Fujitsu Reports FY2000 Half-Year Financial Results

Contact: Yuri Momomoto/Bob Pomeroy FOR IMMEDIATE RELEASE Fujitsu Limited, Public Relations Oct. 25, 2000 Tel (+81-3) 3215-5236 1. Summary of Consolidated Results a. Summary of Consolidated Statements of Income Fujitsu Reports FY2000 Half-Year Financial Results U.S. Dollars FY2000 FY1999 Change(%) FY1999 FY2000 Y 2,490,570 Y 2,444,346 +1.9 Y 5,255,102 $23,061 Operating Income 100,287 63,617 +57.6 149,974 929 Income Before Income Taxes 100,410 14,436 +595.6 74,857 930 Net Income 17,239 2,374 +626.2 42,734 160 Amounts Per Share of Common Stock: Basic Earnings Y 8.77 Y 1.24 +607.3 Y 22.10 $0.081 Diluted Earnings Y 8.61 Y 1.23 +600.0 Y 21.45 $0.080 b. by Business Segment U.S. Dollars FY2000 FY1999 Change(%) FY1999 FY2000 Services & Software Y 897,483 Y 909,723-1.3 Y 1,975,466 $8,310 Information Processing 690,024 762,081-9.5 1,605,301 6,389 Telecommunications 370,424 346,573 +6.9 772,463 3,430 Electronic Devices 359,809 267,008 +34.8 568,159 3,332 Financing 51,725 50,294 +2.8 113,070 479 Other Operations 121,105 108,667 +11.4 220,643 1,121 TOTAL Y 2,490,570 Y 2,444,346 +1.9 Y 5,255,102 $23,061 c. Summary of Consolidated Financial Condition U.S. Dollars 2000/9/30 1999/9/30 2000/3/31 2000/9/30 Total Assets Y 4,960,170 Y 5,084,109 Y 5,019,744 $45,928 Shareholders' Equity 1,210,213 1,118,415 1,176,528 11,206 Shareholders' Equity Ratio 24.4 % 22.0 % 23.4 % - Shareholders' Equity Per Share Y 615.62 Y 576.94 Y 599.37 $5.70 1

d. Summary of Consolidated Statements of Cash Flows U.S. Dollars FY2000 FY1999 FY1999 FY2000 Cash Flows from Operating Activities Y 130,132 Y 180,009 Y 477,042 $1,205 Cash Flows from Investing Activities (198,062) (156,945) (348,288) (1,834) Cash Flows from Financing Activities 1,950 (13,405) (271,247) 18 Cash and Cash Equivalents at Half-year End 247,340 464,970 316,176 2,290 Consolidated Subsidiaries Unconsolidated Subsidiaries Affiliates (equity method applied only) 496 companies - companies 25 companies Note: All yen figures have been converted to U.S. dollars for convenience only at a uniform rate of $1= 108 yen. 2. Projections for FY2000 (April 1, 2000 - March 31, 2001) Consolidated Earnings Forecast (billions) Change(%) Y 5,700 +8 Operating Income 310 +107 Net Income 45 +5 Net Income per Share 22.89 yen +4 2

3. Summary of Unconsolidated Results a. Summary of Unconsolidated Statements of Income U.S. Dollars FY2000 FY1999 Change(%) FY1999 FY2000 Y 1,513,281 Y 1,448,622 +4.5 Y 3,251,275 $14,011 Operating Income 25,669 29,265-12.3 53,808 237 Income Before Income Taxes 120,811 6,013 +1,909.2 11,256 1,118 Net Income 74,111 7,413 +899.7 13,656 686 Amounts Per Share of Common Stock: Basic Earnings Y 37.72 Y 3.87 +874.7 Y 7.06 $0.349 Cash Dividends Y 5.00 Y 5.00 +0 Y 10.00 $0.046 Shares Shares (thousands) (thousands) 2000/9/30 1999/9/30 2000/3/31 Common Stock Issued 1,965,844 1,938,515 1,962,940 b. Summary of Unconsolidated Financial Condition U.S. Dollars 2000/9/30 1999/9/30 2000/3/31 2000/9/30 Total Assets Y 3,435,328 Y 3,434,278 Y 3,380,427 $31,808 Shareholders' Equity 1,256,156 1,135,550 1,160,071 11,631 Shareholders' Equity Ratio 36.6 % 33.1 % 34.3 % Shareholders' Equity Per Share Y 638.99 Y 585.78 Y 590.99 $5.91 4. Projections for FY2000 (April 1, 2000 - March 31, 2001) Unconsolidated Earnings Forecast (billions) Change(%) Y 3,500 +8 Operaing Income 120 +123 Net Income 110 +706 Net Income per Share 55.96 yen +693 3

