Press Release
July 24, 2009
Funai Electric Co., Ltd.
President and CEO: Tomonori Hayashi(Code No.: 6839 First Section of TSE/OSE)For Immediate Release:

Result of Request for Review of Supplementary Tax Assessment Based on
Application of the Taxation System Concerning Tax Havens

On July 23, 2009, Funai Electric Co., Ltd. received the written ruling of the Osaka Regional Tax
Tribunal concerning the Company’s request for review of the supplementary tax assessment under
the taxation system concerning tax havens.
Funai Electric Co., Ltd. received a rectification notice from the Osaka Regional Taxation Bureau onJune 16, 2008.
The Company objected to this supplementary tax assessment and filed a request for review of theassessment with the Osaka Regional Tax Tribunal on August 6, 2008, and filed a complaint with theOsaka District Court for the rescission of the supplementary tax assessment order, pursuant to theapplicable laws and regulations. The Company has now received the written verdict from the OsakaRegional Tax Tribunal stating it will dismiss the Company's assertion.
Funai Electric Co., Ltd. believes this judgment indeed regrettable and is not a ruling to which it canagree, and will continue to assert the validity of its arguments in the future. The lawsuit, jointly withthe other lawsuit filed on June 28, 2005, is now pending at the court.
The verdict from the Osaka Regional Tax Tribunal will not have a material affect on the Company’s
operating results for the fiscal year ending on March 31, 2010.

INQUIRIES ABOUT THIS PRESS RELEASE
Naoyuki Takanaka
Investor / Public Relations Department
TEL:+81-72-870-4395

Reference ①

Press Release
August 6, 2008

Funai Electric Co., Ltd.
President and CEO: Tomonori Hayashi(Code No.: 6839 First Section of TSE/OSE)
Contact: Naoyuki Takanaka
Investor / Public Relations Department
T e l :

8 1 - 7 2 - 8 7 0 - 4 3 9 5

For Immediate Release:

Notice of Appeals Application Submitted concerning Regulatory TaxAssessment on Tax Haven Applicability
On June 16, 2008, Funai Electric Co., Ltd. (hereinafter referred to as the “Company”) received
a special tax assessment notice from the Osaka Regional Taxation Bureau claiming that theCompany’s Hong Kong-based subsidiary did not meet the conditions to allow for it to betreated as an exception under the tax haven system. In light of the previous notice received fora similar issue on June 28, 2005, and the continuing related legal proceedings in the OsakaDistrict Court, the submission of another claim is highly regrettable and unacceptable. As such,
the Company has taken the necessary steps to submit an appeals application today to theOsaka Regional Taxation Bureau’s Board of Tax Appeals.

Under this new claim for the three fiscal years running from April 2004 through March 2007, theOsaka Regional Taxation Bureau has indicated a preliminary additional tax assessment of ¥15billion (¥16.8 billion including other incidental taxes), inclusive of corporate, residential, andbusiness taxes, based on an additional unreported income amount of ¥33.9 billion. In
accordance with the “Handling of Audits Relating to Accounting Procedures and Disclosures
for Taxes” (as per Report No. 63 of the Auditing and Guaranteeing Work Committee Report ofthe Japan Institute of Certified Public Accountants), the Company has decided to report thisamount under the category of “retroactive corporate taxes” in the first quarter of the current
fiscal year ending March 2009.

Reference ②Press Release
November 14, 2008

Funai Electric Co., Ltd.
President and CEO: Tomonori Hayashi(Code No.: 6839 First Section of TSE/OSE)
Contact: Naoyuki Takanaka
Investor / Public Relations Department
Tel: 81-72-870-4395、81-3-3254-5612

For Immediate Release:
Filing of The Complaint For The Rescission of The Osaka Regional Taxation
Bureau’s Supplementary Tax Assessment Order Based on The Application ofThe Anti-Tax Haven Taxation RuleOn June 16, 2008, Funai Electric Co., Ltd. (hereinafter referred to as the “Company”) received
a special tax assessment notice from the Osaka Regional Taxation Bureau claiming that theCompany’s Hong Kong-based subsidiary did not meet the conditions to allow for it to betreated as an exception under the tax haven system. In light of the previous notice received fora similar issue on June 28, 2005, and the continuing related legal proceedings in the Osaka
District Court, the submission of another claim is highly regrettable and unacceptable. As such,
the Company has taken the necessary steps to submit an appeals application on August 6,
2008 to the Osaka Regional Taxation Bureau’s Board of Tax Appeals.

Presently, the review proceedings based on the Company’s petition is pending in theNational Tax Tribunal (the “Tribunal”). However, three months have passed since theCompany filed its petition with the Tribunal for a review of the supplementary tax
assessment order, and now, the circumstances have become ripe for the Company toseek a judicial remedy. Therefore, today, the Company filed a complaint with the Osaka
District court for the rescission of the supplementary tax assessment order, pursuant to theapplicable laws and regulations.

Under this new claim for the three fiscal years running from April 2004 through March 2007, theOsaka Regional Taxation Bureau has indicated a preliminary additional tax assessment of ¥15billion (¥16.8 billion including other incidental taxes), inclusive of corporate, residential, andbusiness taxes, based on an additional unreported income amount of ¥33.9 billion. Inaccordance with the “Handling of Audits Relating to Accounting Procedures and Disclosuresfor Taxes” (as per Report No. 63 of the Auditing and Guaranteeing Work Committee Report ofthe Japan Institute of Certified Public Accountants), the Company has decided to report thisamount under the category of “retroactive corporate taxes” in the first quarter of the current
fiscal year ending March 2009.