August 6, 2008
Funai Electric Co., Ltd.

First Quarter (April-June) Consolidated Financial Summary
for the Period Ending March 2009
Current Year First Quarter

Previous Year First Quarter

From April 1, 2008
To June 30, 2008

From April 1, 2007
To June 30, 2007

AmountAmountPercent

Million yen%

Percent% increaseor decrease
from thesame periodof theprevious
consolidated
fiscal year％

Million yen％

59,449100.0

77,361

100.0

△23.2

Operating Income

988

1.7

1,172

1.5

△15.7

Ordinary Income

4,448

7.5

4,480

5.8

△ 0.7

3,967

6.7

4,463

5.8

△11.1

3,059

5.1

1,342

1.7

127.8

△13,779

△23.2

1,342

1.7

―

Net Sales

Net Income before Taxes andOther Adjustments※
Net Income after tax※※
Net Income /Loss after Tax

Net Income/Loss per Share△ 404.16

39.38※ For the purpose of comparison the Net Income/Loss after Tax before the deduction of Income taxes for priorperiods is recorded.
※※ Supplementary tax assessment based on rectification notice to Funai Electric Co., Ltd. for anti-tax havensystem in HK for 16.8 billion yen for the period of March 2005 to March 2007 was posted as a cost of income
taxes for prior periods in 1Q consolidated income statement of FY2008.
Notes:
Includes 12 consolidated subsidiaries and 2 affiliated companies accounted for by the equity method.

Member, Financial Accounting Standards Foundation

Financial Report for the 3-Month Period ended June 30, 2008
August 6, 2008

Listed company name:

Funai Electric Co., Ltd.

Securities Code: 6839
Tokyo Stock Exchange
and Osaka Securities Exchange, First Sections(URL http://www.funai.jp/ )Inquiries: Representative’s
President and CEO
Tomonori Hayashi
position and name
Administrator’s
General Manager,
Hisao Fuke
TEL: (072) 870-4395
position and nameAccounting Department
Scheduled date of Securities Report to be filed to the Kinki Finance Bureau; August 12, 2008
1. First Quarter Consolidated Results for the Period Ending March 2009 (April 1, 2008 – June 30, 2008)(1) Consolidated Operating Results(% denotes year on year)
Ordinary Income
Net Income
Net Sales
Operating Income
Million yen

1st Quarter FY2008
1st Quarter FY2007

st

1 Quarter FY2008
1st Quarter FY2007%

Million yen−
23.5

59,44977,361%Million yen

988−
1,172 △ 51.9

Net Income
Per Share

Net Income
Per Shareon a Fully
Diluted Basis

Yen

Yen

△ 404.16
39.38%

Million yen△13,779
1,342

−
60.6

4,448
4,480

%

−
5.1

−
−

(2) Consolidated Financial Position
Shareholders’Equity Ratio

Net Assets

Total Assets
Million yen

Million yen

1st Quarter FY2008
Fiscal Year 2007

227,888
224,415(Reference) Shareholders’ Equity
1st Quarter FY2008 ended June 30, 2008
Fiscal Year 2007 ended March 31, 2008

Net Assets
Per Share%

147,591
158,356

Yen

64.5
70.3

4,312.60
4,630.58

147,030 million yen
157,871 million yen

2. Dividends
Corresponding Period

Fiscal Year 2007
Fiscal Year 2008
Fiscal Year 2008
(Projection)stnd

1 Quarter

2 Quarteryen−

Dividend per Share
3rd QuarteryenYear end

0.00

yen
−

50.00

0.00

−

50.00

Annual

yen

yen

50.00

−

50.00

3. Forecast of Consolidated Results for the Full Year (April 1, 2008 - March 31, 2009)(% denotes year on year)

Net Sales
Six months ending Sep.30.2008

Operating Income Ordinary Income

Net Income

Net Income
Per Share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

144,000
340,000

−
22.7

3,300
6,000

−
−

4,300
8,000

−
−

△13,900△11,400−−△407.71△334.38

Full Year
Note:
Revision of Forecast of Consolidated Results for the Six month period and the Full Year in this 1st Quarter;
Yes. (Please refer to the press release concerning supplementary tax assessment based on rectification notice foranti-tax haven system in HK dated June 16, 2008.)

4. Other Information(1) Changes in Consolidated Subsidiaries (Changes in Scope of Consolidation): No(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancial statements covering consolidated accounting for fiscal quarter : Yes
Note: Please refer to “Qualitative Information and Financial Statements”.
(3) Changes in Accounting Practices, Procedures and Presentation Methods for Consolidated Financial Results(1)Changes arising from revision of accounting standards: Yes(2)Changes arising from other factors: No
Note: Please refer to “Qualitative Information and Financial Statements”.
(4) Number of Shares Outstanding (Ordinary Shares)(1)Number of shares outstanding (including treasury stock) as of June 30, 2008; 36,104,196shares
as of March 31, 2008; 36,104,196shares(2)Number of shares of treasury stock as of June 30, 2008; 2,011,051shares
as of March 31, 2008; 2,011,003shares(3)The Average number in the quarter of outstanding shares on June 30, 2008; 34,093,150shareson June 30, 2007; 34,093,520shares

