Dear shareholders and investors

In April 2006, the Yokogawa Group announced its targets for the Second Milestone phase of the VISION-21 and ACTION-21 (V-21 and A-21) corporate strategy, with the resolve of achieving an even more healthy and profitable operation. Fiscal year 2010 has been designated as the Second Milestone.

During the First Milestone phase of January 2000 to March 2006, we took steps to reform our business and revitalize the Group's management, and successfully established a profitable business structure while remaining committed to proactive technology development. With this base, we will continue to make energetic investment in growth fields and expand our businesses in order to achieve consolidated sales of 600 billion yen and consolidated operating income of 75 billion yen in fiscal year 2010.

As the result of our innovative initiatives under the V-21 and A-21 corporate strategy, we have achieved the record sales and operating income for three consecutive years. We will continue to strive for growth and achieve the targets for fiscal year 2010. We request the continued understanding and support of our stakeholders.