This represents a translation, for reference and convenience purpose, of the original document issued in Japanese. In theevent of any discrepancies between the Japanese and English versions, the former shall prevail.

Summary of financial results meetingfor the three months ended March 31, 2008.
Tokyo, April 28, 2008,
Note: This memo is posted for reference purposes for the convenience of those
who were unable to attend the meeting and is not a verbatim record of allstatements made at the meeting. Please be aware that it has been compiled ina concise form at the judgment of the Company’s Corporate Communications
Group. Please also refer to the cautionary notes on the final page.
Note:
3Q: October 1 to December 31, 2007
4Q: January 1 to March 31, 2008

【Presentation by CFO Mr. Ema : Performance for the 4Q】
Business Performance
Sales：

Yen 135,816 million（+36.5％）

Operating Income：Yen 18,032 million（-26.8％）

Ordinary Income：Yen 18,358 million（-31.8％）Net Income：Yen 16,320 million（-14.2％）Net Income per share

Yen 37.71

Net Income per share (diluted)

Yen 37.70

Financial Position
Total Assets：

Yen 687,776 million

Net Assets：

Yen 388,695 million

Owners' Equity Ratio：

56.0％

Net Assets per ShareYen 889.79

Cash Flow
Cash provided by operating activities:

Yen 34,948 million

Cash used for investing activities:

Yen -7,256 million

Cash used for financing activities:

Yen -7,546 million

Cash and Cash equivalents at the end of the term: Yen 181,335 million

・ The balance sheet of PENTAX Corporation has been consolidated to HOYA Group at
the end of September, 2007. Please pay attention to the changes from the previous
year, because the previous year’s figures have been entered and calculated as 0 (zero)on the quarterly report. The income statements have been consolidated since thesecond half of the term (from October 1, 2007 to March 31, 2008).
・ Five domestic subsidiaries of PENTAX have been merged into PENTAX Corporation asof March 30, 2008, and then PENTAX Corporation was merged into HOYA Corporation1

on the following March 31. Therefore, please also note that the journal entry is madebased on a special method that includes taxation in the 4Q, which makes the financial
statements more complicated.
・ Due to the influence of foreign exchange, the sales seem to be decreased slightly by
Yen 2,467 million, when comparing the financial statements of the overseas
subsidiaries at the exchange rate of the current term with that of the same period of theprevious year. This has become a factor in reducing both the operating profit and theordinary profit by 469 million respectively, and the net profit by Yen 392 million.
Considering each business line, the foreign exchange rate has reduced the increased
sales of Yen 36,349 million by Yen 2,467 million, which means that the sales increase
excluding the influence of the foreign exchange rate would be Yen 38,816 million.
There was no accounting entry for PENTAX for the previous year, which has resulted in
the simple addition of Yen 40,923 million of sales for this year; the result of HOYA
excluding PENTAX posted negative growth. The breakdown of the sales growthconsists of Electro-optics (EO) recorded negative growth of Yen 2,377 million and the
Vision Care (VC) posted negative growth of Yen 829 million. On the other hand,
Healthcare (HC) has built a positive sales growth of Yen 1,052 million. Moreover, theoperating profit has fallen by Yen 6,599 million compared with the previous year andthe foreign exchange rate has negatively influenced it by Yen 469 million. If you look at
the value excluding the influence of the foreign exchange rate, profit decreased by Yen
6,130 million, the breakdown of which consists of negative figures of Yen 1,584 million
from PENTAX and the balance of Yen 4.5 billion from HOYA. In addition, thebreakdown of HOYA consists of decreases of Yen 3,400 million in EO, Yen 1,282
million in VC and Yen 418 million in HC, respectively. The operating income of every
division has recorded negative growth.
・ The performance per segment (please refer to page 24 for the Quarterly Report for the
4Q ended March 31, 2008) does not include the figure of PENTAX in the same periodof the previous term, and consolidated sales for the 4Q has increased by Yen 36,349
million, including the simple addition of PENTAX Corporation. The sales of EO and VC
have resulted in decreases of Yen 3,415 million and Yen 2,139 million respectively, but
HC has achieved a sales increase of Yen 1,046 million. The influence of the foreignexchange rate mentioned above has been considered in these figures. The total
operating income has decreased by Yen 6,599 million. From the perspective of eachsegment, PENTAX has resulted in a deficit due to the operating loss of Yen 1,584
million in the 4Q. The operating income of EO has decreased by Yen 3,712 million overthe same period in the previous year, while the Photonics division has gained Yen 128
million. VC has resulted in an operating income decrease of Yen 1,431 million and HC
has resulted in a decrease of Yen 428 million year on year.
・ EO, which accounts for more than half of the total sales of the Company, has beensignificantly influenced by the decline in sales in the businesses such as glass memory
disks for HDD and optical lenses. Memory disk media (a disk with magnetic layer) was
shifted in the 1Q during the term to a new perpendicular magnetic record format, but we
had minor technical problems. Although it adversely affected the P/L, it has been2

