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Fujitsu Revises Fiscal 2006 Unconsolidated Financial Results Forecast

Fujitsu Limited

Tokyo, March 20, 2007

Fujitsu Limited today revised its unconsolidated financial results forecast for fiscal 2006 (April 1, 2006 – March 31, 2007) that was previously issued on October 26, 2006. The company's fiscal 2006 consolidated financial results forecast remains unchanged.

1. Revised FY 2006 Unconsolidated Financial Results Forecast

(April 1, 2006 – March 31, 2007)

(Billion yen)
Net Sales
Net Income
Previous Forecast* (A) 2,950.0 55.0
Revised Forecast (B) 2,950.0 -275.0
Increase or Decrease (B-A) -- -330.0
Percentage of Increase or Decrease -- --
FY 2005 Results
(For fiscal year ended March 31, 2006)
2,850.2 17.4

* Previous forecast as of October 26, 2006

2. Explanation of Revision

Despite worsening market conditions for LSI devices, restraint in personal computer purchases, and delayed recovery in the optical transmission systems business from the second half of the fiscal year, dividend income from overseas subsidiaries has increased, and net interest and exchange rates have trended favorably.

With respect to net income, although the company will record a gain on the sale of marketable securities, as a result of losses including a loss on devaluation of overseas subsidiaries' and affiliates' stock, the company has revised its full-year forecast downward significantly.

3. Dividend Forecast

As a result of recording a loss on devaluation of subsidiaries' and affiliates' stock, Fujitsu expects to record a net loss on an unconsolidated basis for fiscal 2006. However, with an underlining trend of recovery in its overall profitability, particularly in its services business, the company anticipates continuing stable profits going forward.

As before, Fujitsu plans to issue a 3 yen per share year-end dividend (pending approval at a scheduled meeting of the board of directors on May 24). Along with recording a loss on devaluation of subsidiaries' and affiliates' stock, the company will record a gain on sale of marketable securities. However, retained earnings are expected to be negative on an unconsolidated basis. The year-end dividend will be drawn from capital surplus.

For Reference: Principal Items in Special Gain and Loss

- Gain on sale of marketable securities: approx. 70.0 billion yen
In conjunction with the sale of shares in Fanuc Ltd. today, March 20, 2007, Fujitsu plans to record a gain on sales of marketable securities. For further information, please see today's separate announcement regarding the sale of Fanuc shares.

- Valuation loss on subsidiaries' and affiliates' stock: approx. 350.0 billion yen
On an unconsolidated basis, Fujitsu plans to record a loss on devaluation of subsidiaries' and affiliates' stock, primarily relating to overseas subsidiaries. For further information, please see today's separate announcement regarding recording of valuation loss on subsidiaries' and affiliates' stock.

Please note that the above figures are forecast numbers as of the date of this announcement and that the figures may subsequently change. Fujitsu is currently assessing the possible effect on its consolidated financial results and will report on that separately when the assessment is complete.



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 and Europe)
- Rapid changes in the high-technology market (particularly semiconductors, PCs, 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

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 open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of about 4.8 trillion yen (US$40.6 billion) for the fiscal year ended March 31, 2006. See http://www.fujitsu.com for further information.

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Company:Fujitsu Limited

Date: 20 March, 2007
City: Tokyo
Company: Fujitsu Limited, , , , ,