Final Results

Maruwa Co Ld
29 May 2001


Contact: Shiro Baba, Kyoko Isomura
         Management And Planning Office
         Tel: [phone]/Fax: [phone]

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS OF MARUWA CO.. LTD. FOR THE FISCAL
2000 ENDED MARCH 31, 2001.

* The Company's fiscal year end is March 31st. In this material, references to
  'fiscal 1999', 'fiscal 2000' and 'fiscal 2001' are to the Company's fiscal    
  year ended March 31st, 2000, and other fiscal years are referred to in a
  corresponding manner.

   Fiscal 1999: April 1, 1999 - March 31, 2000
   Fiscal 2000: April 1, 2000 - March 31, 2001
   Fiscal 2001: April 1, 2001 - March 31, 2002

* The consolidated financial statements of MARUWA CO., LTD. are prepared in
  conformity with the accounting principles generally accepted in Japan.

* US dollar amounts are translated from yen, for convenience only, at the rate
  of US$1=123.90.

1. Summary of Consolidated Results

   (1) Summary of Consolidated Statement of Income

                                                                    U.S. dollars
                                     Yen (Millions)                  (Thousands)
                                    FY2000     FY1999     Change (%)     FY2000


Net Sales                          Y16,100    Y12,168          +32.3   $129,943
Operating Income                     3,633      1,796         +102.3     23,319
Income Before Income Taxes           3,572      1,540         +132.0     28,833
Net Income                          Y2,632       Y913         +188.2    $21,243


                                               FY2000      FY1999

Net Income Per Share of Common Stock         Y 262.09     Y 90.88
Return On Shareholder's Equity                  11.5%        4.4%

   (2) Summary of Consolidated Financial Condition

                                                                   U.S. dollars
                                                Yen (Millions)       (Thousands)
                                               FY2000      FY1999        FY2000

Total Assets                                  Y30,943     Y23,941      Y249,741
Shareholder's Equity                           24,797      20,983       200,139
Shareholder's Equity Ratio                      80.1%       87.6%
Shareholders' Equity Per Share              Y2,255.73   Y2,087.93        $18.21


   (3) Summary of Consolidated Statements of Cash Flows

                                                                   U.S. dollars
                                                Yen (Millions)       (Thousands)
                                               FY2000      FY1999        FY2000

Cash Flows from Operating Activities           Y2,543      Y2,396       Y20,521
Cash Flows from Investing Activities           (3,882)     (1,042)       31,330
Cash Flows from Financing Activities            2,612        (236)       21,082
Cash and Cash Equivalents at Year End          Y9,254      Y8,009       $74,690
Consolidated Subsidiaries                             4 companies
    
2. Projections

   (1) Consolidated Earnings Forecast for 1st Half of FY2001

                                                Yen       Change
                                            (Millions)      (%)

Net Sales                                      Y7,790      -2.6
Net Income                                     Y1,200      -6.5
       
   (2) Consolidated Earnings Forecast for FY2001 

                                                Yen       Change
                                            (Millions)      (%)

Net Sales                                     Y17,320      +7.6
Net Income                                     Y2,680      +1.8

Cautionary Statements:  The above forecasts are forward-looking statements
involving risks and uncertainties. Due to a number of factors, actual results
may differ significantly from these estimates.

3. Management Policies

   (1) Basic Management Policy
       It is the corporate vision Of MARUWA CO., LTD. and its consolidated
   subsidiaries (together with the Company, 'MARUWA') to become known as
   'MARUWA of ceramic Material and Technology'. In order to achieve this goal,  
   we strive to increase corporate value by placing most importance on 'Quality 
   Number One' policy, followed by constant technology innovation, and          
   responding to the expectation of all the stakeholders including shareholders,
   customers, and employees.

   (2) Dividend Policy
       MARUWA's basic policy is to maintain stable dividend payments to the     
   shareholders. The amount of dividend will he determined based on the         
   financial conditions, operation results, and earnings dividend ratio, as we  
   conduct aggressive capital expenditures on R&D and production equipment to   
   continually develop and implement technology in response to the market       
   demand.

   (3) Business Strategy and Management Issues
       In the midst of the rapidly changing information technology and          
   expectation towards innovation and continual growth, MARUWA aims to increase 
   corporate value by increasing profitability and securing growth. In order to 
   achieve this goal, basic technologies such as ceramic material technology,   
   electronic circuit design technology, and multi layer technology acquired in 
   the past are being utilized in the area of telecommunication. In regards to  
   profitability, we implement management indices such as return on equity (ROE)
   and EVA. In order to realize  MARUWA's growth strategy, innovation is being  
   promoted in the current management to create a horizontal structure that will
   allow us to operate with speed and resilience.

