3rd Quarter Results

Maruwa Co Ld
09 February 2006


                                                                 9 February 2006
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN

FOR IMMEDIATE RELEASE

          Consolidated financial results for the third quarter of fiscal 2006

Note1) The third quarter results for fiscal 2005 and 2006 are unaudited.

Note2) Two consolidated subsidiaries merged on 1 January 2006.  MARUWA QUARTZ 
Co., Ltd. absorbed MARUWA TFG Co., Ltd.

1. Summary of operating results
                                                                             JPY million
                         Current 3rd Qt        Previous 3rd Qt          (Reference)
                       from 1 April 2005      from 1 April 2004       For fiscal 2005
                        to 31 Dec. 2005        to 31 Dec. 2004      ended 31 Mar. 2005
                                    Change%                Change%
Net sales                14,087       18.2%      11,914      35.7%                15,529
Operating income          1,241       16.4%       1,066     195.2%                 1,357
Net income                  681      -38.5%       1,107     204.1%                 1,225

Net income per share :                                                               JPY
(Basic)                   62.67                  102.29                           112.40
(Diluted)                 62.31                  102.12                           112.18

Note) Change figures indicate increases (decreases) percentages compared to the 
3rd quarter results in the previous fiscal year, respectively.



2. Summary of consolidated financial conditions
                                                                             JPY million
                           Current 3rd Qt       Previous 3rd Qt         (Reference)
                         As of 31 Dec. 2005   As of 31 Dec. 2004    As of 31 Mar. 2005
Total Assets                          31,740                28,523                28,465
Shareholders' equity                  26,015                23,995                24,328
Shareholders' equity                   82.0%                 84.1%                 85.5%
ratio

                                                                                     JPY
Shareholders' equity                2,373.03              2,226.47              2,256.48
per share

3. Outlook for fiscal 2006 ending 31 March 2006
  As for the forecast of consolidated operating results for the fiscal 2006, the
forecast figures announced on 5 August 2005 are unchanged.
* 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 in this third quarter increased 18.2% to 14,087 million yen compared
to the third quarter of the previous fiscal year.  For the Ceramic Components
segment, total sales increased 4.5% compared to the previous third quarter
results due to a recovery of demand in the electronic components market except
for some semiconductor-related markets.  For the Lighting Equipment segment,
total sales were 1,642 million yen since this business characteristically sells
intensively in the end of a fiscal year.
  As for profits, operating income in the Ceramic Components segment increased
73.6% to 1,851 million yen compared to the previous third quarter thanks to the
contribution to income by new developed products and other new product lineups,
and the enhancement efforts for the acquired businesses and products.  The
Lighting Equipment segment posted a loss of 228 million yen.  As a result,
consolidated operating income was 1,241 million yen, 16.4 % increase compared to
the previous third quarter results.
  Net income in this third quarter decreased 38.5% to 681 million yen compared
to the third quarter of the previous fiscal term because of the loss of 261
million yen due to the payment of allowances in terminating the retirement
benefits system for directors, and 101 million yen loss on the disposal of fixed
assets.  Meanwhile, net income for the previous third quarter includes 498
million yen of a positive tax effect.


Sales by segment
                                                     JPY million
                        Previous 3rd Qt       Current 3rd Qt
                       from 1 Apr. 2004      from 1 Apr. 2005
                        to 31 Dec. 2004       to 31 Dec. 2005
Ceramic Components:
Net sales                           11,914                12,445
Operating income                     1,066                 1,851

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

Total:
Net sales                           11,914                14,087
Operating income                     1,066                 1,623

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

Consolidated:
Net sales                           11,914                14,087
Operating income                     1,066                 1,241


Quarterly consolidated sales results of Ceramic Components segment by product 
division

Quarterly:                                                                             JPY million
                      For year ended 31st March
                         2005                                        2006
                        1st Qt     2nd Qt     3rd Qt     4th Qt     1st Qt     2nd Qt     3rd Qt
Circuit Ceramics           1,746      1,566      1,479      1,421       1,649     1,576      1,519
Machinery Ceramics         1,363      1,376      1,257      1,256       1,129     1,117      1,135
Radio Frequency              259        270        302        265         344       364        417
Products
EMC Components               808        768        720        673       1,096     1,024      1,075
Total                      4,176      3,980      3,758      3,615       4,218     4,081      4,146

9-month period from 1st quarter to 3rd quarter:
                                                      JPY million
                         Previous 3rd Qt       Current 3rd Qt
                        from 1 Apr. 2004      from 1 Apr. 2005
                         to 31 Dec. 2004       to 31 Dec. 2005
Circuit Ceramics                      4,791                 4,744
Machinery Ceramics                    3,996                 3,381
Radio Frequency Products                831                 1,125
EMC Components                        2,296                 3,195
Total                                11,914                12,445

Circuit Ceramics
  Total sales of Circuit Ceramics division decreased 1.0% to 4,744 million yen
compared to the third quarter of the previous year.  Sales of the substrates for
chip resistors amounted to the same level as the previous third quarter result
due to stable demands in Asia.  On the other hand, sales of large substrates
were adversely affected by the decrease of demand due to inventory adjustments
by our customers.  Aluminum Nitride substrates continuously acquired favorable
orders related to power modules.

Machinery Ceramics
  Total sales of Machinery Ceramics division were 3,381 million yen, a decrease
of 15.4% compared to the third quarter of the last year.  For the quartz glass
products, sales largely decreased without a sign of recovery from order drops
yet.  We are determined to strengthen the foundation by quickening the
development of materials and certain products suited for larger wafers in
addition to securing profits through the improvement of manufacturing processes.

