YAMAZEN CORPORATION AND ITS CONSOLIDATED SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMarch 31 and September 30, 2004ASSETS
Current assets:
Cash and bank deposits
Short-term securities
Notes and accounts receivable:
Trade
Unconsolidated subsidiaries and affiliates

Millions of Yen(Unaudited)
March 31,
September 30,2004
2004
21,143
6,879¥

Allowance for doubtful accounts(Inventories
Deferred income taxes
Other
Total current assets
Investments and long-term accounts receivable:
Investments in securities
Investments in and advances to:
Unconsolidated subsidiaries and affiliates
Other
Long‐term trade receivable and others
Allowance for doubtful accounts(

Property and equipment:
Buildings and structures
Machinery and equipment
Accumulated depreciation(Land
Construction in progress
Deferred income taxes
Other assets

87,213631
87,844
1,372 )
86,472
10,8701,606
2,669
129,639(¥$

87,666691
88,357
1,380 )
86,977
10,495
1,595
1,662
130,546

201,41467,087789,4286,223
795,651(12,427 )783,224
94,507
14,363
14,966
1,175,561

5,526

5,181

46,655

2,047
149
3,080
3,623 )7,179

2,129
124
3,022
3,613 )
6,843

19,171
1,117
27,21332,535 )61,621(14,995
2,242
17,237
10,810 )6,427
11,266850
18,543(2,067
3,960

Deferred assets:
Bond-issuing expense

22,367
7,450¥

Thousands ofU.S. Dollars(Note 1)
(Unaudited)
September 30,
2004

11
161,399(13,567
2,323
15,8908,959 )
6,931
11,114―18,045(1,150
3,311¥

6
159,901

The accompanying notes are an integral part of these statements.

122,170
20,918143,088
80,675 )62,413100,081―
162,49410,356
29,815$54
1,439,901

YAMAZEN CORPORATION AND ITS CONSOLIDATED SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMarch 31 and September 30, 2004

LIABILITIES, MINORITY INTERESTSAND SHAREHOLDERS' EQUITYCurrent liabilities:
Short-term bank loans
Current portion of long-term debt
Notes and accounts payable:
Trade
Unconsolidated subsidiaries and affiliates

Thousands ofU.S. Dollars(Note 1)
(Unaudited)
September 30,2004

Millions of Yen(Unaudited)
March 31,September 30,2004
2004

12,715
4,586

¥

6,883
8,390

¥

$61,981
75,552100,26265
100,327
1,262
1,665
179
1,629
122,363

105,084
12
105,096
1,381
1,760
219
1,538
125,267

946,277108
946,385
12,436
15,8491,972
13,8491,128,024

20,83915,886

143,053

280
2,038
630

587
1,029
672

5,286
9,266
6,051

Minority interest in consolidated subsidiaries

212

231

2,080

Shareholders' equity:
Common stock
Authorized − 200,000,000 shares
Issued and outstanding:− 93,840,310 shares at March 31
and September 30, 2004
Additional paid‐in capital
Retained earnings
Net unrealized holding gains (losses)
on other securities
Foreign currency translation adjustments
Less : Treasury common stock, at cost
Total shareholders' equity

7,909

7,909

71,220

6,082
1,876

6,082
3,107

54,76827,978

Accrued employees' bonus
Accrued expenses
Accrued income taxes
Other
Total current liabilities
Long-term debt
Accrued retirement benefits fordirectors and corporate auditors
Accrued retirement benefits for employees
Other long-term liabilities((¥757
1,584 )
3 )15,037
161,399((¥5691,433 )
5 )16,229159,901

The accompanying notes are an integral part of these statements.

(($5,12412,904 )45 )146,141
1,439,901

YAMAZEN CORPORATION AND ITS CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the six-months ended September 30, 2003 and 2004

2003
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

130,280
114,844
15,436
14,753
683¥

Other income (expenses):
Interest and dividends income
Interest expense
Gain on sale of property and equipment
Gain on sale of investment in securitiesGain on return of the substitutional
portion of pension plan
Loss on sale and disposal of property and equipment
Special severance payments
for employee's early retirement plan
Prior years' retirement benefits
for directors and corporate auditors
Loss on sale of properties
Other, net
Income before income taxes and minority interests((―10 )

(106 )(Net income per share (basic)
Cash dividends per share
Weighted average number of shares outstanding(thousands)

494705 )170¥¥(($542709 )2
26

1,342,449
1,193,111
149,338
124,700
24,638(89433 )(―((746350 )396((278 )
687 )
168
2,661

23¥

Yen
¥

1,465

15.62
―
93,818The accompanying notes are an integral part of these statements.

4,881
6,385 )
18
234
8,050
297 )
―

97
1,076
1,173

9
163

1.74
―
93,825

2004
149,079
132,495
16,584
13,848
2,736

¥

―
―
141
568

Income taxes
Current
Deferred
Minority interests in earnings of consolidated subsidiaries
Net income

Millions of Yen

Thousands ofU.S. Dollars(Note 1)2004

2,503 )
6,186 )
1,512
23,962873
9,69010,563$207
13,192

U.S. Dollars(Note 1)$0.14―

YAMAZEN CORPORATION AND ITS CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
For the six-months ended 30th September, 2003 and 2004

2003
Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:
Depreciation and amortization
Increase（decrease）in allowance for doubtful accounts
Increase (decrease) in allowance for others
Dividends and interest incomeInterest expenses
Foreign currency gain
Gain on sale of investments in securities, net
Loss on sale and disposal of property and equipment, net
Loss on sale of properties
Special severance payments for employee's early retirement plan
Change in assets and liabilities net:
Increase in trade receivables
Decrease (increase) in inventories
Increase in trade payables
Other, net
Sub total
Income taxes received (paid)
Payment for retirement benefits
under early retirement scheme
Net cash provided by (used in) operating activities((((((((((99 )
142 )

(52 )
52380 )
1,06966 )
170509 )13492
282
1,071(918 ）
2,180
1,330 )235 )704 )3)
1,010 )(((((（(((((((¥

433735564494 )705―69 )9―10633 )114 )21,98921,875

2004
2,661¥2,395 )405 )1,015501 )
271
314 )

((Cash flows from financing activities:
Decrease in short-term bank loans, net
Proceeds from issuance of long-term debt
Payments of long-term debt
Cash dividends paid
Interest expense paid
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

568¥

Cash flows from investing activities:
Payments for time deposits
Proceeds from withdrawal of time deposits
Payments for acquisition of short-term securities
Proceeds from sale of short-term securities
Payments for acquisition of investments in securities
Proceeds from sale of investments in securities
Payments for acquisition of property and equipment
Proceeds from sale of property and equipment
Dividend and interest income received
Other, net
Net cash provided by investing activities

Millions of Yen(Thousands ofU.S. Dollars(Note 1)
2004
23,962$3885)
585 )
542 )
7092)
26 )
32
687
―

(((((211 )
451
4,696
597
8,850
361

(―
9,211

(((((((¥

The accompanying notes are an integral part of these statements.

1,900 )
4,061
42,287
5,376
79,6933,251―
82,944

107 )
92―
580
143 )
181
764 )
171
534
506
1,050

(5,855 )450
1,599 )
235 )
694 )
4)
7,937 )

(352,359
27,36829,7273,494
45 )
5,268 )
4,881 )
6,385
18 )
234 )
288
6,186
―

((((((($

964 )
828
―
5,223
1,288 )
1,630
6,880 )
1,540
4,809
4,557
9,455

52,724 )4,052
14,399 )2,116 )
6,249 )
36 )
71,472 )315
21,242
246,448
267,690