I am pleased to report VALQUA’s financial results for Fiscal Year 2007, ended March 31, 2008.

During the fiscal year under review, the Japanese economy remained on a gradual expansion tone during the first half. During the second half, however, business conditions grew stagnant. The outlook for the U.S. economy became unclear because of the subprime loan problem, while the growth in business investment in Japan turned dull under high energy and raw materials prices and foreign exchange rate fluctuations.

Under this environment, in accordance with the strategies specified in our fourth medium-term management plan “New VALQUA Stage Four (NV-S4)” which began from this fiscal year, while striving to boost productivity and reduce costs, the VALQUA Group focused on boosting revenues by reinforcing solutions sales and increasing sales of high value-added products to semiconductor, FPD, photovoltaic cell and other frontier industry customers, and to heavy and chemical industry plant and other mainstay industry customers.

As a result of those measures, on a consolidated basis VALQUA Fiscal 2007 net sales rose 2.7% from the previous year, to \45,624 million. While sales of semiconductor-related products turned sluggish, sales of high-performance gaskets and other products increased. With regard to profits, due to our efforts to reduce costs and expenses, operating income rose 8.3% year-on-year, to \4,428 million. Ordinary income grew 3.0% to \4,147 million. Net income was up 2.1% to \2,730 million with the additional posting of deferred tax assets.

Looking ahead, the business environment is expected to grow increasingly harsh with the deceleration of the U.S. and Chinese economies and the delayed recovery of semiconductor-related industries. Consequently, the VALQUA Group has revised our target figures in NV-S4. Under the new NV-S4, in addition to achieving the revised targets, VALQUA will diligently pursue effective investment of management resources as well as operational efficiency, and strive for the realization of the VALQUA corporate philosophy, and the improvement and expansion of our foundations for the future. Thank you very much for your ongoing guidance, encouragement and support.