1st Quarter Results

Maruwa Co Ld
08 August 2003


                                                                 8th August 2003

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 first quarter of fiscal 2004, the three-month period ended 30th June 2003
as follows; -

Note: statements of income are unaudited.

1. Consolidated statements of income
                                                                       JPY million
                          ----------------------------------------------------
                            Current 1st Qt         Previous 1st Qt
                          from 1st April 2003    from 1st April 2002    Change    Change
                           to 30th June 2003      to 30th June 2002                    %
                          ----------------------------------------------------
                                   % of sales              % of sales
                                   ----------             ----------
Net sales                  2,852                  2,797                    55      2.0%
Cost of sales              2,232       78.3%      2,227       79.6%         5      0.2%
                          -------                -------
Gross profit                 620       21.7%        570       20.4%        50      8.8%
                          -------                -------
Selling, general &           577       20.2%        468       16.7%       109     23.3%
administrative expenses
                          -------                -------
Operating income              43        1.5%        102        3.6%       (59)   -57.8%
                          -------                -------
Other income                  51        1.8%         49        1.8%         2      4.1%
                          -------                -------
Income before income taxes    94        3.3%        151        5.4%       (57)   -37.8%
                          -------                -------
Income tax expenses           40        1.4%         59        2.1%       (19)   -32.2%
                          -------                -------
Net income                    54        1.9%         92        3.3%       (38)   -41.4%
                          -------                -------

2. Sales breakdown
                                                                      JPY million
                          ----------------------------------------------------
                            Current 1st Qt         Previous 1st Qt
                          from 1st April 2003    from 1st April 2002    Change    Change
                           to 30th June 2003      to 30th June 2002                    %
                          ----------------------------------------------------
Circuit Ceramics                 1,239                  1,194              45        4%
Machinery Ceramics                 637                    326             311       95%
Radio Frequency Products           253                    421            (168)     -40%
EMC Components                     723                    856            (133)     -16%
                                --------               --------
Total                            2,852                  2,797              55        2%
                                --------               --------

3. Quarterly sales trend
                                                                     JPY million
                          ---------------------------------------------------
                          For year ended 31st March
                           2003                                        2004          % of
                           1st Qt     2nd Qt     3rd Qt     4th Qt     1st Qt    total sales
                          -------------------------------------------------------------------
Circuit Ceramics            1,194      1,157      1,137      1,194      1,239         43%
Machinery Ceramics            326        407        288        264        637         22%
Radio Frequency Products      421        334        262        251        253          9%
EMC Components                856        735        758        753        723         25%
                          -------------------------------------------------------------------
Total                       2,797      2,633      2,445      2,462      2,852        100%
                          -------------------------------------------------------------------

Review of operations

Circuit Ceramics
Total sales in Circuit Ceramics increased 45 million yen compared to the previous quarter. 
Sales of ceramic substrates for resistors, which is one of our core products, have moved 
favorably in Asian markets since the fourth quarter of the previous year with increasing
demand for miniaturized chip resistors. In addition, sales of glazed substrates for
thermal printer heads grew in the domestic market.

Machinery Ceramics
Total sales in Machinery Ceramics increased 311 million yen, as sales of quartz glass
products newly contributed to the revenue for this product division.

Radio Frequency Products
For dielectric ceramics, sales recovery has been dull after bottoming out in the fourth
quarter of the previous fiscal year due to protracted inventory adjustments at a mobile
phone parts manufacturer, one of our main customers. Sales of device products moved flat
due to a fall in market price even though PHS components for the Chinese market showed
favorable sales.

EMC Components
Multi-layer ceramic capacitors showed relatively solid sales in the domestic power supply
market, but have been struggling in the Taiwan-centered overseas digital cameras market.
Sales of EMI filters are moderately growing especially for components related to base
stations.

4. Consolidated Balance Sheet
                                                                              JPY million
                                  ----------------------------------------------------
                                    As of 30th June     As of 31st March      Change
                                          2003                2003
                                  ----------------------------------------------------
ASSETS
Current assets
Cash & deposits                           5,464               5,291             173
Notes and accounts receivable, trade      3,279               3,249              30
Inventories                               3,734               3,847            (113)
Other current assets                        229                 310             (81)
                                        --------            --------
Total current assets                     12,706              12,697               9
                                        --------            --------

Property, plant & equipment              11,742              11,912            (170)
                                        --------            --------

Investments & other assets                2,271               2,272              (1)
                                        --------            --------
Total assets                             26,719              26,881            (162)
                                        --------            --------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes & accounts payable, trade             448                 489             (41)
Short-term debt                             150                 152              (2)
Other current liabilities                 1,248               1,310             (62)
                                        --------            --------
Total current liabilities                 1,846               1,951            (105)
                                        --------            --------

Long-term liabilities:
Long-term debt                              594                 630             (36)
Accrued pension & severance costs           145                 139               6
Other                                       644                 672             (28)
                                        --------            --------
Total long-term liabilities               1,383               1,441             (58)
                                        --------            --------

Shareholders' equity:
Common stock, authorized:                 6,683               6,683               0
26,000,000 shares; issued & outstanding:
11,050,000 shares in 2003
Additional paid-in capital                9,710               9,710               0
Retained earnings                         7,719               7,748             (29)
Net unrealized gains (losses) on              5                  (7)             12
other securities
Foreign currency translation               (425)               (443)             18
adjustment
Treasury stock                             (202)               (202)              0
                                        --------            --------
Total shareholders' equity               23,490              23,489               1
                                        --------            --------

Total liabilities &                      26,719              26,881            (162)
shareholders' equity                    --------            --------


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