      Also, in order to further expand in the area of global operation, research
   and development related to the telecommunication industry will begin at      
   MARUWA Europe, Ltd. where production activity is scheduled to begin this     
   fall.

      In the area of global environmental conservation, MARUWA will aggressively
   engage in development of environmentally friendly products, and has set up a 
   zero waste project to decrease environmental burden.

4. Results of Operation
      Looking at the world economy, in the first half of fiscal 2000, corporate 
   revenues headed for recovery as the IT related industry showed sustained     
   growth. However, from the end of the year, the effect of a sudden            
   deceleration in the US economy, or otherwise described as a burst of IT      
   bubble, spread to Europe and Asia to result in the slowdown in the global    
   economy. Japanese economy was also affected, slowing down the individual     
   consumption to a standstill, and the climate has suddenly become very harsh.
      In this state, MARUWA, as a 'material' manufacturer in the upstream of the
   electronic component industry, conducted enhancement of technology, continued
   to supply products competitive in the global market and promoted             
   establishment of management structure that will be able to flexibly exert    
   strength even in the severe environment.
      As a result, the consolidated net sales for fiscal 2001 were Y16,100      
   million (32.3% increase from the fiscal 1999). In regards to income,         
   aggressive capital expenditures were conducted against circuit ceramic
   products department, and full operation was maintained in the production. In 
   the capacitor business, while market was suffering from excess inventory,    
   concentration was stressed on high capacitance capacitors that were showing  
   stable sales. As a result, the consolidated operating income was Y3,633      
   million (102.3% increase from the fiscal 1999), the consolidated income      
   before income taxes was Y3,572 million (132.0% increase from the fiscal      
   1999), and the consolidated net income was Y2,632 million (188.2%. increase  
   from the fiscal 1999). In calculating the net income, the total expense of   
   Y254 million for listing on London Stock Exchange and Singapore Stock
   Exchange approved on Dec. 18th, 2000, and overseas offering conducted in
   Europe whose proceed is to be used for development of new products, was
   accounted for as other net.

5. Outlook for Fiscal 2001
      Due to the sudden slowdown in the US economy, global economy is also      
   struck with the possibility of a slowdown. The current direction seems to be 
   towards stagnation, and future is covered with uncertainty. However,         
   beginning this year, individual consumption seems to be regaining grounds in 
   the US. With a start of the next generation mobile phone services overseas,  
   it is expected that corporate and government investment in information       
   technology in Japan will also accelerate, and it is projected that gradual   
   recovery will appear from the latter half.
      Under this business  environment, MARUWA forecasts consolidated net sales 
   of Y17,320 million (7.6% increase from the fiscal 2000) and net income of    
   Y2,680 million (1.9% increase from the fiscal 2000).

Cautionary Statements: The above forecasts are forward-looking statements
involving risks and uncertainties. Due to a number of factors, actual results
may differ significantly from these estimates.


6. Consolidated Balance Sheet

                                                                    U.S. dollars
                                      Yen (millions)        Change   (Thousands)
                                    FY2000       FY1999       (%)        FY2000
ASSETS
Current assets:
 Cash and deposits                  Y1,567       Y1,430       +9.6      $12,648
 Marketable securities               7,687        6,579      +16.8       62,042
 Notes and accounts receivable, 
  trade                              3,946        3,518      +12.2       31,845
 Allowance for doubtful accounts       (58)         (48)     +19.4         (466)
 Inventories                         3,850        2,214      +73.9       31,073
 Deferred income taxes                  69           39      +74.9          555
 Other current assets                  503          317      +59.0        4,064

    Total current assets            17,564       14,049      +25.0      141,761
 
Property, plant and equipment:
 Land                                2,409        1,997      +20.6       19,441
 Building and structures             4,392        2,918      +50.5       35,447
 Machinery and equipment             9,796        6,939      +41.2       79,065
 Construction in progress              399          528      -24.4        3,221

    Total                           16,996       12,382      +37.3      137,174
 Less - Accumulated depreciation    (5,615)      (5,152)      +9.0      (45,317)

    Net property, plant and 
     equipment                      11,381        7,230      +57.4       91,857
 
Investments and other assets:
 Investment securities                 503          372      +35.5        4,063
 Deferred income taxes                   9            8       +8.9           73
 Property and equipment for 
  investments                        1,094        1,094       +0.0        8,830
 Other                                 392          233      +67.9        3,157