recovering in the 4Q. Currently, the main product is 120GB disks, but we have alreadystarted 160GB items. Going forward, we continue producing 120GB disks, at the sametime will get 160GB items qualified by our customers, following by the technicaladvancement according to the roadmap. In terms of the glass substrate (which is apolished glass plate before applying a magnetic film), the 2.5-inch disk for notebook
PCs is the main product for us. Currently, we have been running the manufacturing line
at full capacity, but the price has been negatively influenced. Regarding optical lenses,
we have been manufacturing molded lenses, which involve a difficult technique. The
technology involved in the concave meniscus lenses is especially complicated and wehave been fighting a tough game.
・ Please refer to the "sales growth ratio per product", which has been separately
prepared and posted on our website.
・ PENTAX Corporation merged its five domestic subsidiaries as of March 30, andPENTAX Corporation was merged into HOYA Corporation on the following day. Thismeans that six companies, including PENTAX Corporation, have been merged into
HOYA Corporation. In terms of the taxation related to this merger, the gain from themerger by PENTAX Corporation was about Yen 57 billion, giving rise to a tax of Yen
23.4 billion. HOYA Corporation will pay tax as an agent in May, because PENTAX
Corporation is the expired entity. On the other hand, HOYA Corporation is the surviving
company and will bear a tax loss of approximately Yen 140 billion. The tax amount will
be approximately Yen 58 billion, and the loss will be carried forward for about five years.
HOYA Corporation as a single entity has no tax payment in the current term due to thesignificant loss carried forward. From the next term onwards, HOYA Corporation will
deduct the loss carried forward from any taxable income. If we generate higher income,the loss carried forward will be offset earlier. Currently, we expect that this will takeabout 4.5 years, and we expect to be able to save approximately Yen 35 billion in
cumulative total.
・ In the financial earnings announcement made in October 2007, we explained that the
goodwill of the PENTAX Corporation group had been valued and posted at the market
price upon consolidation as a result of the take-over bid in August 2007. But later
HOYA merged PENTAX Corporation on March 31, 2008, the goodwill and the deferred
tax assets have been recalculated and entered in the journal for the merger. As a result,the goodwill of Yen 33.2 billion has been entered in the journal as an intangible fixed
asset in the balance sheet. Additionally, there are deferred tax assets of 14.5 billion in
the current assets and Yen 41.5 billion in investments and other fixed assets. Totaling
these two entries, deferred tax assets will be Yen 56 billion.
・ The net cash provided by operating activities is Yen 34.9 billion. The breakdown
consists of income before income taxes and minority interests of Yen 17,381 million,
depreciation and amortization cost of Yen 11,209 million and a income tax -paid of Yen
3,267 million. The net cash used in investing activities is Yen 6,309 million, which ismainly comprised of capital investments. The net cash used in financing activities
consists mainly of the net decrease in short-term bank loans of Yen 5,677 million andrepayment of long-term debt of Yen 1,833 million.

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・ The annual dividend of Yen 65 per share, totaling the interim dividend of Yen 30 andthe year-end dividend of Yen 35, will be the same amount as in the previous term. The
payout ratio is 36.5% as a consolidation basis, which was 33.6% last year. Therefore,
the payout ratio is about one third of the net income of the term.
・ The stock price at the end of March was Yen 2,340, and the dividend yield is 2.78%.