Disclaimer;This document contains forward-looking statements and projections regarding business performance
which are not historical facts. Please note that these statements are based on information relating to factorsthat may impact future business performance that was available for analysis at the time this document was
printed. These factors include industry trends relating to the business areas of Funai Electric Co., Ltd. or
the Funai Group, such as audio-visual devices and information communication equipment, the economic
conditions of both domestic and international markets, and fluctuations in currency exchange rates. Actual
performance may greatly differ from projections included in this document because of the impacts ofuncertainty in such areas as the competitive conditions of the electronics industry, market trends, currency
exchange rate, introduction and success of new products, and various other global conditions that may
affect the tax system and other systems.

Qualitative Information and Financial Statements
1. Qualitative information relating to consolidated business performance
The lingering financial instability triggered by the subprime loan crisis in the United States and the trend of
economic slowdown has been witnessed globally, with the exception of some natural-resource-producing nations,due to rapidly rising crude oil prices and food prices during this fiscal quarter, the first quarter of the fiscal year
(beginning April 1, 2008, and ending June 30, 2008). In Japan as well, the stagnant global economy made its
impact in a slowdown of our exports, while sluggish growth of wages and the inflationary prices of raw materials,
such as crude oil, created stagnation in consumer spending, resulting in a sustained condition with an uncertain
future.
In the household electric appliance industry we experienced a continuing increase in demand for LCD television
sets worldwide, but price competition intensified further, resulting in the continuation of a challenging
environment.
Under such circumstances, our corporate group made great efforts to expand our sales, primarily with Blu-ray Discplayers and set top box products (products that convert digital signals to analog signals to allow the viewing ofterrestrial digital broadcasts on conventional analog television sets) for television sets in the US market, where
terrestrial analog broadcasting is scheduled to end in February 2009. Unfortunately, sales of our major products
lines, such as DVD-related products and printers in our information equipment sector, declined.
As a result, sales for this fiscal quarter were JPY59,449 million.
The status for individual products indicates that Blu-ray Disc players and set top box products for television sets in
the US market contributed to our sales, whereas the sales for our LCD television sets remained at the same level forthe same period as the previous year due to the effects of price competition. Sales for video and cathode ray tube
television sets significantly decreased in terms of market size, as did DVD-related products, which are experiencing
a turning point in terms of demand in the North American market. As a result, sales for these products were
JPY41,670 million.
For information equipment, a review was implemented by the OEM partner for our printers in response to thefiercely competitive environment. As a result, revenue has continued to decline since the previous fiscal term andresulted in sales of JPY10,768 million for these products.
Sales of electronic devices for signal reception were JPY7,010 million.
In terms of profits, we have had some improvements in the profitability of LCD television sets due to the stabilized
procurement of LCD panels, which contributed to our operating profits. Due to the decline in sales, however, thereduction in profits was JPY988 million, resulting in a recurring profit of JPY4,448 million. The net loss for the
fiscal quarter was JPY13,779 million, due in part to the processing of costs amounting to JPY16,838 million,
arising from the payment of “retroactive corporate taxes” incurred from corrective action in accordance with the“Anti-Tax Haven Law”.
2. Qualitative information relating to consolidated financial position
Our financial position for the fiscal quarter is described below.
Our assets increased by JPY3,472 million in comparison with the consolidated accounting at the end of theprevious fiscal year. This is primarily due to the increase in our inventory assets of JPY21,376 million, in spite of adecrease of JPY17,862 million in cash on hand and deposits.
Our liabilities increased by JPY14,237 million in comparison with the consolidated accounting at the end of theprevious fiscal year. This is primarily due to the issuing of notes and bills payable, as well as accounts payable,
which increased our liability by JPY15,085 million.
Our net assets decreased by JPY10,765 million in comparison with the consolidated accounting at the end of theprevious fiscal year. This was primarily due to the reduction of our accumulated earnings, which decreased by
JPY16,179 million, in spite of the increase in foreign exchange adjustment accounting of JPY5,062 million.
3. Qualitative information relating to consolidated performance forecasts
Please refer to our “Notice Regarding Amendment of Performance Forecasts” disclosed on June 16, 2008, fordetails.
Note: Our performance forecasts include figures based on decisions according to the information available at thetime and include items that are subject to risks and uncertainties. Actual performance may vary from these
forecasts due to rapid changes in economic conditions in the United States, our primary market, and other regions
overseas, as well as rapid fluctuation in product prices.

