To Shareholders and Investors
Interim Business Report for the 76th TermApril 1 to September 30, 2008

Protecting Human Life and Mother EarthSecurities identification number：6455

Morita Topics
Morita Group Transformed into a New Structure
On October 1 this year, theMoritaGroup

adoptedaholding-company system andtransferred the businesses ofeach division to a newly
established company througha spin-off. In addition, thecompany name was changed to MORITA HOLDINGS CORPORATION,
and the Pump Division was transferred to MORITA CORPORATION,
the Disaster Prevention Division toMORITA BOHSAI TECHCORPORATION and the Environmental Business Division to MORITAENVIRONMENTAL TECH CORPORATION under the new structure.
The Morita Group is also introducing a New Corporate Logo forgroup companies in Japan and overseas. This New Corporate Logo
expresses the passions and hopes of each employee of the new businesscompanies and the group companies and takes the form of a wing. It
has been designed to represent our attitude of having ambitious dreams
in the future. We plan to utilize the existing resources in the field ofmarketing for the time being, and launch new global operations withproducts and services in or after April 2009.
The Morita Group has used the Corporate Logo in marketing andproducts. This policy will remain unchanged, and the New Corporate
Logo will be added as a group mark to the corporate logo. Since ourfoundation in 1907, we have developed technologies in order tocontribute to the development of fire-fighting technologies in Japan as
the leading manufacturer of fire engines with the hope of saving as
many lives as possible,and marked the 101st anniversary of our

foundation this year.
The Morita Group will continue to make diligent efforts to focus on thedevelopment of new technologies under the slogan ofProtectingHuman Life and Mother Earth in order to live up to your expectationsof our group.

0101

Miyata Industry Becomes a Group Company

The tender offer we made on October 9 to purchase shares of Miyata
Industry Co., Ltd. (listed on the 2nd section of TSE) was recently
completed, and it was determined that Miyata Industry would become aconsolidated subsidiary of our company.
Miyata Industry is Japan's first company to succeed in developing andmanufacturing a dry chemical fire extinguisher, and has a high level ofcapability in both engineering and sales especially in the area of disasterprevention.
Since signing a capital and business alliance agreement with Miyata
Industry in May 2001, we have commissioned Miyata Industry toproduce the fire extinguishers that we sell, and enhanced ourcompetitive edge in the field of disaster prevention. From now on, wewill strive to increase earnings by implementing further cost reductions
through sharing the business resources within the group.
Specifically, we will strengthen our sales activities through new productofferings by utilizing the technologies both of our company and those ofMiyata Industry, under themarket-in

concept based on mutual

utilization of sales channels and sales infrastructures, which arestrengths of both companies.
With Miyata Industry becoming our consolidated subsidiary, we will
strive to enhance the earning power of Miyata Industry, develop thesubsidiary into a core company of the Morita Group and increase thecorporate value of the whole group by generating substantial synergy
effects within the group.

0202

MORITA VIETNAM Completes its Factory
On July 22, a factory of our joint
venturecompany

MORITAVIETNAM (owned 50% by MORITAHOLDINGS) was completed and acompletion ceremony was held.
Inviting the director of Ministry ofPublic Security Fire Prevention and Protection Department of Vietnam,
the general director of Ministry of Police Fire Rescue Service of Ho Chi
Minh and the head of Fire Police Department of Hanoi Police, MORITAVIETNAM unveiled the new factory with a total land area 24,156裃
(factory building accounts for 5,000裃) and a production capacity of
approximately 200 vehicles per year.
Apart from MORITA VIETNAM, there has been only one other fireengine manufacturer in Vietnam, and the country has depended on
imports for quality fire engines. However, since Vietnam will have a newproduction base for fire engines as a result of the building of this factory,
the guests welcomed its completion.
MORITA VIETNAM has 65 employees. They are excellent human assets
who have industrial knowledge, including engineers who have acquired
CAD skills and technicians who are familiar with welding. In addition, until
the factory was completed, Morita's employees stayed in Vietnam to givethese people technical instructions. As aresult of such efforts, MORITA VIETNAM
has already manufactured 27 vehicles forthe Ministry of Public Security of Vietnam
since the factory was completed.
MORITA VIETNAM has set a production
target of at least 50 fire engines and 50
garbage trucks in the next fiscal year, andaims to further expand its sales networkby strengthening not only sales inVietnam but also sales activities in
Bangladesh, Laos, Cambodia, Sri Lanka
and the Middle East region.

0301

Message from Top Management
We at Morita are pleased to provide you with this Interim Report on the76th Term and a report on the state of our business.

State of Business
During this interim term, business confidence in Japan's economy
deteriorated further due to such factors as the rapidly increasing pricesof oil and raw materials amid the financial unrest stemming from thesubprime loan problem in the United States. Our company has beentransformed into a holding company through a spin-off implemented on
October 1, 2008, and changed its name toCORPORATION.

