FOR IMMEDIATE RELEASE 1997-0096

However, despite strong double-digit sales increases in the communications and information processing areas and continued progress in improving group-wide management efficiency, consolidated profits were adversely impacted by depressed semiconductor memory prices as well as special charges such as those associated with inventory adjustments relating to Amdahl Corporation's new model introduction.

As a result, consolidated net income dropped by 27 percent over fiscal 1995 to 46.1 billion yen (approximately $372 million), while consolidated operating income and net income per share (*2) likewise declined by 3 percent and 27 percent to 200.7 billion yen ($1.62 billion) and 25.1 yen ($0.20) per share, respectively.

By product area, fiscal 1996 consolidated sales of communications systems jumped by nearly 37 percent over the previous fiscal year to 855.0 billion yen ($6.90 billion). Sales of computers and information processing systems rose by 21 percent to 2,974.9 billion yen ($23.99 billion). The impressive sales growth in these areas reflects Fujitsu's success in meeting burgeoning customer demand for networking and data service solutions.

In communications systems, for example, there was particularly strong demand for Fujitsu's advanced digital switching and fiber optic transmission systems to support increased Internet, intranet and PHS mobile communication network usage. The company also benefited from increased corporate investment in information systems, especially client/server systems, as well as continued strong gains in sales of personal computers and related equipment, such as hard disk drives.

Consolidated sales of semiconductors and electronic components, on the other hand, declined by 5 percent to 511.8 billion yen ($4.13 billion). Although the growth in personal computers led to increased demand for memory ICs, major price deterioration from the beginning of the fiscal year put a damper on sales and margins.

Overseas sales in fiscal 1996, including local production as well as exports from Japan, increased by 20 percent to 1,342.1 billion yen ($10.82 billion) and accounted for 29.8 percent of total consolidated sales. This included especially strong sales of fiber optic transmission systems in the U.S. and Asia, as well as a major growth in the company's OEM business for hard disk drives in the U.S.

The results for the Fujitsu Group reflect the performance of 446 consolidated subsidiaries worldwide (433 in FY1995), including ICL PLC, Fujitsu America, Inc. and Fujitsu Microelectronics, Inc., as well as 35 other affiliated companies (39 in FY1995), including Amdahl Corp. and Fanuc Ltd., using the applied equity accounting method.

Notes:

1. All yen figures have been converted into U.S. dollars at the rate of 124 yen to the dollar.
2. Net income per share is based on the weighted average number of shares of common stock outstanding during the respective fiscal years.

Years ended March 31	1997 Yen(millions)	1996 Yen(millions)	CHANGE (%)	1997 US$(millions)
Communications Systems Japan Overseas Total	660,712 194,337 855,049	479,673 145,032 624,705	+37.7% +34.0% +36.9%	5,328 1,568 6,896
Computers and Information Processing Systems Japan Overseas Total	2,103,407 871,541 2,974,948	1,773,125 683,814 2,456,939	+18.6% +27.5% +21.1%	16,963 7,028 23,991
Semiconductors and Electronic Components Japan Overseas Total	266,060 245,779 511,839	275,328 263,486 538,814	- 3.4% -6.7% - 5.0%	2,146 1,982 4,128
Other Operations Japan Overseas Total	131,186 30,452 161,638	116,951 24,557 141,508	+12.2% +24.0% +14.2%	1,058 245 1,303
Total Japan Overseas Total	3,161,365 1,342,109 4,503,474	2,645,077 1,116,889 3,761,966	+19.5% +20.2% +19.7%	25,495 10,823 36,318

Fujitsu Limited Consolidated Earnings Projections for FY1997

Continued globalization and growth in network computing will drive expansion of the information and communications markets in the year to come, providing fertile ground for increasing Fujitsu's business performance. Accordingly, the Fujitsu Group intends to further enhance its global operations, placing particular emphasis on strengthening research and development of advanced technologies in areas ranging from high-speed network infrastructure to software & services and electronic devices.

By product area, the company projects continued strong demand in overseas telecommunications markets, particularly in the U.S., solid growth in computers and information processing systems, centering on demand for PCs and related products and services, and growing demand for high value-added semiconductors and electronic devices.

Sales and income projections for FY1997 are as follows:

Fujitsu Limited Unconsolidated Earnings Projections for FY1997

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