During the first nine months, the worldwide economy has become increasingly severe due to the economic slowdown against the backdrop of the financial crisis in Europe and hovering unemployment rate in the United States. The business uptrend in emerging countries is also showing signs of slowdown. There is growing uncertainty over the economic outlook in Japan caused by the impact of the rapid appreciation of yen, fluctuation of the stock market, and the confusion in supply chain due to the flood disaster in Thailand.

In this business environment, the OKI Group reported net sales of 293.4 billion yen, a 8.6 billion yen increase year-on-year, thanks to increase in mainly mechatronics systems as well as the steady performance of EMS and others businesses, in addition to unifying accounting period for consolidated subsidiaries in China, despite sales decrease in the printer business due to the appreciation of yen and the impact of flood damage in Thailand. Operating income was 6.9 billion yen, a 11.9 billion yen improvement year-on-year. This is attributable to efforts in reducing variable costs, the impact of reducing fixed costs and high appreciation of the yen against the dollar, in addition to increase in marginal profit brought by the rise in volume mainly in info-telecom systems business, which offset the impact of flood damage in Thailand on the printer business. Recurring income was 3.9 billion yen, a 13.9 billion yen improvement year-on-year and net loss improved by 12.0 billion yen to 6.3 billion yen, despite recording 2.7 billion yen of extraordinary loss caused by the flood disaster in Thailand.

In light of business trend during these nine months, the impact of flood disaster in Thailand and unification of accounting period for consolidated subsidiaries in China, OKI revises full-year projections for fiscal year 2011.

For the full fiscal year 2011, OKI projects net sales of 428.0 billion yen (8.0 billion yen decrease from the previous projections), operating income of 17.0 billion yen (2.0 billion yen increase) and recurring income of 13.0 billion yen (1.0 billion yen increase). OKI expects net sales and operating income of info-telecom systems to increase from the previous announcement since it continue to perform steadily. On the other hand, OKI expects net sales and operating income of the printer business to decrease due to the impact of currency exchange, flood damage in Thailand and the backset of economy in Europe. Net income is expected to be 6.5 billion yen (1.0 billion yen decrease from the previous projections) due to increase in operating income of info-telecom systems business, offsetting the decline in operating income of the printer business, despite impact of the flood disaster in Thailand and the revision of the tax system in Japan.

Moving forward, based on the solid management basis built during fiscal year 2010, the OKI Group will continue to execute various measures to achieve its "Mid-term business plan" especially accelerating its growth strategy. All OKI employees will work together as one and return to its origin "Enterprising Spirit." The OKI Group will take steps towards a company that generates stable profits, enabling it to grow demonstrably.

To our shareholders, I ask for your continued and steadfast support as we move forward.

February 3, 2012