    Total investments and other 
     assets                          1,998        1,707      +17.0       16,123

 Cumulative translation adjustment                  955

 Total assets                      Y30,943      Y23,941      +29.2     $249,741

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Current portion of long-term debt    Y199          Y56     +253.2       $1,608
 Notes and accounts payable, trade   1,358        1,021      +33.0       10,956
 Accrued income taxes                  667          478      +39.5        5,382
 Other current liabilities           2,911        1,119     +160.3       23,490

    Total current liabilities        5,135        2,674      +92.1       41,436

Long-term liabilities:
 Long-term debt                        863          158     +448.6        6,964
 Accrued pension and severance costs    25           46      -46.7          199
 Other                                 124           80      +54.2        1,003

    Total long-term liabilities      1,012          284     +256.1        8,166


                                                                    U.S. dollars
                                      Yen (millions)        Change   (Thousands)
                                    FY2000       FY1999       (%)        FY2000

Shareholders' equity:
 Common stock, Y50 par value, 
  26,000,000 shares;
 Authorized, issued and outstanding:
 FY 2000 - 10,050,000 shares         6,683        5,656      +18.2       53,942
 FY 2001 - 11,050,000 shares
 Additional paid-in capital          9,710        8,683      +11.8       78,373
 Retained earnings                   9,186        6,681      +37.5       74,139
 Net unrealized gains on other 
  securities                             -            -          -            -
 Translation adjustments                79            -          -          640
 Cumulative translation adjustment    (660)           -          -       (5,326)
 Treasury stock, at cost              (202)         (37)    +448.6       (1,629)

    Total, shareholders' equity     24,797       20,983      +18.2      200,139

Total liabilities and 
 shareholders' equity              Y30,943      Y23,941      +29.2     $249,741

   
7. Consolidated Statement of Income

                                                                    U.S. dollars
                                      Yen (millions)        Change   (Thousands)
                                    FY2000       FY1999       (%)        FY2000

Net sales                          Y16,100      Y12,168      +32.3     $129,943
 Cost of sales                      10,481        8,671      +20.9       84,589
 Gross profit                        5,619        3,497      +60.7       45,354
Selling, general and administrative 
 expenses                            1,986        1,701      +16.8       16,035
 Operating income                    3,633        1,796     +102.3       29,319
     
Other income (expense):
 Interest and dividend income           45           64      -28.8          366
 Interest expense                      (12)          (4)    +155.6          (96)
 Foreign exchange gain (loss), net     127         (125)         -        1,023
 Other, net                           (221)        (191)     +16.1       (1,779)

    Other income, net                  (61)        (256)     -76.4         (486)

Income before Income taxes           3,572        1,540     +132.0       28,833
      
Income taxes:
 Current                               985          639      +54.3        7,957
 Deferred                              (45)         (12)    +272.2         (367)

                                       940          627      +50.1        7,590

Net income                          Y2,632         Y913     +188.2      $21,243


8. Consolidated Statement of Cash Flows
                                                                   U.S. dollars
                                                   Yen (millions)    (Thousands)
                                                 FY2000      FY1999      FY2000
Operating activities:
 Income before income taxes                      Y3,572      Y1,540     $28,833
Adjustments for:
 Depreciation                                     1,133         866       9,144
 Provision for allowance for doubtful accounts       11          22          90
 Decrease in accrued pension and severance cost     (22)          -        (174)
 Gains on disposal of securities to establish 
  retirement trust                                  (72)          -        (578)
 Retirement  benefit trust                          101           -         816
 Interest and dividend income                       (45)        (64)       (366)
 Foreign exchange loss                                5         301          38
 Loss on disposal of property, plant and 
  equipment                                         135          34       1,094
 Loss (gain) on sales of marketable securities        -           -           -
 Loss on subsidiary liquidation                       -           -           -
 Increase in notes and account receivable.         (347)     (1,322)     (2,804)
 (Increase) decrease in Inventories              (1,611)        588     (13,004)
 (Increase) decrease in other receivables             -           -           -
 Decrease in accounts payable                       433         657       3,493
 Other                                               19        (106)        150

    Sub total                                     3,312       2,516      26,732
       
 Interest and dividend income received               45          64         364
 Interest expenses paid                             (24)         (4)       (196)
 Income taxes paid                                 (790)       (180)     (6,379)

