2. Platforms

	First Half	Change from Same Period Last Year
Net Sales	723.8 billion yen	- 6.0%
Japan	505.0 billion yen	- 6.3%
Overseas	218.8 billion yen	- 5.2%

Operating Income

-20.7 billion yen

+ 10.0 billion yen

Net sales of platforms products declined by 6% compared to the previous year. In Japan, the company posted strong sales throughout the period of consumer-oriented PCs with enhanced audio-visual and LAN functions as well as newly-launched mobile phone handsets. There was, however, only a moderate recovery in capital expenditures by telecom carriers and other corporations. Overseas, a strong market for notebook PC hard disk drives boosted sales of those products, and in the latter half of the period there were signs of a recovery in the markets for transmission systems, primarily in North America, and UNIX servers, primarily in Europe. On the other hand, for the first half overall, sales of transmission systems and server-related equipment were both down by nearly 20% compared with the same period last year, reflecting the lingering after-effects of the telecom bubble in North America and the inclusion in last year's first-half results of some major sales of server-related equipment in Japan.

The operating loss for the platforms segment was 20.7 billion yen, representing an improvement of 10.0 billion yen compared to the first half of the previous year.
Improvements in PCs, hard disk drives and other business areas resulting from last year's restructuring and other cost-cutting measures were not enough to offset the impact of lower sales of servers and networking equipment.

	Net Sales	Change from Same Period Last Year
Servers	154.0 billion yen	-19.7%
Mobile / IP Networks	80.9 billion yen	- 5.6%
Transmission Systems	80.6 billion yen	- 19.2%
PCs / Mobile Phones	322.0 billion yen	+ 4.6%
Hard Disk Drives	86.3 billion yen	+ 1.6%

In servers and PCs, Fujitsu has integrated its development operations and is selling in the four major markets of Japan, the U.S., Europe, and Asia. In UNIX servers, the company's high-end systems have achieved top scores in a number of performance benchmarks, and sales in Europe and other areas are expanding.

Fujitsu is further enhancing its ability to provide products for the global markets, differentiating itself on the basis of its superior technology. It is also strengthening its server business by deepening the linkage with its software and services business through its TRIOLE infrastructure concept. Fujitsu is also widening the scope of its global alliances with other companies and pursuing an all-out marketing effort in Japan.

In design and manufacturing, the company is also making every effort to strengthen its manufacturing prowess through the introduction of some of Toyota's techniques. By further enhancing its ability to cut costs, the company is laying a foundation for stable profitability.

*TRIOLE is Fujitsu's IT infrastructure initiative that addresses the most pressing needs of corporate and institutional customers: scalability to expand with their requirements; quick and easy integration with partners; lower cost of ownership; and operational reliability.