4. Other(1) Important changes relating to subsidiaries and affiliates during the fiscal term (changes involving specificsubsidiaries that resulted in changes to the scope of consolidated accounting)
There are no relevant changes.
(2) Application of simplified accounting procedure and use of unique accounting procedure for preparation offinancial statements covering consolidated accounting for fiscal quartera. Simplified accounting procedure
The amount of allowance for depreciation and amortization is calculated by distributing the applicable amountfor the consolidated fiscal year over fiscal terms. This is because our company, as well as our consolidated
domestic subsidiaries, adopt the diminishing balance or fixed percentage depreciation method (except forbuildings acquired on or after April 1, 1998 that do not include incidental facilities, which are calculated using
the fixed amount or straight line depreciation method).
b. Unique accounting procedure for preparation of consolidated financial statements for fiscal quarter
Expenses relating to taxes are calculated by applying the estimated effective tax rates on the before-tax net
profit for the fiscal quarter, through a practical estimation of the effective tax rates that will take effect after
the application of the tax effect accounting for before-tax net profits of the consolidated fiscal year, including
this first fiscal quarter.
The corporate tax adjustment is included in the indicated corporate taxes.
(3) Changes to general rules and procedures, as well as denotation methods for accounting relating to the
preparation of consolidated financial statements for the fiscal quarter• Changes relating to items concerning accounting procedure standards
a. The “Accounting Standard for Statements of Fiscal Quarters” (Accounting Standard No. 12 of the Financial
Accounting Standards Foundation) and the “Guidelines for Accounting Standards relating to Statements of
Fiscal Quarters” (Guideline No. 14 of the Financial Accounting Standards Foundation) have been applied
beginning with the current consolidated fiscal year. Furthermore, our consolidated quarterly financial
statements have been prepared according to the “Rules for Consolidated Statements of Fiscal Quarters”.
b. Inventory assets
In the past, we calculated the values of inventory assets maintained for the purpose of ordinary sales primarily
according to the cost accounting method based on the periodic average method. Starting from this first quarterof the consolidated accounting period, the “Accounting Standards for Evaluation of Inventory Assets”(Accounting Standard No. 9 of the Financial Accounting Standards Foundation; July 5, 2006) became
applicable, and calculations have since been conducted primarily using the cost accounting method based on
the periodic average method (with regard to the values entered on the balance sheet, the book value cut down
method based on the reduction in profitability).
This has little effect on profit and loss.
c. Application of “Handling of Accounting Procedure for Preparing Consolidated Financial Statements ofOverseas Subsidiaries in the Foreseeable Future”
The necessary amendments have been implemented for consolidated accounting by the application of the“Handling of Accounting Procedure for Preparing Consolidated Financial Statements of Overseas
Subsidiaries in the Foreseeable Future” (Practical Guide No. 18 of Financial Accounting Standards
Foundation; May 17, 2006) beginning from the first quarter of this fiscal term.
This has little effect on profit and loss.
d. Application of accounting standards relating to leasing transactions
In the past, accounting procedures based on the method relating to leasing transactions had been used forfinancing and leasing transactions that involved the transfer of ownership. Since the “Accounting Standard for
Leasing Transactions” (Accounting Standard No. 13 of the Financial Accounting Standards Foundation; June
17, 1993, as amended on March 30, 2007 by the First Committee of the Business Accounting Council) and the“Practical Guide for Accounting Standards relating to Leasing Transactions (Practical Guidelines on
Accounting Standards for Lease Transactions No. 16 of the Financial Accounting Standards Foundation;
January 18, 1994 as amended on March 30, 2007 by the Accounting System Committee of the JapaneseInstitute of Certified Public Accountants) became applicable to the fiscal quarter for consolidated financial
statements of consolidated fiscal years from April 1, 2008, these accounting standards have been applied andaccounting has been conducted using accounting procedures for ordinary sales transactions (except for thoseleasing transactions involving the transfer of ownership that started prior to the commencement of theapplication of lease accounting standards, for which the method relating to leasing transactions continues to be
implemented in accounting procedures). Furthermore, a fixed amount depreciation method is used for
calculating the depreciation and amortization of the leasing inventory relating to financing and leasingtransactions that involve the transfer of ownership, with the leasing term set as service years and the balanceof value diminishing to zero.
This has no effect on profit and loss.
(4) Corrective action implemented based on the application of the Anti-Tax Haven Law
a. On June 28, 2005 we received a notice from the Osaka Regional Taxation Bureau regarding theimplementation of corrective action. This notice indicated a decision regarding our subsidiary in Hong
Kong, suggesting that it did not satisfy the conditions for exclusion from application of the Anti-Tax
Haven Law. The notification furthermore indicated that the Osaka Regional Taxation Bureau decided toincorporate the income generated by our subsidiary in Hong Kong into the income of our company forthe duration of three years, from April 1, 2001, to March 31, 2004, for taxation purposes. We applied foran assessment by the Administrative Review Office of the Osaka Regional Taxation Bureau on July 25,
2006, and filed an appeal to have the action cancelled with the Osaka District Court on November 16,
2006, as we object to this corrective action.
Thereafter, on July 3, 2008, we received a written verdict on this case from the Administrative Review
Office of the Osaka Regional Taxation Bureau, which indicated that our assertion had been dismissed.
This arbitration is truly unfortunate and unacceptable. We intend to continue asserting the validity of ourposition to the court in the future.
The additional tax amounts to JPY16,651 million (JPY19,184 million including incidental taxes),
including corporate, residential, and business taxes. We processed these amounts in the fiscal term
ending March 2007 as “retroactive corporate taxes,” since the accounting procedures relating to
additional tax amounts have been clarified through the amendment of the “Handling of Audits Relating
to Accounting Procedures and Disclosures for Taxes” (Report No. 63 of the Auditing and Guaranteeing
Work Committee of the Japanese Institute of Certified Public Accountants) on March 8, 2007.
b. On June 16, 2008 we received a notice from the Osaka Regional Taxation Bureau indicating theirdecision to incorporate the income generated by our subsidiary in Hong Kong into the income of ourcompany for the duration of three years, from April 1, 2004, to March 31, 2007, for taxation purposes.
This is due to their decision that our subsidiary in Hong Kong did not satisfy the conditions that would
exclude it from application of the Anti-Tax Haven Law. We feel that this corrective action is both
unfortunate and unacceptable, particularly as it was ordered while the previously implemented corrective
action based on the application of the Anti-Tax Haven Law (dated June 28, 2005), is currently still being
deliberated in the Osaka District Court. We therefore applied for an assessment by the Administrative
Review Office of the Osaka Regional Taxation Bureau on August 6, 2008.
A provisional estimate for the additional tax, including corporate, residential, and business taxes,
amounts to JPY15,038 million (JPY16,838 million including incidental taxes). This amount has beenprocessed as expenses under the category of “retroactive corporate taxes” in this first fiscal quarter of theconsolidated fiscal term.
Since decisions regarding this tax system will be made according to the condition of overseas
subsidiaries at the time their individual fiscal years are completed, we can only offer reference figures on
this matter. The impact from the tax system in question on the income generated by our subsidiary inHong Kong, for the fiscal years following the fiscal year currently being investigated, is estimated to beabout JPY700 million, which includes the corporate, residential, and business taxes for the fiscal term
ending March 2008. This resulted from a calculation that deducted the amount of dividends we received
from our subsidiary in Hong Kong from the applicable income for the period. Due to the aforementioned
reason, however, the accounting procedure for the figure relating to this effect has not yet been
conducted.