Consolidated Statements of Income U.S. Dollars FY2000 FY1999 Change(%) FY1999 FY2000 Net sales Y 2,490,570 Y 2,444,346 +1.9 Y 5,255,102 $23,061 Operating costs and expenses: Cost of goods sold 1,760,306 1,745,479 +0.8 3,796,919 16,299 Selling, general and administrative expenses 629,977 635,250-0.8 1,308,209 5,833 2,390,283 2,380,729 5,105,128 22,132 Operating income 100,287 63,617 +57.6 149,974 929 Other income (expenses): Interest and dividend income 6,128 5,441 12,583 57 Equity in earnings of affiliated companies, net 3,185 9,522 17,025 29 Gain from establishment of stock holding trust for retirement benefits plan 460,280 - - 4,262 Interest charges (23,244) (24,507) (49,505) (215) One-time amortization for unrecognized net obligation (415,615) - - (3,848) Other, net (30,611) (39,637) (55,220) (284) 123 (49,181) (75,117) 1 Income before income taxes 100,410 14,436 +595.6 74,857 930 Income taxes 80,025 10,884 +635.3 28,379 741 Minority interests (3,146) (1,178) +167.1 (3,744) (29) Net income Y 17,239 Y 2,374 +626.2 Y 42,734 $160 Supplementary information R & D expenditure Y 197,834 Y 188,993 +4.7 Y 401,057 $1,832 Number of employees 189,139 193,810-2.4 188,053 4

Consolidated Balance Sheets U.S. Dollars 2000/9/30 2000/3/31 2000/9/30 Assets Current assets: Cash and time deposits Y 216,354 Y 273,978 $2,003 Marketable and other securities 36,773 53,636 341 Receivables, trade 1,099,446 1,158,478 10,180 Inventories 917,447 805,626 8,495 Current portion of lease receivable 59,956 75,723 555 Other current assets 228,499 232,950 2,116 Total current assets 2,558,475 2,600,391 23,690 Lease receivable 110,416 151,572 1,022 Investments and long-term loans 656,362 645,343 6,077 Property, plant and equipment less accumulated depreciation 1,296,696 1,278,858 12,007 Intangible assets 337,934 342,430 3,129 Other assets 287 1,150 3 Y 4,960,170 Y 5,019,744 $45,928 Liabilities and shareholders' equity Current liabilities: Short-term borrowings and current portion of long-term debt Y 727,825 Y 561,686 $6,739 Payables, trade 825,071 876,438 7,640 Other current liabilities 644,777 639,262 5,970 Total current liabilities 2,197,673 2,077,386 20,349 Long-term liabilities: Long-term debt 1,003,179 1,163,389 9,289 Other long-term liabilities 338,930 388,879 3,138 Total long-term liabilities 1,342,109 1,552,268 12,427 Minority interests 210,175 213,562 1,946 Shareholders' equity: Common stock 307,738 306,246 2,849 Capital surplus 496,630 495,073 4,599 Retained earnings & other reserves 493,529 490,409 4,570 Unrealized gains on securities 29,713-275 Foreign currency translation adjustments (117,294) (114,904) (1,086) Treasury stock (103) (296) (1) Total shareholders' equity 1,210,213 1,176,528 11,206 Y 4,960,170 Y 5,019,744 $45,928 Supplementary Information (billions) 1st Half FY 2000 FY2000 (Forecast) FY1999 Capital expenditure Y 189.5 Y 530.0 Y 325.7 [Semiconductors] [82.2] [220.0] [87.9] Depreciation 155.8 350.0 301.5 5

