FOR IMMEDIATE RELEASE
January 31, 2007

FY 2006 Nine-Month Consolidated Financial Results(April 1, 2006 to December 31, 2006)

FDK CORPORATION
Listing Code No.6955 (Listing Stock Exchange: The First Section of Tokyo Stock Exchange)
URL: http://www.fdk.com
Contact : Corporate Communication Office, Business Strategy & Planning Dept.
E-mail: niida@fdk.co.jp
U.S.GAPP is not applied
1.Items Relevant to Preparation of Quarterly Financial Results(1)Adoption of simplified accounting methods: Yes
Calculation of taxes including corporate tax - adopted the methods used effective tax rate.
(2)Changes in accounting policies: No(3)Changes in scope of consolidation or application of equity method: No

2.Consolidated Operating Results for the Nine Month Period of FY2006 (April 1, 2006 to December 31, 2006)
a. Results of Consolidated Operations
YenYen(millions)(millions)

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

Nine months
ended Dec. 31,
2006

Nine months
ended Dec. 31,
2005

Change(%)¥94,728
962
595¥88,436
1,078
26

+7.1
-10.8-¥118,109967(2,502)$796.03
$8.08
$5.00

113(572)-(3,326)$0.95

0.88 yen(4.47) yen-(26.00) yen

Net Loss Per Share Of Common Stock
Basic Earnings (Loss)

FY2005(Notes)1.The percentage in the above statement presents rate of change compared with corresponding period of theprevious year.
2. All yen figures have been converted to U.S.dollars for convenience only ata uniform rate of $1=119 yen
b. Summary of Consolidated Financial Condition
Yen(millions)
As of Dec.31,
As of Dec.31,
2006
2005
Total Assets
Total Net Assets
Shareholder's Equity
Shareholder's Equity Ratio
Shareholder's Equity Per Share

U.S.Dollars(millions)¥80,7696,966
8.5%(32.26)¥81,247
9,015
11.1%(15.51)

Yen(millions)
As of Mar.
31, 2006¥76,6166,340
8.3%(36.42)

Note:
Total net assets per share was calculated by excluding 11 billion yen obtained by the allocation of
new shares to the third party as preferred shares.

Nine months
ended Dec. 31,
2006

0.74 centc. Summary of Consolidated Statements of Cash FlowsYen(millions)

Cash Flows fromOperating Activities
Cash Flows fromInvesting Activities
Cash Flows fromFinancing Activities
Cash and Cash Equivalents
at End of Term

Yen(millions)

Nine months
ended Dec. 31,2006

Nine months
ended Dec. 31,2005¥3,936¥6,0183,352(1,587)(2,435)(3,509)(877)(4,085)(2,636)

9,328

9,907

7,577

3.Reference - Forecasts for the fiscal year ending March 31, 2007
Consolidated Financial Forecast
Yen
Changes from(millions)
FY2005Net Sales
Net Income(Loss)Net Income(Loss) per Share¥125,400200
1.56 yen+6.2%-FY2005(Ref. Result of FY2005)
Yen(millions)¥118,109(3,326)(26.00) yen

Note: The forcast for the year ending March 31, 2007 are unchanged from Oct. 26, 2006 thoughsales price of LCD TV are continuously decreased and it is anticipated on the occurance of temporary
production adjustment in the LCD market. FDK will make his effort to achieve forecastedperformance.

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¥

3Q/FY2006

3Q/FY2005

FY2005(Apr-Dec'06)(Apr-Dec'05)(Apr'05-Mar'06)

94,728¥88,436¥

118,109

Operating costs and expenses
Cost of sales

85,44779,055106,271

Selling, general and administrative expenses

8,319

8,303

10,871

93,76687,358117,142

962

1,078

967

122

5475

Operating income
Other income (expenses)
Interest and dividend income
Equity in earnings (losses) of affiliates, net

643139Interest charges

(362)

(560)

(641)

Other, net

(191)

(577)

(2,942)(367)(1,052)(3,469)595

26(2,502)Current

467

543

755

Deferred(18)

35

45

449

578

800

Income (loss) before minority interests

146(552)(3,302)

Minority interests in income of consolidates subsidiaries

(33)

(20)

(24)

¥ 113

¥ ( 572)¥ ( 3,326)

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

Net income (loss)