5. Consolidated Financial Statements(1).Consolidated quartery balance sheets(Mil. Yen)
1st Quarter FY2008(As od June 30, 2008)

Fiscal year 2007
(As of March 31, 2008)ASSETS;
Current Assets
Cash and deposits

50,212

68,074

Notes and accounts receivable-trade28,961

26,841

Merchandise and finished goods

39,65021,123Work in process

2,864

1,292

Raw materials and supplies

13,946

12,668Other

13,354

17,407

Allowance for doubtful accounts

△ 106

△ 286

Total current assets

148,883

147,122

Property, plant and equipment

16,716

16,772Intangible assets

5,938

6,222

Long-term loans receivable

42,39340,819Other

14,962

14,520Allowance for doubtful accounts△ 1,006△ 1,041

Total investments and other assets

56,34954,297

Total noncurrent assets

79,00477,293

227,888

224,415

Notes and accounts Payable-trade

40,89625,811

Short-term loans payable

10,981

13,213

Income taxes payable

5,582

4,642

Provision

1,220

1,189

Other

17,833

15,642

Total current liabilities

79,51460,499Provision

2,423

2,484

Other

1,358

3,075

Total noncurrent liabilities

3,782

5,559

80,296

66,058

Noncurrent assets

Investments and other assets

TOTAL ASSETSLIABILITIES;Current Liabilities

Noncurrent liabilities

TOTAL LIABILITIES(Mil. Yen)
1st Quarter FY2008(As od June 30, 2008)

Fiscal year 2007
(As of March 31, 2008)

NET ASSETS;
Shareholders' equity
Capital stock

31,28031,280Capital surplus

33,24533,245Retained earnings

113,633

129,812

Treasury stock△ 24,339△ 24,339

153,819

169,998212△ 63

Foreign currency translation adjestment△ 7,001△ 12,063

Total valuation and translation adjestments△ 6,789△ 12,127

561

485

TOTAL NET ASSET

147,591

158,356

TOTAL LIABILITIES AND NET ASSETS

227,888

224,415

Total shareholders' equity
Valuation and translation adjustments
Valuation difference on avaiable-for-sale securities

