OMRON Corporation Reports Earnings for Fiscal 2007

Business Wire, April 28, 2008

Automotive Electronic Components Business (AEC)

Although automobile production volume is projected to expand in China, India, Eastern Europe and South America, the business environment in this segment is expected to be challenging due to the business slump among the major North American auto manufacturers and a decline in new car sales volume in Japan, in addition to the rapidly weakening dollar. Under these conditions, Omron will work to expand sales of strategic products such as electric power steering controllers, as auto manufacturers are adopting Omron's new products in more of their new vehicles in Japan and overseas.

As a result, segment sales for the fiscal year are expected to be JPY 108.5 billion, a year-on-year increase of 0.9 percent.

Social Systems Business (SSB)

In the public transportation systems business, weak sales are projected as railway companies complete an investment cycle. In the traffic and road management systems business, Omron will focus on renewal demand in the law-enforcement market and expansion of sales of weigh-in-motion systems. In the ID management solutions business, Omron projects sales growth through new services utilizing IC cards and the new sensing business, which uses image processing technology. In the maintenance business, Omron will work to strengthen new business areas related to engineering and IT. In the software business, Omron aims to expand business through electronic money solutions and the acquisition of new customers among information appliance manufacturers and mobile phone companies.

As a result, segment sales for the fiscal year are projected to be JPY 90.0 billion, a year-on-year increase of 5.6 percent.

Healthcare Business (HCB)

Continued expansion of demand for digital blood pressure monitors and pedometers is projected as health consciousness continues to rise in Japan as well as overseas. Particularly strong growth is predicted for digital blood pressure monitors in China, Russia, Eastern Europe, India and other newly industrialized countries. While the business environment for vital sign monitors for medical institutions is likely to be challenging due to the effect of reduced compensation for medical treatment, healthcare structure reforms designed to shift the focus from treatment to prevention are expected to lead to expanding sales of lifestyle disease prevention equipment to medical practitioners, including arteriosclerosis detection systems and central blood pressure measurement systems.

As a result, segment sales for the fiscal year are projected to be JPY 74.0 billion, a year-on-year increase of 3.4 percent.

Others

In existing businesses, growth is expected in the computer peripherals business, backed by an increase in the number of fields using uninterruptible power supplies and Omron's expanding product lineup. In new growth businesses, the RFID business will respond to the move toward practical use of IC tags, and will accelerate business development mainly in Japan. In the remote monitoring and reporting systems business, Omron will work to expand its power consumption monitoring business amid rising interest in energy saving following the revision of Japan's Energy Conservation Law.