Final Results

Maruwa Co Ld
07 May 2004


                                                                      7 May 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 full fiscal year
ended 31st March, 2004 as follows;

*The financial statements are prepared in conformity with the accounting principles generally accepted
in Japan.

*US dollar amounts are converted for convenience only at the rate of US$1 = 113.33 yen.

*Consolidated subsidiaries: 5 companies  (Maruwa (Malaysia) Sdn. Bhd., Taiwan Maruwa Co., Ltd., Maruwa
Europe Ltd., MARUWA KCK Co., Ltd., and MARUWA TFG Co., Ltd.)

Summary of Consolidated Results

(1) Summary of consolidated statement of income

                                  JPY million       JPY million                           USD thousand
                               For year ended    For year ended        Change %         For year ended
                              31st March 2004   31st March 2003                        31st March 2004
Net sales                              12,003            10,337           16.1%                105,913
Operating income (loss)                   686               307          123.5%                  6,051
Income before income taxes                711               233          205.2%                  6,273

Net income                                475               105          352.4%                  4,195
                                                            JPY                                    USD
Net income per share                    42.67              8.99          374.6%                   0.40

(2) Summary of consolidated financial condition

                                  JPY million       JPY million                           USD thousand
                             As of 31st March  As of 31st March        Change %       As of 31st March
                                         2004              2003                                   2004
Total Assets                           26,664            26,881           -0.8%                235,277
Shareholders' equity                   23,429            23,489           -0.3%                206,736
Shareholders' equity ratio              87.9%             87.4%            0.6%
                                                            JPY                                    USD
Shareholders' equity per             2,144.11          2,136.15            0.4%                  18.90
 share

(3) Summary of consolidated statement of cash flows

                                    JPY million        JPY million                        USD thousand
                                 For year ended     For year ended     Change %         For year ended
                                31st March 2004    31st March 2003                     31st March 2004
Net cash provided by                      2,102              1,891        11.2%                 18,544
 operating activities
Net cash used in                          (708)            (1,046)           --                (6,248)
 investing activities
Net cash used in                          (406)            (1,013)           --                (3,587)
 financing activities
Cash and cash equivalents                 6,202              5,291        17.2%                 54,724
 at end of term

Management Policies

(1) Basic management policy

  MARUWA OF CERAMIC MATERIAL TECHNOLOGY is MARUWA's corporate vision.  We strive to enhance the
corporate value by following consistently Quality First policy, which entails constant technological
innovation and to meet the expectations of all the stakeholders including shareholders, customers, and
employees.

  Under this vision, it is MARUWA's management policy to survive among severe business competition by
reinforcing its core business with selection and concentration strategy and boosting shares in global
niche markets.


(2) Dividend policy

  As for profit allocation, the basic principle of MARUWA's dividend policy is to share profits stably with
shareholders.  Dividend ratio will be determined based on the comprehensive assessment of the financial
conditions and consolidated operation results.  At the same time, as stated in the basic management policy,
the company continues aggressive upfront capital investment on R&D activities and M&A in order to catch up
technological innovation and market needs.

  Also, we consider effective use of retained earnings for agile M&A strategies so that we meet market needs
more appropriately and promptly.

(3) The number of shares per unit

MARUWA is currently on a growth phase as an electronic components manufacturer and aims to increase
liquidity at the stock market in this stage.  Based on this policy, when we changed the company name 5 years
ago, we lowered the number of shares per unit to 100 to increase the accessibility of shares for individual
investors.

As a result, the number of total shareholders doubled from 2,800 at that time to 5,554 in March 2004,
proving that the individual shareholder base was successfully broadened.

(4) Business strategies and management issues

  In the midst of the IT era, in which quick adjustment and sustained growth are required to ride on the
rapidly changing market, MARUWA, whose core competence is our technologies, acquired and combined base
technologies such as ceramic material technology, electronic device technology, and multi-layering
technology, and promotes its business in information-communication areas.  We also target components for
automobiles in near future while keeping our business core in ceramics.

We aim to increase corporate value by bolstering profitability and growth rate and to be a
manufacturing-based specialist focusing on quality instead of expanding in size to be a department store.

  As for management issues, we are determined to make intensive and collective efforts on management
objectives set out as plain as possible, taking advantage of small corporate size that is suitable for
company-wide efforts.

