Allocation of Extraordinary Income and Loss

Feb. 17, 2006

Allocation of Extraordinary Income and Loss

Oki Electric expects the allocation of extraordinary income and loss as follows:

1. Extraordinary income

Oki plans to sell part of its marketable securities in order to improve its asset efficiency and financial strength. The company expects 7.5 billion yen of gain on sales of marketable securities (both consolidated base and non-consolidated base), and will record the gain as extraordinary income for the fiscal year ending March 2006.

2. Extraordinary loss

By changing a part of its company housing to rental assets, Oki expects 3.0 billion yen of impairment loss (both consolidated base and non-consolidated base). The company will record the loss as extraordinary loss for the fiscal year ending March 2006.

3. Impact on income

Extraordinary income and loss mentioned above are included in the earning projections for the fiscal year ending March 2006, announced today.