FOR IMMEDIATE RELEASE
October 28, 2004

FY 2004 Half-Year Consolidated Financial Results(April 1, 2004 to September 30, 2004)

FDK CORPORATION
Listing Code No.6955 (Listing Stock Exchange: The first section of Tokyo Stock Exchange)
URL: http://www.fdk.co.jp
Contact : Corporate Communication Group, Business Strategy & Planning Dept.
E-mail: narishi@fdk.co.jp
1.Summary of Consolidated Operating Resultsa. Summary of Consolidated Results of Operations

Net Sales
Operating Income
Income(Loss) Before Income Taxes
and Minority Interests
Net Income (Loss)

Yen(millions)1st. Half
1st. Half
FY2004FY2003¥51,894¥45,730
1,452628

Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted earnings

Yen(millions)
Change(%)+13.5%+131.2%

FY2003¥102,668
1,650

U.S.Dollars(millions)1st. Half
FY2004$467.51$13.08
$7.05
$2.04

783
226

(1,475)(1,493)-(8,311)(8,755)1.77 yen-(17.98) yen--(105.18) yen-

1.59 cent-(Notes)1. Figures in this report are rounded to the nearest million yen.
2. The percentage in the net sales and operating income represent the rate of change compared with thecorresponding period of the previous year.
3. All yen figures have been converted to U.S.dollars for convenience only at a uniform rate of $1=111 yen

b. Net Sales by Business Segment

1st. Half
FY2004
Electronic Components
Batteries
Total

Yen
(millions)1st. Half
FY2003¥40,272
11,622¥51,894¥35,523
10,207¥45,730

Yen(millions)
Change(%)

FY2003

U.S.Dollars(millions)1st. Half
FY2004+13.4%+13.9%+13.5%¥80,62122,047¥102,668$362.81$104.70$467.51

Yen(millions)
3/31/2004

U.S.Dollars(millions)
9/30/2004¥78,864
4,2035.3%$688.59$39.35

1.58 yen

2.59 centc. Summary of Consolidated Financial Condition
Yen(millions)
9/30/2004
9/30/2003
Total Assets
Shareholders' Equity
Shareholders' Equity Ratio
Shareholders' Equity
Per Share¥76,433
4,368
5.7%
2.87 yen¥78,678
210
0.3%
2.53 yen

Notes:
Shareholders' equity per share was calculated by excluding 4 billion yen obtained by the allocationof new share to the third party as preferred stocks in the last fiscal year.

d. Summary of Consolidated Statements of Cash Flows
Yen(millions)1st. Half
1st. Half
FY2004
FY2003
Cash Flows fromOperating Activities¥3,136(¥1,217)
Cash Flows from
Investing Activities(1,810)(946)
Cash Flows from
Financing Activities(1,498)(3,199)Cash and Cash Equivalents
at Year End
9,553
6,930
Consolidated Subsidiaries
Unconsolidated Subsidiaries
Affiliates (equity method applied only)

Yen(millions)
FY2003(¥1,233)(2,143)578
9,098

16 companies- companies- companies

3.Reference - FY2004 Consolidated Financial Forecast (April 1, 2004 - March 31, 2005)
Consolidated Earnings Forecast
Yen(million)change(%)
Net Sales¥104,000+1.3%
Operating Income
3,400+106.1%Net Income500
Net Income per Share
3.91 yen-Note for the use of our forecasted business results.
The forecast described above is based upon information available as of the present time. Actual results
may differ largely from the forecast due to changing conditions, potential risks and other uncertainties.

