Tokyo, May 22, 1998 -- Fujitsu Limited, a global leader in computers, communications and microelectronics, today reported consolidated net sales of 4.98 trillion yen for fiscal 1997 (April 1, 1997 - March 31, 1998), an increase of 11 percent over the previous fiscal year. Converted into dollars, this represents approximately $37.7 billion. (Conversion rate of $1 = 132 yen.)

However, despite strong gains in sales of computers and information processing systems (up 12 percent) and semiconductors (up 17 percent), consolidated profits were adversely impacted by unfavorable semiconductor memory prices, exchange losses on Asian currencies, and the depreciation of goodwill and other costs related to the Company's acquisition of Amdahl Corporation. As a result, fiscal 1997 consolidated net income dropped by 88 percent over fiscal 1996 to 5.5 billion yen ($42 million). Strong sales and increased management efficiency helped boost consolidated operating income by 5 percent to 211.2 billion yen ($1.6 billion).

By main business area, fiscal 1997 consolidated sales of computers and information processing systems rose 12 percent to 3.33 trillion yen ($25.2 billion), with domestic and international sales of systems integration and outsourcing services posting especially strong gains. The consolidation of Amdahl's sales in the second half of the period, when it became a wholly owned subsidiary, contributed to Fujitsu's strong performance in this business area, as did robust growth in sales of personal computers and hard disk drives in the United States and Europe.

Fiscal 1997 consolidated sales of communications systems rose by 2 percent over the previous fiscal year to 871.3 billion yen ($6.6 billion). Lower sales to Japanese communications companies reining in capital spending were more than offset by a 34% growth in overseas sales, reflecting increased network demand in the U.S. and continued investment in basic telecom infrastructure in Asia, especially China.

Consolidated sales of semiconductors and electronic components jumped by 17 percent to 597.3 billion yen ($4.5 billion), with particularly strong growth in flash memories and media devices. Unfortunately, however, depressed DRAM prices throughout the fiscal year had a strongly negative impact on margins.

In general, strong gains in overseas sales in fiscal 1997 helped make up for slower growth in the domestic market. Total consolidated overseas sales, including local production as well as exports from Japan, increased by 31 percent to 1,757.0 billion yen ($13.3 billion) and accounted for 35 percent of all sales.

The results for the Fujitsu Group reflect the performance of 513 consolidated subsidiaries worldwide (446 in FY1996), including Amdahl Corporation (which became a wholly owned subsidiary in the second half of the period), ICL PLC, Fujitsu America, Fujitsu-AMD Semiconductor and Fujitsu Network Communications, as well as 32 affiliates (35 in FY1996), including Fanuc Ltd. and Advantest Corporation, using the applied equity method.
Home page: http://www.fujitsu.com/

Note: All yen figures have been converted into U.S. dollars at the rate of 132 yen to the dollar.

Projections for FY1998 (April 1, 1998 - March 31, 1999)

By business area, the Company projects solid gains in computers and information processing systems, with robust growth in software and services. In communications systems, strong overseas demand, particularly in the United States, is expected to offset continued sluggishness in the domestic market. And the Company forecasts that the severe business environment for semiconductors and electronic devices will continue. Sales and income projections for FY1998 are as follows:

Consolidated Forecast for FY1998

Net Sales	5,600	billion yen (+ 12%)
Net Income	75	billion yen

Unconsolidated Forecast for FY 1998

Net Sales	3,400	billion yen (+ 5%)
Net Income	50	billion yen

Notes for Editors:

Fujitsu Limited is a leading provider of information technology products and solutions for the global marketplace. Founded in Japan in 1935 as a telephone equipment maker, the Fujitsu Group had consolidated revenues of $37.7 billion in the fiscal year ended March 31, 1998. With over 500 group companies, including Amdahl and ICL, Fujitsu is one of the world's largest suppliers of computers and information systems solutions, telecommunications and semiconductor products, software and services. The Fujitsu Group has 180,000 employees worldwide and operations in more than 100 countries.
Home page: http://www.fujitsu.com/

FOR MORE INFORMATION, PLEASE CONTACT:

Fujitsu Limited, Public Relations
Phone: (+81-3) 3215-5236 or 3213-4160
Fax: 3216-9365
URL: http://www.fujitsu.com/

LINKS:

Investors Relations
Annual Report March 1997
Graphical Highlights from last year
FY97 Half-Year Financial Results
FY1996 Financial Results