  In fiscal 2003, MARUWA made efforts to strengthen its internal organization by thorough structural
improvement to build up a defensive, flexible company, which is enable to secure profit in the dynamically
changing electronic components industry.

  In fiscal 2004, MARUWA focused on enhancing external business activities to establish an aggressive style
by conducting a sales reinforcement project that improved the integrity among the sales, production and R&D
divisions.  Also, We enhanced our core technology, material technology, in company-wide to reconstruct the
market-focused R&D structure and flexible system of materials production.

  In line with these efforts, in fiscal 2005, MARUWA is determined to promote cash flow-based management
throughout the production divisions.  We have already been engaged to shift its management basis in this
regard.  Being on a growth stage, we aim not only to make profit but also to earn cash effectively.  For
this goal, we introduced asset efficiency indicators in each production.  Regarding production, the priority
challenges are to shorten lead-time and to supply products in a timely manner in order to respond
resiliently to the accelerated shifts of market needs to high mix, low volume and quick delivery.

  MARUWA is also determined to continue M&A activities as an important strategy for our further growth,
especially targeting the development of materials technology and synergetic effects from newly acquired
technologies and MARUWA's existing base technologies.

  At the same time, one of the big challenges in related to M&A is to introduce and penetrate the MARUWA
Culture into each subsidiary, which is newly brought to the MARUWA group.  Therefore, it is the main issue
in fiscal 2005 for MARUWA to cultivate its corporate culture that each company in the group never gives up
to establish global No.1 products in each field, and every individual participates and leads management.

(5) Corporate governance

1. Basic policy for corporate governance

  MARUWA is enhancing corporate governance, focusing on realizing efficient management that is the priority
issue on management.  Efficient management includes prompt and resilient approach to the rapidly changing
electronic components market.  As a public being in the society, we commit ourselves to building up
corporate governance structure by improving evaluation and internal control, and pursue sustainable growth
toward next stage.  Also, we vow to enhance the quality of governance to exercise open and transparent
management to the society and stock markets as a global public company.

2. Progress of measures

i. Governance structure

  MARUWA's governance structure consists of the organization of directors, the auditing system, and the
internal auditing office under the direct control of the president.

- There are 9 directors.  They discuss important issues at regular or special meetings of the board of
  directors, and mutually monitor business operations for which 5 directors are responsible.  (These 5
  directors are also responsible on a practical level.)

- There are 3 auditors, including 2 outside auditors.  They attend every meeting of the board of directors,
  and audit the directors.  Also, cooperating with the internal auditing office under the direct control of
  the president, they audit and advise for business operations for which above-mentioned 5 directors are
  responsible.

ii. Interest and personal relationship with outside auditors

  No special interest between MARUWA and outside auditors.

3. Measures for enhancement of corporate governance

  MARUWA believes that excellent corporate governance would be realized when measures are well implemented
not only on directors and auditors but also on all employees.  Based on this view, on 1 April every year,
all employees in Japan and overseas gather in a hall to hear the speech of the president about management
and business policies and instructions for being a MARUWA's employee.  At a quarterly management meeting,
officers on and above manager class in the whole group attend to hear corporate strategies explained
directly by the president to improve the integrity.

  Taking advantage of our small corporate size, every each production division was reorganized as a
Mini-mini company to strengthen each production system and to clarify the locus of responsibility.  At the
same time, we are making an effort to realizing swift communication of the management's decisions to every
division and open and transparent management including divisional evaluation system.

Review of Operations and Financial Condition

I. Operating Results
                                                                                             JPY million
                 Fiscal 2003                               Fiscal 2004
                          1Q       2Q         3Q        4Q          1Q        2Q          3Q          4Q
Net sales              2,797    2,633      2,445     2,462       2,852     2,871        3057       3,223
Operating income         102      170         29         6          43        84         234         325
Net income                92       47         15      (49)          54        60         249         112

                             Previous              Current               JPY million
                       For year ended       For year ended                   Change
                      31st March 2003      31st March 2004                   Amount                    %
Net sales                      10,337               12,003                    1,666                16.1%
Operating income                  307                  686                      379               123.5%
Net income                        105                  475                      370               352.4%

(1) Review of operations

  In this term, electronic components market showed strong recovery in Asia as well as a recovery trend
at global markets.  Especially, digital devices and mobile phones with advanced functions became market
drivers in Asia from the second half of this term while computerization of automobile parts has been
accelerated in the domestic markets.  Markets require prompt supply of suitable components for
electronic appliances which are evolving at an accelerating pace to be more multi-functioned,
miniaturized and integrated.  Due to a boom in semiconductor production, components for semiconductor
manufacturing equipment are in good demand.  On the other hand, markets are under severer cost pressure
to components products with brisk Chinese markets.

