In the Electronics & Auto segment, FPC has recorded steady sales growth, but price reductions have become unavoidable because of increasing competition and consequent pricing pressures since entering the current fiscal period. Exploiting our steady cost reductions in electrical wire manufacturing, I would like to aim at further growth. On the other hand, in the non-FPC products such as connectors, HDD parts, thermal solution production, electrical wiring and membrane switches, we are in the process of achieving a certain fixed scale of business. Also in the domain of automotive electronics, we have acquired of a 60% equity stake in Auxiliar de Componentes Eléctricos, S.A. (“ACE”), a Spanish manufacturer of wire harnesses, in October of last year, realizing our long-cherished desire to establish a global 4-region system. I would like to plot a course to business expansion that takes advantage of this opportunity by aggressively presenting our customers with proposals for module products that are a fusion of the harnesses, FPC, thermal products and optical telecommunications technology possessed by FUJIKURA.

In the Telecommunications segment, today we have a business organization that has been able to reflect the favorable conditions in the broadband and FTTH markets. In the future, as we further reinforce our cost competitiveness, I would like to move forward with the development of both new products and new customers not only in Japan but also on a global scope.

In the Metal Cable & System segment, to further improve cost competitiveness, the consolidation of metal cable manufacturing (telecommunications and electrical power) at the Suzuka Plant has been achieved and operations have commenced.

We should also improved and passed on production and manufacturing technology in collaboration with Fujikura Dia Cable Ltd. and sales and marketing partners such as Fujiden Inc. Wire & Cable.

In 2005, we at Fujikura celebrated the 120th anniversary of our founding., and announced the “Third 60 Years” of Fujikura. This year corresponds to the 3rd year of the “Third 60 Years.” Based on the new corporate philosophy “Mission, Vision, Core Values (MVCV)” for the “Third 60 Years,”, we shall change our manufacturing process and clarify to all that “Quality First” is “subjects to be done and subjects never to be done from the customers’ perspective” and strongly promote “Quality First” activities for eliminating waste.

This year, too, we will be introducing new products through “Fujikura News.” We hope we can enjoy your continuing support.

Kazuhiko Ohashi, President

New Years Day, 2007