1st Quarter Results

Maruwa Co Ld
08 August 2007


                                                                   8 August 2007

MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN

                 Consolidated financial results for the first quarter of Fiscal 2008

MARUWA CO., LTD. today announced its consolidated financial results for the first quarter of Fiscal
2008

(1 April 2007 - 30 June 2007) as follows;

I. Summary of Consolidated Financial Results

(1) Summary of consolidated operating results

                                                                                           JPY million
                                    1st Quarter       1st Quarter     Change %             (Reference)
                              1 April - 30 June 1 April - 30 June                       For year ended
                                           2006              2007                        31 March 2007

Net sales                                 4,878             4,719        -3.3%                  21,062
Operating income                            420               359       -14.5%                   1,924
Income before income taxes                  519               411       -20.8%                   1,912
Net income                                  357               272       -23.8%                   1,334

Net income per share:                                                                              JPY
  Basic                                   32.55             25.12       -22.8%                  122.04
  Diluted                                 32.36             25.03       -22.7%                  121.45

(2) Summary of consolidated financial condition

                                                                                           JPY million
                                  As of 31 Dec.     As of 31 Dec.     Change %             (Reference)
                                           2006              2007                       As of 31 March
                                                                                                  2006

Total net assets                         26,624            28,383         6.6%                  27,907
Total liabilities and net                32,006            33,616         5.0%                  33,872
assets
Equity ratio                              83.2%             84.4%        +1.2%                   82.4%
                                                                                                   JPY
Shareholders' equity per               2,429.96          2,625.41         8.0%                2,572.66
share

II. Outlook for the fiscal 2008 (1 April 2007 - 31 March 2008)

The forecast figures announced in 11 May 2007 is not changed.

*The financial statements are prepared in conformity with the accounting principles generally accepted
 in Japan.

*Consolidated subsidiaries: 10 companies (Maruwa (Malaysia) Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWA
 Electronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd.,
 Maruwa (Shanghai) Trading Co., Ltd. , MARUWA  QUARTZ Co., Ltd., MARUWA SHOMEI Co., Ltd., and Hokko
 Denshi Co., Ltd.)


Review of Operations


1. Review of Operations

Consolidated net sales for the first quarter of this fiscal year were 4,719
million yen, 3.3% down from the same period last year.  A large decrease of
sales in the Lighting Equipment business caused the decline in consolidated net
sales, even though the sales of the Ceramic Components business increased 3.5%
compared to the first quarter of the previous year.

  Operating income for the first quarter was 359 million yen, down 14.5% from
the same period last year.  The profit was weighed down as a result of the
transfer and reorganization of manufacturing equipment mainly in the Machinery
Ceramics division.  Net income was 272 million yen, down 23.8% from the same
period last year due to a loss of 94 million yen on sales and disposal of
equipment.

  The results of this first quarter stated above were just as we expected at the
beginning of this fiscal year; the outlook for the current fiscal year is not
changed from the forecast figures announced on 11 May 2007.



2. Operating results by business segment

Ceramic Components segment

Circuit Ceramics

Total sales of the Circuit Ceramics division for this first quarter decreased
4.8% to 1,692 million yen from the first quarter of the previous year.

This division was slow in recovery from the adjustment phase of the ceramic
components market in the previous fourth quarter period.  The sales of mainstay
ceramic substrates for chip resistors decreased due to this market adjustment
which continued to affect our operation in the first quarter.


Machinery Ceramics

Total sales of the Machinery Ceramics division were 1,325 million yen, up 15.4%
from the same period last year.

  The sales of quartz glass products have continued to increase since the
previous year due to a solid demand in the semiconductor-equipment related
market.


Radio Frequency

Total sales from the Radio Frequency division increased 16.5% to 474 million yen
compared to the same period last year.

  Dielectric ceramics extended sales channels in the North America; automotive
ceramic substrates began to report sales from this year.


EMC Components

Total sales of the EMC Components division were 1,041 million yen, down 0.5%
from the first quarter of the previous year.

  This division was affected by a slow recovery of the electronic components
market while the sales of EMI filters and inductors increased especially for
thin screen TVs.



Lighting Equipment segment

Total sales from the Lighting Equipment segment decreased 62.5% to 187 million
yen compared to the same period last year.  The sales posted a big drop compared
to the sales in the previous first quarter which included a large amount of
orders originally occurred in the year before last.


