MODEC, INC. and Subsidiaries

CONSOLIDATED BALANCE SHEET (SUMMARY)
September 30, 2004ASSETS

Thousands of Japanese yen
September 30,
December 31,2004
2003
CURRENT ASSETS:
Cash and time deposits
Accounts receivable - trade
Inventories
Short-term loans receivable
Other
Total current assets
NON-CURRENT ASSETS:PROPERTY AND EQUIPMENT:
Machinery and equipment
Other

INTANGIBLE ASSETSOTHER ASSETS:
Investment securities
Long-term lease receivable
Other
Total non-current assets
Total assets¥ 7,871,773
14,170,295
65,99920,700,099
5,000,600
47,808,769¥ 12,264,060
15,326,103
1,924,492
8,945,744
4,321,874
42,782,275

6,012,464
146,413
6,158,878

4,563,132
114,440
4,677,572

944,165994,619

3,653,078
7,244,268
3,712,628
14,609,974
21,713,017

2,492,456
8,256,419
1,059,117
11,807,993
17,480,185¥ 69,521,787¥ 60,262,460

LIABILITIES AND SHAREHOLDERS’ EQUITY

Thousands of Japanese yen
September 30,
December 31,2004
2003
CURRENT LIABILITIES:
Accounts payable - trade
Short-term loans payable
Other
Total current liabilities¥ 10,601,873
28,294,758
2,957,951
41,854,583¥ 11,329,726
11,843,970
3,049,131
26,222,828

LONG-TERM LIABILITIES:Long-term loans payable
Severance and retirement benefits
Other
Total long-term liabilities

6,729,045
104,671
1,519,938
8,353,654

13,897,863
95,8592,236,778
16,230,501

Total liabilities

50,208,238

42,453,330

MINORITY INTERESTS IN
CONSOLIDATED SUBSIDIARIES

2,724,127

2,627,103

4,659,200
5,175,350
6,621,559
367,089(233,547)(230)
16,589,421

4,659,200
5,175,350
5,648,661
337,397(638,582)
15,182,026¥ 69,521,787¥ 60,262,460

SHAREHOLDERS’ EQUITY:
Common stock;authorized - 102,868,000 shares
outstanding - 29,992,000 shares

Capital surplus
Retained earnings
Net unrealized holding gains on securities
Foreign currency translation adjustments
Treasury stock
Total shareholders’ equity
Total liabilities and shareholders’equity

MODEC, INC. and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME (SUMMARY)
For 9 months ended September 30, 2004
Thousands of Japanese yen
January 1, 2004 thru January 1, 2003 thru
September 30, 2004 December 31, 2003

SALES
COST OF SALES
Gross profit¥ 39,259,823
35,207,930
4,051,893¥ 66,751,629
59,062,169
7,689,460

SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
Operating profit

2,999,505
1,052,388

3,541,508
4,147,951

OTHER INCOME:
Interest income and dividend income
Equity in earnings of affiliates
Other
Total other income

647,411
378,075
365,682
1,391,168

192,943
148,154
38,661
379,759

516,166
222,171
58,963
797,301

652,809366,597
317,320
1,336,728

1,646,255

3,190,982

41,874
41,874369,378
361,766731,145

258,769
98,633
357,402-1,330,726

3,922,127

671,200(741,503)
80,722¥ 1,320,308

845,795
197,768
849,272¥ 2,029,291

OTHER EXPENSES:Interest expenses
Depreciation of idle assets
OtherTotal other expenses
ORDINARY INCOME
Extraordinary Profits
Gain from sales of fixed assets
Recovery of repair costs
Gain from forgiveness of debt

Extraordinary Loss
Bad debts loss
Loss on sales of fixed assets

INCOME BEFORE INCOME TAXES AND
MINORITY INTERESTSINCOME TAXES:
Current and adjustment to prior years
Deferred
MINORITY INTERESTSNET INCOME

Net income per share
Diluted net income per share

Japanese yen¥44.02¥72.67¥42.03¥70.54