Press Release
June 16, 2008
Funai Electric Co., Ltd.
President and CEO: Tetsuro Funai(Code No.: 6839 First Section of TSE/OSE)
Contact: Mutsuo Takei, General Manager
Investor / Public Relations Department
T e l : 8 1 - 3 - 3 2 5 4 - 5 6 1 2

For Immediate Release:

Funai Reports Revised Forecast of Consolidated Operating Results

Funai Electric Co., Ltd. has revised its consolidated operating results forecast for the first half and thefull year released with the brief settlement of accounts announcement on May 12, 2008, as describedbelow.

1. Revised consolidated forecast results for the first half (April 1, 2008 to September 30, 2008)(Units: Million Yen)
(Before deduction (After deduction
OperatingOrdinaryof prior fiscal
of prior fiscal year
Net salesyear income tax)
incomeincomeincome tax)
Net income
Net income
Previously Announced
144,000
3,300
4,300
3,300
3,300
Forecast (A)Revised Forecast (B)144,000
3,300
4,300
3,300
− 13,900
Amount of
Increase/Decrease−−−−− 17,200(B–A)
Percentage Changed
−−−−−
(%)
(Reference)Previous FY Results
156,3172,069
5,053− 4,245− 4,245(Interim Period throughSeptember 2007)

2. Revised Consolidated Fiscal Year Results (April 1, 2008 to March 31, 2009)

Previously Announced
Forecast (A)Revised Forecast (B)Amount ofIncrease/Decrease(B–A)
Percentage Changed(%)(Reference)Previous FY Results(FY Ended March2007)(Units: Million Yen)
(Before deduction (After deductionof prior fiscalof prior fiscal yearyear income tax)
income tax)
Net income
Net income
5,800
5,800

Net sales

Operatingincome

Ordinary
income340,000

6,000

8,000

340,000−

6,000−

8,000−

5,800−− 11,400− 17,200−−−−−277,167− 2,405− 39− 5,376− 5,376

3. Reasons For Revision of Consolidated Results Forecast
Funai Electric Co., Ltd. received a rectification notice from the Osaka Regional Taxation Bureau onJune 16, 2008. The Bureau determined that Funai Electric Co., Ltd.’s Hong Kong subsidiary does notmeet the requirements for exclusion under the anti-tax haven system and the Hong Kong subsidiary’s
income for the three fiscal years ending March 2005 through March 2007 will be considered, andtaxed as, Funai Electric Co., Ltd.’s income. Using the corrected net income amount of 33,900 million
yen, the amount of the penalty tax including local taxes and other amounts is provisionally calculated
to total 17,200 million yen. To reflect the impact on Funai Electric’s consolidated operating results forthe current fiscal year, Funai Electric plans to report 17,200 million yen as prior fiscal year income tax.
Based on the above factors, the company has revised its forecast of net income for the first half andfiscal year consolidated operating results announced on May 12, 2008.
Funai Electric believes it is indeed regrettable that the Osaka Regional Taxation Bureau has made a
supplementary tax assessment during its tax examination for the current fiscal year, which is similar toits previous assessment, when hearings are proceeding in the Osaka District Court concerning therectification notice based on the bureau’s previous application of the anti-tax haven system (datedJune 28, 2005). The company will assert the validity of its position based on an appeal in the future.