<<Reviced Business Forecasts >>

Upward revisions were made to forecasts for both sales and profits announced
in May, 2007

• Sales: ¥76.5 billion, Operating income: ¥69.0 billion,
  Ordinary income: ¥65.0 billion, Net income: ¥41.0 billion
• Forecasted exchange rate for the 2nd half:
  US$=¥115, Euro=¥160 (Forecasts announced in May, 2007:US$=¥115, Euro=¥150)

<<Forecasted Business Environment for the 2nd Half >>

Expected to be robust overall, although some uncertainties remain

• Japan
  • Machine tools/Industrial machinery: Strong demand expected to continue overall.
  • Automotive production: Production expected to increase YOY due to favorable demand for exports.
  • Semiconductors/liquid crystal production equipment: Recovery of demand for semiconductors expected to be delay, and demand for liquid crystal production equipment expected to remain in an adjustment phase.
• The Americas: Uncertainty expected to remain in demand environment.
• Europe: Demand expected to continue to recover gradually.
• Asia: Economic growth in China expected to continue. Uncertainty expected to be seen in automotive production in the ASEAN region.

Business risks:

1. Impact of subprime crisis on the real economy
2. Acceleration of Yen strength 3.Crude oil prices