Maxell: Fiscal 1H08 Financial Results

(in ¥ billions)	1H07	1H08
Revenues	101.8	98.3
*Growth*		-3%
Net income (loss)	0.4	(0.9)

(Source: Maxell)

Information storage media

(in ¥ billions)	1H07	1H08	FY08 (projection)
Revenues	55.0	42.6	84
*Growth*		-23%	*-21%*
Operating income	1.2	2.1	2.7

(Source: Maxell)

Highlights (Fiscal 1H08 ending on September 30, 2008):

Increased sales of high capacity products LTO4
Sales and profit declined by the effect of price down and exchange rate
Implemented cost reduction: MPI activities
Continuously developing practical application of NanoCAP technology which can achieve high capacity 10TB class

In computer tapes, despite increased shipment volume for the high-storage-capacity products LTO Ultrium 4 data cartridges, sales declined because of falling product prices and the effect of foreign exchange.

Optical disc sales decreased significantly due to falling product prices stemming from fiercer competition. In audio tapes and video tapes, sales decreased because of market shrinkage.

Consequently, the Information Storage Media segment recorded net sales of ¥42,593 million. Meanwhile, thanks to an improvement in profitability resulting from restructuring optical disc operations in the previous fiscal year, this segment recorded an operating income of ¥2,112 million.