MORITA HOLDINGSWith this change, our company assumes suchfunctions as the formulation of business strategies for the whole group,and the group subsidiaries will strive to strengthen the group's earning
power and increase its corporate value by dynamically performing theirrespective operations.
As for business performance in this interim term, sales were 16,277
million yen, operating loss 152 million yen and ordinary profit 0 million
yen. The interim net loss was 249 million yen as a result of recording
special severance payments for early-retired employees as a special loss
at the subsidiaries.
By segment, sales for the Disaster Prevention Business were 9,068
million yen with an operating loss of 240 million yen. Sales for theEnvironmental Business were 7,208 million yen with an operating
income of 87 million yen.

0402

Future Outlook
As described above, the business performance of our group in thisinterim term was very discouraging. However, we will strive to increase
corporate value by thoroughly implementing more profit-focusedmanagement throughout the group and promoting human asset
cultivation in order to raise product development capacity and to reduce
expenses for sales and general administration within the group.
I would like to take this opportunity to ask our shareholders for theircontinuing support and encouragement.

November 2008

Masahiro Nakajima
President

0501

Consolidated Summary● Consolidated Balance Sheets
Morita Corporation and Consolidated Subsidiaries
Millions of yen

FY2008FY2007First half First half

FY2007Full Year¥ 23,453¥ 24,744¥ 25,408

27,84828,58829,170

178

329

289

6,447

6,106

5,587

¥ 57,928¥ 59,768¥ 60,456¥ 17,114¥ 21,688¥ 21,922

12,496

10,057

10,12529,61031,74532,048

4,746

4,746

4,746

4,365

4,364

4,365

20,25520,884

21,345(2,488)(2,500)(2,496)

26,87827,49527,959

1,086

453

345

0(5)

(0)

(4)

(244)

(244)

Assets               
Total assets
Liabilities     Net assets           !            "      # 
$%   &   
'&  (  )  
$%  (  )    & *      #         # +             
Total liabilities and net assets

7333

49

1,156236149282291

298

28,31828,022

28,408¥ 57,928¥ 59,768¥ 60,456

0602

● Consolidated Statements of Income
Morita Corporation and Consolidated Subsidiaries
Millions of yen

FY2007
FY2008First half First half

FY2007Full Year¥ 15,500¥ 16,277¥ 46,357

Cost of sales

11,361
4,138

12,133
4,143

35,301
11,055

Selling, general and administrative expenses

4,094
44

4,295
(152)

8,731
2,324

Other income

417

464

879

Other expenses

234

471

1,384

Income before income taxes

226(159)

1,820

22192−−22192

877
(139)
7370(3)(¥ 249)¥ 1,066

Net sales      

Income taxes                   Net income¥516● Consolidated Statements of Cash Flows
Morita Corporation and Consolidated Subsidiaries
Millions of yen

FY2007
FY2008First half First half

FY2007Full Year

Cash flows from operating activities(¥ 1,940)(¥ 2,722)¥ 1,057

Cash flows from investing activities

(825)

(886)

(2,972)

Cash flows from financing activities

1,487

2,674982

Net increase (decrease) in cash and cash equivalents(1,278)

(934)

(932)

Cash and cash equivalents at beginning of year

4,856

3,947

4,856

Cash and cash equivalents of newly consolidated subsidiaries,
net excluded subsidiaries from consolidation

23―23¥ 3,600¥ 3,012¥ 3,947

Cash and cash equivalents at end of year

0701

Company Overview（current as of October 1, 2008）

Overview
Company NameFoundedMORITA HOLDINGS CORPORATION

April 23, 1907

Established

July 23, 1932

Paid-in Capital

JPY4,746 mil

Osaka Head Office

5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi,Osaka, 544-8585, JapanTokyo Head Office3-25-31 Nishishinbashi, Minato-ku,
Tokyo, 105-0003, Japan

Type of BusinessControl/management
activities

ofundertaking

groupofofbusinesscompanies,

indirectandmanagement

operations on a commission basis

Group Companies
MORITA CORPORATION

1-5 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

MORITA BOHSAI TECH CORPORATION

3-25-31 Nishishinbashi, Minato-ku,
Tokyo, 105-0003, Japan

MORITA ENVIRONMENTAL TECH CORPORATION

1530 Konoda-cho, Funabashi-shi,
Chiba, 274-0081, Japan

MORITA ECONOS CORPORATION

1-48 Jinmu-cho, Yao-shi, Osaka,
581-0067, Japan

MORITA TECHNOS CORPORATION

5-5-20Shoji-Higashi,Ikuno-ku,Osaka-shi, Osaka, 544-0003, Japan
MORITA SOGO SERVICE CORPORATION

