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Press Room2007

April 26,2007

April 26,2007
To Whom It May Concern:
Funai Electric Co.,Ltd.
Representative: Tetsuro Funai, President and CEO(Code No.: 6839 1st section of TSE/OSE)

Notice Concerning the Revised Forecast of the Full-Year Results
Funai Electric Co., Ltd. is revising the results forecast announced along with the results
announcement for the 3rd quarter period ending February 5, 2007 as follows:

Revised Forecasted Results (April 1,2006 - March 31,2007)[Consolidated](units:Million Yen)
(Pre-deductionof prior fiscalyearcorporation
taxes etc.)
Current PeriodNet Income *(Postdeductionof priorfiscal year
corporation
taxes etc.)
CurrentPeriod Net
IncomeNet

Operating

Ordinary

Sales

IncomeIncome395,000

25,80031,00017,40017,400

Revised Forecast(B)396,700

20,70026,50015,500-3,600

Increased/Decreased

1,700-5,100-4,500-1,900-21,000

0.4

-19.8

-14.5

-10.9-

360,885

23,30527,461-

21,596

Previously
Announced
Forecast(A)Amount (B-A)
Rate of
Increase/Decrease(%)(Reference) Results from
Previous Period (EndingMar. 2006)

Reasons for the Revisions of Consolidated Results Forecast
Net sales of information equipment and video equipment have both risen steadily, ending

slightly higher than planned. On the other hand, the decrease in the market price of LCD
televisions in the European market was greater than previously anticipated. Although
Funai Electric's sales subsidiary in Europe, Funai Europe, considered writing down theexpected 4th quarter 3.4 billion yen loss in inventory valuation as a special loss, thedecision was eventually made to appropriate this loss as an operating expense.
Operating income fell greatly as a result of 7.5 billion yen in operating losses during theentire year, including the appropriation of the above loss. These results also reflect adecrease in January-March 2007 Funai Electric shipments to the United States.
Regarding the additional tax of 19.1 billion yen (including incidental taxes) previously
announced on April 9, 2007 resulting from the application of the Taxation Act Concerning
Tax Havens, the Japanese Institute of Certified Public Accountants (Auditing andAssurance Practice Committee) announced a revision of Auditing and Assurance PracticeCommittee Report No. 63 "Accounting Practices, Disclosure and Audit Treatment for
Various Taxes" on March 8, 2007 clarifying the procedure by which to, as a rule, accountfor supplementary tax assessments during the business fiscal year in which they werelevied. After repeated consultations with the MISUZU Auditing Corporation regarding thisclarification, the decision was made to reverse the "long-term suspense payments ofincome taxes" in accordance with the recently announced Committee Report No. 63, anddispose of the amount during the current fiscal year as "prior fiscal year corporation
taxes etc.". The result of this handling was a current period net loss.

[Non-Consolidated](units:Million Yen)
(Pre-deductionof prior fiscalyear
corporation
taxes etc.)
Current Period
Net Income *(Postdeductionof priorfiscal year
corporation
taxes etc.)
CurrentPeriod Net
IncomeNet

Operating

Ordinary

Sales

IncomeIncome352,500

17,10017,000

8,400

8,400

Revised Forecast(B)336,900

15,50017,300-1,000-20,100

Increased/Decreased-15,600-1,600300-9,400-28,500

-4.4

-9.4

1.7--

313,194

14,384

17,177-

11,161

Previously
Announced
Forecast(A)Amount (B-A)
Rate ofIncrease/Decrease(%)(Reference) Results from
Previous Period (EndingMar. 2006)

Reasons for the Revisions of Non-Consolidated Results Forecast
The fall in January-March 2007 shipments to the United States were the primary reason
for the decreases in net sales and operating income. Regarding the current period net

income, in accordance with the worsened financial state, including large losses, of Funai
Electric's sales subsidiary Funai Europe, and as a result of the establishment of anallowance for doubtful accounts totaling 5.8 billion yen with regard to a portion of Funai
Europe's debts and the appropriation as a loss of 2.7 billion yen in investments, 8.5 billion
yen was appropriated as special losses. Additionally, as outlined in the reasons for therevision in the consolidated results forecasts, an additional tax of 19.1 billion yen(including incidental taxes) resulting from the application of the Taxation Act Concerning
Tax Havens was reversed from "long-term suspense payments of income taxes" anddisposed of as "prior fiscal year corporation taxes etc." during the current fiscal year,
resulting in a net loss for the current term.
However, the accounting treatment of these assessments does not have any relationshipto the Company's policy concerning the complaint for rescission of the supplementary tax
order currently being heard by the court, and the Company will continue to assert thecorrectness of its position via lawsuit or other means in the future.
Additionally, an end to the falling market prices in the European market is now in sight,
and the Company's policy is to secure reasonable income while also promoting anexpanding sales strategy.
(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 the main US market) and sever price fluctuations may
cause actual events and results to differ materially from those anticipated in thesestatements.

* Based upon Auditing and Assurance Practice Committee Report No. 63 "Accounting Practices,Disclosure and Audit Treatment for Various Taxes" the supplemental tax assessments have been reversed
from "long-term suspense payments of income taxes" and disposed of as "prior fiscal year corporation
taxes etc." in the current fiscal year. However, "Current Period Net Income" is displayed according to theprevious method.

INQUIRIES ABOUT THIS PRESS RELEASE
Naoyuki Takanaka
Invester/ Public Relations Department
TEL:+81-72-870-4395*Acrobat Reader is required to view this PDF file.