Operating results by business segment
                                                                JPY million
                                       1st Quarter              1st Quarter
                                 1 April - 30 June        1 April - 30 June
                                              2006                     2007

Ceramic Components:

Net sales                                    4,379                    4,532
Operating income                               662                      596

Lighting Equipment:
Net sales                                      499                      187
Operating income                              (61)                     (71)

Total:
Net sales                                    4,878                    4,719
Operating income                               601                      525

Elimination:
Net sales                                       --                       --
Operating income                             (181)                    (166)

Consolidated:
Net sales                                    4,878                    4,719
Operating income                               420                      359



Quarterly sales results of Ceramic Components segment by product division
                                                                                    JPY million
                              For year ended 31 March 2007                            2008
                                        1Q           2Q           3Q           4Q            1Q

Circuit Ceramics                     1,778        1,908        2,227        1,690         1,692
Machinery Ceramics                   1,148        1,189        1,354        1,255         1,325
Radio Frequency Products               407          354          504          370           474
EMC Components                       1,046        1,013        1,069        1,029         1,041
Total                                4,379        4,464        5,154        4,344         4,532



Financial Condition


Total liabilities and net assets as of the end of this first quarter were 33,616
million yen, down 256 million yen from the end of last year due especially to a
decrease in current assets.  This reflected the sales trend of the Lighting
Equipment that sales are likely to occur at the end of fiscal year.  Total
liabilities decreased 732 million yen from the previous year end.  Total net
assets increased 476 million yen because of an increase in retained earnings.

  Capital expenditure in this quarter amounted to 910 million yen.  Depreciation
costs were 411 million yen.



New consolidation

Maruwa Korea Co., Ltd. and Maruwa (Shanghai) Trading Co., Ltd. have been
included in the consolidated results since this first quarter.


Consolidated Balance Sheet
                                                                                          JPY million
                                       1st Quarter        1st Quarter                     (Reference)
                                     As of 30 June      As of 30 June     Change %   As of 31st March
                                              2006               2007                            2007

ASSETS

Current assets:

Cash & deposits                              7,180              6,577        -8.4%              6,593
Trade notes & accounts                       6,560              6,734         2.7%              7,797
receivable
Inventories                                  2,940              4,020        36.7%              3,559
Other                                          368                574        56.0%                672
Total current assets                        17,048             17,905         5.0%             18,621

Property, plant & equipment:
Net property, plant & equipment             12,192             13,214         8.4%             12,726

Investment & other assets:
Total investments & other assets             2,766              2,497        -9.7%              2,525

Total assets                                32,006             33,616         5.0%             33,872

LIABILITIES
Current liabilities:
Trade notes & accounts payable               1,880              1,815        -3.5%              2,289
Other                                        2,227              2,384         7.0%              2,594
Total current liabilities                    4,107              4,199         2.2%              4,883

Long-term liabilities:
Long-term debt                                 151                138        -8.6%                135
Accrued retirement benefits                    165                 --           --                 --
Other                                          959                896        -6.6%                947
Total long-term liabilities                  1,275              1,034       -18.9%              1,082

Total liabilities                            5,382              5,233        -2.8%              5,965

NET ASSETS
Shareholders' equity:
Common stock                                 6,710              6,710           --              6,710
Capital surplus                              9,747              9,747           --              9,747
Retained earnings                           10,743             11,724         9.1%             11,521
Treasury stock, at cost                      (254)              (623)           --              (537)
Total shareholders' equity                  26,946             27,558         2.3%             27,441

Valuation and translation adjustments:
Net unrealized gains on                          0                 15           --                  8
 available-for-sale securities
Foreign currency translation                 (322)                810           --                458
adjustments
Total valuation and translation              (322)                825           --                466
adjustments

Total net assets                            26,624             28,383         6.6%             27,907
Total liabilities and net assets            32,006             33,616         5.0%             33,872



Consolidated Statement of Income
                                                                                         JPY million
                                        1st Quarter        1st Quarter                   (Reference)
                                  1 April - 30 June  1 April - 30 June     Change %   For year ended
                                               2006               2007                 31 March 2007

Net sales                                     4,878              4,719        -3.3%           21,062
Cost of sales                                 3,438              3,352        -2.5%           15,003
Gross profit                                  1,440              1,367        -5.1%            6,059
Selling, general &                            1,020              1,008        -1.2%            4,135
administrative
 expenses
Operating income                                420                359       -14.5%            1,924
Other income (expenses):
Interest & dividend income                       10                 17        70.0%               52
Interest expenses                               (2)                (1)           --              (5)
Foreign exchange gain (loss),                    49               (10)           --            (196)
net
Other, net                                       42                 46         9.5%              137
Other income (expenses), net                     99                 52       -47.5%             (12)
Income before income taxes                      519                411       -20.8%            1,912

Income tax expenses                             162                139       -14.2%              578

Net income                                      357                272       -23.8%            1,334




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