Press Release
February 4, 2008
Funai Electric Co., Ltd.
President and CEO: Tetsuro Funai(Code No.: 6839 First Section of TSE/OSE)
Contact: Naoyuki Takanaka
Investor and Public Relations Department
T e l : 0 7 2 - 8 7 0 - 4 3 9 5

For Immediate Release:

Funai Reports Revised Forecast of Consolidated Fiscal Year Results
Funai Electric Co., Ltd. (“the Company”) has revised its forecast of consolidated fiscal year results
released on October 29, 2007 as follows:

1. Revised Consolidated Fiscal Year Results (April 1, 2007 to March 31, 2008)(Units: Million Yen)

Previously Announced
Forecast (A)Revised Forecast (B)Amount ofIncrease/Decrease(B–A)
Percentage Changed(%)(Reference)Previous FY Results (toMarch 2007)

NetSalesOperatingIncome

Ordinary
IncomeNet Income
BeforeSubsidiary
Dividend*1

320,000

4,700

9,700

[7,800]500

279,000(2,100)2,300[(1,900)](7,400)(41,000)(6,800)(7,400)[(9,700)](7,900)(12.8)−(76.3)[−]

396,712

20,766

26,591[−]Net Income−(3,665)*2*1: Shows net income in cases where dividends from subsidiaries were not implemented.
*2: Full year net income as a result of reversing the “long-term suspense payments of income taxes” for additional taxes based onReport No. 63 of the Auditing and Assurance Practice Committee of the Japanese Institute of Certified Public Accountants (JICPA),Accounting, Presentation, and Audit Treatment for Various Taxes, and disposing of the amount as “prior fiscal year corporation taxes,etc.” Using conventional methods in previous years would have resulted in net income of 15,518 million yen.

2. Reasons Behind Revision of Consolidated Results Forecast
On October 29, 2007, the company announced revisions to its consolidated results forecast and has
subsequently made every possible effort to bring about a turnaround in business performance. Withno improvement being seen from its third and fourth quarter results, however, the company has had tomake a further revision to its forecasted fiscal year results.
Net sales are expected to fall significantly on previous forecasted results. The reasons for this include
declining sales of LCD televisions, together with an expected fall in revenue from sales of thecompany’s printers, which had been experiencing steady medium-term performance. The main
reasons for the company’s declining income in these two areas are outlined below.
(1) Procurement Shortage for LCD Television Panels
With the aim of securing a stable supply of panels for LCD television production, the Funai Group
formed a strategic alliance with a major Taiwanese panel maker in February 2007. However, ashortage of such panels has led to the current situation in which an adequate number of panels
cannot be procured.
Faced with this situation, the company placed an increasing focus on panel procurement from thesecond quarter. By the third quarter, however, the company was unable to shake off the impact of
this panel shortage, resulting in delays in product delivery and subsequent declining orders for thecompany’s LCD televisions.
In looking ahead to the next fiscal year, the company plans on rebuilding its relationship with theTaiwan-based panel manufacturer as the linchpin of its strategy for achieving adequate panelprocurement. At this stage in the fourth quarter of the current fiscal year, however, sales of thecompany’s LCD televisions have markedly declined on the company’s initial estimates due toprocurement failing to meet the company’s estimate for the fiscal year.
(2) Falling Orders for Printers
Despite sales of the company’s printers remaining strong during this medium-term period, areview of product strategy by the company’s OEM clients brought about a sharp decline in orders.
This combination of declining profits from LCD televisions, falling income from reduced sales ofprinters, and poor performance from the company’s DVD-related products and CRT televisions
resulted in the company’s operating income being forecast downward to show a deficit for the fiscalyear.
In terms of extraordinary factors affecting the company’s net income, in addition to reasons provided
at the revision of earnings forecast on October 29, 2007, the company anticipates reversing
approximately 3 billion yen of its deferred tax assets. This is expected to be used mainly to cover the
net loss carried forward by the company’s consolidated subsidiary, Funai Corporation. To date, any
net loss carried forward has been applied to future corporation tax and the company has calculated
total deferred tax assets based on rational criteria. Reflecting the change in the company’sperformance to the third quarter and a more conservative outlook on the collectibility of the company’sdeferred tax assets, the company expects to reverse the majority of the subsidiary’s deferred tax
assets in this fiscal period.

3. Outlook for Next Fiscal YearThe company has no plans to make any further revisions to its forecast for the next fiscal year otherthan changes previously announced and listed below. Forecasted sales, however, will be announced
at the next earnings announcement following a review of efforts to improve the company’sperformance, taking into account the company’s business alliance with Victor Company of Japan, Ltd.,announced on January 30, 2008.
(1) Strategic partnership aimed at securing LCD television panel procurement(2) Expand sales in European DVD business and introduce next-generation DVD players(3) Secure new working relationship with printer OEM clients(4) Creation of service system in the company’s key U.S. market(5) Ensure fair competition in relation to digital television-related patents

(Note)
The aforementioned estimates are forward-looking statements about the future performance of Funai
Electric Co., Ltd. and are based on management’s assumptions and beliefs in light of information
currently available, and involve known and unknown risks and uncertainties.
Various factors such as a change in economic conditions overseas (especially changes in thecompany’s key U.S. market) and severe price fluctuations may cause actual events and results todiffer materially from those anticipated in these statements.