YAMAZEN CORPORATION AND ITS CONSOLIDATED SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMarch 31 , 2008 and 2007

Thousands ofU.S. Dollars(Unaudited)
March 31 ,2008

Millions of Yen(Unaudited)(Unaudited)
March 31 ,March 31 ,2007
2008
ASSETS
Current assets:
Cash and bank deposits
Short-term securities
Notes and accounts receivable trade
Unconsolidated subsidiaries and affiliates\Allowance for doubtful accounts(Inventories
Deferred income taxes
OtherTotal current assets

Investments and long-term accounts receivable:
Investments in securities
Investments in and advances to-Unconsolidated subsidiaries and affiliates
Other
Long-term accounts receivable
Allowance for doubtful accounts(

Property and equipment:Buildings and structures
Machinery and equipment
Accumulated depreciation(Land
Deferred income taxes
Prepaid pension expenses
Other
Total

29,221
8,581
96,341411
96,752781 )
95,971
11,398935
2,233
148,339

\

(

7,597
528
14495
600 )
8,034

(

10,087
1,687
11,7747,200 )
4,574
7,639
12,213(242,423
3,159\

174,192

28,943
8,104
103,616907
104,523881 )
103,64212,834
1,215
2,162
156,900$(10,486
1,05821823964 )
11,424(11,924
1,830
13,754
8,142 )
5,612
10,911
16,523(302,381
2,901\190,159

291,661
85,644
961,587
4,096
965,683
7,794 )
957,889
113,765
9,333
22,281
1,480,573

75,8275,266
136
4,9425,985 )
80,186100,679
16,833
117,51271,862 )
45,65076,250121,900
241
24,184
31,535$

1,738,619

YAMAZEN CORPORATION AND ITS CONSOLIDATED SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMarch 31 , 2008 and 2007

Thousands ofU.S. Dollars(Unaudited)
March 31 ,2008

Millions of Yen(Unaudited)(Unaudited)
March 31 ,March 31 ,
2007
2008
LIABILITIES AND NET ASSETS
Current liabilities:
Short-term bank loans
Current portion of long-term debt
Notes and accounts payable trade
Unconsolidated subsidiaries and affiliates

9,956
1,431
113,376－113,376
1,777
2,169
1,020
1,873
131,602\Accrued employees' bonus
Accrued expenses
Accrued income taxes
OtherTotal current liabilities
Long-term liabilities:
Long-term debt
Accrued retirement benefits for directors and corporate auditors
Accrued retirement benefits for employees
Deferred income taxes
Other
Total long‐term liabilities
Net assets:
Shareholders' equity:
Common stock－93,840,310 shares at March 31 , 2008 and 2007
Additional paid-in capital
Retained earnings
Less : Treasury common stock, at cost
－42,217 shares at March 31 , 2008 and 41,497 shares at March 31 , 200
Total shareholders' equity
Net unrealized gains and translation adjustments－
Net unrealized holding gains on securities
Net unrealized holding gains on hedges
Foreign currency translation adjustments
Total net unrealized gains and translation adjustments
Total net assets
Total(((\6,156
10,927
122,62412
122,636
1,911
2,037
3,634
2,094
149,395\$

99,366
14,2781,131,605－
1,131,605
17,73321,645
10,18518,717
1,313,529

3,096
－
73
1,520
1,462
6,151

2,027
313
53
2,909
651
5,953

30,904－727
15,172
14,586
61,3897,909
6,082
22,075

7,909
6,082
17,961

78,94560,701
220,333

16 )
36,0501,767
68 )1,310 )
389
36,439174,192((\15 )
31,9373,38965580 )
2,874
34,811
190,159((($159 )
359,820
17,638683 )
13,074 )
3,881
363,701
1,738,619

YAMAZEN CORPORATION AND ITS CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
For the years ended March 31, 2008 and 2007

Thousands ofU.S. Dollars(Unaudited)
March 31 ,2008

Millions of Yen(Unaudited)(Unaudited)
March 31 ,March 31 ,2007
2008
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

