As announced on October 25, 2005, Tokyo Electron Limited (TEL) expected to pay a dividend of 25 yen per share at the end of the fiscal year ended March 31, 2006. However, the TEL Board of Directors meeting held today resulted in a resolution to pay a dividend of 30 yen per share to shareholders included or recorded in the register of shareholders, and to real shareholders dated March 31, 2006, before the Annual General Meeting of Shareholders scheduled for late June of 2006. Therefore, TEL announced that the company will revise forecasts of year-end dividends per share for the year upward as follows:

1.       Reason for revision

TEL's dividend policy is to link dividend payments to business performance and revenue on an ongoing basis, and its basic policy for returning earnings to shareholders is to maintain a payout ratio for a given year of around 20% based on consolidated net income for the year. As consolidated financial results for the fiscal year ended March 31, 2006 released today show, consolidated net income was greater than predicted on October 25, 2005. Therefore, TEL will revise forecasts of year-end dividends upward with the year-end dividend increased from 25 yen to 30 yen per share, and the annual dividend from 50 yen to 55 yen per share. As a result, the payout ratio for the fiscal year ended March 31, 2006 will be 33.7% on a non-consolidated basis and 20.6% on a consolidated basis.

2.       Details of revision

(Reference)

Dividend forecasts for the fiscal year ending March 31, 2007 (April 1, 2006 to March 31, 2007)