Consolidated Statements of Cash Flows U.S. Dollars FY2000 FY1999 Change FY1999 FY2000 1. Cash flows from operating activities: Income before income taxes and minority interests Y 100,410 Y 14,436 +85,974 Y 74,857 $930 Depreciation and amortization 188,788 174,175 +14,613 387,429 1,748 Reversal (accrual) of provisions (88,203) (2,237) -85,966 11,002 (817) Interest charges 23,244 24,507-1,263 49,505 215 Interest and dividend income (6,128) (5,441) -687 (12,583) (57) Equity in earnings of affiliates, net (3,185) (9,522) +6,337 (17,025) (29) Disposal of property, plant and equipment 19,853 7,582 +12,271 27,726 184 Decrease in receivables, trade 47,299 248,190-200,891 72,396 438 Decrease (increase) in inventories (115,739) (107,813) -7,926 20,998 (1,072) Decrease (increase) in payable, trade (7,682) (32,441) +24,759 35,665 (71) Other, net 33,499 (80,767) +114,266 (79,383) 310 Cash generated from operations 192,156 230,669-38,513 570,587 1,779 Interest paid (22,382) (23,835) +1,453 (50,617) (207) Interest and dividends received 4,387 8,161-3,774 16,651 41 Income taxes paid (44,029) (34,986) -9,043 (59,579) (408) Net cash provided by operating activities 130,132 180,009-49,877 477,042 1,205 2. Cash flows from investing activities: Purchase of property, plant and equipment (178,686) (145,019) -33,667 (322,794) (1,654) Increase in investments and long-term loans (36,164) (27,870) -8,294 (42,117) (335) Other, net 16,788 15,944 +844 16,623 155 Net cash used in investing activities (198,062) (156,945) -41,117 (348,288) (1,834) 1+2 [ Free Cash Flow ] (67,930) 23,064-90,994 128,754 (629) 3. Cash flows from financing activities: Proceeds from long-term debt 26,824 38,482-11,658 107,807 248 Repayment of long-term debt (50,796) (61,962) +11,166 (133,934) (470) Increase (decrease) in short-term borrowings 38,203 (58,763) +96,966 (329,348) 354 Dividends paid (9,814) (9,420) -394 (19,112) (91) Other, net (2,467) 78,258-80,725 103,340 (23) Net cash provided by financing activities 1,950 (13,405) +15,355 (271,247) 18 4. Effect of exchange rate changes on cash and cash equivalents (2,856) 5,801-8,657 9,159 (26) 5. Net increase (decrease) in cash and cash equivalents (68,836) 15,460-84,296 (133,334) (637) 6. Cash and cash equivalents at beginning of period 316,176 449,510-133,334 449,510 2,927 7. Cash and cash equivalents at end of period Y 247,340 Y 464,970-217,630 Y 316,176 $2,290 6

