August 5, 2004
Funai Electric Co., Ltd.

First Quarter Consolidated Financial Summary for Period Ending March 2005

(Units: millions of yen)
PeriodItem

Current Year 1st Quarter

Previous Year 1st Quarter

From April 1, 2004 toJune 30, 2004

From April 1, 2003 toJune 30, 2003

AmountAmountPercentage% increaseor decrease
frompreviousquarter

Percentage%%%

Net Sales

64,912100.0

63,402100.0

2.4

Operating Income

7,052

10.9

7,470

11.8

- 5.6

Ordinary Income

8,208

12.6

7,398

11.7

10.9

8,253

12.7

7,348

11.6

12.3

5,044

7.8

4,0746.423.8

Quarterly Net Income before taxes
and other adjustments

Quarterly Net Income

Quarterly Earnings per
Share (yen)Fully Diluted Quarterly
Earnings Per Share(yen)141.99115.53141.16115.20Notes:
1. Includes 13 consolidated subsidiaries and 2 affiliated companies accounted for by the equity method.
2. The figures above have not been audited or reviewed by a corporate auditor.

August 5, 2004
Summary of 1st Quarter Consolidated Financial Results for Period Ending March 2005
Code No. 6839 1st Section of TSE/OSE

Company Name: Funai Electric Co., Ltd.
(URL: http://www.funai.jp)
Inquiries Tetsuro Funai – President and CEO
Toshihiko Morita – GM General Administration Dept.

(TEL: 81-72-870-4304)

1. Items Pertaining to the Preparation of the Quarterly Financial Report
1) Adoption of simplified accounting method
NONE
2) Variations from accounting method used in mostrecent consolidated fiscal year
NONE
3) Change in Scope of Consolidation and Equity NONE
Method
2. Summary of 1st Quarter Financial Results for Period Ending March 2005 (April 1, 2004 ~ June 30, 2004)(1) Operating Results (Consolidated)
Net Sales
1st Quarter FY20041st Quarter FY2003(Reference) Full-Year
Results for FY2003

Operating Income(Figures are rounded to the nearest million)
Quarterly Net
Ordinary Income
Income(million yen)(%)(million yen)(%)(million yen)(%)(million yen)(%)

64,912
63,402

2.4
-5.5

7,052
7,470

-5.6
-5.6

8,208
7,398

10.9
38.9

5,044
4,074

23.8
15.6

342,133

3.2

36,5344.0

34,667

2.4

26,28036.2

Earnings Per Share

1st Quarter FY2004
1st Quarter FY2003(Reference)Full-Year
Results for FY2003

Fully Diluted Earnings PerShare(yen)(yen)

141.99115.53141.16115.20744.13741.52(Note: The % figures for net sales, operating income, etc. are a comparison against quarterly results from theprevious fiscal year).
[Qualitative Information Pertaining to Consolidated Operating Results]
During the 1st quarter of the fiscal year ending March 2005, the world economy saw positive movements led by theUS and China. In the US, consumption grew in addition to employment as a result of increased corporate activities,
while growth of China’s economy continued thanks to steady increases in both consumption and exports.
Japan’s economy also shifted in a positive manner due to improvement of the employment market and increased
capital investments from the recovery of corporate earnings, backed by favorable condition of the export market andgrowth in demand for digital appliances.
Although the electronics industry that Funai Electric is a part of was severe as the sharp rise in raw material
prices and intensifying price competition led to falling prices, digital devices such as DVD recorders,
LCD/plasma displays, and digital still cameras enjoyed a favorable market condition continuing from theprevious period.

In this sort of environment, consolidated net sales for the first quarter of the current fiscal year increased 2.4%
from the same period last year to ¥64,912 million. When analyzed by device type, the sales volume of DVD
players and other related equipment increased in the audio and video equipment category. In terms of net sales
however, this was still a slight decrease from the previous period because of falling prices. In addition, shrinking
market for analog devices, such as TV-Video combo sets resulted in a reduction in sales. Consequently, net sales
in this category of devices declined by 10.2% from the same period last year to ¥36,152 million.
On the other hand, sales of information and communication equipment improved as multiple function inkjet
printer(e.g. printers with scanning and copying capabilities) continued to grow. Consequently, net sales in thiscategory of devices increased by 43.8% from the same period last year to ¥21,261 million.
Finally, sales of receivers and other related electronic devices fell 10.5% from the same period last year to ¥7,498
million.
In terms of income, although operating income fell by 5.6% from the same period last year to ¥7,052 million,
ordinary income and quarterly net income reached ¥8,208 million (increase of 10.9%) and ¥5,044 million(increase of 23.8%) respectively, due to an exchange gain of ¥933 million.
(2) Shifts in Consolidated Financial Position
Total Assets
1st Quarter FY2004
1st Quarter FY2003(Reference) Full-Year
Results for FY2003

Shareholders’Equity(Figures are rounded to the nearest million)
Shareholders’Shareholders’Equity Ratio
Equity Per Share(million yen)(million yen)

(%)

(yen)

236,217
207,853

163,326
131,813

69.1
63.4

4,532.27
3,741.21

223,191

149,74867.1

4,244.78[Consolidated Cash Flows]

st1 Quarter FY2004
1st Quarter FY2003(Reference) Full-Year
Results for FY2003(Figures are rounded to the nearest million)
Net cash provided
Cash and cashby(used in)equivalents at endof year
financing activities

Net cash provided
by operating
activities

Net cash used ininvesting activities(million yen)(million yen)(million yen)(million yen)

-5,1894,111-1,249-2,3039,593-1,652

116,229
92,84736,538-9,497

1,727

113,606[Qualitative Information Pertaining to Shifts in Consolidated Financial Position]
The Financial Position of Funai Electric Co., Ltd. for the first quarter of this fiscal year ending March 2005 isshown bellow.
Total Assets increased by ¥13,025 million from the end of the previous fiscal year. The main reason for this rise intotal assets is the ¥2,615 million increase in cash and deposits, ¥5,696 million increase in trade notes and accounts
receivable, and ¥2,317 million increase in inventory.
Liabilities decreased by ¥559 million from the end of the previous fiscal year, due mainly to the decrease inprocurement liabilities.
Shareholders’ Equity increased by ¥13,578 million from the end of the previous fiscal year due to the treasury
stock disposal (sale) of ¥10,448 million, which took place on May 28, 2004. As a result, the shareholders’ equity
ratio increased by 2.0 points to 69.1%.

[Reference]
Consolidated Financial Forecasts for Period Ending March 2005 (April 1, 2004 ~ March 31, 2005)
Net Sales Forecast
Ordinary Income Forecast
Net Income Forecast
Interim Period
Full-Year(million yen)(million yen)(million yen)

160,500
400,000

16,20037,20010,40026,100

Reference: Forecasted net income per share (full-year) is ¥722.89.
Note: Forecasted net income per share is calculated based on the number of shares issued at the end of the firstquarter under review. This is due to the treasury stock disposal (sale) of 766,600 shares, which took place on May
28, 2004.
[Qualitative Information Pertaining to Financial Forecasts]
Despite some uncertainties such as the tightening of US economy and China’s prospects, Funai’s outlook remains
positive since the demand for digital devices such as flat panel displays are expected to rise with the opening of theOlympic Games in Athens. The Funai Group’s current performance is in line with its plans, and hence no revision has
been made to the forecast figures announced on May 12, 2004.
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 in the main US market) and severe price fluctuations may cause actual events and results todiffer materially from those anticipated in these statements.