3rd Quarter Results

Maruwa Co Ld
06 February 2004


                                                                                                         6 February 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 third quarter ended 31st December 2003 as follows; -

1. Notes for the report of consolidated business results for the third quarter
(1) Changes in accounting policies in the current fiscal year:     None
(2) Changes in reporting entities:     1 consolidated subsidiary was added compared to the fiscal 2003 ended 31st March 
                                       2003.
                                       MARUWA TFG Co., Ltd., former TOKYO FINE GLASS Co.,Ltd., a subsidiary which was
                                       acquired on 31st March 2003, has contributed to the figures of consolidated
                                       statements of income since the fiscal 2003, and of consolidated balance sheets
                                       since the fiscal 2004, respectively.
(3) Financial statements were not audited.

2. Consolidated statements of income
                                                                                                          JPY million
                     -------------------------------------------------------------------------------------------------
                     For 3Q (1 October to 31 December)                For 9 months (1 April to 31 December)
                      FY 2004            FY 2003           Change %    FY 2004            FY 2003            Change %
                     -------------------------------------------------------------------------------------------------
                              % to sales        % to sales                    % to sales          % to sales
                              ----------        ----------                    ----------          ----------
Net sales               3,057             2,445              25.0%      8,781              7,875     11.5%
Cost of sales           2,251      74%    1,914      78%     17.6%      6,715      76%     6,079       77%     10.5%
                        ------            ------                        ------             ------
Gross profit              806      26%     531       22%     51.8%      2,066      24%     1,796       23%     15.0%
                        ------            ------                        ------             ------
Selling, general & administrative
expenses                  572      19%     502       21%     13.9%      1,705      19%     1,495       19%     14.0%
                        ------            ------                        ------             ------
Operating income          234       8%      29        1%    706.9%        361       4%       301        4%     19.9%
                        ------            ------                        ------             ------
Other income (expenses)    50       2%     (16)       --        --        146       2%       (61)       --        --
                        ------            ------                        ------             ------
Income before             284       9%      13        1%   2084.6%        507       6%       240        3%    111.3%
 income taxes           ------            ------                        ------             ------
Income tax expenses        35       1%      (3)       --        --        143       2%        86        1%     66.3%
                        ------            ------                        ------             ------
Net income                249       8%      16        1%   1456.3%        364       4%       154        2%    136.4%
                        ------            ------                        ------             ------
                                                                                                           (Q=quarter)

3. Sales breakdown by product division
                                                                                                 JPY million
                        -------------------------------------------------------------------------------------
                        For 3Q (1 October to 31 December)           For 9 months (1 April to 31 December)
                         FY 2004    FY 2003    Change    Change%     FY 2004    FY 2003    Change    Change%
                        -------------------------------------------------------------------------------------
Circuit Ceramics           1,396      1,137       259      22.8%       3,941      3,488       453      13.0%
MachineryvCeramics           682        288       394     136.8%       1,991      1,021       970      95.0%
Radio Frequency Products     271        262         9       3.4%         733      1,017      (284)    -27.9%
EMC Components               708        758       (50)     -6.6%       2,116      2,349      (233)     -9.9%
                        --------------------                        --------------------
Total                      3,057      2,445       612      25.0%       8,781      7,875       906      11.5%
                        --------------------                        --------------------
                                                                                                  (Q=quarter)

4. Quarterly sales trend
                                                               JPY million
                              ---------------------------------------------
                              FY 2003                 FY 2004
                                3Q        4Q        1Q       2Q      3Q
                              ---------------------------------------------
Circuit Ceramics               1,137     1,194     1,239    1,306    1,396
Machinery Ceramics               288       264       637      671      682
Radio Frequency Products         262       251       253      209      271
EMC Components                   758       753       723      685      708
                              ---------------------------------------------
Total                          2,445     2,462      2,852    2,871   3,057
                              ---------------------------------------------
                                                               (Q=quarter)

Review of operations

Circuit Ceramics
Sales of Circuit Ceramics were 1,396 million yen, an increase for four consecutive quarters 
of 22.8% compared to the third quarter of the previous fiscal year. As for ceramic substrates 
for chip resistors, one of the core products, substrates for small-sized resistors grew due to 
favorable sales for digital home appliances such as DVD devices and digital cameras, and mobile 
phones which were in a boom of replacement to further advanced models. Also, higher value-added 
substrates for resistors surged for use in notebook PCs.

