Fujitsu Reports FY2003 First Quarter Financial Results

Tokyo, July 29, 2003

Fujitsu Limited, a leader in customer-focused IT and communications solutions for the global marketplace, today reported consolidated net sales of 938.7 billion yen, approximately US$7.8 billion, for the first quarter of fiscal year 2003 (April 1 - June 30, 2003), a 4.5% decrease from the first quarter of fiscal 2002. Lower sales of platforms products and other factors contributed to the overall decline in sales. While the company is reaping the benefits of lower fixed costs stemming from the restructuring initiatives implemented last year, the impact of lower sales resulted in an operating loss of 37.8 billion yen.

Weakness in the equity market led to higher pension obligation expenses and damages sustained in an earthquake that occurred off the coast of Miyagi Prefecture in May resulted in an extraordinary charge of 4.7 billion yen. These items, however, were offset by a turnaround in equity in earnings of affiliates to 1.8 billion yen and a 26.9 billion yen gain on sales of marketable securities resulting from the sale of a portion of the company's shares in Fanuc. The consolidated net loss was 39.8 billion yen, representing a narrowing of the first quarter loss in the previous year of 56.4 billion yen.

To date, Fujitsu's sales orders are in line with anticipated levels, and the company's financial projections for the full year remain unchanged.

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Content

Results by Business Segment

1. Software & Services
2. Platforms
3. Electronic Devices

Balance Sheet Summary

Summary of Cash Flows

Initiatives to Strengthen Fujitsu's Financial Condition

Earnings Projections for FY2003