Consolidated Statements of Operations

Yen (millions)

Net sales

1H of FY2004

1H of FY2003

FY2003(Apr-Sep'04)(Apr-Sep'03)(Apr'03-Mar'04)¥¥¥

51,89445,730102,668

Operating costs and expenses
Cost of sales

45,10239,867

90,074

Selling, general and administrative expenses

5,340

5,235

10,94450,44245,102

101,018

1,452

628

1,650

29

2949

Interest charges

(361)

(415)

(796)

Other, net (Note)(337)(1,717)(9,214)(669)(2,103)(9,961)783(1,475)(8,311)

Current

452

171

391

Deferred

37

(157)

26

489

14417

Income (loss) before minority interests294(1,489)(8,728)

Minority interests in income of consolidates subsidiaries

(68)

(4)

(27)

¥ 226

¥ ( 1,493)¥ ( 8,755)

Operating income (loss)
Other income (expenses)
Interest and dividend income

Income (loss) before income taxes and minority interests
Income taxes

Net income (loss)

Consolidated Balance Sheets
Yen (millions)30-Sep-04

30-Sep-03

31-Mar-04

AssetsCurrent assets
Cash and time deposit¥ 9,575¥ 7,062

Notes receivable-trade

1,541

1,612

¥ 9,1122,086

Accounts receivable-trade

24,64522,651

26,234Inventories

9,439

11,577

9,672

Deferred tax assets

136

177

180

Other current assets

2,901

3,073

3,306

(77)(112)(75)

48,16046,04050,515

Building and structures

9,911

10,835

10,034

Other depreciable assets

10,912

14,423

11,596

Land

4,409

4,497

4,428

Construction in progress

1,222

644

378

26,45430,39926,436

960

1,240

1,046

Less: Allowance for doubtful receivable
Total current assets
Tangible fixed assets

Total tangible fixed assets
Intangible assets
Investments and long-term loans
Securities investments

135

118

131

Deferred tax assets

159

339

152

Other investments and long-term loans
Total investments

565
859

542
999

584
867¥ 76,433¥ 78,678¥ 78,864

Notes payable-trade

¥ 286

¥ 307

¥ 448

Account payable-trade21,907

19,32023,051

Short-term borrowings

22,56230,40822,744Current portion of long-term debt

12,131

3,526

9,614

359

98

156

Total assets

Liabilities, minority interests and shareholders' equity
Current liabilities

Accrued income taxes
Other current liabilities

3,989

3,835

4,390

61,23457,49460,403Long-term debt

4,941

16,054

8,688

Accrued retirement benefits

4,402

3,381

4,116

Other long-term liabilities

628185

9,405

19,516

12,889

1,426

1,458

1,369

Common stock

19,256

13,206

19,256

Capital surplus

13,635

7,585

13,635Retained earnings(Deficit)(27,020)(19,761)(27,023)13

5

12(1,498)
(18)

(812)
(13)

(1,662)(15)

Total shareholders' equity

4,368

210

4,203

Total Liabilities, minority interestsand shareholders' equity¥ 76,433¥ 78,678¥ 78,864

Total current liabilities
Long-term liabilities

Total long-term liabilities
Minority interests in consolidated subsidiaries
Shareholders' equity

Unrealized gains (losses) on securities, net of taxes
Foreign currency translation adjustments
Treasury stockConsolidated Statements of Cash Flows
Yen (millions)
1H of FY2004

1H of FY2003

FY2003(Apr-Sep'04)(Apr-Sep'03)(Apr'03-Mar'04)

Cash flows from operating activities
Income (loss) before income taxes and minority interests¥ 782¥ ( 1,475)¥ ( 8,311)

Depreciation and amortization

1,957

2,297

4,400

(Increase) decrease in receivable-trade

4,173(2,145)(7,312)(Increase) decrease in inventories(354)(1,272)

153

Increase (decrease) in payable-trade(3,117)

2,163

7,581

369

(11)

3,603

Cash generated from operations

3,810

(443)

114

Interest paid

(367)

(418)

(854)

36

29

49(343)

(385)

(542)

3,136

(1,217)(1,233)(1,897)(1,477)(2,917)

Proceeds from sales of tangible fixed assets

93

44192

Purchase of intangible assets

(8)

(19)

(40)

Other, net

2506

622

(1,810)(946)(2,143)

Proceeds from long-term debt

30

125

207

Repayment of long-term debt

(1,067)(1,818)(2,855)(439)(1,505)(8,871)

Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities

Other, net

Interest and dividends received
Income taxes paid
Net cash provided by operating activities

Cash flows from investing activities
Purchase of tangible fixed assets

Net cash used in investing activities

Cash flows from financing activities

Increase (decrease) in short-term borrowings
Proceeds from issuance of new common stock--

