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News Release

October 28, 2004 Fuji Electric Device Technology Co., Ltd.

Implementation of New Investment to Increase Production of Magnetic Hard Discs (HD)

Fuji Electric Device Technology Co., Ltd. (President: Akira Takai, hereafter Fuji Electric Device Technology) has decided to install a new production line to turn out 1.5 million glass substrate hard disks (hereafter, glass media) per month by investing a total amount of 5.5 billion yen, following the latest investment for increasing production made in Spring this year (investment amount: ¥2.5 billion; line's monthly output: 1 million disks,) at Yamanashi plant of Fuji Electric Storage Device Co., Ltd. located in Minami Alps City, Yamanashi pref., a subsidiary of Fuji Electric Device Technology. This is due to recovery of the storage device market, particularly of the magnetic hard disc drives (HDD) for PC as well as rapid expansion of the HDD market for consumer electronics, bringing about a large increase of demand for glass media.

1. Outline of the New Plant Investment
Amount of Investment: ¥5.5 billion
Production Line: Two production lines will be installed.
One line for 2.5/1.8-inch glass media (Output: 500,000 discs per month)
The other line for 1.0-inch or less small-diameter glass media
(Output: 1 million disks per month)
Operation Schedule: Spring 2005 (planned)
Production Capacity: 1.5 million disks per month

2. Fuji Electric Device Technology's Magnetic Disks (HD) Business
In addition to the above planned investment (increasing monthly output: 1.5 million discs) to strengthen its production framework, Fuji Electric Device Technology plans to boost output to 500,000 disks per month by increasing productivity, thus raising total monthly output to 2 million disks.
This will increase total production capacity of fiscal 2005, putting Matsumoto plant and the Yamanashi plant of Fuji Electric Storage Device Technology together with Fuji Electric (Malaysia) Sdn. Bhd., to a combined 6 million discs per month, more specifically, 4 million aluminum substrate hard discs (hereafter, aluminum media) and 2 million glass media per month while the production framework of fiscal 2004 turns out 4 million discs per month in total.
As a result, our HD business expects to grow in consolidated net sales, including aluminum media sales to customers outside the Fuji Group, from 28 billion yen estimated in fiscal 2004 to over 40 billion yen planned in fiscal 2005.

Fuji Electric Device Technology's mid-term HD business policies are:
1) Strengthening aluminum media business, an area where demand continues to grow,
2) Establishing volume production and supply system in the field of glass media used for mobile computers and intelligent home appliances, the market where rapid expansion will be expected for those products,
3) And promoting the development and volume production of perpendicular magnetic recording technology.

Not only focusing on the glass media business plus the existing aluminum media operation, do we also continue to strive for establishing the small-diameter glass media projects and furthermore integrating the perpendicular magnetic recording technology with those efforts. Underpinned by the above initiatives, Fuji Electric Device Technology aims to become an industry-leading HD manufacturer providing aluminum, glass and small-diameter substrate discs as well as large-capacity products with perpendicular magnetic recording technology to customers outside the Group.

<Customer Inquiry>
Attn: General Manager Eguchi (Mr.)
Disk Media Div., Sales Dept., Information Devices Group
Fuji Electric Device Technology Co., Ltd.

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