Consolidated Business Segment Information U.S. Dollars 1st Half 1st Half 1st Half FY2000 FY1999 Change(%) FY1999 FY2000 Services & Software Japan Y 629,471 Y 575,188 +9.4 Y 1,320,881 $5,828 Overseas 268,012 334,535-19.9 654,585 2,482 Unaffiliated Customers 897,483 909,723-1.3 1,975,466 8,310 Intersegment 30,575 34,194-10.6 77,583 283 Total Y 928,058 Y 943,917-1.7 Y 2,053,049 $8,593 Operating Income Y 52,287 Y 60,721-13.9 Y 134,944 $484 [As % of Sales] [ 5.6 %] [6.4%] [6.6%] Information Processing Japan 453,107 462,022-1.9 1,047,130 4,195 Overseas 236,917 300,059-21.0 558,171 2,194 Unaffiliated Customers 690,024 762,081-9.5 1,605,301 6,389 Intersegment 122,555 138,410-11.5 278,985 1,135 Total 812,579 900,491-9.8 1,884,286 7,524 Operating Income 13,927 18,715-25.6 38,861 129 [As % of Sales] [ 1.7 %] [2.1%] [2.1%] Telecommunications Electronic Devices Financing Japan 184,620 173,831 +6.2 417,288 1,710 Overseas 185,804 172,742 +7.6 355,175 1,720 Unaffiliated Customers 370,424 346,573 +6.9 772,463 3,430 Intersegment 6,048 4,372 +38.3 11,768 56 Total 376,472 350,945 +7.3 784,231 3,486 Operating Income 2,561 12,519-79.5 17,153 24 [As % of Sales] [ 0.7 %] [3.6%] [2.2%] Japan 179,240 137,241 +30.6 296,304 1,660 Overseas 180,569 129,767 +39.1 271,855 1,672 Unaffiliated Customers 359,809 267,008 +34.8 568,159 3,332 Intersegment 70,058 53,507 +30.9 148,384 648 Total 429,867 320,515 +34.1 716,543 3,980 Operating Income (Loss) 56,594 (464) - 20,179 524 [As % of Sales] [ 13.2 %] [-0.1%] [2.8%] Japan 51,725 50,294 +2.8 113,070 479 Overseas - - - - - Unaffiliated Customers 51,725 50,294 +2.8 113,070 479 Intersegment 3,998 3,167 +26.2 6,440 37 Total 55,723 53,461 +4.2 119,510 516 Operating Income 1,669 1,644 +1.5 3,027 16 [As % of Sales] [ 3.0 %] [3.1%] [2.5%] Other Operations Japan 86,514 76,194 +13.5 158,164 801 Overseas 34,591 32,473 +6.5 62,479 320 Unaffiliated Customers 121,105 108,667 +11.4 220,643 1,121 Intersegment 61,402 43,386 +41.5 125,661 569 Total 182,507 152,053 +20.0 346,304 1,690 Operating Income (Loss) 3,706 (149) - 3,488 34 [As % of Sales] [ 2.0 %] [-0.1%] [1.0%] Elimination (294,636) (277,036) (648,821) ( 2,728) Operating Income (30,457) (29,369) (67,678) ( 282) Total Japan Y 1,584,677 Y 1,474,770 +7.5 Y 3,352,837 $14,673 Overseas 905,893 969,576-6.6 1,902,265 8,388 Unaffiliated Customers 2,490,570 2,444,346 +1.9 5,255,102 23,061 Intersegment - - - - - Total Y 2,490,570 Y 2,444,346 +1.9 Y 5,255,102 $23,061 Operating Income Y 100,287 Y 63,617 +57.6 Y 149,974 $929 [As % of Sales] [ 4.0 %] [2.6%] [2.9%] 7

Consolidated Geographic Segment Information U.S. Dollars FY2000 FY1999 Change (%) FY1999 FY2000 Japan Unaffiliated Customers Y 1,738,981 Y 1,615,022 +7.7 Y 3,631,006 $16,102 Intersegment 313,677 284,534 +10.2 593,927 2,904 Total Y 2,052,658 Y 1,899,556 +8.1 Y 4,224,933 $19,006 Operating Income Y 124,405 Y 96,960 +28.3 Y 227,753 $1,152 [As % of Sales] [6.1%] [5.1%] [5.4%] The Americas Europe Unaffiliated Customers 310,809 284,168 +9.4 585,459 2,878 Intersegment 39,699 32,044 +23.9 77,654 368 Total 350,508 316,212 +10.8 663,113 3,246 Operating Income (Loss) 2,623 (6,122) - (13,264) 24 [As % of Sales] [0.7%] [-1.9%] [-2.0%] Unaffiliated Customers 319,890 426,488-25.0 787,567 2,962 Intersegment 12,399 16,754-26.0 30,400 115 Total 332,289 443,242-25.0 817,967 3,077 Operating (Loss) (7,244) (13,342) - (10,483) (67) [As % of Sales] [-2.2%] [-3.0%] [-1.3%] Others Unaffiliated customers 120,890 118,668 +1.9 251,070 1,119 Intersegment 151,742 141,975 +6.9 298,206 1,405 Total 272,632 260,643 +4.6 549,276 2,524 Operating Income 10,187 10,634-4.2 19,320 95 [As % of Sales] [3.7%] [4.1%] [3.5%] Elimination (517,517) (475,307) (1,000,187) (4,792) Operating Income (29,684) (24,513) (73,352) (275) Total Unaffiliated Customers Y 2,490,570 Y 2,444,346 +1.9 Y 5,255,102 $23,061 Intersegment - - - - - Total Y 2,490,570 Y 2,444,346 +1.9 Y 5,255,102 $23,061 Operating Income Y 100,287 Y 63,617 +57.6 Y 149,974 $929 [As % of Sales] [4.0%] [2.6%] [2.9%] Net Overseas Sales by Customer's Geographic Location U.S. Dollars FY2000 FY1999 Change (%) FY1999 FY2000 The Americas Y 376,658 Y 339,962 +10.8 Y 688,179 $3,488 Europe 342,011 437,178-21.8 819,082 3,167 Others outside Japan 187,224 192,436-2.7 395,004 1,733 Total Y 905,893 Y 969,576-6.6 Y 1,902,265 $8,388 As % of Consolidated The Americas 15.1 13.9 13.1 Europe 13.8 17.9 15.6 Others outside Japan 7.5 7.9 7.5 Total 36.4 39.7 36.2 8

