3rd Quarter Results

Maruwa Co Ld
10 February 2005


                                                                                           10 February 2005
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN

FOR IMMEDIATE RELEASE

           Consolidated operating results and financial conditions for the third quarter of fiscal 2005

MARUWA CO., LTD. today announced its consolidated business results for the third quarter of fiscal 2005, a
nine-month period ended 31 December 2004 as follows;
Note1: None of the accounting principles were changed from the last fiscal term.
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.

1. Summary of operating results
                             Current 3rd Qt             Previous 3rd Qt               (Reference)
                            from 1 April 2004          from 1 April 2003            For fiscal 2004
                           to 31 December 2004        to 31 December 2003         ended 31 March 2004
                       JPY million     Change%      JPY million     Change%           JPY million
Net sales                    11,913          35.7%          8,781       11.5%                      12,003
Operating income              1,066         195.3%            361       19.9%                         686
Net income                    1,107         204.1%            364      136.4%                         475

Net income per share :             JPY                        JPY                         JPY
(Basic)                                     102.29                         --                       42.67
(Diluted)                                   102.12                         --                       42.67

Note1: Change figures indicate increases (decreases) percentages compared to the third quarter results in the
previous fiscal year, respectively.

Note2: Neither the third quarter results of the fiscal 2005 nor those of the fiscal 2004 are audited.

Review of operations

  In the third quarter of this fiscal year, order level declined because markets were in an adjustment period
particularly in overseas compared to the second quarter which was led by a brisk digital home devices market and a
favorably semiconductor-equipment market.

  Consolidated net sales for the nine-month period of this fiscal term increased 35.7% compared to the
corresponding period of the previous year since total revenue increased especially through a newly-consolidated
subsidiary of quartz glass business in April in addition to favorable sales in the first half of the year.
Compared to the previous quarter, net sales were a 5.6% decrease, but we are now on a slow recovery trend as a
whole in the fourth quarter.

  As for profits, we begun to have some achievements in reduction of in-process inventories in the third quarter,
making up for decreasing profits due to a drop of orders.  As a result, efficiency was improved so that operating
income increased 195.3% compared to the third quarter of the last year.  Compared to the preceding second quarter,
operating income resulted on the same level despite of a sales decrease that indicates we successfully enhanced
flexible operations.


Quarterly sales results by product division
                                                                                JPY million
                        Fiscal 2004            Fiscal 2005
                        ended 31 March 2004    ending 31 March 2005             (forecast)
                         3rd Qt      4th Qt      1st Qt      2nd Qt    3rd Qt     4th Qt
Circuit Ceramics             1,396      1,492        1,746      1,566     1,479       1,515
Machinery Ceramics             682        718        1,363      1,376     1,257       1,260
Radio Frequency                271        255          259        270       302         305
Products
EMC Components                 708        758          808        768       720         720
Total                        3,057      3,223        4,176      3,981     3,758       3,800

Circuit Ceramics

  Total sales for the third quarter were 1,479 million yen, up 5.9% compared to the third quarter of the previous
year, down 5.6% compared to the preceding second quarter.

  As for the sales of ceramic substrates for resistors, sales for domestic manufacturers were relatively
favorable , but orders from Taiwanese manufacturers slowed down due to inventory adjustments which are now on a
moderate recovery trend in the fourth quarter.  Large substrates were unchanged, being expected to grow for the
markets in Europe.  Marketing activities for AlN substrates begun to bear fruits in Europe and the U.S.
gradually.

Machinery Ceramics

  Total sales were 1,257 million yen, a decrease of 8.6% compared to the last quarter.

  The semiconductor equipment industry, a principle market of quartz glass products, turned into a slow
adjustment period from the third quarter following a series of orders at a high level in the first half of the
current term.  In this third quarter, MARUWA endeavored to reorganize our production sites, including MARUWA
QUARTZ CO., LTD., a new member of MARUWA group since April, to expand operations effectively, and at the same
time established a system to improve productivity at each manufacturing base.

  Magnetic head-supporting blocks for FDD, amid accelerating restructuring of the entire industry, are now in an
adjustment phase due to an increase of inventories on markets in the fourth quarter after acquiring orders at a
high level in the first half.  MARUWA focuses on achieving larger shares in the market, widening the applications
of FDD-related products.

Radio Frequency Products

  Radio Frequency Products continuously grew so that total sales of the third quarter were 302 million yen, a
11.9% increase compared to the second quarter.  For the device products, a wide variety of applications and
flexible response to customers resulted in a sales increase although the future of communications markets for
China is unclear.  Dielectric ceramics, particularly being recovered since the second quarter, showed a solid
sale especially for LNB (low noise box) products.  Thin film products are being prepared for future sales
expansion mainly for DVD devices, establishing a manufacturing system to cover up R&D expenses.

EMC Components

  Total sales of the third quarter decreased 6.3% to 720 million yen compared to the second quarter.

  EMI filters as a countermeasure against electromagnetic waves are expected further growth, having favorable
orders from

amusement equipment markets as well as from the market of base stations for mobile phones.  Also, we expect a
future sales increase as orders are expanding also from automotive components industries in which all MARUWA
group enhance operations.