[Presentation by CEO Mr. Suzuki]
・ On January 28, 2008, we announced the Company's projected results for the fiscal
term ending March 31, 2008. I personally think it is serious that the actual performance
was significantly lower. It is not so easy to understand the financial figures for the term
under review, because they have been processed in various ways for accounting
purposes. I will talk about the performance of each business line as usual.
Mask blanks and Photomasks for LSI production
・ In the semiconductor business, I believe that DRAM and Flash Memory have been slow
and Asian players have ceased to function properly, compared to the past. In spite ofthis, logic devices have been relatively active, and the overall situation has not beenbad. There was some foreign exchange influence, but I believe that the industry or
HOYA has not experienced any significant change. However, the markets were
extremely sluggish in January and February. April will soon be over, but I believe thatbusiness has been recovering in March and April. While our performance slowed in
January and February, it recovered in March and April.
・ For photomask makers that distribute externally, the price in the industry will rise as thetechnology advances, but will then decrease as time goes by. Because the shift oftechnology is getting slower, the price does not increase. This phenomenon is causing
problems for suppliers that distribute the masks externally, including HOYA in terms of
the unit price. I believe that the overall semiconductor business was not bad and thesituation has been recovering in March and April.

Large Photomasks for liquid crystal display (LCD)
・ In January and February, the panel manufacturers were still producing 32-inch panels
at full capacity. Although this increased the utilization rate, there was no demand for
new photomasks. In February, the demand was surprisingly low. However, in Marchand April, we have seen active demand. It will take some time to determine if this will
be a trend or was just a temporary situation. The demand in March and April was basedon a revision of the version in order to improve the yield as well as the performance attheir production sites, which is basically creating demand for masks by revising what iscurrently used. I believe it will take some time before we see further demand for masks
from the panel manufacturers, that is when they install a new aligner (exposuremachine) and increase production capacity. We will see this kind of demand soon orlater.

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・ Although the panel industry has been producing 32-inch panels at full capacity, they
have been playing tough games in Generation 6, cost-wise. Therefore, the industry has
been manufacturing 32-inch in the G7 and G8 lines and I personally wonder if theindustry has been producing the 32-inch range a little excessively, thus rapidly
overcoming the supply shortage. Whatever a panel manufacturer produces in any line
by changing masks, we will be glad because there will be demand for masks. We see
certain trends, including wishful thinking.
Glass memory disks (MD) for HDDs
・ We experienced tough times in the 4Q. This is not because of our technical problem,
but rather because our clients’ HDD manufacturers are facing tough times. In terms ofvolume, WD (Western Digital) seems to have gained share in the market and HOYA
does not have much shipping to that company. HOYA’s market share has decreased
as WD’s market share has increased. However, it does not mean that our share in ourclient-manufacturers has decreased.
・ The price has fallen slightly. A newcomer has caused lower the price, which has also
had a slight influence on us.
・ We have been affected by the foreign exchange rate, because we have significant US
dollar exposure in our sales.
・ As for the media business, the unit price has fallen significantly, although we havereceived qualification of 160GB items and we have been successful so far. The price inthe entire market has a downside risk, perhaps because of the inventories or prices
being unreasonably discounted by competitors. Because we use platinum in magnetic
films and the price of platinum has been going up, we have a problem when the price ofthe media goes down.
・ WD has purchased a media manufacturer, Komag Inc., and I believe they will
self-manufacture 2.5-inch media. It is possible that the environment will change,
although nothing has been foreseen as yet.
Optical lenses
・ It is optical lenses that have fallen most short of our estimation in this 4Q.
・ In response to a question on risk factors several months ago, I answered “opticallenses for digital cameras”. As anticipated, we have struggled in the digital camera lensbusiness. The falling unit price has had a major impact, in addition to decreased
quantities.
・ In Japan, while some manufacturers reduced production, others have maintained thesame production level. The most significant decreases in production came from
Taiwanese manufacturers who have failed to sell low-end products, and they havebeen suffering since Christmas, that is because Japanese manufacturers haveunreasonably and significantly discounted the price in the market in order to liquidate
last year’s inventories. The Taiwanese figure is not included in the CIPA data, but it
accounts for a large part, quantity-wise. In the circumstances, Japanese manufacturers
have partially ordered the production of lenses from Chinese manufacturers due to the5falling price.
・ The single lens reflex (SLR) camera market was relatively good over Christmas, which
made the overall result of the industry successful. However, HOYA’s involvement in the
SLR lens business has unfortunately been extremely small. Therefore, we could notbenefit from increased production of SLR camera market, but we have been negatively
influenced by decreased production in the compact camera market.
・ Plastic has been used more in the 3M (mega-pixel) lens for cellular phones. Although
HOYA has still been supplying lenses on a smaller scale, I believe that our lensbusiness for cellular phones was basically over. We have eventually suffered, although
we had expected to fill out the production line originally made up for lenses for cellular
phones with the demand for small-sized lens for digital cameras.
Vision Care (eyeglass lens)・ In Europe, we enjoyed nearly double-digit growth in the past, but this has slowed
recently. We could not maintain sales at the level of the previous year.
・ In North America, we have been experiencing sluggish sales over the past two quarters,
reflecting a global slowdown in consumption and the economy.
・ The eyeglasses business is unexpectedly sensitive to the economy. When they break,people may order them quickly. However, when people lose interest, or the index oflenses is not right, people may postpone the purchase of eyeglasses for several
months. Although European and U.S. markets had been filling the gap caused by theshrinking Japanese market, they will no longer be sufficient.
・ Although we wrote off some current assets, I believe that the fundamentals have notchanged.
Healthcare (Contact lenses)
・ This has been successful.
・ Because pharmaceutical jurisprudence has changed in April 2007, the National Health
Insurance (NHI) points for contact lenses have been reduced. It is true that this has
become less profitable for doctors. We have been working with doctors as partners, but
the doctors’ profits are separate from our profits. It will have no direct influence on us.
However, under the circumstances where some doctors want to quit the business andnew doctors are in wait-and-see mode, we cannot promote opening new stores. Thereis no increase in sales from new stores, but existing stores have been doing well. Our
existing stores have nearly been attaining double-digit growth, while competitors' retailstores have been in difficult conditions.
PENTAX: Digital Cameras and Endoscopes
・ Regarding SLR cameras, the sales of the interchangeable lens has grown significantly,
and the camera (body) business itself has been successful. However, the unit
shipment of compact cameras remains at the same level and the unit price isapproximately down to 60% (the price is discounted by 40 – 50%) of the previous year.
We have liquidated the inventory of last year’s models, because we have been forced

