1st Quarter Results

Maruwa Co Ld
06 August 2004


                                                                                                6 August 2004
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN

FOR IMMEDIATE RELEASE

Nagoya- MARUWA CO., LTD. today announced its consolidated business results for the first quarter of fiscal
2005, the three-month period ended 30 June 2004 as follows; -

Note1) Statements of income are unaudited.
Note2) MARUWA acquired the entire shares of Kimmon Quartz Co.,Ltd. as a new consolidated subsidiary on 1
April 2004, and changed its name to MARUWA QUARTZ CO., LTD.

Consolidated operating results and financial conditions for the first quarter of fiscal
2005
 <1 April 2004 - 30 June 2004>

1. Summary of operating results
                                                                                    JPY
                                                                                million
                          Current 1st Qt       Previous 1st Qt         (Reference)
                        from 1 April 2004     from 1 April 2003      For fiscal 2004
                         to 30 June 2004       to 30 June 2003     ended 31 March 2004
                                    Change%               Change%
Net sales                  4,176      46.4%      2,852       2.0%                12,003
Operating income             308     623.6%         42     -58.4%                   686
Net income                   156     187.6%         54     -41.0%                   475
                                         --
Net income per share :                                                              JPY
(Basic)                    14.32                    --                            42.67
(Diluted)                  14.32                    --                            42.67

Note) Change figures indicate increases (decreases) percentages compared to the first quarter results in the
previous fiscal year, respectively.

Review of operations
Both net sales and profits for the first quarter of this year resulted close to the figures in the forecast
announced in May, due to the brisk market of digital home devices and solid sales for semiconductor
manufacturing equipment, following the fourth quarter period of the previous fiscal year.
Net sales posted more than the previous first quarter results for all productions, totaled 46% up; 30% up
compared to the fourth quarter of the previous year.
Operating income increased 266 million yen to 308 million yen compared to the previous first quarter.  Strong
recovery has been shown especially for the Circuit Ceramics division, in which ceramic substrates for chip
resistors and large substrates sold favorably.

Quarterly sales results by product division
                                                                         JPY
                                                                     million
                       For year ended 31st March
                         2004                                        2005
                        1st Qt     2nd Qt     3rd Qt     4th Qt     1st Qt
Circuit Ceramics           1,239      1,306      1,396      1,492      1,746
Machinery Ceramics           637        671        682        718      1,363
Radio Frequency              253        209        271        255        259
Products
EMC Components               723        685        708        758        808
Total                      2,852      2,871      3,057      3,223      4,176

Circuit Ceramics
Net sales for Circuit Ceramics were 1,746 million yen, an increase of 17% compared to the last three-month
period.  The sales recorded an increase for the fifth consecutive quarter.
For this product division, every product recorded more than two-digit increase of sales compared with the
last quarter.  Especially, ceramic substrates for chip resistors, which are essential for every kind of
electric circuits, showed favorable sales continued from the last quarter in Japan and other Asian regions
and resulted in an increase of 18 % in sales.  Large substrates grew in Europe and increased sales in 23%.

Machinery Ceramics
Net sales of Machinery Ceramics were 1,363 million yen, an increase of 90% compared to the last quarter.
MARUWA QUARTZ, a new consolidated subsidiary from April this year, has acquired solid orders from the
semiconductor manufacturing market.  Including this subsidiary, our quartz glass business started in April
2003 is now becoming another pillar of profits.  Slider ceramics for FDD showing remarkable recovery since
the third quarter of the previous year resulted in an increase of 17% in sales compared to the last quarter
thanks to steady sales in the regions with active demand for low-price PCs.

Radio Frequency Products
Radio Frequency Products posted net sales of 259 million yen, up 2% compared to the last quarter.  Thin film
products grew 39% in sales with rising demand for rapidly changing DVD appliances.  There was a favorable
move for device products for PHS in China early in this quarter although the market entered an adjustment
phase later in this quarter.  On the other hand, demands from general products including wireless
applications for commercial use were steady because of our sales enhancement since the latter half of the
previous year.

EMC Components
Net sales for EMC Components were 808 million yen, up 7% compared to the last quarter, moving in a recovery
trend after bottoming out in the second quarter of the previous fiscal year.
Multi-layer ceramic capacitors sales were solid especially for digital cameras or in the domestic power
supply market.  EMI filters began to be revived in a prolonged stagnant overseas market, and increased 16% in
sales compared to the last quarter.