Consolidated Balance Sheets
Yen (millions)
31-Dec-06

31-Dec-05

31-Mar-06

AssetsCurrent assets
Cash and time deposit
Notes receivable-trade
Accounts receivable-trade
InventoriesDeferred tax assets
Other current assets
Less: Allowance for doubtful receivable
Total current assets
Tangible fixed assets
Building and structures
Other depreciable assets
LandConstruction in progress
Total tangible fixed assets
Intangible assets
Investments and long-term loans
Securities investments
Deferred tax assets
Other investments and long-term loans
Total investments
Total assets¥ 9,352
1,510
30,60010,196
123
3,176
(37)
54,920¥ 9,937
1,046
29,046
10,199
98
3,981
(88)
54,219¥ 7,598976
29,677
9,252
161
2,897
(45)
50,5168,084
10,0844,353
197
22,718

9,450
9,895
4,427
154
23,926

8,625
9,652
4,471
195
22,943

655

710

695

136
166
2,174
2,476

132
179
2,081
2,392

238
109
2,115
2,462

¥ 80,769¥ 81,247¥ 76,616¥ 248
33,04527,856
1,324
436
4,307
67,216¥ 236
32,662
24,621
3,090
347
4,015
64,971¥ 173
28,81328,159
1,444
292
4,336
63,217

1,024
5,471
92
6,587

1,427
5,202
87
6,716

1,162
5,237
102
6,501

73,803

71,687

69,718

Liabilities
Current liabilities
Notes Payable-trade
Account payable-trade
Short-term borrowings
Current portion of long-term debt
Accrued income taxes
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Accrued retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings(Deficit)
Treasury stock
Total shareholders' equity
Valuation and translation ajustments
Unrealized gains on securities, net of taxes
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Total Valuation and translation ajustments
Minority interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets

22,756
17,167(33,032)
(28)
6,863
22(14)
08
95
6,966¥ 80,769

Minority interests in consolidated subsidiaries
Shareholders' equity
Common stock
Capital surplus
Retained earnings(Deficit)
Unrealized gains on securities, net of taxes
Foreign currency translation adjustments
Treasury stock
Total shareholders' equity

-545

558-

22,756
17,135(30,391)
22(483)(24)
9,015

22,756
17,167(33,145)22(435)(25)
6,340

Total Liabilities, minority interestsand shareholders' equity-¥ 81,247¥ 76,616

Consolidated Statements of Cash Flows

Yen (millions)
3Q/FY2006

3Q/FY2005

FY2005(Apr-Dec'06)(Apr-Dec'05)(Apr'05-Mar'06)

¥ 595

¥ 26

¥ ( 2,502)

2,544

2,691

3,470

Equity in earnings of affiliates, net

(64)

(31)

(39)

(Increase) decrease in receivable-trade(823)(4,432)(4,954)(Increase) decrease in inventories(768)(1,802)(815)

Increase (decrease) in payable-trade3,5759,585

5,657

Cash flows from operating activities
Income (loss) before income taxes and minority interests
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities
Depreciation and amortization

(570)

1,111

3,992

Cash generated from operations

4,489

7,148

4,809

Interest paid

(336)

(566)

(658)

Interest and dividends received

137

54

75

Income taxes paid

(354)

(539)

(795)

-(79)

(79)

3,936

6,018

3,352

(2,332)(2,367)(3,415)

472

1309

(8)

(13)

(27)

281

(56)

(376)

(1,587)(2,435)(3,509)-7,0007,000

Proceeds from long-term debt

690

11

Repayment of long-term debt

(997)

(4,754)(6,727)

Increase (decrease) in short-term borrowings(558)(6,314)(2,923)

Other, net

(12)

(18)

13(877)(4,085)(2,636)

279

533

494

Net increase (decrease) in cash and cash equivalents

1,751

31(2,299)

Cash and cash equivalents at beginning of year

7,577

9,876

9,876

¥ 9,328¥ 9,907¥ 7,577

Other, net

Other, net

Net cash provided by operating activities

Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Other, netNet cash used in investing activities

Cash flows from financing activities
Proceeds from issuance of new common stock

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of year

Consolidated Statements of Shareholders' Equity
3Q/FY2006 (Apr-Dec'06)
Yen (millions)Shareholders' Equity

Beginning balanceCommon stockCapital surplus¥ 22,756¥ 17,167

Retainedearnings(Deficit)

