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<Quarterly Financial Review (Third Quarter of Fiscal Year 2004)>
Net Sales by Product Group
Note: Sales by Product Group include internal sales between segments (Consumer/Information Products and Electronic Components).
(1)Consumer/Information Products
Sales of Audio-Visual and Communication Equipment were 276.0 billion yen, up 22.6% over the same period last year. Although there was a continuing price decline in the third quarter, it resulted in bringing price of LCD color TVs 30V inches and over to an affordable level. In addition, the prevalence of digital broadcasting brought more attention to the LCD color TV for its highly praised high-definition display. These factors drove strong sales, centering on large-size models. Unit sales of LCD color TVs over 30V inches, as a percentage of total unit sales, increased to 23% in the third quarter, up 3% over the first half of this fiscal year. This brought the average unit price of our LCD color TVs level with the first half of the fiscal year.
Sales of mobile phones also expanded significantly. In Japan, our transition to 3G models spurred an increase in the unit price for mobile phones and, subsequently, an increase in sales. Unit sales of 3G mobile phones, as a percentage of our total domestic unit sales, increased to 56% in the third quarter compared to 30% in the first half of this fiscal year. Overseas sales are expanding due to increasing sales in Europe.

Sales of Home Appliances were 50.8 billion yen, up 4.1% over the same period last year. Despite the continued price decline of conventional products, expansion of our original products such as our Electric Superheated Steam Oven and appliances incorporating Plasmacluster Ion technology brought on favorable results.

Sales of Information Equipment were 103.6 billion yen, up 7.7% over the same period last year due to strong sales of digital copier/printers.

As a result, sales of the above three product groups of Consumer/Information Products were 430.6 billion yen, up 16.3% over the same period last year.
(2)Electronic Components
Sales of ICs were 45.0 billion yen, down 21.2% from the same period last year. Sales of flash memory as well as CCD and CMOS imagers decreased due to a decline in price.

Sales of LCDs were 162.1 billion yen, up 14.2% over the same period last year. Small- and medium-size panels accounted for approximately 65%, with large-size panels accounting for approximately 35% of the total.
Compared to the same period last year, sales of System LCDs expanded for small- and medium-size LCDs. For large-size LCDs, the production of panels for LCD color TVs increased due to operations at our Kameyama Plant.

Sales of Other Electronic Components were 62.9 billion yen, up 1.5% over the same period last year. In particular, demand for solar cells continued to be strong in the third quarter, selling especially well overseas. Despite a decrease in sales of laser diodes and other devices compared to the same period last year, sales expansion of solar cells contributed to an overall sales increase of the group.

As a result, sales of the above three product groups that comprise Electronic Components were 270.2 billion yen, up 3.4% over the same period last year.

As for the sales ratio of our Consumer/Information Products and Electronic Components, as a percentage of our total net sales, Consumer/Information Products increased in the third quarter compared to the same period last year. This is due to increased year-end sales of uniquely featured products in the Audio-Visual and Communication Equipment group, such as LCD color TVs and mobile phones.

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