In fiscal 2008, the year ended March 31, 2008, Tokyo Electron posted net sales of ¥906.1 billion, operating income of ¥168.5 billion and net income of ¥106.3 billion. All of these figures represent new record highs for the Company. With this performance, we believe that the Company's overall growth framework for the future has been demonstrably strengthened. We increased the dividend by ¥22 from last year to ¥125 per share, which is the largest dividend in the Company's history. We are deeply grateful to all of you for your continued support.

Turning attention to future market trends, the IT market, in which the Company operates, has entered an adjustment phase, and the environment remains harsh. However, forecasts are for the IT market to recover and return to a growth track from 2009 onward.

Under these conditions, Tokyo Electron redoubled its efforts in R&D, the source of future growth, and took steps to further enhance its financial structure. We also started considering new strategies for achieving growth over the medium to long term. An overview of these measures is provided below. We remain committed to working in unison to build a company full of vision and energy under the key words 'innovation,' 'growth' and 'environment.'

Overview of Tokyo Electron's New Growth Strategies
The electronics industry, in which Tokyo Electron operates, and the information and telecommunications technology field in particular, is becoming increasingly important globally. The reason is that it supplies core technologies for various industries expected to demonstrate high growth in the future, including the medical, educational, financial, automotive, aerospace, safety and environmental fields. As core technologies supporting these industries, Tokyo Electron's products have contributed greatly to the development of industry along with its technological innovations. Looking ahead, the technological innovation of these fields themselves is expected to be accompanied by additional growth supported by new advances incorporating technologies in the adjacent fields of nanotechnology, biotechnology and MEMS technology. Tokyo Electron reaffirms its commitment to continue its unremitting endeavors with regard to the existing products and technologies that are the cornerstone of its business, as well as new fields adjacent to them. In this way, we will take the lead on a worldwide scale through 'Innovation' and 'Growth.'

Furthermore, while technological development contributes to an improved quality of life for humans, it can also have an adverse impact upon safety and the environment, and if not addressed, this situation could speed up the depletion of global energy resources and the degradation of the global environment. Tokyo Electron intends to contribute to the healthy development of humankind, and the Company acknowledges that one of its most important missions is to contribute to reducing environmental impact, both as a global phenomenon, and as an issue inherent within the technological fields in which it is active.

I would like to thank all of our stakeholders for their ongoing support, and their belief in Tokyo Electron's potential for further growth.

Supported by brisk semiconductor capital expenditures over the past several years, Tokyo Electron posted higher sales and earnings again in fiscal 2008, posting record high numbers for the second consecutive year. By application, capital investment was concentrated on DRAM and NAND flash memory, and these categories were the major sales drivers. By region, sales increased in Asia and Japan but contracted in Europe and the U.S., indicative of further progress in the shift of semiconductor manufacturing to Asia. In 2007, the supply-demand balance for memory chips destabilized, and semiconductor production equipment orders started to decelerate. However, because of our ample order backlog, we were still able to clear our semiconductor production equipment sales target. Conversely, sales in the FPD production equipment division were weak. However, orders rebounded in the second half of the fiscal year, and this should contribute to sales in fiscal 2009. As a result, we achieved our initial target for sales of ¥900 billion and surpassed our target for the operating income margin with 18.6%. We thank all of you for your support in achieving and surpassing our goals.

For the fiscal year ending March 31, 2009, given that we are starting with a low order backlog, we assume that conditions will be challenging. Even so, because of the cyclical nature of the semiconductor and FPD production equipment markets, we are taking additional steps to control expenses while moving aggressively ahead with R&D aiming to generate substantial growth during the next upturn in the cycle.

Accomplishments outside of financial performance in the previous fiscal year include progress in plant reform. On the manufacturing side, we started operations at a new facility at Tokyo Electron Kyushu Limited, commencing high-efficiency production of key products. Moving forward with our objective of realizing plants with even higher efficiency, we procured a site for a new facility in Miyagi Prefecture, with plans to complete construction in 2010. On the development side, we established Tokyo Electron Technology Development Institute, Inc., and worked to develop product groups centered on new plasma technologies. We expect these products to become the nucleus for the creation of new businesses. We also made inroads into new fields by establishing a joint venture with Sharp Corporation for the development of photovoltaic cell production equipment. Having declared improvement of the global environment as one of its corporate missions, Tokyo Electron views equipment for manufacturing energy-saving devices and photovoltaic cells in particular as fields in which it could apply its technologies. We intend to aggressively pursue these fields, as they have the potential to address societal demands as well as expand into major businesses over the long term.

With these moves, we are laying various stepping stones for Tokyo Electron to grow over the medium to long term. We ask for your continued support.