Treasury stock

Total
shareholders'equity¥ ( 25)¥ 6,753¥ ( 33,145)

Increase(decrease)during the term:
Net income (loss)

113

113

Acquisition of treasury stocks

(3)

(3)

Net increase(decrease)during theterm,except for items undershareholders'equity
Total
Ending balance

--

113

(3)

110

¥ 22,756¥ 17,167¥ ( 33,032)¥ ( 28)¥ 6,863

Valuation and Translation Ajustments
Unrealized gains(losses) on
securities, net oftaxes
Beginning balance

Deferred
gains(losses) onhedges

¥ 22

¥

-

Foreign currencytranslation
adjustments

Total Valuationand translation
ajustments¥ ( 435)¥ ( 413)

Minority interests
in consolidated
subsidiaries

Total Net Assets¥ 558¥ 6,898

Increase(decrease)during the term:
Net income (loss)

113

Acquisition of treasury stocks(3)

Net increase(decrease)during theterm,except for items undershareholders'equity

0(14)

435

421(463)

0(14)

435

421(463)68¥ 22¥ ( 14)

¥ 0

¥ 8

¥ 95

¥ 6,966

Total
Ending balance

3Q/FY2005 (Apr-Dec'05) and FY2005 (Apr'05-Mar'06)
Yen (millions)
3Q/FY2005

FY2005

Common Stock:
Beginning balance
Increase from capital stock issued
Ending balance¥ 19,2563,500¥ 22,756¥ 19,2563,500¥ 22,756

Capital Surplus:
Beginning balance
Increase in capital surplus from capital stock issued
OthersEnding balance¥ 13,635
3,500¥ 17,135¥ 13,635
3,500
32¥ 17,167

Retained Earnings(Deficit)
Beginning balance
Increase in earnings from change of overseas subsidiary's functional currency¥ ( 29,893)
74¥ ( 29,893)
74

Net income(loss)
Ending balance(572)¥ ( 30,391)(3,326)¥ ( 33,145)

¥ 166
¥ 22

¥ 166
¥ 22

¥ ( 1,759)
1,276¥ ( 483)¥ ( 1,759)
1,324¥ ( 435)¥ ( 21)(3)¥ ( 24)¥ ( 21)(4)¥ ( 25)

Unrealized Gains(losses) 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(42)Consolidated Business and Financial Results
Business Performance Overview
For the first nine months of FY2006, FDK Group achieved consolidated net sales of 94,728
million yen, a 7.1% increase from the same period last year. The increase was due to theextensive sales promotion and the development of new products for flat panel display and themobile market, with the expanding sales of alkaline batteries both at domestic and overseas
market. Consolidated income before income taxes was 595 million yen and consolidated net
income for the first nine months was 113 million yen which turned into the black, thoughoperating income was 962 million yen, a 10.8 % decrease from the same period last year due tothe loss posted in the first quarter.

Electronic Device BusinessIn the electronic device business segment, sales of LCD backlight inverter modules and timing
control boards for LCDs were largely increased by growth in demand for large LCD TVs from thesame period last year. Sales of multilayer power chip inductors were increased from the same
period last year by expanding the product lineup and strengthening the sales activities for themobile market. Sales of motors also increased due to the extensive sales promotion on digital
cameras, automobiles, and OA equipment.
As a result, sales for the electronic device business segment were 73,573 million yen, a 4.0%
increase from the same period last year.

Battery Business
Under tough price competition, we promoted new alkaline batteries, the “G.D.R. series,” whichwere developed as a reflection of customer needs in the domestic market. Sales of alkaline
batteries in North America and Europe were increased. Sales of lithium batteries fordisaster-prevention equipment were also increased.
As a result, sales for the battery business segment were 21,155 million yen, a 19.4 % increase
from the same period last year.

Cash Flow Condition
Cash flows from operating activities for the nine months grew 3,936 million yen by increasing
earning retention and promotion of efficient working capital.
Cash flows from investment activities in the nine months decreased 1,587 million yen due tothe investment in production facilities for LCD backlight inverter modules.
Cash flows from financing activities for the nine months decreased 877 million yen due to theredemption of borrowing.
As a result, the balance of cash and cash equivalents at December 31, 2006 was 9,328 million
yen, an increase of 1,751 million yen from the balance at March 31, 2006 .