376,852
333,773
43,07931,56011,519\Other income (expenses):
Interest and dividends income
Interest expense
Loss on devaluation of derivative
Gain on sale of property and equipment
Loss on sale and disposal of property and equipment
Gain on sales of investments in securities
Loss on devaluation of investments securities
Loss on devaluation of investments in an unconsolidated subsidiaries
Loss on impairment of fixed assets
Reversal of allowance for doubtful account
Other, net
Income before income taxes and minority interests(((((Income taxes
Current
Deferred

1,610
1,534 )
639 )
44)8134 )－
2,433 )
164
449
9,010

(
((\5,497\58.60
12.50$1,531
1,530 )－
1323 )
19－66 )－－
591
12,853(((93,798-2-16,065
15,315 )6,375 )
4243 )
76
1,335 )
－24,285 )
1,635
4,493
89,92734,356707
35,063\7,507$54,864\80.03
12.50$

U.S. Dollars
0.585
0.125

Yen
Net income per share (basic)
Cash dividends per share
Weighted average number of shares outstanding
during the current fiscal year (unit: thousands shares)

3,761,374
3,331,405
429,969315,000
114,969((5,213133
5,346

3,44271
3,513

Net income

377,611
334,923
42,68830,37012,318\93,801

YAMAZEN CORPORATION AND ITS CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFor the years ended March 31, 2008 and 2007

Thousands ofU.S. Dollars(Unaudited)
March 31 ,2008

Millions of Yen(Unaudited)(Unaudited)
March 31 ,March 31 ,2008
2007
Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for：
Depreciation and amortization
Loss on impairment of fixed assets
Increase or decrease in allowance for doubtful accounts
Increase or decrease in allowance for others
Increase or decrease in prepaid pension expenses
Dividends and Interest income
Interest expense
Foreign currency gain and loss
Gain on sales of investments in securities
Loss on devaluation of investments securities
Loss on devaluation of investments in unconsolidated subsidiaries
Loss on disposal of property and equipment
Gain or loss on sales of property and equipment
Changes in assets and liabilities：
Increase or decrease in trade receivables
Increase or decrease in inventories
Increase or decrease in trade payables
Other, net
Sub total
Income taxes paid
Net cash provided by operating activities

9,010

￥

(((((((((Cash flows from investing activities:
Payments for time deposits
Proceeds from withdrawal of time deposits
Payments for acquisition of investments in securities
Proceeds from sales of investments in securities
Payments for loan
Proceeds from collections of loan receivable
Payments for acquisition of property and equipment
Proceeds from sales of property and equipment
Dividends and interest income received
Other, net
Net cash provided by (used in) investing activities(((((Cash flows from financing activities:
Increase or decrease in short-term bank loans, net
Proceeds from issuance of long-term debt
Payments of long-term debt
Cash dividends paid
Interest expense paid
Other, net
Net cash used in financing activities(((((((Effect of exchange rate changes on cash and cash equivalents
Net increase or decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents of new consolidated subsidiaries at beginning of year
Cash and cash equivalents at end of year￥-4-7032,433459 )
446 )
42 )
1,610 )
1,5347)
8)
134－44)((((((((8,079
1,1609,516 )
1,262
12,227
6,163 )
6,064

(569 )
294568 )25
121 )116849 )1,578
1,60730 )1,483(((((3,8002,50010,927 )
1,641 )
1,607 )
1)
7,876 )
297 )
626 )36,821473
36,66812,853￥(((((((￥676－1,223 )
335 )
124 )
1,531 )
1,530
4019 )－66
189)(((((((6,276 )1,485 )
5,196
2,089
11,466
5,421 )
6,045((35 )
45200 )
9782 )
237809 )435
1,53815 )1,211(((((445 )
1,4006,062 )703 )1,524 )
3)
7,337 )
765)
36,826－36,821

89,927＄(((((((＄

7,017
24,2854,580 )
4,455 )
423 )
16,065 )15,315
69 )
76 )
1,335
－
4342 )
80,63911,581
94,975 )12,579122,036
61,506 )60,5305,681 )
2,935
5,671 )
249
1,207 )
1,159
8,479 )
15,746
16,038289 )
14,80037,92824,953109,066 )
16,384 )16,037 )5)78,611 )2,968 )
6,249 )
367,509
4,725
365,985