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to sell them below cost.
・We will not be able to stop compact camera business, but we have been trying hard to
shift resources to SLR camera business. While we were shifting the weight to the SLR
camera, we could not maintain the other business properly. I regret that we did not
address this earlier.

・

In the industry, Samsung took the top place in Europe as a compact camera maker,
and was also in 3rd or 4th place globally. Samsung has grown very rapidly. People say'Samsung Shock', but the front line has accepted it fairly calmly and they have beenworking on capital investments without making a fuss.

・The endoscope business has been successful. The earnings in terms of the sales andprofit have almost been as planned.

・ Although we have some profitable business lines such as the interchangeable lens for
SLR and the endoscopes, we suffered a deficit in the 4Q due to losses from compact
cameras. In order not to repeat the mistake, we will stop in-house production ofcompact cameras and start ODM. We will try not to increase unit sales nor expand size
unnecessarily. Instead, we will allocate these resources to the SLR and theinterchangeable lens.
[Questions and Answers]
Q: How do you foresee each business line? What is your estimation on the sales
growth?
A: (CEO Suzuki) The mask blanks for semiconductors business does not seem to havechanged. I believe that we can maintain the business as it is. Especially from theperspective of the photomask business, the market has finally started shifting to 65 nm,
and the demand for state-of-the-art business has been growing gradually. The
environment does not look bad. Regarding HDD, we still expect 20% growth of the 2.5 inch,
and the environment is not especially adverse. Unless we ruin ourselves, it will not become
worse. As for the LCD photomask business, it is expected LCD panel makers will makecapital investments this year, which will raise the level of demand for the mask. The risk
factor is in the optical lens. The unit price had fallen to a level from which we still cannot
recover. Although each camera manufacturer started launching spring models, unit sales
are limited and the prices have been discounted quickly after launch. There is no longer
39,800 Yen price range, but the overall price has been discounted to the ranges of Yen
29,800 (less than $300) and Yen 19,800. It is our challenge to assure profit while
maintaining demand.
PENTAX Corporation has been successful so far in the endoscope business, and we
expect to maintain the structure by growing the sales in a few quarters, at least at thecurrent level, to raise profitability. The problem lies in the camera business. It is good to
reduce the number of models of compact cameras, but the top line will shrink as a result.
Our biggest challenge is how to fill the top line with SLR cameras. There is a risk where we
suffer from zero growth after offsetting the results, but it is worth taking up the challenge tomake profit.