  MARUWA clarified our business strategy that we achieve profits by expanding global market shares of
the core businesses products including Circuit Ceramics and Machinery Ceramics, and continually invest
such profits into the growing businesses including Radio Frequency Products and EMC Components or R&D
activities on new products.

  As a result, consolidated net sales in this fiscal year were 12,003 million yen, an increase of 1,666
million yen (16.1%) compared to the previous year.  As for profits, a new subsidiary, MARUWA TFG Co.,
Ltd. (former TOKYO FINE GLASS Co., Ltd of which all shares were acquired by MARUWA in March 2003 and
name was changed in June 2003) turned into black and contributed to generating profits although TFG
brought a negative effect in the first quarter due to its transition and restructuring costs.  Operating
income increased 379 million yen (123.5%) compared to the previous year to 686 million yen due to
favorable market condition especially for digital devices from the third quarter in addition to emerging
effects of our improvement measures.  Net income was 475 million yen, an increase of 370 million yen
(352.4%) compared to the first half of the last year.

There is no important item for other income and loss.

  Meanwhile, as for dividend at year-end, MARUWA will propose 7.00 yen per share at the 31st annual
meeting of shareholders.  Therefore, the amount of annual dividend will be 14.00 yen per share together
with interim dividend of 7.00 yen per share.

(2) Review of interim operating results by product divisions

Consolidated sales results by product divisions
                                                                                               JPY million
                 Fiscal 2003                             Fiscal 2004
                          1Q       2Q         3Q        4Q        1Q             2Q         3Q        4Q
Circuit Ceramics       1,194    1,157      1,137     1,194     1,239          1,306      1,396     1,492
Machinery Ceramics       326      407        288       264       637            671        682       718
RF Products              421      334        262       251       253            209        271       255
EMC Components           856      735        758       753       723            685        708       758
Total                  2,797    2,633      2,445     2,462     2,852          2,871      3,057     3,223

                             Previous              Current               JPY million
                       For year ended       For year ended                   Change
                      31st March 2003      31st March 2004                   Amount                    %
Circuit Ceramics                4,682                5,433                      751                16.0%
Machinery Ceramics              1,285                2,708                    1,423               110.7%
RF Products                     1,268                  988                     -280               -22.1%
EMC Components                  3,102                2,874                     -228                -7.4%
Total                          10,337               12,003                    1,666                16.1%

 Circuit Ceramics

  Circuit Ceramics include ceramic substrates for chip resistors which are essential for a wide range of
electronic appliances, glazed ceramic substrates for thermal printer head (TPH) which are used for FAX
or bar code label printers, large ceramic substrates for hybrid ICs, and Aluminium Nitride for power
modules and automobiles.

  Total sales of this division were 5,433 million yen, an increase of 751 million yen (16.0%) compared
with the last year.  The first and second quarter, the division enjoyed solid demand mainly for
1005-sized general-purposed ceramic substrates for resistors as the shift to high-functioning mobile
phones became apparent in the Taiwan market in addition to favorable demand for Playstation 2.  Since
the third quarter, new electronic appliances such as digital devices including DVDs and flat-screen TVs
have been making the markets brisk, offering us increasing orders.  Also, high value-added substrates
for resistors have been in good demand for notebook PCs.

 Machinery Ceramics

  Machinery Ceramics include quarts glass products mainly for semiconductor equipment, magnetic
head-supporting blocks for personal computers, and ceramic facet valves.  The products in this division
require high precision process techniques.

  Quarts glass products sold well throughout the year with the rise in demand for semiconductor
equipment, and continues full-scale production.  Ceramics for supporting magnetic heads struggled amid
prolonged inventory adjustment by MARUWA's principal customers until the first half of this year.
However, following the resumption of orders in the third quarter, we significantly increased market
shares amid the reorganization of the suppliers, and hold a favorable level of orders.  As a result,
total sales for this year were 2,708 million yen, an increase of 1,423 million yen (110.7%) compared
with the previous year.