Marketable Securities 1. Net Unrealized Gain on Marketable Securities 2000/9/30 2000/3/31 Carrying Fair Value Net Unrealized Carrying Fair Value Net Unrealized Value Gains (Losses) Value Gains (Losses) Held-to-maturity bonds Y 10,241 Y 10,264 Y 23 Y 8,913 Y 8,893 Y (20) Investment in affiliates 237,990 1,136,626 898,636 291,078 1,490,597 1,199,519 Total Y 248,231 Y 1,146,890 Y 898,659 Y 299,991 Y 1,499,490 Y 1,199,499 2. Summary of Marketable Securities at Fair Value 2000/9/30 2000/3/31 Cost Carrying Value Net Unrealized Carrying Fair Value Net Unrealized (Fair Value) Gains (Losses) Value Gains (Losses) Available-for-sale: Equity securities Y 108,900 Y 161,691 Y 52,791 Y 114,048 Y 231,475 Y 117,427 Debt securities and others 4,487 4,335 (152) 6,943 9,355 2,412 Total Y 113,387 Y 166,026 Y 52,639 Y 120,991 Y 240,830 Y 119,839 Derivative Financial Instruments The Fujitsu Group basically enters into derivative transactions only to cover actual requirements for the effective management of receivables / liabilities and not for speculative or dealing purposes. 9

Management Direction Basic Business Philosophy The Internet is fast becoming a new social infrastructure, opening up an era in which society, corporations and individual lifestyles are all being transformed. Amidst this dynamic environment, the Fujitsu Group is redoubling its customer focus working to rapidly develop and introduce solutions that continually take into account the customer s viewpoint and needs. For customers who are looking to leverage the Internet to revolutionize their business, we provide world-class technology in the areas of computers, telecommunications and electronic devices. Moreover, we offer our customers comprehensive solutions from information systems development to operations and maintenance services that enable us to serve as a true partner to help them develop new business opportunities. Challenges and Business Strategy In June 1999, we adopted "Everything on the Internet" as the guiding business strategy for the entire Fujitsu Group. Setting for ourselves the goal of becoming "a leading company of the Internet era," we declared our intention to capture leadership positions in three key areas: No. 1 in Internet solutions Japan s No. 1 Internet service provider No. 1 Internet user. This year, we are carrying our "Everything on the Internet" strategy still further by emphasizing two specific areas: Broadband Internet We will use our technological edge as an industry leader to contribute to the construction of a next-generation Internet that users can easily access at high speed anytime and anywhere. Building new customer relationships We are dedicated to building partnership relations with our customers by providing them with Internet-based solutions that enhance their core business operations, thereby enabling them to add significant value to their business, as well as by directly cooperating with them in the creation of new businesses. In this regard, we are making the fullest possible use of the @nifty, Japan's largest Internet service provider, which is operated by Fujitsu group company NIFTY Corporation. Already the largest solutions provider in Japan, we are working to expand on a global scale the firm base we have built in the U.S. and Europe with the help of 10