5-5-20Shoji-Higashi,Ikuno-ku,Osaka-shi, Osaka, 544-8585, Japan
UENO MORITA CORPORATION

1700-2 Konjinzuka, Sanagu-cho, Iga-shi,Mie, 518-0001, Japan

0802

MORITA U.G. CORPORATION

2-3-5 Kandasuda-cho, Chiyoda-ku, Tokyo,
101-0041, Japan

MORITA ENGINEERING CORPORATION

1-48 Jinmu-cho, Yao-shi, Osaka 5810067, Japan

HOKKAIDO MORITA CORPORATION

13-2-17

Naebo-cho,Higashi-ku,

Sapporo-shi, Hokkaido, 065-0043, JapanKAGOSHIMA MORITA PUMP CORPORATION

12-32, Matsubara-cho, Kagoshima-shi,Kagoshima, 892-0833, Japan

MORITA TOYO CORPORATION

1700-2 Konjinzuka, Sanagu-cho, Iga-shi,Mie, 518-0001, Japan

ALUVO CORPORATION

1479-1 Kamikanzo, Iwata-shi, Shizuoka,
438-0115, Japan

ENTO CORPORATION

1479-1 Kamikanzo, Iwata-shi, Shizuoka,
438-0115, JapanSICHUAN MORITA FIRE

Kexing Road, Chengdu Cross-Straits

SAFETY APPLIANCES CO., LTD

TechnologicalIndustry

DevelopmentZone, Nanjing, China, 211100
NANJING CHENGUANG MORITA

No. 188 Tianyuanzhong Road, Jiangning

ENVIRONMENT PROTECTION SCIENCE &Economic & Technical Development

TECHNOLOGY CO., LTDZone, Nanjing, China, 211100

MORITA HOLDRICH (HONG KONG)

FLAT/RM, 1909, 19/F, Hutchison HSE.,

COMPANY LIMITED

10 Harcourt RD., Central, Hong Kong

MORITA VIETNAM COMPANY LTD.

Minh duc Commune, My Hao District,Hong Yen Province,Vietnam09

Shareholder's MemoIntroduction to the ShareBusiness Year

April 1st to March 31stAnnual General Meeting of Shareholders

JuneReference date

Annual General Meeting of Shareholders − March 31stYear-end Dividend − March 31st
Interim Dividend − September 30th
Other dates published in advance as necessary

Notification Method

Posted on company website.
http://www.morita119.com/kohkoku/index.html

Administrator of the shareholders list
The Sumitomo Trust & Banking Co., Ltd.
4-5-33, Kitahama, Chuo-ku, Osaka City
Place of clerical office for the above
Stock Transfer Agency Department, the Sumitomo Trust & Banking Co., Ltd.
4-5-33, Kitahama, Chuo-ku, Osaka City
（Postal Address）

Stock Transfer Agency Department, the Sumitomo Trust & Banking Co., Ltd.
1-10 Nikko-cho, Fuchu City, Tokyo 183-8701（Telephone Enquiries） （Requests for application form for address change, etc.）Tel. +81-120-175-417（Other enquiries）Tel. +81-120-176-417（Internet Website URL）

http://www.sumitomotrust.co.jp/STA/retail/service/daiko/index.html

AgentAll branches throughout Japan of the Sumitomo Trust & Banking Co., Ltd.

Stock Listing

Tokyo Stock Exchange, Osaka Securities Exchange[Place of notification and contact for enquiries on the share after
computerization of share certificates]
On January 5, 2009, share certificates will be computerized. For notification
and/or enquiries on address change or the like after the computerization, contact
the securities firm where your account is established. For shareholders who did notuse JASDEC (Japan Securities Depository Center, Inc.) before the sharecertificates are computerized, an account (special account) will be opened at theabove Sumitomo Trust & Banking Co., Ltd., which is the shareholder register
administrator. For enquiries on the special account and notification of addresschange or the like, consult the above contact for telephone enquiries.

[Handling of request for purchase of fractional shares and/or further
purchase of shares before/after the computerization of share certificate]＜Request for purchase＞
For shareholders using the special account, applications will besuspended from the date of implementation of share certificatecomputerization (January 5, 2009) to January 25, 2009. If you
request a purchase between December 25 and 30, 2008, thepayment will be made on/after January 26, 2009.
＜Request for further purchase＞
Applications will be suspended from December 12, 2008 to January
14, 2009. For the shareholders using the special account,applications will be suspended from the date of implementation ofshare certificate computerization (January 5, 2009) to January 25,
2009.

10

Please visit our website
for the latest investor relations information.
http://www.morita119.com

Mail-order Website
for MORITA Original Goods

MORITA NETSHOP
http://morita119-netshop.com/Osaka Head Office
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, Tel. +81-6-6756-0100
Tokyo Head Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Tel. +81-3-5777-5777

http://www.morita119.com
Printed using
environmentallyfriendly soy ink.