 Radio Frequency Products

  Radio Frequency Products include electronic devices such as VCO (voltage controlled oscillator) for
mobile phones and other wireless communication appliances, dielectric ceramic materials for filters
mainly for mobile communication, and thin film substrates for optical information and communications.

  Products in this division are required to share high evolution speed of end products and short life
cycles.  For device products, sales are currently recovered by VCOs for general use including wireless
communications although the market of VCOs for mobile phones had contracted since the second quarter due
to shift to other components.  At the same time, we endeavor to expand sales for LTCC multi-layer
ceramic substrates.  Sales of thin film substrates are increasing due to boom in DVD devices.

  As a result, total sales in this division are 988 million yen, a decrease of 280 million yen (22.1%)
compared to the previous year.

 EMC Components

  EMC Components include EMI filters for circuit-protection against electromagnetic waves, chip
varistors as a solution for abnormal voltage such as noise/surge, and multi-layer ceramic capacitors of
high-voltage high-capacitance types mainly used for digital cameras and power supply of computers.

  MARUWA supplies multi-layer ceramic capacitors for strobe parts of digital cameras that have kept good
demands and for power supply parts for PCs.  Until the second quarter, MARUWA had a tough time in
switching characteristics of components for which multi-functioning and downsizing have been
progressing, and struggled in severe cost pressure in the Taiwan market.  However, sales turned on a
recovery trend after hitting bottom in August.  We keep favorable sales of components for power supply
parts for domestic markets, acquiring market shares held by our rival who withdrew from the business.
Total sales were 2,874 million yen, a decrease of 228 million yen (7.4%) compared to the previous year.


II. Outlook of the Full Fiscal 2005
                                                                              JPY million
                          For year ended     For year ended    For year ending     Change
                         31st March 2003    31st March 2004    31st March 2005     Amount         %
Net sales                         10,337             12,003             15,700      3,697     30.8%
Net income                           105                475                870        395     83.2%

  To view economic environment of next fiscal year, the domestic consumer market is coming back
along with a recovery trend in the U.S. and the growing economy at the high rate in China.
However, uncertainty over the future would remain due to postwar reconstruction in Iraq, concern
over the strong yen against the U.S. dollar, and the presidential election in the U.S.

  In the electronic components market where MARUWA engages in business, stable orders to ceramic
products are expected from the markets related to DVD devices or digital cameras due to a rapid
growth of digital appliances and increasing demand for new models of mobile phones with advanced
functions.  In the semiconductor market, an increase of orders to quartz glass products is expected
following a recovery of capital investment.  For automobile components, we will enhance the supply
especially of newly developed products since we see the computerization of automobiles will be more
accelerated.  MARUWA will look forward the M&A strategy for further growth, and at the same time,
we will enhance the management system including cash flow-based management.

  In Radio Frequency Products and EMC Components, new products, which were in deficit due to
development expenses, started to achieve orders in the second half of the fiscal year ended March
2004 and are expected to make a profit in the fiscal 2005.  For Machinery Ceramics, we forecast
that MARUWA QUARTZ CO., LTD., a new consolidated subsidiary from 1 April 2004, former Kimmon Quartz
Co.,Ltd. will contribute an increase of sales.  MARUWA QUARTZ would be a negative factor for the
divisional profits in the first and second quarters because of the transition and reconstruction
expenses of about 200 million yen, but is forecasted to turn to the black and to contribute to
achieving profits after the third quarter.

  To consider all the above, for the full fiscal 2005, we forecast consolidated net sales of 15,700
million yen, up 30.8% compared to the previous fiscal year and net income of 870 million yen, up
83.2%.

*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.