12,100

(22)

(1)

(3)

(1,498)(3,199)578

Effect of exchange rate changes on cash and cash equivalents

187

(99)

(495)

Net increase (decrease) in cash and cash equivalents

15(5,461)(3,293)

9,098

12,391

12,391440--¥ 9,553¥ 6,930¥ 9,098

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

Cash and cash equivalents at beginning of year
Increase in cash from change of consolidated accounting period ofconsolidated subsidiaries

Cash and cash equivalents at end of year

Consolidated Statements of Shareholders' Equity
Yen (millions)30-Sep-04

30-Sep-03

31-Mar-04¥ 19,256¥ 13,206¥ 13,206--6,050¥ 19,256¥ 13,206¥ 19,256¥ 13,635¥ 7,585¥ 7,585--6,050¥ 13,635¥ 7,585¥ 13,635¥ ( 27,023)¥ ( 18,268)¥ ( 18,268)

Net increase(decrease) from change of consolidated accounting period ofconsolidated subsidiaries¥ ( 223)--

Net income(loss)¥ 226(1,493)(8,755)Ending balance¥ ( 27,020)¥ ( 19,761)¥ ( 27,023)

¥ 12

¥ 41

¥ 41

1(36)

(29)

¥ 13

¥ 5

¥ 12

¥ ( 1,662)¥ ( 846)¥ ( 846)164

34(816)¥ ( 1,498)¥ ( 812)¥ ( 1,662)¥ ( 15)¥ ( 12)¥ ( 12)

(3)

(1)

(3)

¥ ( 18)¥ ( 13)¥ ( 15)

Common Stock:
Beginning balance
Increase from capital stock issued
Ending balance

Capital Surplus:
Beginning balance
Increase in capital surplus from capital stock issued
Ending balance

Retained Earnings(Deficit)
Beginning balance

Unrealized Gain(loss) on Securities,net of taxes:
Beginning balance
Net increase in unrealized gain(loss) on securities
Ending balance

Foreign Currency Translation Adjustments:
Beginning balance
Net increase in foreign currency transaction adjustment
Ending balance

Treasury Stock:
Beginning balance
Net decrease(increase) Treasury stock
Ending balanceConsolidated Business Segment Information
Yen (millions)Electronic Materials

1H of FY2004

1H of FY2003

FY2003(Apr-Sep'04)(Apr-Sep'03)(Apr'03-Mar'04)

Net Sales
Unaffiliated Customers¥ 40,272Intersegment
Total

Operating Income (Loss)
Batteries-¥ 40,272¥ 35,523¥ 80,621¥ 399¥ ( 32)¥ ( 123)¥ 10,207¥ 22,047¥ 11,622Intersegment
Total

Operating Income (Loss)

Total¥ 80,621-Net Sales
Unaffiliated Customers

Elimination¥ 35,523----¥ 11,622¥ 10,207¥ 22,047¥ 1,053¥ 660¥ 1,773

Net Sales---

Operating Income---Net Sales
Unaffiliated Customers¥ 51,894

Intersegment
Total

Operating Income (Loss)¥ 45,730-¥ 102,668--¥ 51,894¥ 45,730¥ 102,668¥ 1,452¥ 628¥ 1,650

Consolidated Geographic Segment Information
Yen (millions)Japan

1H/FY2004

1H/FY2003

FY2003(Apr-Sep'04)(Apr-Sep'03)(Apr'03-Mar'04)¥ 32,368¥ 30,018¥ 65,084

3,853

4,530

8,610

¥ 36,221¥ 34,548¥ 73,694¥ 1,062¥ 1,189¥ 2,164¥ 18,351¥ 14,270¥ 34,959

10,84711,525

20,630¥ 29,198¥ 25,795¥ 55,589

¥ 773

¥ 128

¥ 645

¥ 1,175¥ 1,442¥ 2,625000¥ 1,175¥ 1,442¥ 2,625

Operating Income (Loss)¥ ( 44)¥ ( 104)¥ ( 230)

Net Sales
Operating Income(14,700)(16,055)(29,240)