Minority interests

(2).Concolidated quartely statements of income(Mil. Yen)
1st Quarter FY2008

Net sales( from April 1, 2008
to June 30, 2008 )
59,449

Cost of sales

47,112Gross profit

12,336

Selling, general and administrative expenses

11,348Operating income

988

Non-operating income
Interest income

904

Dividends income

26

Foreign exchange gains
Other
Total non-operating income

2,542
150
3,623

Non-operating expenses
Interest expenses

74

Equity in losses of affiliates

70

Other

19

Total non-operating expenses

164

Ordinary income

4,448

Extraordinary income
Gain on prior period adjustment

357

Gain on sales of noncurrent assets

1

Other

28

Total extraordinary income

387

Extraordinary loss
Loss on disposal of noncurrent assets

1

Special sales promotion

850

Other

16

Total extraordinary losses

868

Income before income taxes and minority interests
Income taxes

3,967
851

Income taxes for prior periods

16,838

Total income taxes

17,689Minority interests in income
Net income

56△ 13,779

(3).Concolidated quartely statements of cash flows(Mil. Yen)
1st Quarter FY2008( from April 1, 2008
to June 30, 2008 )Net cash provided by (used in) operating activities
Income before income taxes and minority interests

3,967

Depreciation and amortization

1,228

Increase(decrease) in allowance for doubtful accounts△ 185

Increase(decrease)in provision for retirement benefits△ 36Interest and dividends income△ 930Interest expenses

74

Equity in (earnings) losses of affiliates

70

Loss (gain) on sales of property, plant and equipment△0

Loss (gain) on sales of investment securities△ 26

Loss (gain) on valuation of investment securities

12

Decrease (increase) in notes and accounts receivable-trade292

Decrease (increase) in inventories△ 19,118

Increase (decrease) in notes and accounts payable-trade

11,779Other, net

3,711

Subtotal

838

Interest and dividends income received

320

Interest expenses paid

△ 71

Income taxes paid

△ 4,508

Prior year's taxes paid

△ 11,297

Net cash provided by (used in) operating activities△ 14,719

Net cash provided by (used in) investment activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment△ 1,209△ 693
64

Purchase of intangible assets△ 59

Purchase of investment securities△ 242

Proceeds from sales of investment securities

1,111

Other, net△ 18

Net cash provided by (used in) investment activities△ 1,048

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable△ 2,819

Repayment of long-term loans payable△ 1,086

Cash dividends paid

△ 1,704

Other, net△5Net cash provided by (used in) financing activities△ 5,615

Effect of exchange rate change on cash and cash equivalents

1,643

Net increase (decrease) in cash and cash equivalents△ 19,739

Cash and cash equivalents at beginning of period

57,100Cash and cash equivalents at end of period

37,361

(4) Notes for Continuing Enterprises
Not Applicable(5) Information by Segmenta;Operating Segment Information
The Funai Group concentrates on the single business segment of manufacture and sales of electric products.

Therefore, we make no distinction between operating segments.

b;

Geographic Segment Information
Current First Quarter (April 1, 2008 - June 30, 2008)(Units: Million Yen)
Asia

EuropeTotal

Elimination Consolidated

Japan

N. America

Sales to outside customers

28,11328,220252

2,862

59,449−59,449Inter-segment sales

36,163

10

50,036

13

86,223(86,223)−

Total

64,27628,23050,2882,876

145,672(86,223)

59,449

338

703

1,509

△ 661

1,890

(901)

988

Net Sales

Operating

IncomeLosses(△)

c;andOverseas sales
Current First Quarter (April 1, 2008 - June 30, 2008)(Units: Million Yen)

N. America
Overseas sales

41,380Asia

Europe

1,297

7,148

Other
401

Consolidated sales
Ratio of overseas sales to consolidated sales (%)

Total
50,22859,449

69.6

2.2

12.0

0.7

84.5

Detailed Statement of Net Sales by Equipment Type and Region
PeriodClassification(Units: Million Yen)

Current Year First Quarter

Previous Year First Quarter

From April 1, 2008

From April 1, 2007

To June 30, 2008

To June 30, 2007

AmountPercent

AmountBy Equipment Type％% increase or
decrease fromthe same periodof the previous
consolidated
fiscal year

Percent

Percent％％

Audiovisual Equipment

41,67070.1

48,900

63.2

△14.8

Information Equipment

10,76818.1

21,228

27.4

△49.3

Other Equipment

7,010

11.8

7,232

9.4

△ 3.1

59,449100.0

77,361

100.0

△23.2

％

％

Total

％
9,221

15.5

9,593

12.4

△ 3.9

N. America

41,38069.6

51,321

66.3

△19.4

Europe

7,148

12.0

12,621

16.3

△43.4

Asia

1,297

2.2

2,167

2.8

△40.2

Other Areas

401

0.7

1,657

2.2

△75.8

Subtotal

50,22884.5

67,768

87.6

△25.9

59,449100.0

77,361

100.0

△23.2

Japan

By Region

ExportTotal(Note) Main Products by Equipment Type
Equipment
Audiovisual Equipment

Main Products
VCRs, DVD Players, DVD Recorders, Televisions, LCD Televisions,Blu-ray Disc Players

Information Equipment

Printers, Digital Still Cameras

Other Equipment

Receiver-Related Electronic Equipment

(Reference) Change in Operating Results for the Most Recent Quarter
Fiscal Period Ending March 2009 (Consolidated)
First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2008