III. Financial Condition
                                                         JPY million      JPY million
                                 As of 31st March   As of 31st March           Change
                                             2003               2004           Amount           %
Total assets                               26,881             26,664             -217       -0.8%
Total liabilities                           3,392              3,235             -157       -4.6%
Total shareholders' equity                 23,489             23,429              -60       -0.3%
Shareholders' equity ratio                  87.4%              87.9%                0

                                                         JPY million      JPY million
                                   For year ended     For year ended           Change
                                  31st March 2003    31st March 2004           Amount           %
Net cash provided by                        1,891              2,102              211       11.2%
 operating activities (+)
Net cash used in                            1,046                708             -338      -32.3%
 investing activities (-)
Net cash used in                            1,013                406             -607      -59.9%
 financing activities (-)
Cash and cash equivalents                   5,291              6,202              911       17.2%
 at end of term

Net sales                                  10,337             12,003            1,666       16.1%
Capital investment                          1,051                742             -309      -29.4%
Depreciation                                1,460              1,466                6        0.4%

  Total assets at the end of the fiscal year were 26,644 million yen, down 217 million yen compared
to the previous year.  Cash and deposits increased 911 million yen while inventories decreased 567
million yen, and net property, plant and equipment declined 1,203 million yen because of capital
expenditure only in selected areas.

  Considering our business size, MARUWA holds a relatively large amount of internal reserve and
consequently high shareholders' ratio.  This is because we aim to pursue proactively and timely M&A
as one of the important growth strategies.

  Net cash provided from operating activities rose 211 million yen to 2,102 million yen from the
previous year.  Income before income taxes was 711 million yen, an increase of 478 million yen
compared to the previous year.  Thanks to 477 million yen provided by the contraction of
inventories, cash increased 523 million yen compared to the previous term.  Depreciation cost
increased 6 million yen to 1,466 million yen compared to the last year.  Since notes & accounts
receivable increased due to MARUWA QUARTZ CO., LTD., a new consolidated subsidiary, cash decreased
295 million yen compared to the previous year.  Taxes paid were 100 million yen while taxes were
refunded and cash increased 119 million yen for the previous fiscal year.

  Net cash used in investing activities totaled 708 million yen; cash increased 338 million yen
compared to 1,046 million yen including 136 million yen for acquiring the stocks of a new subsidiary
in the last year.  Cash used for property, plant and equipment decreased 50 million yen to 733
million yen compared to the previous year, especially for the renewal of equipment and metal molds
both in overseas and domestic production.  Also, 133 million yen was gained from the sales of
investment securities.

  Net cash used in financing activities amounted to 406 million yen, up 606 million yen compared to
1,013 million yen including 858 million yen used for the payment of the long-term debts in the
previous year.  For financing activities, cash mainly used for the repurchase of shares of 100
million yen, the payment of the long-term debts of 152 million yen, and the dividends paid of 154
million yen.

  As a result, cash and cash equivalents at the end of the fiscal 2004 increased 911 million yen to
6,202 million yen compared to the previous year.


Consolidated Balance Sheet
                            JPY million          JPY million                   USD thousand
ASSETS            As of 31st March 2004     As of 31st March       Change %      As of 31st
                                                        2003                     March 2004
                                                                                 
Current assets:
Cash & deposits                   6,202                5,291          17.2%          54,724
Notes and                         3,740                3,249          15.1%          33,002
accounts
 receivable,
trade
Inventories                       3,280                3,847         -14.7%          28,946
Deferred income                      81                   43          88.4%             713
taxes
Other current                       252                  268          -6.0%           2,224
assets
Allowance for                       (1)                  (2)             --             (8)
doubtful
accounts
Total current                    13,554               12,696           6.8%         119,601
assets

Fixed assets:
(Property, plant & equipment)
Land                              2,548                2,541           0.3%          22,486
Building &                        3,449                3,789          -9.0%          30,432
structures
Machinery &                       4,006                4,891         -18.1%          35,345
equipments
Construction in                     152                  128          18.8%           1,344
progress
Other                               555                  564          -1.6%           4,898
Net property,                    10,710               11,913         -10.1%          94,505
plant &
 equipment

(Investment &
other assets)
Investment                          662                  661           0.2%           5,838
securities
Deferred income                     245                   26         842.3%           2,158
taxes
Property &                          996                1,016          -2.0%           8,786
equipment for
 investments
Other                               502                  593         -15.3%           4,435
Allowance for                       (5)                 (24)             --            (46)
doubtful
 accounts
Total                             2,400                2,272           5.6%          21,171
investments &
 other assets

Total fixed                      13,110               14,185          -7.6%         115,676
assets

Total assets                     26,664               26,881          -0.8%         235,277