2. Summary of financial conditions                                                          JPY million
                                  Current 3rd Qt        Previous fiscal year        Previous 3rd Qt
                              As of 31 December 2004     As of 31 March 2004    As of 31 December 2003
Total Assets                                   28,523                    26,664                  26,766
Shareholders' equity                           23,995                    23,429                  23,465
Shareholders' equity ratio                      84.1%                     87.9%                   87.7%
                                                                                                    JPY
Shareholders' equity per                     2,266.47                  2,144.11                2,134.56
share

  Consolidated total assets at the end of the third quarter were 28,523 million yen, an increase of 1,859 million
yen compared to the end of the last year as a result of nine-month sales operations in this year, including 1,666
million yen attributed to MARUWA QUARTZ CO., LTD., a new consolidated subsidiary since April.  Cash and deposits
increased 602 million yen while the inventories in the whole MARUWA group were cut 600 million yen to improve
efficiency.

  Shareholders' equity increased 566 million yen since retained earnings increased 943 million yen for nine-month
period while 278 million yen were transacted for own shares buyback.

3. Outlook for the fiscal 2005 ending 31 March 2005

MARUWA announced the revision of the operating results forecast on 7 February 2005.
                                                        JPY million
                               Revised            Before revised
Net sales                               15,700               15,700
Net income                               1,200                  870

Major reasons of the revision are as follows:

1. Some products that had heavily cost for R&D begun to contribute to profits.

2. Our efforts started to bear fruits in reduction of in-process inventories and in establishing a flexible
production system, covering a decrease of revenue due to slumping demands to increase profits for the fiscal year
from the previous forecast.

3. Quartz glass business for which restructuring expenses after M&A had been calculated contributed to earning
profits due both to effective restructuring and positive approach to the markets.

4. The merger of a consolidated subsidiary dated on 1 January 2005 brought a more-than-estimated tax effect so as
to increase net income from the previous forecast.

I. Consolidated Balance Sheets (summary)
                                                                      JPY million                          JPY
                                                                                                       million
                            Current 3rd Qt        Previous 3rd Qt                             Fiscal 2004
                        As of 31 December 2004 As of 31 December 2003                     As of 31 Mar. 2004
                                                                        Change                        Change
ASSETS
Current assets
Cash & deposits                          6,804                  5,871         933             6,202        602
Notes and accounts receivable,           4,993                  3,714       1,279             3,740      1,253
trade
Inventories                              2,680                  3,431       (751)             3,280      (600)
Other current assets                       307                    320        (13)               332       (25)
Total current assets                    14,784                 13,336       1,448            13,554      1,230

Property, plant & equipment             11,029                 10,919         110            10,710        319

Investments & other                      2,710                  2,511         199             2,400        310
assets

Total assets                            28,523                 26,766       1,757            26,664      1,859

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes & accounts payable, trade            904                    616         288               670        234
Short-term debt                             --                     --          --                --         --
Other current                            1,778                  1,440         338             1,360        418
liabilities
Total current                            2,682                  2,056         626             2,030        652
liabilities

Long-term liabilities:
Long-term debt                             375                    520       (145)               482      (107)
Accrued pension & severance costs          859                    150         709               176        683
Other                                      612                    575          37               547         65
Total long-term                          1,846                  1,245         601             1,205        641
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                        9,459                  8,404       1,055             8,516        943
Net unrealized gains (losses) on            10                     17         (7)                38       (28)
 other securities
Foreign currency translation           (1,286)                (1,147)       (139)           (1,215)       (71)
 adjustment
Treasury stock                           (581)                  (202)       (379)             (303)      (278)
Total shareholders'                     23,995                 23,465         530            23,429        566
equity

Total liabilities &                     28,523                 26,766       1,757            26,664      1,859
 shareholders' equity


II. Consolidated Statements of Income
(summary)
                                                                                                            JPY
                                                                                                        million
                            Current 3rd Qt       Previous 3rd Qt                               (Reference)
                          from 1 April 2004     from 1 April 2003          Change            For fiscal 2004
                         to 31 December 2004   to 31 December 2003   amount        %       ended 31 March 2004
                                     to net                to net                                      to net
                                      sales                sales                                       sales
Net sales                   11,913                 8,781                3,132       35.7%     12,003
Cost of sales                8,602       72.2%    6,,715      76.5%     1,887       28.1%      9,022      75.2%
Gross profit                 3,311       27.8%     2,066      23.5%     1,245       60.3%      2,981      24.8%
Selling, general &
 administrative              2,245       18.8%     1,705      19.4%       540       31.7%      2,295      19.1%
expenses
Operating income             1,066        8.9%       361       4.1%       705      195.3%        686       5.7%
Other income (expenses)       (50)       -0.4%       146       1.7%     (196)     -134.2%         25       0.2%
Income before income         1,016        8.5%       507       5.8%       509      100.4%        711       5.9%
taxes
Income tax expenses           (91)       -0.8%       143       1.6%     (234)     -163.6%        236       2.0%
Net income                   1,107        9.3%       364       4.1%       743      204.1%        475       4.0%



END


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