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Q: The result was disappointing in this quarter, but we expect to hear good news.
There are signs of recovering demand for the LCD mask. If the situation during
March and April can continue from April to June, how much growth do you expect
to see quarter on quarter? As for HDD glass disks, HDD manufacturers are also
operating at full capacity and placing orders with HOYA one after another. If thecurrent situation continues, how much do you expect to see profits increase by inthe quarter from April to June?
A: (CEO Suzuki) April has just ended, and I can only talk about my estimation for April. The
situation became better in March and April. There is a big gap between January –February and March – April. Although we had a negative forecast in January and February,
we could see a drastic change in March and April. I will not be able to say anything
definitive on how long it will continue, because the situation has been changing by the day.
It is still possible to improve the downtrend and rebound in the opposite direction.
Q: Since the announcement of the purchase of PENTAX Corporation last year,
performance has been sluggish along with it. I feel that the overall momentum of thecompany has decelerated. Under the circumstances, HOYA does not announce its
annual forecast, which contributes to the increasing uncertainty. As the President of
the company, when do you think HOYA can gain momentum, or it is possible toforesee profit margin increase? Considering the pending issues regarding mergers,or the restructuring of PENTAX Corporation, when do you expect to see a recovery?
A: (CEO Suzuki) We will not announce an annual forecast, but we will disclose a forecast ofinterim results three months later, when announcing the 1Q's financial statements. On thisoccasion, I will clearly explain our forecast for the second half of the term. When we are ina difficult situation rather than doing well, I believe that we should announce a forecast to
some degree. Compared to the situation last year, we have started a better year this time.
I believe that we can address the problem to some degree. Although we have to still makemore efforts regarding PENTAX, it has been six months since the consolidation and we
can see advantages as well as disadvantages. We have finally reached the point where
we can now start our strategic measures. We will start the action after the rehearsal and I
have high expectations for Mr. Hamada (Chief Operating Officer, newly appointed as ofApril 10, 2008).
Q: What is your plan for capital investments this year? Do you expect to see anychange in the situation of the industry’s reorganization of the media business?
A: (CEO Suzuki) I have not changed my stance on the reorganization of the media industry.
In terms of capital investments, the factory that was built in Vietnam will be at full capacity
producing substrates for HDD glass disks and it is necessary to think about the next
factory. In addition, it is still unclear how we will address G10 of the LCD masks. I believethat these are the two major investments. Because we reduced capital investments
significantly last year, we will be more aggressive this year than last year. However, it will
not reach the level of two years ago, amounting to Yen 50 billion.

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Q: How much do you expect in depreciation? In this term, it seems that HOYA had
processed the businesses of eyeglass lenses and PENTAX Corporation. How much
has this influenced matters concretely?
A: (CEO Suzuki) We expect depreciation to be Yen 50 billion. HOYA accounts for Yen 44
billion of this. The estimation is based on an adjustment due to various changes in theaccounting method.
Q: What is the tax rate this term? How about the goodwill?
A: (CFO Ema) As stated in the income statement for the 4Q, the actual tax ratio is zero in the
4Q, because the difference between the income tax-current and the income tax-deferred
was Yen 2 million. For the time being, HOYA Corporation will not pay tax. We will pay
taxes for overseas subsidiaries, but the ratio will be lowered significantly. In terms of thesingle entity, HOYA Corporation had various tax-related journal entries relating the merger,
such as a loss from offsetting expiring stock (Yen 17,700 million) as an extraordinary loss
and income tax-deferred (-Yen 15 billion). This means that we can save some tax byconsolidating the expired company and the surviving company. The income earned by
HOYA Corporation as a single entity will be offset and no tax will be paid up to the amountof the tax loss carried forward this year and the following years. Goodwill has initiallyposted approximately Yen 45 billion, which was re-calculated upon merger. Patents will be
depreciated over 8 years, as announced initially. Goodwill has been reduced by Yen 10
billion or so, which will be amortized over 10 years. Therefore, it will be reduced annually
by Yen 1 billion.

Certain statements contained in this report constitute forward-looking
statements regarding the company’s future performance and environment of theindustry in which the company is involved. Forward-looking statements are
based on the judgment of the company and corporate group obtained based on
information obtainable at the time the statements are made and they also
contain risks and uncertainties.
The company does not guarantee thecompleteness or accuracy of the content. Consequently, you are advised torefrain from making investment judgments relying entirely on these forecasts.
Actual performance and the industry environment may differ materially fromthose expressed by the forward-looking statements for a number of reasons.
You are requested to make final decisions regarding investment, etc., on yourown. Please be aware that we cannot take responsibility for the outcome ofinvestments.

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