NEC TOKIN Corporation, located in Sendai City, Japan (president: Yuichi Haneta), today announced its financial results for fiscal 2004, which are summarized below. 1. Overview of the entire business 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　(Millions of yen) 　 1st Half 2nd Half Total Change ％ Net sales 57,712 58,518 116,230 +3,730 103% Operating income 1,931 1,936 3,867 +8,897 － Ordinary income 1,743 1,756 3,499 +8,976 － Net income 665 413 1,078 +8,227 － 　Considering fiscal 2004 (April 1, 2003 - March 31, 2004) as a critical year, we aggressively promoted continuous management reforms in the following areas: product, manufacturing, operation, and finance. This resulted in stable profitability and a significant performance recovery. In particular, the product functionality reforms led to many new releases of digital mobile products and robust sales of high-performance, function-added devices for digital appliances such as digital information home appliances, camera-equipped mobile phones, and laptop PCs. For the tantalum capacitors, which are energy devices, new lines such as ultra-small chip products and low-ESR products showed growth. They boosted our sales and operating profits significantly, driving our overall performance growth. Heightened competition decreased orders for and prices of lithium ion rechargeable batteries, which are also energy devices. Nevertheless, their sales volume surged 35% compared with the same term in the previous year because the sales of products for mobile phones were robust, they were increasingly used in new applications such as digital cameras and game machines, and we promoted sales of our original products: prismatic manganese cathode types and high capacity manganese laminate types. In network devices, products for metropolitan network and communications infrastructures in China have shown incremental growth. They yielded a profit for the first time in three years because of new products released last spring and subsequently. Although the inventory of optical communications equipment is shifting from excessive to normal levels, market trends in the large-capacity communications market is still uncertain. Functional devices showed steady sales because of choke coils, noise suppressor sheet 'Flex-Suppressors', and other high-value-added products. In addition, their profitability was improved partly because the company decided to scrap non-profitable products (ceramic capacitors and permalloys) and devote the resources to products with greater potential. 2. Plans for fiscal 2005 (April 1, 2004 - March 31, 2005) 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　(Millions of yen) 　 1st Half 2nd Half Total Net sales 6,100 6,400 12,500 Operating income 2,400 3,100 5,500 Ordinary income 2,700 3,500 6,200 Net income 900 1,200 2,100 　In fiscal year 2005, we will continue to add higher value to our products to make our products more attractive, as well as make efforts to further enhance our profitability by encouraging innovative manufacturing, overseas production, and overseas procurement.