We take the liberty of assuming that our shareholders and investors are all doing well. We would like to express our heartfelt gratitude for your special consideration given to us at every occasion.

The business environment of the company in the year 2006 continued to be steady in general supported by favorable conditions of the Asian markets and the steady increase in the use of semi-conductor package boards. It is expected that the demand for our chemicals will continue to increase especially due to the drive toward higher packaging density and the diversifying application of various types of package boards.

Under such circumstances, the company shall strive for the improvement and expansion of domestic and overseas production facilities, including the implementation of new plant construction projects in Taiwan and China (Suzhou, Jiangsu Province).

At the same time, the company shall develop chemicals created from new concepts which will contribute to the production technology of higher density package boards and put them onto the market from time to time and shall also make our best efforts to further expand the sale of new products such as the chemicals for COF boards to be abundantly mounted in LCD TVs, etc., and the chemicals for general-purpose boards which are massively produced in China and other countries.

The shareholders and investors are cordially requested to continue to provide us with their advice and support, while we shall keep striving to meet their expectations with our best efforts.

Sincerely,

Kazuo Maeda
CEO & President