(339)

(585)

(929)

¥ 51,894¥ 45,730¥ 102,668

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)
Asia

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)
North America

Net Sales
Unaffiliated Customers
Intersegment
Total

Elimination

Total

Net SalesUnaffiliated Customers
Intersegment
Total

Operating Income (Loss)---¥ 51,894¥ 45,730¥ 102,668¥ 1,452¥ 628¥ 1,650

Net Overseas Sales by Customer's Geographic Location
Yen (millions)

Asia
North America
Other countries
Total

1H/FY2004

1H/FY2003

FY2003(Apr-Sep'04)(Apr-Sep'03)(Apr'03-Mar'04)¥ 21,688¥ 18,136¥ 38,913

3,644

2,975

5,809

2,756

2,982

6,588

¥ 28,088¥ 24,093¥ 51,310

Business Performance and Finances
Business Performance Overview
At the beginning of the first half of FY2004, sales of electronic components remained very
favorable thanks to the market expansion by the Athens Olympic boom as well as other factors.
However, slowdown of the sales occurred especially in the flat panel display field in the latter of
the term, which had been continuously grown.
Under these circumstances, FDK continuously strived for improvement in achievements bypowerful promotion of productivity reform project carried out the company-wide to strengthen
low-cost manufacturing structure.
As a result, our net sales for the first half of FY2004 reported 51,894 million yen, which wereup 13.5% from the same term last year. Thanks to the sales extension of hybrid module products
especially for plasma displays and for liquid crystal displays.
In terms of profits, operating income was up 131% from the same term of the last year, to 1,452
million yen, ordinary income was 786 million yen and interim net income was 226 million yen
due to the promotion of organizational reform including reduction of unprofitable products andthorough cost reduction.

Electronic Component Business
The hybrid modules for plasma displays and for liquid crystal displays achieved large sales
associated with the demand expansion of large-sized flat screen TVs due to the Athens Olympic
though the slowdown of the sales occurred in the latter half of the term. The sales of switching
power supplies were continuously increased due to the sales expansion of those for servers andflat panel displays. For the stepper motors, sales were increased in compact models for digital
cameras but decreased for OA equipment. The sales amount of whole stepper motors fell short ofthe same term last year.
According to the above-mentioned situation, the sales of the electronic component business rose
13.4 % from the same term last year, to 40,272 million yen and operating income rose to 399
million yen.

Battery Business
Under the severe market environment at domestic market by severe price competition, sales
promotion of the high-performance alkaline battery G series was strengthened, and overseas
sales were highly increased in North American market. Consequently, the sales recorded 11,622
million yen of 13.4% increase from the same term last year and operating income recorded 1,053
million yen.Projections
With respect to FDK’s projected results in the third quarter and beyond, the electronic
component market would change tremendouly from the business environment of the first halfand rapid slowdown of the market would b e expected. Thus, it is expected that market
competition would be much intense in the second half of the fiscal year.
The present business forecast of the fiscal year ended March 2005 is as follows.
Projections for FY2004 (April 1, 2004-March 31,2005)
Consolidated Earnings Forecast
Yen (million)change (%)
Net sales
104,000+1.3
Operating income
3,400+106.0
Income before tax
1,350
Net income
500
The above projections are based on conditions that FDK anticipates at this time. Actual results
may differ largely from projections due to changing conditions, potential risks and otheruncertainties.

Cash Flow Condition
Net cash provided by operating activities increased 3,136 million yen from the end of the last
fiscal year due to the posted of income before income taxes and minority interests as well as oureffort of debt collection.
Net cash used in investing activities decreased 1,810 million yen from the end of the last fiscalyear due to the capital investment in new products and hybrid modules to enhance. Net cashused in financing activities decreased 1,498 million yen from the end of the last fiscal year due tothe payment for redemption of borrowing.
With change of the accounting period of subsidiaries, cash and cash equivalents increased
440million yen from the end of the last fiscal year. As a result of these activities, balance of cash
and cash equivalents at the end of the first half of FY2004 was 9,553 million yen, an increase of
456 million yen from the end of the last fiscal year.