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<Consolidated Financial Results for the Year Ended March 31, 2007>
Business Strategy for Fiscal 2007
(1) LCD TVs and Large-Size LCDs
Sales of LCD TVs were 613.5 billion yen, up 49.4%, and unit sales were 6.03 million, 1.5 times the level of the previous year. The percentage of models sold with screen sizes over 40 inches increased dramatically in the latter half of fiscal 2006, in conjunction with the start of operations at the Kameyama No. 2 Plant. With this increase, Sharp's average selling price (the blended price for all sizes) in the latter half of the fiscal year rose by 7% compared to the first half of the year, even though retail store prices dropped around 20% in the last six months.
Digital broadcasting is proliferating around the world, and large-size LCD TVs are becoming affordable. As a result, we anticipate worldwide demand for LCD TVs in fiscal 2007 will grow to 72.00 million units, 1.5 times the level of fiscal 2006. In October, 2006, Sharp made a simultaneous worldwide launch of its 46- and 52-inch full high-definition models equipped with panels manufactured at the Kameyama No. 2 Plant. We also introduced the AQUOS Premium Series to markets in the U.S. and Japan. These models realized 3,000:1 native contrast ratio (dynamic contrast ratio of 15,000:1) and double-speed drive with full high-definition capabilities, the first in the industry to do so.
In fiscal 2007, we will be working to further expand sales in the global marketplace by rolling out this Premium Series first in Europe and then in Asia, as well as working to strengthen our line-up of models for personal use, targeting demand for second TV sets.
Also, in January 2007, we began the second phase at the Kameyama No. 2 Plant, enhancing substrate input capacity from 15,000 to 30,000 sheets per month. The third phase is slated to be completed in July 2007, and we plan to double current capacity to 60,000 sheets per month. Coinciding with this, we also plan to begin assembly of LCD TVs at our Poland Plant, which currently produces LCD modules. Furthermore, in Mexico, a new second plant is scheduled to become operational at our production facility, which is engaged in integrated production of LCD TVs, from the LCD module to the final TV set. With these efforts, by July 2007, we will have developed and put in place an integrated production system at five global bases that will be able to take full advantage of the unparalleled production capacity of our Kameyama Plant. For the 2007 Christmas shopping season, we will be able to provide the timely delivery of LCD TVs that offer superb quality with outstanding cost competitiveness.
For sales of LCD TVs in fiscal 2007, we are working to achieve our goal of 850.0 billion yen, up 38.5% over the previous year, and on a unit basis, sales of 9.00 million, 1.5 times the level of the previous year. Of these, we expect the percentage of models over 30 inches to increase to nearly 80% in fiscal 2007 compared to the 55% in fiscal 2006.

In fiscal 2006, sales of LCDs (panel business) were 1,042.3 billion yen, up 21.6% compared to the previous year.
For fiscal 2007, we anticipate that sales of large-size TV panels will continue to grow thanks to increased production capacity at the Kameyama No. 2 Plant, and we expect that sales of System LCDs, particularly units for mobile phones, will continue to grow steadily.
For fiscal 2007 LCD sales overall, we are planning for 1,200.0 billion yen, an increase of 15.1% over the previous year.
A new production facility for large-size LCDs is now under consideration, and we hope to decide on the details by this summer, as announced at the 2007 Press Meeting in January.
(2) Mobile Phones/Wireless PDA
Fiscal 2006 sales of mobile phones/wireless PDA were 607.3 billion yen, up 29.2% over last year. On a unit basis, sales were 14.81 million, up 18% over the previous year.
Sharp captured the No. 1 market share in Japan for mobile phones in 2006. For fiscal 2007, we will work on enhancing our line-up of models capable of receiving One Segment Broadcasting, or One Seg, a new type of digital terrestrial broadcasts. Other efforts will include creating slim handsets and expanding the wireless PDA business.
Sharp's One Seg models, AQUOS mobile phones, are advanced mobile phones that make the best use of our proprietary LCD and imaging technologies nurtured in the development of the AQUOS LCD TVs. These models are well received in the One Seg mobile phone market. In addition to models from SOFTBANK MOBILE Corp. and NTT DoCoMo, Inc., Sharp's One Seg mobile phones were introduced by KDDI CORPORATION in March 2007. We will be working to further evolve our One Seg models based on alliances with mobile phone carriers, and to expand the number of Sharp mobile phone users during fiscal 2007.
Regarding slim mobile phones, since Sharp itself is the manufacturer of such key devices as LCDs and camera modules, we have a tremendous advantage when it comes to creating handsets that are more compact and thinner in profile. We will be creating attractive slim mobile phones that match user needs.
Also, the market is growing for wireless PDAs as a new product genre. Sharp already supplies wireless PDAs to WILLCOM, Inc. and EMOBILE Ltd., and internationally, to T-Mobile, a major telecom carrier. These models are enjoying high popularity. In the future, we will be actively developing new wireless PDAs by applying PDA technologies nurtured in Sharp's personal mobile tools.
We anticipate fiscal 2007 sales of mobile phones/wireless PDA to be 613.0 billion yen, around the same level as last year, and on a unit basis, we expect sales of 15.50 million, up 5% over the previous year.
(3) Solar Cells
Sales of solar cells in fiscal 2006 were 151.4 billion yen, down 4.2% compared to the previous year, reflecting the effect of the shortage of silicon materials. During fiscal 2007, we expect the tight supply situation for silicon to continue. Sharp is moving to deal with the shortage by manufacturing silicon materials for solar cells at its Toyama Site and by expanding procurement channels through long-term contracts for silicon wafers with material manufacturers.
We anticipate that fiscal 2007 sales of solar cells will be 160.0 billion yen, an increase of 5.7% compared to the previous year. As for supply of silicon materials, we expect gradual increase in fiscal 2008 and thereafter.

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