Radio Frequency Products
Total sales of Radio Frequency Products were 1,125 million yen, increasing 35.4%
compared to the previous third quarter results.  The products for base stations
and radars showed steady sales due to the favorable markets of communication
devices for Asia.
  The thin-film substrates have been growing in DVD-related fields, continuously
contributing to increasing revenues.


EMC Components
  Total sales of EMC Components increased 39.2% to 3,195 million yen compared to
the previous third quarter.  This increase was due to increasing demands for the
noise-absorbing components in the markets led by PCs and digital home appliances
such as thin screen TVs, and sales contribution of new products such as
inductors.  We are focusing on the enhancement of the structure for next year as
our efforts to expand sales for Asian major manufacturers are getting on the
track.

Lighting Equipment segment
  Total sales for this segment were 1,623 million yen, reflecting the
characteristic that sales of lighting equipment for public works including roads
and bridges are delivered intensively in March. Annual sales are expected to
exceed the forecast.  Also, the effects of cost reduction efforts from the
beginning of the year will be seen.


Consolidated financial conditions for the third quarter of fiscal 2006
  Total assets at the end of this third quarter were 31,740 million yen as a
result of business operation in the 9-month period, an increase of 3,275 million
yen compared to the end of the previous fiscal year.  This is mainly due to an
increase of current assets including accounts receivable by MARUWA SHOMEI Co.,
Ltd., a new consolidated subsidiary since April.  As well as assets, total
liabilities increased 1,588 million yen due to an increase of accounts payable
by MARUWA SHOMEI. Total shareholdersf equity increased 1,687 million yen to
26,015 million yen.
  Capital investment in this 9-month period amounted to 1,296 million yen, and
depreciation was 1,169 million yen.



1. Consolidated Balance Sheet (summary)
                                                                JPY million                JPY million
                           Current 3rd Qt      Previous 3rd Qt                        Fiscal 2005
                                                                                      (Reference)
                         As of 31 Dec. 2005  As of 31 Dec. 2004                    As of 31 Mar. 2005
ASSETS                                                           Change                      Change
Current assets
Cash & deposits                        7,340               6,804        536            6,935       405
Notes and accounts receivable,         6,242               4,993      1,249            4,712     1,530
trade
Inventories                            2,959               2,680        279            2,554       405
Other current assets                     411                 307        104              629     (218)
Total current assets                  16,952              14,784      2,168           14,830     2,122

Property, plant & equipment           12,107              11,029      1,078           11,308       799

Investments & other assets             2,681               2,710       (29)            2,327       354

Total assets                          31,740              28,523      3,217           28,465     3,275

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes & accounts payable, trade        1,983                 904      1,079              797     1,186
Other current liabilities              2,188               1,778        410            1,614       574
Total current liabilities              4,171               2,682      1,489            2,411     1,760

Long-term liabilities:
Long-term debt                           224                 375      (151)              335     (111)
Accrued pension & severance              320                 859      (539)              858     (538)
costs
Other                                  1,010                 612        398              533       477
Total long-term liabilities            1,554               1,846      (292)            1,726     (172)

Shareholders' equity:
Common stock, authorized: 26,000,000 shares
 issued: 11,050,000 shares in Dec. 2004 and Mar. 2005, and 11,072,000 in Dec. 2005
                                       6,710               6,683         27            6,683        27
Additional paid-in capital             9,747               9,710         37            9,710        37
Retained earnings                     10,068               9,459        609            9,577       491
Net unrealized gains (losses) on
 other securities                         85                  10         75               16        69
Foreign currency translation           (361)             (1,286)        925          (1,077)       716
adjustment
Advance on subscription of own             1                   -          1                -         1
shares
Treasury stock                         (235)               (581)        346            (581)       346
Total shareholders' equity            26,015              23,995      2,020           24,328     1,687

Total liabilities &                   31,740              28,523      3,217           28,465     3,275
shareholders' equity


2. Consolidated statement of income (summary)

                                                                                           JPY million
                         Current 3rd Qt      Previous 3rd Qt                           (Reference)
                        from 1 Apr. 2005    from 1 Apr. 2004         Change          For fiscal 2005
                         to 31 Dec. 2005     to 31 Dec. 2004    amount      %      ended 31 Mar. 2005
                                  to net              to net                                  to net
                                   sales               sales                                   sales
Net sales                 14,087              11,913               2,174     18.2%    15,529
Cost of sales              9,927     70.5%     8,602     72.2%     1,325     15.4%    11,187     72.0%
Gross profit               4,160     29.5%     3,311     27.8%       849     25.6%     4,342     28.0%
Selling, general &
administrative             2,919     20.7%     2,245     18.8%       674     30.0%     2,985     19.2%
expenses
Operating income           1,241      8.8%     1,066      8.9%       175     16.4%     1,357      8.7%
Other income               (119)     -0.8%      (50)     -0.4%      (69)         -     (177)     -1.1%
(expenses)
Income before income       1,122      8.0%     1,016      8.5%       106     10.4%     1,180      7.6%
taxes
Income tax expenses          441      3.1%      (91)     -0.8%       532         -      (45)     -0.3%
Net income                   681      4.8%     1,107      9.3%     (426)    -38.5%     1,225      7.9%



END


                      This information is provided by RNS
            The company news service from the London Stock Exchange