2. Summary of consolidated financial
conditions
                                                                                    JPY
                                                                                million
                          Current 1st Qt       Previous 1st Qt         (Reference)
                        As of 30 June 2004   As of 30 June 2003    As of 31 March 2004
Total Assets              27,973                           26,719                26,664
Shareholders' equity      23,652                           23,490                23,429
Shareholders' equity       84.6%                            87.9%                 87.9%
ratio

                                                                                    JPY
Shareholders' equity    2,165.14                         2,136.87              2,144.11
per share


3. Outlook for the fiscal 2005 ending 31 March 2005
For the first quarter, sales and profits resulted favorably and are expected to fluctuate within the range of
the forecast announced on 7 May 2004.  Therefore, there is no change regarding the forecast.


I. Consolidated Balance Sheets (summary)
                                                                         JPY                              JPY
                                                                     million                          million
                          Current 1st Qt       Previous 1st Qt                               Fiscal 2004
                                                                                             (Reference)
                        As of 30 June 2004   As of 30 June 2003                          As of 31
                                                                    Change              Mar. 2004    Change
ASSETS
Current assets
Cash & deposits                       5,922                 5,464        458                 6,202      (280)
Notes and accounts receivable,        4,802                 3,279      1,523                 3,740      1,062
trade
Inventories                           3,150                 3,734      (584)                 3,280      (130)
Other current assets                    372                   229        143                   332         40
Total current assets                 14,246                12,706      1,540                13,554        692

Property, plant & equipment          11,360                11,742      (382)                10,710        650

Investments & other                   2,367                 2,271         96                 2,400       (33)
assets

Total assets                         27,973                26,719      1,254                26,664      1,309

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes & accounts payable, trade         848                   448        400                   670        178
Short-term debt                          --                    --         --                    --         --
Other current                         1,581                 1,398        183                 1,360        221
liabilities
Total current                         2,429                 1,846        583                 2,030        399
liabilities

Long-term liabilities:
Long-term debt                          447                   599      (152)                   482       (35)
Accrued pension & severance             754                   145        609                   176        578
costs
Other                                   691                   639         52                   547        144
Total long-term                       1,892                 1,383        509                 1,205        687
liabilities

Shareholders' equity:
Common stock, authorized:             6,683                 6,683          0                 6,683          0
 26,000,000 shares; issued & outstanding:
 11,050,000 shares in
2003
Additional paid-in                    9,710                 9,710          0                 9,710          0
capital
Retained earnings                     8,589                 7,719        870                 8,516         73
Net unrealized gains (losses) on         26                     5         21                    38       (12)
 other securities
Foreign currency translation        (1,053)                 (425)      (628)               (1,215)        162
 adjustment
Treasury stock                        (303)                 (202)      (101)                 (303)          0
Total shareholders'                  23,652                23,490        162                23,429        223
equity

Total liabilities &                  27,973                26,719      1,254                26,664      1,309
 shareholders' equity


II. Consolidated Statements of Income
(summary)
                                                                                                          JPY
                                                                                                      million
                          Current 1st Qt       Previous 1st Qt                               (Reference)
                        from 1 April 2004     from 1 April 2003          Change            For fiscal 2004
                         to 30 June 2004       to 30 June 2003      amount       %       ended 31 March 2004
                                   to net                to net                                      to net
                                   sales                 sales                                       sales
Net sales                  4,176                 2,852                 1,324      46.4%     12,003
Cost of sales              3,120      74.7%      2,232      78.3%        888      39.8%      9,022      75.2%
Gross profit               1,056      25.3%        620      21.7%        436      70.3%      2,981      24.8%
Selling, general &
administrative               748      17.9%        578      20.3%        170      29.4%      2,295      19.1%
expenses
Operating income             308       7.4%         42       1.5%        266     633.3%        686       5.7%
Other income                (39)      -0.9%         52       1.8%       (91)    -175.0%         25       0.2%
(expenses)
Income before income         269       6.4%         94       3.3%        175     186.2%        711       5.9%
taxes
Income tax expenses          113       2.7%         40       1.4%         73     182.5%        236       2.0%
Net income                   156       3.7%         54       1.9%        102     188.9%        475       4.0%




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