July of 2007. Going forward, we will be boosting the competitiveness of the AQUOS by working to strengthen our high-efficiency production system at five global bases, as well as to supply products to our international customers in a timely manner, slash inventories, and reduce costs to the greatest extent possible. Also, we are taking proactive steps to strengthen the AQUOS brand even further, in particular by introducing the industry's thinnest model which we recently announced, further improving environmental performance, and working to develop a broad line-up through expanding the number of personal models aimed at meeting demand for second TV sets. The supply/demand situation remains tight for large-size LCDs, especially those for TVs, and price trends continue on a steady track. In July of 2007, Sharp installed a third production line at the Kameyama No. 2 Plant, doubling the input capacity for glass substrates to 60,000 per month. Nevertheless, inquiries for large-size LCD panels during this third quarter were also extremely brisk and we continued to run the Kameyama No. 1 and No. 2 Plant at full capacity. At present, economic uncertainty is growing both in Japan and internationally, and there are fears of a slowdown in the global economy. However, in 2008, we expect to see a further increase in demand for large-size LCD panels as a result of growing demand for LCD TVs, reflecting even greater penetration of digital broadcasting, as well as the fact that the Beijing Olympics will be held in summer 2008, and demand from newly emerging markets, particularly the BRICs. Sharp is taking proactive steps to further grow its business and improve profitability by taking full advantage of the unparalleled production capacity, cost competitiveness and advanced technological capabilities offered by the Kameyama Plant to further increase the competitiveness of the AQUOS. We are also aggressively developing our external sales based on partnerships with leading manufacturers of TV sets. Also, as noted in a previous announcement, Sharp plans to further boost the production capacity of the Kameyama No. 2 Plant by expanding the glass substrate input capacity to 90,000 per month in July of 2008.

Sales of mobile phones were 158.1 billion yen, down 2% over the same period in the previous year. On a unit basis, sales were 3.60 million units, down 7% compared to the same period last year. Although sales declined internationally, domestic sales on a unit basis grew at a double-digit pace even in the face of a sluggish Japanese market as a whole. We expect Sharp to maintain the top market share in Japan for 2007, a position we have held since 2006. Design and specs for the spring 2008 models will be more advanced than ever, and continuing into the fourth quarter, we will be strengthening deployment of high-value-added handsets centered around One-Seg-compatible models.

Sales of solar cells were 32.0 billion yen, down 9% over the same period in the previous year. The severe situation continues as a result of the ongoing shortage and steep price rises of raw materials. However, our efforts to expand production of silicon at the Toyama Site and increase procurement from outside sources are making steady progress, and we are working hard to achieve our targets for the year as a whole. In October 2008, we plan to increase annual production capacity for thin-film solar cells from 15 MW to 160 MW, and forwarding the future, we plan to embark on a full-scale expansion.