July - Sept 2008

Oct - Dec 2008

Jan - March 2009

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

59,449−−−Gross Profit

12,336−−−

Operating Income

988

−

−

−

Ordinary Income

4,448

−

−

−

Quarterly Net Income Before
Taxes and Other Adjustments

3,967

−

−

−

△13,779−−−

Quarterly Net Income/Loss

Yen

Yen

Yen

Yen

Quarterly Net Income per Share△404.16

−

−

−

−

−

−

Fully Diluted Quarterly Net
Income per Share

−

−

−

−

−

−

−

−

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

227,888−−−

Net Assets

147,591

−

−

−

Yen

Yen

Yen

−

−

−

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

April - June 2007

July - Sept 2007

Oct - Dec 2007

Jan - March 2008

Yen

Net Assets per Share

4312.60

Fiscal Period Ended March 2008 (Consolidated)

Million Yen

Million Yen

Million Yen

Million Yen

Net Sales

77,361

78,95569,572

51,277Gross Profit

12,64012,801

10,245

9,611

Operating Income

1,172

896

△ 784

△ 3,690

Ordinary Income

4,480

573

731

△ 5,824

Quarterly Net Income Before
Taxes and Other Adjustments

4,463

△ 782

1,066

△ 2,237

Quarterly Net Income/Loss

1,342△5,5881,221△ 2,353

Yen

Quarterly Net Income per Share
Fully Diluted Quarterly Net
Income per Share

39.38
−

−

Yen

△163.90
−

−

Yen

35.83
−

−

Yen

△ 69.02−−

Million Yen

Million Yen

Million Yen

Million Yen

Total Assets

285,315

283,967

255,714

224,415Net Assets

189,221

176,825

176,876

158,356

Yen

Net Assets per Share

5,538.48

Yen

5,175.32

Yen

5,176.88

Yen

4,630.58

【Reference】 Previous 1Q Consolidated Financial Statements(1).Previous first quarter consolidated statements of income (April 1, 2007-June 30, 2007)(Mil. Yen)
Previous 1Q(from April 1,2007
to June 30,2007)
AmountNet sales

77,361

Cost of sales

64,721

Selling, general and administrative expenses

11,467

Operating income

1,172

Non-operating income

3,687

Non-operating expenses

380

Ordinary income

4,480

Extraordinary income

16

Extraordinary loss

33

Income before income taxes and minority interests

4,463

Income taxes

3,115

Minority interests in income
Net income

5
1,342

(2).Previous first quarter concolidated statements of cash flows (April 1, 2007-June 30,2007)(Mil. Yen)
Previous 1Q（from April 1, 2007
to June 30, 2007 )AmountNet cash provided by (used in) operating activities
Income before income taxes and minority interests

4,463

Depreciation and amortization

1,887Interest and dividends income△ 1,383

Interest expenses
Decrease in notes and accounts receivable-trade
Decrease (increase) in inventories

178
1,758
△ 2,106

Increase in notes and accounts payable-trade

2,892

Other, net△ 478

Subtotal

7,211Interest and dividends income received

1,005Interest expenses paid

△ 178

Income taxes paid
Net cash provided by (used in) operating activities△ 2,069
5,968

Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Payments for loan receivable
Other, net
Net cash provided by (used in) investment activities△ 1,917
△ 160
30
△ 140
170
△ 2,017

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Payments for purcahse of treasury stock
Cash dividends paid
Other, net△ 7,218△0△ 1,875△ 179

Net cash provided by (used in) financing activities△ 9,274

Effect of exchange rate change on cash and cash equivalents

3,328

Net increase (decrease) in cash and cash equivalents△ 1,994

Cash and cash equivalents at beginning of period

83,320Net increase in cash and cash equivalents due to the change offiscal year end in consolidated subsidiaries

7,284

Cash and cash equivalents at eand of period

88,610(3) Information by Segmenta;Operating Segment Information
The Funai Group concentrates on the single business segment of manufacture and sales of electric products.
Therefore, we make no distinction between operating segments.

b;

Geographic Segment Information
Previous First Quarter (April 1, 2007 - June 30, 2007)(Units: Million Yen)
Total

Elimination Consolidated

5,390

159,899(82,537)

77,36153,422

5,328

158,540(82,351)

76,189

741

62

1,359

(186)

1,172

Japan

N. America

Asia

Net Sales

67,611

32,73354,164

Operating expenses

66,17733,612

1,434

△ 878

OperatingLosses(△)

IncomeandEuropefrom 2008.4.1
to 2008.6.30

Page
1. Summary of 1Q Financial Statements（Consolidated）

1(1) Operating Results, Financial Conditions

1(2) Profitability and Per Share Data etc.