 Net cash provided by operating activities        2,543       2,396      20,521

Investing activities:
 Payment for purchase of property, plant 
  and equipment                                  (3,820)     (1,051)    (30,835)
 Proceeds from sales of property, plant 
  and equipment                                     122          10         985
 Payments for purchase of investment securities     (25)        (88)       (204)
 Proceeds from sales of marketable securities         -          86           -
 Loan                                                (2)          -         (12)
 Collection from loan receivables                     1           1           8
 Increase in intangible fixed assets               (158)                 (1,272)
 Other                                                -           0           -
 Net cash used in investing activities           (3,882)     (1,042)    (31,330)
      
Financing activities:
 Issuance of long-term debt                       1,000           -       8,071
 Payments of long-term debt                        (152)        (56)     (1,224)
 Proceeds from issuance of new shares             2,054           -      16,578
 Sales of treasury stock                             25          40         198
 Purchase of treasury stock                        (195)        (10)     (1,571)
 Cash dividend paid                                (120)       (210)       (970)

 Net cash provided by (used in) financing 
  activities                                      2,612        (236)     21,082

Effect of exchange changes on cash and cash 
 equivalents                                        (28)        (25)       (224)

Net increase (decrease) in cash and cash 
 equivalents                                      1,245       1,093      10,049
Cash and cash equivalents at beginning of year    8,009       6,780      64,641
Increased cash and cash equivalents due to the 
 newly consolidated companies                         -         219           -
Decreased cash and cash equivalents due to 
 exclusion of the consolidated company                -         (83)          -

Cash and cash equivalents at end of year         Y9,254      Y8,009     $74,690


9. Segment Information

   (1) Consolidated Business Segment Information 
   MARUWA's business is comprised of one segment. Therefore, segment breakdown
is not applicable.

   (2) Consolidated Geographic Segment Information

                                                                    U.S. dollars
                                      Yen (millions)        Change   (Thousands)
                                    FY2000       FY1999       (%)        FY2000

Japan           Net Sales
                  Unaffiliated 
                   Customers       Y10,791       Y8,291      +30.1      $87,092
                  Intersegment         881          980      -10.1        7,110
                Total              Y11,672       Y9,271      +25.9      $94,202
                Operating Cost      Y8,950       Y7,539      +18.7      $72,232
                Operating Income 
                 (Loss)              2,722        1,732      +57.1       21,970

                Assets              19,478       14,508      +34.3      157,211

Asia            Net Sales
                  Unaffiliated 
                   Customers         4,420        3,306      +33.7       35,672
                  Intersegment       1,214          927      +30.9        9,799
                Total                5,634        4,233      +33.1       45,471
                Operating Cost       4,248        3,682      +15.4       34,283
                Operating Income
                 (Loss)              1,386          551     +151.7       11,188
                Assets               7,531        4,667      +61.4       60,786

Europe          Net Sales
                  Unaffiliated 
                   Customers           889          571      +55.8        7,180
                  Intersegment           7            9      -19.4           56
                Total                  896          580      +54.6        7,236
                Operating Cost         883          582      +51.8        7,129
                Operating Income        13                       -
                 (Loss)                              
                                                     (2)                    106
                Assets                 633          171     +270.4        5,108

Total           Net Sales
                 Unaffiliated 
                  Customers         16,100       12,168      +32.3      129,943 
                 Intersegment        2,102        1,916       +9.7       16,966
                Total               18,202       14,084      +29.2      146,909
                Operating Cost      14,081       11,803      +19.3      113,644
                Operating Income 
                 (Loss)              4,121        2,281      +80.7       33,264
                Assets              27,642       19,346      +42.9      223,105

Elimination     Net Sales
                Total               (2,102)      (1,916)      +9.7       16,966
                Operating cost      (1,614)      (1,431)     +12.8       13,020
                Operating Income 
                 (Loss)               (488)        (485)      +0.7        3,945
                Assets               3,301        4,595      -28.2       26,636

Consolidated    Net Sales
Total           Total              Y16,100      Y12,168      +32.3     $129,943
                Operating cost     Y12,467      Y10,372      +20.2     $100,624
                Operating Income 
                 (Loss)             Y3,633       Y1,796     +102.3      $29,319
                Assets             Y30,943      Y23,941      +29.2     $249,741



(3) Net Overseas Sales by Customer's Geographic Location
                                                                    US. Dollars
                                     Yen (Millions)                  (Thousands)

                                    % Of                      % Of
                       FY2000   Consolidated    FY1999    Consolidated    FY2000
                                 Net Sales                  Net Sales
     
Overseas    Asia       Y7,385          45.9%    Y5,956           48.9%   $59,604
Sales       Europe        972           6.0%       654            5.4%     7,847
            Others        350           2.2%       188            1.6%     2,826
            Total       8,707          54.1%     6,798           55.9%    70,277
     
Consolidated
Net Sales             Y16,100                  Y12,168                  $129,943

*  Countries are divided in geographical vicinity.
*  Main countries included in each area are as indicated below; 
     Asia - Malaysia, Taiwan, Korea 
     Europe - Germany, England 
     Others - United States
*  Overseas Sales indicate net sales of the Company and its subsidiaries to
   customers outside Japan.



