3rd Quarter Results

Maruwa Co Ld
08 February 2007


                                                                                                 8 February 2007
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN


                      Consolidated financial results for the third quarter of Fiscal 2007


MARUWA CO., LTD. today announced its consolidated financial results for the third quarter of Fiscal 2007 
(1 April 2006 - 31 December 2006) as follows;

*The financial statements are prepared in conformity with the accounting principles generally accepted in
Japan.
*Consolidated subsidiaries: 8 companies (Maruwa (Malaysia) Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWA
Electronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., MARUWA QUARTZ Co., Ltd., MARUWA
SHOMEI Co., Ltd., and Hokko Denshi Co., Ltd.)

I. Summary of Consolidated Financial Results
(1) Summary of consolidated operating results
                                                                                                    JPY million
                                    3rd Quarter             3rd Quarter          Change %         (Reference)
                                 1 April - 31 Dec.       1 April - 31 Dec.                     For year ended
                                        2006                    2005                              31 March 2006
Net sales                                       15,407                 14,087            9.4%            20,278
Operating income                                 1,311                  1,241            5.6%             1,693
Income before income taxes                       1,413                  1,122           25.9%             1,669
Net income                                         962                    681           41.3%             1,135

Net income per share:                                                                                       JPY
Basic                                            87.87                  62.67           40.2%            103.82
Diluted                                          87.41                  62.31           40.3%            103.21


(2) Summary of consolidated financial condition
                                                                                                    JPY million
                                                                                                  (Reference)
                                   As of 31 Dec.           As of 31 Dec.         Change %      As of 31 March
                                        2006                    2005                                2006
Total Assets                                    32,833                 31,740            3.4%            33,044
Shareholders' equity                            27,553                 26,015            5.9%            26,557
Shareholders' equity ratio                       83.9%                  82.0%           +1.9%             80.4%
                                                                          JPY
Shareholders' equity per                      2,526.97               2,373.03            6.5%          2,423.40
share


II. Outlook for the fiscal 2007 (1 April 2006 - 31 March 2007)

                                           JPY million
Net sales                                       21,600
Net income                                       1,300
Net income per share (JPY)                      119.23

* The forecasts stated above are based on currently available information as of the date of announcement of
this document. Actual results may differ from these forecasts due to various factors.





Review of Operations
Net sales of this third quarter period were 15,407 million yen, up 9.4% compared to the previous third quarter.
Ceramic components sales increased 12.5% compared to the same period, reflecting strong demand in the
electronic components market.

As for profits, operating income increased 5.6% to 1,311 million yen compared to the previous third quarter
thanks to a revenue increase and cost reduction efforts.  Net income was 962 million yen, up 41.4% compared to
the same period last year.

Review of operating results by business segment
                                                                     JPY million
                                 3rd Quarter                 3rd Quarter
                              1 April - 31 Dec.           1 April - 31 Dec.
                                    2005                        2006
Ceramic Components:
Net sales                             12,445                     13,997
Operating income                       1,851                      1,938

Lighting Equipment:
Net sales                              1,642                      1,410
Operating income                       (228)                      (175)

Total:
Net sales                             14,087                     15,407
Operating income                       1,623                      1,763

Elimination:
Net sales                                 --                         --
Operating income                       (382)                      (452)

Consolidated:
Net sales                             14,087                     15,407
Operating income                       1,241                      1,311


Quarterly sales results of Ceramic Components segment by product division
                                                                                                    JPY million
                         For year ended 31 March
                         2006                                             2007
                                1Q              2Q          3Q         4Q              1Q           2Q       3Q
Circuit Ceramics             1,649           1,576       1,519      1,601           1,778        1,908    2,227
Machinery Ceramics           1,129           1,117       1,135      1,063           1,148        1,189    1,354
Radio Frequency Products       344             364         417        464             407          354      504
EMC Components               1,096           1,024       1,075      1,055           1,046        1,013    1,069
Total                        4,218           4,081       4,146      4,183           4,379        4,464    5,154

                                                                       JPY million
                                   Fiscal 2006                  Fiscal 2007
                               For 9-month period           For 9-month period
                              1 Apr. - 31 Dec. 2005        1 Apr. - 31 Dec. 2006
Circuit Ceramics                                   4,744                     5,913
Machinery Ceramics                                 3,381                     3,691
Radio Frequency Products                           1,125                     1,265
EMC Components                                     3,195                     3,128
Total                                             12,445                    13,997





Review of operations by product division



Ceramic Components segment

Circuit Ceramics

Total sales of Circuit Ceramics were 5,913 million yen, an increase of 24.6%
compared to the previous third quarter, enjoying active demand in substrate
products; ceramic substrates for chip resistors, Alumina large substrates,
Aluminum Nitride substrates, and other products generally increased revenues.