DMR, ICL and other group companies, so as to be able to more fully support our customers' business needs on a worldwide basis. Beginning in June of this year, we launched a global brand campaign in Japan, the U.S., Europe and Asia under the corporate message "The Possibilities Are Infinite." Positioning "Fujitsu" as the common brand for the entire Fujitsu Group, the campaign is intended to help promote our future growth as a cutting-edge Internet company and enhance the brand value of the Fujitsu Group as it expands around the world. Although the business environment in which the Fujitsu Group operates will no doubt experience even more dramatic changes in the future, we will strive to promote greater growth and profitability by continuing to restructure our business according to the principles of selection and concentration around the Internet. In addition, we will seek to promote more efficient management and will put special effort into strengthening our financial position. Moreover, we have made protection of the environment a major corporate priority and will continue to actively strive to lighten the ecological burden of all of our business activities. By persevering in these efforts, we will strive to be a company that continually anticipates the changes of the 21 st century and is constantly renewing itself, and in so doing is able to earn the trust of customers around the world, Reform of Management System In June of last year, we carried out a reorganization in which operational authority was shifted to business units (BU) reporting directly to the president. At the same time, we established a Management Strategy Council responsible for planning group management strategies. Moreover, with the goal of creating an organization better able to respond to the challenges of a fast-changing business environment and clarifying operational responsibility, this past April we carried out a further reorganization of our directors' assignments. Implementation of this new system began with the start of the current fiscal year. Moreover, to further strengthen our audit system, in June this year we provided for an additional outside auditor, making a total of three. Already from the 1998 fiscal year, we introduced a personnel system linking compensation with the company's performance. From this fiscal year, we introduced a stock option system for entire Board of Directors and a portion of top management. Our goal was to enhance the motivation and spirit of top-echelon management for improving corporate performance and to increase profits for our shareholders by expanding corporate value. 11

Fujitsu Reports FY2000 Half-Year Financial Results Modest Rise in as Buoyant Semiconductor Business, Solid Growth in Telecoms Sales and Cost Reductions Drive Strong Gains in Profitability Tokyo: October 25, 2000 --- Fujitsu Limited, the global leader in Internet-based information technology solutions, today reported consolidated net sales of 2,490.5 billion yen (US$23,061 million*) for the first half of Fiscal Year 2000 (April 1 - September 30, 2000). Robust sales of electronic devices as well as Internet-fueled growth in its telecommunications businesses helped to offset a decline in demand for large-scale servers (mainframes) and lower services & software sales outside Japan as well as the adverse effects of the continued high value of the yen. Overall, consolidated sales for the half increased by 2% over the same half-year period in fiscal 1999. The company recorded consolidated operating income of 100.2 billion yen ($929 million) for the first half, a 58% increase over the comparable period in fiscal 1999, while consolidated net income increased over seven-fold to 17.2 billion yen ($160 million). The principal factor behind the marked improvement in profitability was the company's success in responding to the surging demand for advanced electronic devices. Successful cost-cutting efforts, while continuing to pursue cutting-edge R&D in next-generation mobile communications and other fields, also contributed to the favorable outcome. Results by Business Segment Despite solid growth in its outsourcing business in Japan, the company s systems integration (SI) business was adversely impacted by the slow pace of post-y2k recovery in corporate IT spending. This was particularly the case outside Japan, where SI-related revenues declined. Lower overseas sales were further exacerbated by the high value of the yen, which reduced the converted value of foreign subsidiaries' contributions to sales. Consolidated first-half sales for the services & software sector as a whole were 897.4 billion yen ($8,310 million), a decrease of 1% from the same period in fiscal 1999. In information processing, the continued proliferation of the Internet in Japan helped drive higher sales of UNIX servers as well as PCs, especially for the consumer market. However, due primarily to lower demand for its large-scale servers, domestic information processing sales as a whole declined. Overseas, information processing sales also declined, due to such factors as the impact of the high yen and accounting changes associated with last October s merger of Fujitsu's European computer manufacturing and sales operations with those of Siemens. (The resulting joint venture company, Fujitsu Siemens Computer (Holding) B.V., is subject to the equity accounting method.) Overall, first-half consolidated sales in the information processing sector were 690.0 billion yen ($6,389 million), down 9% from the corresponding period in the previous fiscal year. 12