Summary of Consolidated Results

(Million Yen)
                          FY1999                        FY2000
                           00/03                         01/03
                Result  Difference  Change (%)  Result  Difference  Change (%)

Net Sales       12,168      4,311       54.9%   16,100       3,932      32.3%
Operating 
 Income          1,796        344       23.7%    3,633       1,837     102.3%
Ordinary
 Income          1,792        646       56.4%    3,886       2,094     116.9%
Income Before
 Income Tax      1,541        577       59.9%    3,572       2,031     131.8%
Net Income         914        213       30.4%    2,632       1,718     188.0%
Earnings per
 Share (EPR)     90.88      21.13       30.3%   262.09      171.21     188.4%
Return On 
 Equity (ROE)     4.4%       0.9%       25.7%    11.5%        7.1%     161.4%
Capital
 Expenditure    1,058        ^210      ^16.6%    5,469       4,411     416.9%
Depreciation      835         ^16       ^1.9%    1,133         298      35.7%
Net Income +
Depreciation    1,749         197       12.7%    3,765       2,016     115.3%

(Million Yen)              FY2001
                           02/03
                Result  Difference  Change (%)

Net Sales     17,320        1,220       7.6%
Operating
 Income        3,740          107       2.9%
Ordinary
 Income        3,930           44       1.1%
Income Before
 Income Tax    3,930          358      10.0%
Net Income     2,680           48       1.8%
Earnings per
 Share (EPR)  242.53       ^19.56      ^7.5%
Return On
 Equity        10.5%        ^1.0%      ^8.7%
Capital
 Expenditure   5,000         ^469      ^8.6%
Depreciation   1,760          627      55.3%
Net Income +
Depreciation   4,440          675      17.9%


Summary of Consolidated Results per Division


(Million Yen)              FY1999                       FY2000
                           00/03                        01/03
                Result  Difference  Change (%)  Result  Difference  Change (%)
Net Sales
    Circuit
     Ceramics    5,989       286        5.0%     7,671     1,682        28.1%
    Machinery
     Ceramics    1,375      ^148       ^9.7%     1,588       213        15.5%
    High 
     Frequency     767       136       21.6%    1,191       424        55.3%
    Capacitors   4,037     4,037                 5,650     1,613        40.0%
    Total       12,168     4,311       54.9%    16,100     3,932        32.3%

Operating 
Income
    Circuit
     Ceramics    1,014       ^62       ^5.8%      2,253     1,239      122.2%
    Machinery           
     Ceramics       87      ^168      ^65.9%        108        21       24.1%
    High
     Frequency     141        20       16.5%        168        27       19.1%
    Capacitors     554       554                  1,104       550       99.3%
    Total        1,796       344       23.7%      3,633     1,837      102.3%

Operating
 Income ((As % Sales))
    Circuit
     Ceramics    16.9%                            29.4%        
    Machinery
     Ceramics     6.3%                             6.8%
    High
     Frequency   18.4%                            14.1%
    Capacitors   13.7%                            19.5%
    Total        14.8%                            22.6%

(Million Yen)              FY2001
                           02/03
               Result  Difference  Change (%)

Net Sales
    Circuit
     Ceramics   8,440        769      10.0%  
    Machinery
     Ceramics   1,800        212      13.4%
    High
     Frequency  1,430        239      20.1%
    Capacitors  5,650          0       0.0%
    Total      17,320      1,220       7.6%

Operating
 Income
    Circuit
     Ceramics   2,270        17        0.8%
    Machinery
     Ceramics     140        32       29.6%
    High
     Frequency    220        52       31.0%
    Capacitors  1,110         6        0.5%
    Total       3,740       107        2.9%

Operating
 Income ((As % of Sales))
    Circuit
     Ceramics   26.9%
    Machinery
     Ceramics    7.8%
    High
     Frequency  15.4%
    Capacitors  19.6%
    Total       21.6%