1(3) Capital Expenditures, Depreciation, R&D Expenses

1(4) Cash Flow2

2. Operating Activities（Consolidated）

2(1) Sales by Equipment

2(2) Sales by Area in Equipment

3(3) Sales by Equipment in Areas

31. Summary of First Quarter Operating Results (Consolidated)(1) Operating Results, Financial Conditions（Units：100million yen, %）FY2007

FY2008

1Q
AmountFull-Year%

Change Amount%

1Q
Change Amount

2,771 100.0 △ 30.1

Full-Year (Projections)%

Change Amount594 100.0 △ 23.2%

ChangeNet Sales

773 100.0

Operating Income

11

1.5 △ 51.9

△ 24 △ 0.9−9

1.7 △ 15.7

60

1.8

−

Ordinary Income

44

5.8

60.6

△

0 △ 0.0−44

7.5 △ 0.7

80

2.4

−

Net Income after Tax

13

1.7

5.1

△ 53 △ 1.9

−

30

5.1

127.8

58

1.7

−

Net Income/Loss after Tax ※

13

1.7

5.1

△ 53 △ 1.9−△ 137△23.2−△ 114 △ 3.4−

Total Assets

2,853

−

−

2,244

−

−

2,278

−

−

−

−

−

Net Assets

1,892

−

−

1,583

−

−

1,475

−

−

−

−

−

23.5

3,400 100.0

22.7※ Supplementaly tax assessment based on rectification notice to Funai Electric Co., Ltd. for anti-tax haven system in HK for 16.8 bil. yen from the March 2005 to

March 2007 period was posted as a cost of income taxes for prior periods on the 1Q consolidated income statement of FY2008.

（※） Yen−Dollars / exchange rate
（Units：Yen / Dollars）

FY2007

FY20081Q

Full-Year

Average Rate in each Period

Full-Year (Projections)1Q
113.80121.58105.43100.00(2) Profitability and Per Share Data etc.
FY2007

FY20081Q

Full-Year

Full-Year (Projections)

1Q

Gross Profit Ratio

(%)

16.3

16.3

20.8

16.2

Operating Income Ratio

(%)

1.5

△ 0.9

1.7

1.8

Ordinary Income Ratio

(%)

5.8

△ 0.0

7.5

2.4

Shareholders' Equity Ratio

(%)

66.2

70.3

64.5

−

Net Assets Per Share(Yen)

5,538.48

4,630.58

4,312.60−

Net Income Per Share

(Yen)

39.38

△ 157.71△ 404.16△ 334.38

Return On Asset

(%)

0.5

△ 2.2

△ 5.4

−

Return On Shareholders' Equity (%)

0.7

△ 3.1

△ 8.2

−

(3) Capital Expenditures, Depreciation, R&D Expenses（Units：100million yen, %）FY2007

FY2008

1Q
Amount26

Capital Expenditures

Full-Year
ChangeAmount1Q

ChangeChange49 △ 9.3

73.3

Full-Year (Projections)

Amount6 △ 76.9

FY2007% to Sales

Change73

49.0

FY2008

1Q
AmountAmountFull-Year
Change Amount% to Sales

1Q

Change Amount% to Sales

Full-Year (Projections)
Change Amount% to Sales

ChangeDepreciation Expenses

16

2.1 △ 5.948

1.7 △ 32.4

9

1.5 △ 43.8

57

1.7

18.8

R&D

34

4.4 △ 2.9

147

5.3

32

5.4 △ 5.9

154

4.5

4.8

−1−

5.0

(4) Cash Flow
（Units：100million yen）

FY2008FY2007
1Q

Full-Year

1Q

Full-Year (Projections)