Machinery Ceramics
Sales of Machinery Ceramics increased 136.8% to 682 million yen compared to the previous year.
Quartz glass business, started in April 2003, held solid orders from revitalized semiconductor 
manufacture equipment markets. Magnetic head supporting blocks regained shares substantially 
through the rise in orderssince the third quarter amid the shakeup of the PC's head parts industries.

Radio Frequency Products
Sales of Radio Frequency Products were 271 million yen, up 3.4% compared to the previous year. 
This division moved onto a recovery trend in this quarter after it suffered continuing sales 
downturn until the last quarter.
Device products struggled in mobile phones markets in the second quarter but contributed to a sales 
increase thanks to marketing efforts in markets of wireless applications for general use.
Sales of dielectric ceramics were slumping amid a production adjustment period at fluctuating 
mobile phones parts manufacturers. Orders to thin-film products for optical communications 
devices have increased since this
quarter.

EMC Components
Sales of EMC Components increased in comparison with the previous quarter that proved this 
division entered in a recovery trend after hitting the bottom in August although sales resulted 
in 708 million yen, down 6.6% fromthe previous term.
Multilayer ceramic chip capacitors had relatively favorable sales in Japan for power supply 
and semiconductor manufacture equipment while facing a tough competition especially for price 
in overseas PC parts markets primarily in Taiwan. Sales of EMI filters moved flat throughout 
the current year.

5. Consolidated balance sheets
                                                          JPY million                 JPY million
                       -----------------------------------------------    ------------------------
                       FY 2003         FY 2004
                        As of 31 Mar.   As of 30 Sept.   As of 31 Dec.     Change in    Change in
                                2003             2003            2003       9 months     3 months
                       -----------------------------------------------    -----------------------
A  SSETS
Current assets:
Cash & deposits               5,291            5,782           5,871            580          89
Notes and accounts
 receivable, trade            3,249            3,261           3,714            465         453
Inventories                   3,847            3,536           3,431           (416)       (105)
Other current assets            310              364             320             10         (44)
                             -------          -------         -------
Total current assets         12,697           12,943          13,336            639         393
                             -------          -------         -------

Property, plant &
equipment                    11,912           11,259          10,919           (993)       (340)
                             -------          -------         -------

Investments & other assets    2,272            2,548           2,511            239         (37)
                             -------          -------         -------

Total assets                 26,881           26,750          26,766           (115)         16
                             -------          -------         -------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes & accounts
 payable, trade                  489              482             616            127         134
Short-term debt                   --               --              --             --          --
Other current liabilities      1,462            1,439           1,440            (22)          1
                              -------          -------         -------
Total current liabilities      1,951            1,921           2,056            105         135
                              -------          -------         -------

Long-term liabilities:
Long-term debt                   630              556             520           (110)        (36)
Accrued pension & 
 severance costs                 139              143             150             11           7
Other                            672              610             575            (97)        (35)
                              -------          -------         -------
Total long-term liabilities    1,441            1,309           1,245           (196)        (64)
                              -------          -------         -------

Shareholders' equity:
Common stock, authorized:
 26,000,000 shares; issued &outstanding:
 11,050,000 shares in 2003     6,683            6,683           6,683              0           0
Additional paid-in capital     9,710            9,710           9,710              0           0
Retained earnings              7,748            8,232           8,404            656         172
Net unrealized gains (losses)
 on other securities              (7)              28              17             24         (11)
Foreign currency translation    (443)            (931)         (1,147)          (704)       (216)
 adjustment
Treasury stock                  (202)            (202)           (202)             0           0
                              -------          -------         -------
Total shareholders' equity    23,489           23,520          23,465            (24)        (55)
                              -------          -------         -------

Total liabilities & 
 shareholders' equity         26,881           26,750          26,766           (115)         16
                              -------          -------         -------
Shareholders' equity ratio
                               87.4%            87.9%           87.7%
Shareholders' equity
 per share (yen)              2136.15          2139.55         2134.56

END.



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