Machinery Ceramics

Total sales of Machinery Ceramics increased 9.2% to 3,691 million yen compared
to the third quarter last year.

Our sales of quarts glass products increased due to a favorable semiconductor
equipment-related market since the first half of this year and acquisition of
new customers.



Radio Frequency Products

Total sales of Radio Frequency Products were 1,265 million yen, up 12.4% from
the same period last year.  Due to growth of the products for base stations,
sales of dielectric ceramics and device products including band pass filters
increased.



EMC Components

Total sales of EMC Components were 3,128 million yen, down 2.1% from the third
quarter last year.

Inventory adjustments in digital home electronics including flat screen TVs
began from the second half of this year; a part of our products were adversely
affected by inventory adjustments at our customers.  On the other hand, sales
expansion has been steadily promoted for new customers and applications through
developing our product lineups.



Lighting Equipment segment

Total sales of Lighting Equipment decreased 14.1% to 1,410 million yen compared
to the third quarter last year, influenced by reduction of construction in
public works.





Consolidated financial condition

Total assets at the end of the third quarter were 32,833 million yen, a decrease
of 211 million yen compared to the end of the previous fiscal year as a result
of 9-month operating activities.

Total liabilities were 5,280 million yen, down 1,207 million yen from the
previous fiscal year-end due mainly to a decrease of trade notes and accounts
payable.  Total shareholders' equity increased 996 million yen to 27,553 million
yen due to an increase of retained earnings.

Capital expenditures in this third quarter were 1,745 million yen, and
depreciation cost was 1,219 million yen.



Consolidated Balance Sheet
                                                                                        JPY million
                                  3rd Quarter       3rd Quarter                      (Reference)
                                 As of 31 Dec.     As of 31 Dec.      Change %    As of 31st March
                                      2006              2005                            2006
ASSETS
Current assets:
Cash & deposits                            6,404              7,340        -12.8%             7,899
Trade notes & accounts                     7,181              6,242         15.0%             7,003
receivable
Inventories                                3,414              2,959         15.4%             2,869
Other                                        677                411         64.7%               817
Total current assets                      17,676             16,952          4.3%            18,588

Property, plant & equipment:
Net property, plant & equipment           12,621             12,107          4.2%            12,087

Investment & other assets:
Total investments & other                  2,536              2,681         -5.4%             2,369
assets

Total assets                              32,833             31,740          3.4%            33,044

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade notes & accounts payable             1,833              1,983         -7.6%             2,590
Other                                      2,370              2,188          8.3%             2,391
Total current liabilities                  4,203              4,171          0.8%             4,981

Long-term liabilities:
Long-term debt                                77                224        -65.6%               188
Accrued retirement benefits                  120                320        -62.5%               300
Other                                        880              1,010        -12.9%             1,018
Total long-term liabilities                1,077              1,554        -30.7%             1,506

Shareholders' equity:
Common stock, no par value;                6,710              6,710            --             6,710
authorized: 26,000,000 shares;
issued & outstanding:11,050,000 shares in 2005 and 11,072,000
shares in 2006
Capital surplus                            9,747              9,747            --             9,747
Retained earnings                         11,152             10,068         10.8%            10,522
Net unrealized gains on                       10                 85        -88.2%                38
available-for-sale securities
Foreign currency translation                 336              (361)            --             (206)
adjustment
Advance on subscription of own                 5                  1            --                --
shares
Treasury stock, at cost                    (407)              (235)            --             (254)
Total shareholders' equity                27,553             26,015          5.9%            26,557

Total liabilities &                       32,833             31,740          3.4%            33,044
shareholders' equity





Consolidated Statements of Income
                                                                                        JPY million
                                   3rd Quarter       3rd Quarter                     (Reference)
                                   1 April - 31   1 April - 31 Dec.    Change %    For year ended
                                       Dec.
                                       2006              2005                       31 March 2006
Net sales                                  15,407             14,087         9.4%            20,278
Cost of sales                              10,940              9,927        10.2%            14,494
Gross profit                                4,467              4,160         7.4%             5,784
Selling, general &                          3,156              2,919         8.1%             4,091
administrative
expenses
Operating income                            1,311              1,241         5.6%             1,693
Other income (expenses):
Interest & dividend income                     35                 28        25.0%                39
Interest expenses                             (5)                (6)           --               (8)
Foreign exchange gain (loss),               (117)               (89)           --             (158)
net
Other, net                                    189               (52)           --               103
Other income (expenses), net                  102              (119)           --              (24)
Income before income taxes                  1,413              1,122        25.9%             1,669

Income tax expenses (benefits):
Current                                       402                248        62.1%               299
Deferred                                       49                193       -74.6%               235

Net income                                    962                681        41.3%             1,135




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