Tokyo Electron Device Limited

Consolidated Statement of Income
For the six months ended September 30,2005

Millions ofThousands ofYen

U.S.dollars

2005
Net Sales¥

2005

42,622$

376,453

Cost of sales

37,043

327,177

Gross profit

5,579

49,276

Selling,general and administrative expenses

4,141

36,575

1,438

12,701

Interest expenses

(45)

(397)

Asset finance costs

(48)

(424)

Foreign currency gain or loss

(144)

(1,272)

Prior-period adjustment of allowance for doubtful accounts

218

Other,net

16141

1,219

10,767

Current

502

4,434

Net income

717

6,333

Operating income

Other income(expenses)

Income before income taxes

Provision for income taxes

Per share of common stock:

Yen

U.S.dollars

Net income - actual

¥

7,790

$

69

Cash dividends paid - actual¥

3,000$

23Notes:1

U.S.dollar amounts are translated from yen,for convenience only,at the rate of¥113.22 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
As of September 30,2005

AssetsMillions ofThousands ofYenU.S. dollars

2005

2005

Current assets:
Cash and time deposits

¥

1,110

$

9,804

Accounts receivable - Trade

22,699200,486

Accounts receivable - Other

22194

Allowance for doubtful accounts

(11)

(97)

12,458110,034

Consumption Tax Receivable

259

2,288

Deferred tax assets

286

2,526

Prepaid expenses and other current assets

139

1,227

36,962

326,462

Software

195

1,722

Long-term deposit

198

1,749

Intangible and other assets

94

831

Deferred tax assets

1,119

9,883

Total investments and other assets

1,606

14,185

Buildings

732

6,465Machinery and equipment

631

5,574

1,363

12,039Less:accumulated depreciation

619

5,468

Net property,plant and equipment

744

6,571

39,312347,218

Inventories

Total current assets

Intangible and other assets:

Property,plant and equipment:

Total property,plant and equipment

Total assets
Notes:1

U.S.dollar amounts are translated from yen,for convenience only,at the rate of¥113.22 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 ofYen

U.S. dollars

Shareholders' Equity

2005

2005

Current liabilities:
Short-term bank loans

¥

85

$751

Current portion of long term-loan

5,000

44,162

Accounts payable - Trade

11,773103,983

Accounts payable - Others

766

6,766

Accrued income taxes

540

4,769

Allowance for employees' bonuses

367

3,241

Other current liabilities

263

2,323

Total current liabilities

18,794

165,995

Long-term debt,less current portion

3,000

26,497

Allowance for retirement and severance benefits

2,622

23,158

Allowance for retirement and severance benefits for directors

85751

Other non-current liabilities

196

1,732

5,903

52,138

Common stock,no par value
Authorized : 256,000 shares at September 30,2005
Issued : 92,000 shares at September 30,2005

2,496

22,046

Capital surplus

2,055

18,151Retained earnings

10,061

88,862

3

26

14,615129,085

39,312347,218

Total long-term liabilities

Shareholders' equity:

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

Tokyo Electron Device Limited

Consolidated Statement of Cash Flows
For the six months ended September 30,2005
Millions ofYen

Thousands ofU.S.dollars

2005

2005

Cash flow from operating activities:
Income before income taxes

¥

1,219

$10,767

Depreciation and amortization

126

1,113

Increase in allowance for retirement and severance benefits

(53)

(468)

Increase(decrease) in allowance for employees' bonuses

(64)

(565)

Interest expenses

45397

Increase(decrease) in trade notes and accounts receivable(1,447)(12,780)

Increase(decrease) in inventories(1,794)(15,845)

Increase(decrease) in accounts payable

3,142

27,751Others(232)(2,050)Subtotal

942

8,320

Interest paid

(45)

(398)

Income taxes paid

(385)

(3,400)Net cash provided by(used by)operating activities

512

4,522

Payment for purchase of property,plant and equipment(144)(1,272)

Payment for acquisition of intangible assets

(12)

(106)

Others

19

168

(137)

(1,210)82

724

Dividends paid

(276)

(2,438)Net cash provided by financing activities(194)(1,714)

2

18

Net increase(decrease)in cash and cash equivalents

183

1,616

Cash and cash equivalents at beginning of year

927

8,188

1,110

9,804

Cash flow from investing activities:

Net cash used in investing activities
Cash flow from financing activities:
Increase(decrease) in short-term borrowings

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of year
Notes:1

U.S.dollar amounts are translated from yen,for convenience only,at the rate of¥113.22 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.