Driven by unrelenting demand for faster, larger-capacity network infrastructure to serve the rapid growth of the Internet, Fujitsu s fiber optic transmission business in the US continued to expand robustly. In Japan, expansion of ISDN service, rapid growth in the number of i-mode subscribers, and the introduction of commercial-use IMT2000 next-generation mobile communications systems all helped spur sales of central office switching systems. Overall, consolidated telecommunications sales were 370.4 billion yen ($3,430 million), an increase of 7% over the previous half-year period. Responding to the rapid growth in demand for flash memory and logic products, principally for cellular telephones and digital AV equipment, the company was able to ramp up production and achieve significant growth in sales. Likewise, the company responded aggressively to the growing demand for compound semiconductors and other devices central to the Internet infrastructure. As a result, overall consolidated sales of electronic devices jumped by 35% over the previous half-year period to 359.8 billion yen ($3,332 million). In accordance with new accounting standards regarding pension and severance plans, Fujitsu amortized an amount equivalent to the unconsolidated portion of its unrecognized net obligation by placing marketable securities it holds in trust which is solely established for severance benefits. However, this had only a minor impact on net income for the half. Fujitsu s financial results reflect the performance of 496 consolidated subsidiaries (509 in first half of FY1999), including ICL PLC, Amdahl Corporation, Fujitsu America, Inc., Fujitsu Microelectronics, Inc. and Fujitsu Network Communications, Inc., as well as 25 affiliates (27 in first half of FY1999), including Fanuc Ltd., Advantest Corporation and Fujitsu Siemens Computers (Holding) B.V., using the applied equity method. ----------------------------- *Note: All yen figures have been converted to US dollars for convenience only at a uniform rate of $1 = 108 yen. 13

Projections for Fiscal Year 2000 With the Internet becoming firmly established as new kind of social infrastructure and IT investment gradually recovering, Fujitsu is optimistic about the prospects for growth in the IT industry. Looking to the second half of the fiscal year, the company expects that a rebound in corporate investment in information systems will lead to increased sales of services & software. Moreover, although there is some concern about tight supplies of certain parts and components, Fujitsu anticipates continued steady growth in sales of fiber optic transmission systems and UNIX servers key foundations for the Internet infrastructure as well as PCs. In regard to Fujitsu s UNIX server business, the company will begin sales of these products in the North American market during the second half of fiscal 2000 through its U.S.-based subsidiary, Amdahl Corporation. At the same time, Amdahl will restructure its server business to concentrate its resources on the open systems market, where growth is expected in the future. Although it will continue to market existing models of its IBM-compatible large-scale servers, Amdahl will not sell future generations of these systems. In the electronic devices area, Fujitsu will aggressively respond to rapidly growing demand by further expanding its production capacity. Taking into account these factors, and revising the projections announced on April 28 to reflect anticipated costs associated with the above-mentioned restructuring of Amdahl s server business, Fujitsu at this time makes the following projections regarding consolidated earnings for Fiscal Year 2000: Fujitsu Limited Consolidated Earnings Forecast for FY2000 (April 1, 2000 March 31, 2001) billion yen change from FY1999 5,700 + 8% Operating Income 310 + 107% Net Income 45 + 5% Note: Due to the inherent uncertainty of such factors as currency exchange rates, stock market conditions in Japan and the US, and the supply situation for parts and components, actual business results may differ from the above projections. 14

About Fujitsu Fujitsu Limited (TSE: 6702) is a leading provider of Internet- based information technology solutions for the global marketplace. Comprising over 500 group companies and affiliates worldwide including ICL, Amdahl and DMR Consulting it had consolidated revenues of 5.26 trillion yen ($49.6 billion) in the fiscal year ended March 31, 2000. Fujitsu's pace-setting technologies, world-class computing and telecommunications platforms, and global corps of over 60,000 systems and services experts make it uniquely positioned to unleash the infinite possibilities of the Internet to help its customers succeed. Altogether, the Fujitsu Group has 188,000 employees and operations in over 100 countries. Internet: http://www.fujitsu.com/ Press contacts Yuri Momomoto, Bob Pomeroy Fujitsu Limited, Public Relations Tel: +81-3-3215-5236 (Tokyo) Fax: +81-3-3216-9365 E-mail: pr@fujitsu.com 15