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes & accounts                    670                  489          37.0%           5,916
 payable, trade
Current portion                     148                  152          -2.6%           1,301
of
 long-term debt
Accrued income                       88                   54          63.0%             773
taxes
Accrued bonus                       137                  136           0.7%
Stock purchase                       11                   11           0.0%              95
warrants
Equipment notes                     328                  341          -3.8%           2,893
payable
Other current                       648                  768         -15.6%           5,721
liabilities
Total current                     2,030                1,951           4.0%          17,909
liabilities

Long-term
liabilities:
Long-term debt                      482                  630         -23.5%           4,257
Accrued pension                     176                  139          26.6%           1,552
&
 severance costs
Deferred tax                          0                   --             --               3
liabilities
Consolidation                       477                  596         -20.0%           4,207
goodwill
Other                                70                   76          -7.9%             613
Total long-term                   1,205                1,441         -16.4%          10,632
liabilities

Total                             3,235                3,392          -4.6%          28,541
liabilities

Shareholders'
equity:
Common stock,                     6,683                6,683           0.0%          58,973
authorized:
 26,000,000 shares; issued & outstanding: 11,050,000 shares
Additional                        9,710                9,710           0.0%          85,682
paid-in capital
Retained                          8,516                7,748           9.9%          75,141
earnings
Net unrealized                    38                     (7)           --               332
gain (loss)
 on other
securities
Foreign currency                (1,216)                (443)             --        (10,723)
 translation                      (302)                (202)             --         (2,669)
adjustment
Treasury stock,                  23,429               23,489          -0.3%         206,736
at cost
Total
shareholders'
equity

Total                            26,664               26,881          -0.8%         235,277
liabilities &
 shareholders'
equity

Consolidated Statements of Income

                            JPY million        JPY million                     USD thousand
                         For year ended       For year ended       Change %  For year ended
                        31st March 2004      31st March 2003                31st March 2004
Net sales                        12,003               10,337          16.1%         105,913
Cost of sales                     9,022                7,999          12.8%          79,608
Gross profit                      2,981                2,338          27.5%          26,305
Selling, general                  2,295                2,031          13.0%          20,254
&
 administrative
expenses
Operating income                    686                  307         123.5%           6,051
Other income
(expenses):
Interest &                           12                    6         100.0%             102
dividend income
Interest                           (13)                 (15)             --           (112)
expenses
Foreign exchange                     30                 (56)             --             269
gain
 (loss), net
Other, net                          (4)                  (9)             --            (37)
Other income,                        25                 (74)             --             222
net
Income before                       711                  233         205.2%           6,273
income taxes

Income taxes:                                                                         (112)
Current                             112                   48         133.3%             986
Deferred                            124                   80          55.0%           1,092
                             *      236                  128          84.4%           2,078

Net income                          475                  105         352.4%           4,195

Consolidated Statement of Cash Flows

                            JPY million          JPY million                   USD thousand
                         For year ended       For year ended       Change %  For year ended
                        31st March 2004      31st March 2003                31st March 2004
Operating
activities:
Income before                       711                  233         205.2%           6,273
income taxes
Adjustments for:
Depreciation                      1,466                1,460           0.4%          12,937
Amortization of                   (119)                   --             --         (1,052)
 consolidation
goodwill
Increase                           (20)                 (13)             --           (180)
(decrease) in
 allowance for doubtful accounts
Decrease in                          36                   28          28.6%             322
accrued
 pension &
severance costs
Loss on disposal                     51                   82         -37.8%             446
of
 property, plant
& equipment
Interest &                         (13)                  (7)            --             (119)
dividends income
Foreign exchange                      7                   43         -83.7%              58
(gain) loss
Write-down of                        --                    9             --              --
investment
 securities
(Increase)                        (605)                (310)             --         (5,334)
decrease in
 notes &
accounts
receivable
(Increase)                          477                 (46)             --           4,211
decrease in
 inventories
Increase                            207                 (66)             --           1,827
(decrease) in
 accounts
payable
Other                               (6)                  367             --            (52)
Sub total                         2,192                1,780          23.1%          19,337
Interest &                           12                    7          71.4%             109
dividend income
 received
Interest                            (2)                 (15)             --            (19)
expenses paid
Income taxes                      (100)                  119             --           (883)
paid
Net cash                          2,102                1,891          11.2%          18,544
provided by
 operating
activities

