During the fiscal year under review, the NOF Group aggressively implemented measures such as increasing competitiveness by enhancing the added-value of products and thoroughly cutting costs in its core businesses as well as measures for new market development and sales expansion using high-function products in its new and developing businesses all in an effort to realize the goals of a recovery in earning power and the maximization of our strengths, in accordance with the basic policy of the “2010 Mid-Term Business Plan.” As a result of these efforts, we posted consolidated ordinary income and net income higher than the previous fiscal year by keeping costs at bay and increasing sales of high-function and added-value products despite lower consolidated net sales than the previous fiscal year attributable partly to sluggish demand and a fall in product prices.

We believe the business environment will continue to be severe, however, the NOF Group will strive to put together a cost structure that meets new conditions through productivity improvements and cost reductions, all the while continuing to actively devote managerial resources to each of our focus areas, namely life sciences, electronics, IT, environment, energy and other growth fields in hopes of strengthening our earnings structure to realize sustainable growth.

Lastly, we will fulfill our corporate responsibilities to society in our efforts to ensure safety, protect the environment, thoroughly conduct quality management, strengthen legal compliance and further enhance our internal control systems, which form the foundation of our businesses.

In all our endeavors, we ask all shareholders and investors for their continued support and guidance.
June 2010