Contact: Yuri Momomoto Fujitsu Ltd, Public Relations Tel: (+81-3)3215-5236

FOR IMMEDIATE RELEASE

The increase in sales, together with greater group-wide efficiency in development, manufacturing and sales operations, helped boost consolidated net income to 15.3 billion yen ($127 million). The jump in consolidated net income represents a 296% increase over the 3.8 billion yen recorded in the first half of the previous fiscal year.

The company enjoyed double-digit sales increases in each of its core business segments. In communications systems, increased demand for Internet and mobile communications systems together with continuing deregulation in many markets helped spark strong sales of Fujitsu's digital switching, fiber optic transmission and mobile communications systems. This boosted consolidated sales of communications systems by 19% to 437.9 billion yen ($3.6 billion).

Consolidated sales of computers and information processing systems rose by 13% to 1,443.9 billion yen ($11.9 billion). Strong sales of computer systems reflected increased corporate spending on systems to accommodate network-based computing, healthy growth in the company's PC-related business and strong performance in services and software, including systems integration. Sales of magnetic disk drives were also up significantly, especially overseas.

Against the backdrop of growing global markets for PCs and mobile communications equipment, Fujitsu enjoyed strong demand for its memory ICs, including flash memories and DRAMs, as well as for logic devices. As a result, consolidated sales in semiconductors and electronic devices were 289.7 billion yen ($2.3 billion), a 21% increase over the same six-month period last year.

As a result of the previously mentioned gain in net income, Fujitsu reported a 294% increase in half-year consolidated net income per share to 8.3 yen ($0.07), up from 2.1 yen ($0.02) in first half 1996.

Founded in 1935, Fujitsu Limited is an international leader in information technology, telecommunications, semiconductors and other electronic devices. Financial results reflect the performance of 452 consolidated subsidiaries (448 in first half 1996), including ICL PLC, Fujitsu America, Inc., Fujitsu Microelectronics, Inc. and Fujitsu Network Communications, Inc., as well as 35 affiliates (38 in 1996), including Fanuc Ltd. and Advantest Corporation, using the applied equity method.
Home page: http://www.fujitsu.com/

Fujitsu is responding to this new market environment by actively promoting the globalization of the entire Fujitsu Group, and the company consistently structures its development, manufacturing and sales activities with a view to international markets. In April of this year, for example, Fujitsu moved to strengthen its business in ASEAN markets by establishing an ASEAN headquarters in Singapore with overall IT sales responsibility for the region. Moreover, with its acquisition of Amdahl Corp. in September, the company significantly upgraded its presence in the U.S. IT market. Fujitsu and Fujitsu Group member ICL now have established an effective organizational structure in four major markets - the U.S., Europe, Japan and Asia - and thus are able to offer total IT solution services on a global basis.

* Note: All yen figures have been converted to U.S. dollars for convenience only at a rate of $1=121 yen. Comparisons between fiscal half-year periods reflect conversion of yen amounts into dollars at this uniform rate. Net income per share is based on the weighted average number of shares of common stock outstanding during the respective periods.

Looking at the second half of the current fiscal year, the company projects continued growth in demand for communications systems, particularly in Asia and other overseas markets. Likewise, it expects steadily increasing sales in computers and information processing systems, particularly PC-related products and software and services. The company projects that consolidated net sales for the fiscal year ending March 31, 1998 will exceed the previous fiscal year's total by 15% (9% on an unconsolidated basis). While unconsolidated net income for the fiscal year is also projected to increase (by about 8%), charges associated with the acquisition of Amdahl Corp. are expected to hold FY1997 consolidated net income at roughly the same level as the previous fiscal year.

FOR MORE INFORMATION, PLEASE CONTACT:

Fujitsu Limited, Public Relations

Phone: (+81-3) 3215-5236 or 3213-4160
Fax: 3216-9365

LINKS:

Investors Relations
Annual Report March 1997
Graphical Highlights from last year
FY1996 Financial Results

* Note: all yen figures have been converted to U.S. dollars at the rate of 121 yen to the dollar.