Message to Investors

Dear shareholders and investors

The Yokogawa Group is committed to realizing a healthy and profitable operation in accordance with its VISION-21 & ACTION-21 corporate strategy.

In the fiscal year ended March 31, 2009 (fiscal year 2008), our business performance was affected by factors such as the downturn in the real economy brought about by the global financial crisis, the major reduction in capital investment by semiconductor manufacturers, and the appreciation of the yen. In these extremely challenging operating conditions, we recorded decreases in both sales and earnings in each of our three business segments - our mainstay industrial automation and control business, the test and measurement business, and the new and other businesses.

In order to make it through the prevailing severe operating conditions, we are currently implementing measures to return to profitability and resume growth in fiscal year 2011. To achieve this, the Group has positioned fiscal years 2009 and 2010 as a period of structural reforms leading toward our next growth stage. Our goal is to increase corporate value by implementing exhaustive and far-reaching fixed cost reduction measures that will enhance management efficiency, and by reevaluating our business portfolio.

In these difficult times, we ask for the continued support and encouragement of our stakeholders as we pursue these reforms.

July 2009