Investment
activities:
Payments for                      (733)                (783)             --         (6,469)
purchase of
 property, plant
& equipment
Proceeds from                        39                   88         -55.7%             341
sales of
 property, plant
& equipment
Payments for                       (41)                (267)             --           (362)
purchase of
 investment
securities
Proceeds from                       133                   --             --           1,175
sales of
 investment
securities
Payments for                         --                 (55)             --               0
purchase of
 stocks of
subsidiaries
Collection from                       1                   --             --               7
loan
 receivables
Increase in                       (109)                 (33)             --           (965)
intangible fixed
 assets
Other                                 2                    4         -50.0%              25
Net cash used in                   (708)          (1,046)                --         (6,248)
investing
 activities

Financing
activities:
Payments of                       (152)                (858)             --         (1,341)
long-term debt
Cash dividends                    (154)                (154)             --         (1,360)
paid
Purchase of                       (100)                  (1)             --           (886)
treasury stock
Net cash                          (406)              (1,013)             --         (3,587)
provided by
 (used in)
financing
activities

Effect of                          (77)                 (33)             --           (670)
exchange rate
 changes on cash & cash equivalents
Net increase                        911                (201)             --           8,039
(decrease) in
 cash & cash
equivalents
Cash and cash                     5,291                5,492           -3.7%         46,685
equivalents
 at beginning of
year

Cash and cash                     6,202                5,291          17.2%          54,724
equivalents
 at end of year

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
                            JPY million          JPY million                     USD thousand
                         For year ended       For year ended       Change %    For year ended
                        31st March 2004      31st March 2003                  31st March 2004
JAPAN
Net sales:
Unaffiliated                      8,877                7,310          21.4%           78,329
customers
Intersegment                        567                  470          20.6%            5,006
Total                             9,444                7,780          21.4%           83,335
Operating cost                    8,776                7,199          21.9%           77,444
Operating income                    668                  581          15.0%            5,891
(loss)

ASIA
Net sales:
Unaffiliated                      2,707                2,774          -2.4%           23,890
customers
Intersegment                      1,003                  862          16.4%            8,849
Total                             3,710                3,636           2.0%           32,739
Operating cost                    3,127                3,350          -6.7%           27,592
Operating income                    583                  286         103.8%            5,147
(loss)

EUROPE and
AMERICA
Net sales:
Unaffiliated                        419                  253          65.6%            3,693
customers
Intersegment                          2                    2           0.0%               17
Total                               421                  255          65.1%            3,710
Operating cost                      508                  362          40.3%            4,479
Operating income                   (87)                (107)             --            (769)
(loss)

TOTAL
Net sales:
Unaffiliated                     12,003               10,337          16.1%          105,913
customers
Intersegment                      1,572                1,334          17.8%           13,872
Total                            13,575               11,671          16.3%          119,785
Operating cost                   12,411               10,911          13.7%          109,515
Operating income                  1,164                  760          53.2%           10,270
(loss)
ELIMINATION
Net sales:
Total                             1,572                1,334          17.8%           13,872
Operating cost                    1,094                  881          24.2%            9,653
Operating income                    478                  453           5.5%            4,219
(loss)

CONSOLIDATED
Net sales:
Total                            12,003               10,337          16.1%          105,913
Operating cost                   11,317               10,030          12.8%           99,862
Operating income                    686                  307         123.5%            6,051
(loss)

(3) Net overseas sales by customer's geographic location

                            JPY million          JPY million                    USD thousand
                         For year ended       For year ended       Change %   For year ended
                        31st March 2004      31st March 2003                 31st March 2004
Overseas sales:
Asia                              5,019                4,925           1.9%           44,285
Europe                              287                  294          -2.4%            2,536
Others                              376                  143         162.9%            3,315
Total                             5,682                5,362           6.0%           50,136
Consolidated net                 12,003               10,337          16.1%          105,913
sales

% to
consolidated net
sales:
Asia                              41.8%                47.6%
Europe                             2.4%                 2.8%
Others                             3.1%                 1.4%
Total                             47.3%                51.9%

*Countries are divided in geographical vicinity.

*Main countries included in each are as indicated below;

Asia - Malaysia, Taiwan, Korea, Hong Kong
Europe -
Germany, England
Others - United
States

*Overseas sales indicate net sales of the Company and its subsidiaries to customers outside
Japan.

END.


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