Company Reports the Best Net Sales for the First Half

KYOTO, Japan - Kyocera Corporation (NYSE:KYO) today announced its consolidated financial results for the six months ended September 30, 2007.

Consolidated net sales for the first half amounted to ¥636,560(US$5,535) million, an increase of 3.4% compared with the previous first half, reflecting increased revenue in the Information Equipment and Components segments.

Consolidated profit from operations increased by 7.4% over the previous first half, to ¥67,823 (US$590) million, and income from continuing operations before income taxes increased by 12.6% to ¥81,480 (US$709) million. The Components segment recorded a decline in operating profit due mainly to the increased depreciation costs. The Equipment business posted profit growth due to a substantial increase in operating profit in the Information Equipment segment.

Consolidated net income decreased by 5.4% as compared to the previous first half, to ¥50,620(US$440)million, due to the absence of certain extraordinary gains recorded in the prior first half. These extraordinary gains consisted of tax refunds accompanying the voiding of a portion of a tax assessment relating to transfer pricing adjustment; and temporary gains that occurred in the prior first half, including a gain on the sale of shares of Kyocera Leasing Co., Ltd. .

Sales in the Components segment increased by 4.6% over the previous first half, to ¥333,136(US$2,897)million, while operating profit decreased by 1.7% to ¥48,941(US$426)million. The operating profit ratio was 14.7%.

Sales in the Equipment segment increased by 3.7% over the previous first half, to ¥250,816(US$2,181)million. Operating profit increased by 32.1% to ¥19,116(US$166)million, and the operating profit ratio was 7.6%.

The Others segment includes information and communications technology services; materials for electronic components; and optical components. Sales in this segment decreased by 2.1% from the previous first half, to ¥65,277(US$568)million, due to a decline in sales of optical components. Operating profit increased by 39.1% to ¥3,964(US$34)million, however, due to improved profitability at Kyocera Communication Systems Co., Ltd. and reduced loss in the optical components business. The operating profit ratio was 6.1%.

Future Outlook and Prospects
With regard to the market environment for the six months ending March 31, 2008 (the “second half”), despite economic challenges relating to the U.S. housing loan crisis, demand for digital consumer equipment is expected to remain healthy. Kyocera therefore projects steady demand both for this equipment and for the components such equipment requires. Amid such market conditions, Kyocera will strive to continue its first-half efforts to expand profitability and achieve its full-year financial forecast through vigorous product introductions in the second half. The Company makes no change to its consolidated financial forecast for fiscal 2008, as announced on April 26, 2007.