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<Quarterly Financial Review (First Quarter of Fiscal Year 2006)>
Operating Income by Product Group

Consumer/Information Products
Operating income for Audio-Visual and Communication Equipment was 9.5 billion yen, up 10.9% over the same period last year. A continuing decline in selling prices for digital appliances was offset by sales growth in mobile phones for the Japanese market and large-screen LCD TVs worldwide.

Operating income for Home Appliances was affected by declines in unit prices, particularly for conventional products, and was 0.5 billion yen, down 51.4%.

Operating income for Information Equipment was 6.1 billion yen, up 14.5% over the same period last year. The percentage of products with high profitability rose, which compensated for the total sales decrease.

In all, operating income for the three product groups comprising Consumer/Information Products totaled 16.2 billion yen, up 7.4% over the same period last year, reflecting the contribution of higher profits for Audio-Visual and Communication Equipment.

Electronic Components
Operating income for LSIs was 1.6 billion yen, down 29.1% over the same period last year. Although sales expanded due mainly to CCD/CMOS imagers, profits fell below levels of the same period last year.

Operating income for LCDs was 16.1 billion yen, up 23.8% over the same period last year. Profits also grew, reflecting the effects of expanded production capacity at the Kameyama No. 1 Plant and the promotion of cost reductions.

Operating income for Other Electronic Components was 6.4 billion yen, up 21.7% over the same period last year, reflecting increased sales of highly profitable solar cells.

In all, operating income for the three products groups comprising Electronic Components was 24.2 billion yen, up 17.3% over the same period last year. Increased profits for LCDs and Other Electronic Components absorbed the decline in profits for LSIs.

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