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Fujitsu Revises Earnings Projections for First Half of Fiscal 2007

Fujitsu Limited

Tokyo, October 22, 2007

Fujitsu Limited today announced that it has revised upward its earnings projections for the first half of fiscal 2007 ended September 30, 2007 for both consolidated and unconsolidated results. There are no revisions to the full-year earnings projections for fiscal 2007 ending March 31, 2008, on either a consolidated or unconsolidated basis.

1. Revised Earnings Projections for the First Half of FY 2007
(April 1 – September 30, 2007)

(1) Consolidated Projection

(Billions of Yen)
Net Sales Operating Income Net Income (Loss)
Previous Projection (A) 2,450.0 20.0 (20.0)
Current Projection (B) 2,513.0 44.0 (10.0)
Change (B-A) 63.0 24.0 10.0
Percentage Change % 2.6% 120.0% -
Results for First Half of
FY 2006
2,362.3 50.6 14.8

(2) Unconsolidated Projection

(Billions of Yen)
Net Sales Net Income
Previous Projection (A) 1,350.0 20.0
Current Projection (B) 1,400.0 30.0
Change (B-A) 50.0 10.0
Percentage Change % 3.7% 50.0%
Results for First Half of
FY 2006
1,329.4 12.8

(3) Reasons for Revision

For the first half of fiscal 2007, we are now projecting consolidated operating income of 44.0 billion yen, an upward revision of 24.0 billion yen over our previous projection made on July 26, 2007. The improvement reflects growth in our services business as well as in PCs and mobile phones, along with advance demand for server-related products. Cost-cutting initiatives also boosted income. As a result of higher projections for operating income, the outlook for net income is also revised upward.

Full-year earnings projections for fiscal 2007 remain unchanged, primarily because of uncertainties relating to our product businesses, for which sales and income tend to be highly concentrated at the end of the fiscal year. In addition, we have not changed our view of full-year demand and earnings for such areas as logic LSI devices and hard disk drives.

(Reference) FY 2007 First-Half Consolidated Operating Income (Loss) by Segment: Projections and Comparison with Results of Same Period in Previous Year

(Billions of Yen)
First Half
FY 2007
Projections
Change vs.
FY 2006 Results
Technology Solutions 39.0 2.5
System Platforms (9.0) (3.8)
Services 48.0 6.3
Ubiquitous Product Solutions 22.0 2.0
Device Solutions 6.0 (10.0)
Other Operations 6.0 1.0
Eliminations (29.0) (2.2)
Total 44.0 (6.6)

2. Announcement Schedule for FY 2007 First-Half Results

As announced on July 26, 2007, in accordance with the Japanese Corporate Law, Fujitsu will proceed with a special accounts settlement for the fiscal 2007 first-half period, and plans to use retained earnings from net income posted for the first half to pay an interim dividend (*).

For the first half of fiscal 2007, in addition to the audit required by the Japanese Financial Instruments and Exchange Law, Fujitsu must also comply with audit procedures for a special accounts settlement required by the Japanese Corporate Law. The announcement of first-half results for fiscal 2007 is scheduled for November 22, 2007. The interim dividend is expected to be paid in the latter part of December 2007, after the completion of all audit procedures for the special accounts settlement. In addition, the Half-yearly Report will be made public in late December.

*On an unconsolidated basis, Fujitsu Limited had a negative balance of retained earnings for fiscal 2006 ended March 31, 2007. A decision was made at a meeting of the Board of Directors in May 2007 to transfer 240.4 billion yen from "other capital surplus" into "other retained earnings", making the balance of retained earnings zero. In order to pay interim dividends out of retained earnings resulting from net income posted for the first half of fiscal 2007, Fujitsu is preparing a special accounts settlement reports using, in accordance with the Japanese Corporate Law, the last day of the first-half period, September 30, 2007, as the special accounts settlement date.


Note:These materials may contain forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results may differ materially from those projected or implied in the forward-looking statements due to, without limitation, the following factors:

- General economic and market conditions in key markets (particularly in Japan, North America, Europe, and Asia, including China)

- Rapid changes in the high-technology market (particularly semiconductors, PCs, mobile phones, etc.)

- Fluctuations in exchange rates or interest rates

- Fluctuations in capital markets

- Intensifying price competition

- Changes in market positioning due to competition in R&D

- Changes in the environment for the procurement of parts and components

- Changes in competitive relationships relating to collaborations, alliances and technical provisions

- Potential emergence of unprofitable projects

- Changes in accounting policies

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that create infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.1 trillion yen (US$43.2 billion) for the fiscal year ended March 31, 2007. For more information, please see: www.fujitsu.com

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Company:Fujitsu Limited

Date: 22 October, 2007
City: Tokyo
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