Tokyo Electron Limited (TEL) today announced that its financial forecast released on May 14, 2009 has been revised, as indicated below, in line with recent business trends. Its Board of Directors also decided at its meeting held on July 31, 2009 to restructure three TEL group operational bases in Japan as a way to increase the efficiency of production and development, as described below. As a result, the company reported an unusual or infrequent loss.

1. Financial Forecast Revision
Consolidated financial forecast revision for the first six months of the fiscal year ending March 31, 2010(April 1, 2009 - September 30, 2009)

	Net sales (Millions of yen)	Operating income (Millions of yen)	Ordinary income (Millions of yen)	Net income (Millions of yen)	Net income per share(yen)
Previous forecast (A)	126,000	-42,000	-41,000	-26,000	-145.28
Revised forecast (B)	144,000	-36,000	-35,000	-26,000	-145.27
Change (B-A)	18,000	6,000	6,000	－
Change ratio (%)	14.3	－	－	－
Results for the six months ended September 30, 2008	301,225	26,282	28,907	17,361	97.03

Consolidated financial forecast revision for the fiscal year ending March 31, 2010
(April 1, 2009 - March 31, 2010)

	Net sales (Millions of yen)	Operating income (Millions of yen)	Ordinary income (Millions of yen)	Net income (Millions of yen)	Net income per share(yen)
Previous forecast (A)	300,000	-63,000	-61,000	-38,000	-212.33
Revised forecast (B)	318,000	-57,000	-55,000	-38,000	-212.32
Change (B-A)	18,000	6,000	6,000	－
Change ratio (%)	6.0	－	－	－
Results for the year ended March 31, 2009	508,082	14,710	20,555	7,543	42.15

Reason for revision
 It is feared that Europe and North America will experience a prolonged recession in the future due to the financial crisis and the deterioration of the real economy, but there are signs of partial recovery in Asia, particularly China. In the semiconductor-related market, capital investment by semiconductor manufacturers remains sluggish because of the worldwide recession in that market that began last year, but there are growing signs of a bottoming out, as evidenced by the recovery of semiconductor prices and the rising operating rate for production equipment. Under these circumstances, sales for the semiconductor production equipment segment during the consolidated second quarter are expected to be larger than previously predicted. Meanwhile, TEL reported unusual or infrequent losses as a result of its decision to make operational bases more efficient in order to improve its business management foundation.

Note: The content of the financial forecast as described in this financial statement is based on certain reasonable assumptions, drawing on the information currently available such as the economic situation in Japan and throughout the world and other variable factors that have impact on the financial results of the Company.
These assumptions may be influenced by market conditions, competitive conditions, the introduction of new products and their success or failure, the global condition of the semiconductor industry and other uncertainties. Therefore, actual sales and profit may differ significantly from the forecasts.

2. Reporting an unusual or infrequent loss as a result of the decision to make operational bases more efficient
(1) Objective
 As a way to cope with the deterioration of the business environment that began last year due to the global economic downturn and the recession in the semiconductor market, the TEL group is making a united effort to reinforce human resources, step up research and development, and respond to market changes in order to ensure future growth from a medium-term perspective, while reducing fixed costs drastically. As part of these efforts, the company decided to restructure three production and development centers in Japan, as detailed below, in order to increase the efficiency of its production and development systems.

(2) Details of restructuring
 (a) Plans call for the Sagami Office (Sagamihara City, Kanagawa Prefecture) to be closed by
      March 2010 and its operations to be consolidated into the Fuchu Technology Center
      (Fuchu City, Tokyo) and the Yamanashi Plant (Nirasaki City, Yamanashi Prefecture).
 (b) Plans call for the Saga Plant (Tosu City, Saga Prefecture) to be closed by March 2010 and its
      operations to be integrated into the Koshi Plant (Koshi City, Kumamoto Prefecture).
 (c) Plans call for the Kansai Technology Center (Amagasaki City, Hyogo Prefecture) to be closed
      by December 2010 and its operations to be combined with those of the Yamanashi Plant
       (Nirasaki City, Yamanashi Prefecture) and the Sendai Office (Sendai City, Miyagi Prefecture).

(3) Details of the unusual or infrequent loss and the future prospects
 The elimination and consolidation of facilities is expected to generate a consolidated unusual or infrequent loss of approximately 6 billion yen (of which 4.3 billion yen was reported in the first quarter), as a result of factors that include the loss on impairment of tangible fixed assets related to the closed facilities.