Tokyo Electron Device Limited

Consolidated Statement of Income
Years ended March 31,2006

Millions ofThousands ofYen

U.S.dollars

2006
Net Sales¥

2006

88,290$751,596

Cost of sales

76,774

653,562

Gross profit

11,51698,034

Selling,general and administrative expenses

8,416

71,644

3,100

26,390651

Interest expenses

(101)

(860)

Asset finance costs

(117)

(996)

Foreign currency gain or loss(292)(2,486)

Prior-period adjustment of allowance for doubtful accounts

434

Other,net

33

281

2,633

22,414Current

1,132

9,637

Deferred(36)(307)

Net income

1,537

13,084Per share of common stock:

YenU.S.dollars

Operating income

Other income(expenses)
Interest and dividend income

Income before income taxes

Provision for income taxes

Net income - basic¥

16,526$141

Cash dividends paid - actual

¥

6,000

$

51

Notes:1

U.S.dollar amounts are translated from yen,for convenience only,at the rate of¥117.47 to U.S.$1.00.

2This is the first year to disclose consolidated financial statements,so it is
not compared with the same term last year.

Tokyo Electron Device Limited

Consolidated Balance Sheet
March 31,2006

AssetsMillions ofThousands ofYen

U.S. dollars

2006

2006

Current assets:
Cash and time deposits¥799$6,802

Accounts receivable - Trade17,018144,871

Accounts receivable - Other

71

604

Allowance for doubtful accounts

(8)

(68)

15,817

134,647

Consumption Tax Receivable

685

5,831

Deferred tax assets

283

2,409

Prepaid expenses and other current assets

85

724

34,750295,820

Software

164

1,396

Long-term deposit

203

1,728

Intangible and other assets

94

801

Deferred tax assets

1,155

9,832

Total investments and other assets

1,616

13,757

Buildings

732

6,231

Machinery and equipment

664

5,653

1,396

11,884

Less:accumulated depreciation

673

5,729

Net property,plant and equipment

723

6,155

37,089315,732

Inventories

Total current assets

Intangible and other assets:

Property,plant and equipment:

Total property,plant and equipment

Total assets
Notes:1U.S.dollar amounts are translated from yen,for convenience only,at the rate of¥117.47 to U.S.$1.00.

2This is the first year to disclose consolidated financial statements,so it is
not compared with the same term last year.

Liabilities andMillions ofThousands of

Yen

U.S. dollars

Shareholders' Equity

2006

2006

Current liabilities:
Short-term bank loans

¥

1,698

$

14,455

Accounts payable - Trade

12,254

104,316

Accounts payable - Others

862

7,338

Accrued income taxes

551

4,691

Allowance for employees' bonuses

477

4,061

Other current liabilities

131

1,115

Total current liabilities

15,973

135,976

Long-term debt,less current portion

3,000

25,538

Allowance for retirement and severance benefits

2,659

22,636

Allowance for retirement and severance benefits for directors

96817

Other non-current liabilities

201

1,711

Total long-term liabilities

5,956

50,702

Common stock,no par value
Authorized : 256,000 shares at March 31,2006
Issued : 92,000 shares at March 31,2006

2,496

21,248

Capital surplus

2,055

17,494Retained earnings

10,60590,2784

34

15,160129,054

37,089315,732

Shareholders' equity:

Foreign currency translation adjustments
Total shareholders' equity
Total liabilities and shareholders' equity

Tokyo Electron Device Limited

Consolidated Statement of Cash
Years ended March 31,2006
Millions ofYenThousands ofU.S.dollars

2006

2006

Cash flow from operating activities:
Income before income taxes

¥

2,633

$

22,414

Depreciation and amortization

258

2,196

Increase in allowance for retirement and severance benefits

(4)

(34)

Increase(decrease) in allowance for employees' bonuses

46392

Interest expenses

101

860

Increase(decrease) in trade notes and accounts receivable

4,215

35,882

Increase(decrease) in inventories(5,152)(43,858)

Increase(decrease) in accounts payable

3,645

31,029Others(695)(5,917)

Subtotal

5,047

42,964651(101)(860)Income taxes paid

(1,021)(8,691)

Net cash provided by(used by)operating activities

3,931

33,464

Payment for purchase of property,plant and equipment(178)(1,515)

Payment for acquisition of intangible assets

(37)

(315)

Others

15

128

(200)

(1,702)

Increase(decrease) in short-term borrowings

1,684

14,336

Repayment of long-term debt

(5,000)(42,564)(552)(4,699)(3,868)(32,927)977

Net increase(decrease)in cash and cash equivalents(128)(1,088)Cash and cash equivalents at beginning of year

927

7,891

Cash and cash equivalents at end of year

799

6,803

Receipts from interest and dividends
Interest paid

Cash flow from investing activities:

Net cash used in investing activities
Cash flow from financing activities:

Dividends paid
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents

Notes:1

U.S.dollar amounts are translated from yen,for convenience only,at the rate of¥117.47 to U.S.$1.00.

2This is the first year to disclose consolidated financial statements,so it is
not compared with the same term last year.