Cash flows provided by operating activities

59

△ 137

△ 147

−

Income Before Income Taxes

44

25

39

−

18

60

12

−

3

△ 222

△ 198

−

△

△

10

−

△ 231

△ 157

−

△ 92

△

81

△

56

−

33

△

21

16

−

52

△ 335

△ 197

−

Depreciation Expenses△

Others△ 20

Cash flows used in investing activities

Free Cash flows

39

Cash flows provided by financing activities

Effect of exchange rate changes

on cash and cash equivalents
Net increase in cash and cash
equivalents

94

2. Operating Activities (Consolidated)(1) Sales by Equipment（Units：100million yen, %）FY2007

FY2008

1Q
Amount%Full-Year
Change Amount%

1Q

Change Amount%Full-Year (Projections)
Change Amount%

Change

75.0

38.5

489

63.2

22.4

1,841

66.5 △ 33.5

417

70.1 △ 14.8

2,549

VCRs

13

1.7 △ 7.145

1.6 △ 45.1

6

1.0 △ 53.8

21

0.6 △ 53.3

DVD

153

19.8

16.8

524

18.9 △ 40.7

100

16.8 △ 34.6

437

12.9 △ 16.6

BD Players

0

0.0

−

4

−

21

3.5

−

139

4.1 3,375.0

Televisions

99

12.8 △ 5.7

256

9.2 △ 67.426

4.4 △ 73.7

102

3.0 △ 60.2

LCD Televisions

203

26.2

174.3

897

32.4

15.6

199

33.5 △ 2.0

1,611

47.4

79.6

PDP Televisions

0

0.0 △100.02

0.1 △ 97.8

0

−

0

0.0

−

Projectors

21

2.7 △ 54.3

70

2.5 △ 43.50

0.0 △100.0

0

0.0

−

Others0

0.0 △100.0

43

1.6

65.4

65

10.9

−

239

7.0

455.8

Audio Visual Equipment

0.2

0.0

Information Equipment

212

27.4

30.2

650

23.4 △ 30.3

107

18.1 △ 49.3

562

16.5 △ 13.5

Others

72

9.4

13.1

280

10.1

70

11.8 △ 3.1

289

8.5

3.2

Total

773 100.0

23.5

3,400 100.0

22.7

5.6

2,771 100.0 △ 30.1

−2−

594 100.0 △ 23.2

(2) Sales by Areas in Equipment（Units：100million yen, %）FY2007

FY2008

1Q
Amount%Full-Year
Change Amount%

1Q

Change Amount%Full-Year (Projections)
Change Amount%

Change

489

63.2

22.4

1,841

66.5 △ 33.5

417

70.1 △ 14.8

2,549

75.0

38.5

North America

382

49.4

34.5

1,391

50.2 △ 38.5

349

58.7 △

8.6

1,944

57.2

39.8

Europe

70

9.0

7.7

288

10.4 △ 15.8

39

6.6 △ 44.3

450

13.3

56.3

Asia and Others

1

0.2

0.0

3

0.1 △ 72.7

0

0.0 △100.0

0

0.0

−

Japan

36

4.6 △ 26.5

159

5.8

3.9

29

4.8 △ 19.4155

4.5 △ 2.5

212

27.4

30.2

650

23.4 △ 30.3

107

18.1 △ 49.3

562

16.5 △ 13.5

North America

121

15.7

45.8

403

14.5 △ 16.9

62

10.4 △ 48.8

381

11.2 △ 5.5

Europe55

7.1 △ 5.2

164

5.9 △ 49.531

5.3 △ 43.6

137

4.0 △ 16.5

Asia and Others

36

4.6

63.6

77

2.8 △ 37.4

14

2.4 △ 61.1

44

1.3 △ 42.9

Japan

0

0.0

0.0

6

0.2

−

0

0.0

−

0

0.0

−

Others

72

9.4

13.1

280

10.1

5.6

70

11.8 △

3.1

289

8.5

3.2

Total

773 100.0

23.5

3,400 100.0

22.7

Audio Visual Equipment

Information Equipment

2,771 100.0 △ 30.1

594 100.0 △ 23.2

(3) Sales by Equipment in Areas（Units：100million yen, %）FY2007

FY2008

1Q
Amount%Full-Year
Change Amount%

1Q

Change Amount%Full-Year (Projections)
Change Amount%

Change

68.4

28.4

57.2

39.8

65.3 △ 34.6

414

69.6 △ 19.4

2,325

1,391

50.2 △ 38.5

349

58.7 △

8.6

1,944

403

14.5 △ 16.9

62

10.4 △ 48.8

381

100.0

17

0.6 △ 26.1

3

0.5 △ 70.0

0

0.0

−

16.3

1.3

456

16.5 △ 32.3

71

12.0 △ 43.4

587

17.3

28.7

70

9.0

7.7

288

10.4 △ 15.8

39

6.6 △ 44.3

450

13.3

56.3

Information Equipment55

7.1 △ 5.2

164

5.9 △ 49.531

5.3 △ 43.6

137

4.0 △ 16.5

Others1

0.2 △ 50.04

0.2 △ 33.3

1

0.1

0.0

0

0.0

38

5.0

51.1

91

3.3 △ 34.5

17

2.9 △ 55.3

44

1.3 △ 51.6

Audio Visual Equipment

1

0.2

0.0

3

0.1 △ 72.7

0

0.0 △100.00

0.0

Information Equipment

36

4.6

63.6

77

2.8 △ 37.4

14

2.4 △ 61.1

44

1.3 △ 42.9

North America

513

66.3

38.1

1,811

Audio Visual Equipment

382

49.4

34.5

Information Equipment

121

15.7

45.8

Others

10

1.2

126

Audio Visual Equipment

EuropeAsia and Others

11.2 △ 5.5

−
−

1

0.2

0.0

11

0.4

120.0

3

0.5

0

0.0

−

96

12.4 △ 8.6

413

14.9

7.7

92

15.5 △

3.9

444

13.0

7.5

Audio Visual Equipment36

4.6 △ 26.5

159

5.8

3.9

29

4.8 △ 19.4155

4.5 △ 2.5

Information Equipment

0

0.0

0.0

6

0.2

−

0

0.0

−

0

0.0

−

Others

60

7.8

7.1

248

8.9

7.4

63

10.7

5.0

289

8.5

16.5

773 100.0

23.5

3,400 100.0

22.7

Others
Japan

Total

2,771 100.0 △ 30.1

−3−

200.0

594 100.0 △ 23.2

（Company）

FUNAI ELECTRIC CO., LTD.
INVESTOR / PUBLIC RELATIONS DEPARTMENT
7-7-1 Nakagaito Daito city, Osaka 574-0013, JapanTEL 81-72-870-4395 ･ FAX 81-72-874-8027