Interim Report On First-Half FY 2008 Financial Results (Six months ended September 30, 2008)

FUJITSU LIMITED

FUJITSU Way

On April 1, 2008, Fujitsu published a fully revised Fujitsu Way. The Fujitsu Way embodies the philosophy of the Fujitsu Group, articulates the Group's overarching values, and defines concrete principles and a code of conduct that Group employees follow in their daily business activities. The Fujitsu Way will facilitate management innovation and promote a unified direction for the Group as we expand our global business activities, bringing innovative technology and solutions to every corner of the globe. Guided by the Fujitsu Way, our employees will strive to maximize the value of the Fujitsu Group and enhance our contributions to society.

1 To Our Shareholders,

It is with great pleasure that we present the interim report for our 109th business period. This report covers financial results for the first half of fiscal 2008, ended September 30, 2008. During the first half of fiscal 2008, the business environment in which the Fujitsu Group operated was adversely affected by the emergence of the credit crisis in the financial and capital markets, mainly in Europe and the United States. Signs of an economic recession became more pronounced, with the impact spreading across many sectors of the economy, as concerns about the prospects for corporate earnings led to a deterioration in employment conditions, and consumer spending also declined. Under these economic conditions, the Fujitsu Group’s net sales in the first half declined compared with the same period a year ago in part to a rapid deterioration in our logic LSI and mobile phones businesses. Our sales and income results, however, exceeded projections at the beginning of the year as a result of improved profitability in the services business in Japan and overall cost-reduction efforts. On a consolidated basis, the Fujitsu Group recorded net sales of 2,453.7 billion yen, operating income of 38.5 billion yen, ordinary income of 29.0 billion yen and net income of 4.6 billion yen for the half-year period. On an unconsolidated basis, we recorded net sales of 1,194.7 billion yen, operating income of 11.6 billion yen, ordinary income of 44.9 billion yen and net income of 39.1 billion yen. Based on these results, a dividend of 5 yen per share will be issued to shareholders on December 1, 2008. In order to reinforce our customer-centric management perspective and realize the next leap forward, we intend to refocus our business in three key areas under our new executive team, which was appointed this June. First, we plan on improving “our customers’ business” rather than simply focusing on their IT operations. Second, we will shift from a Japan-centered approach and adopt a “global perspective.” Third, we will commit to “environmental protection.” By transforming our operations, our goal is to meet the rising expectations of our customers and grow together with them as a valued and trusted partner. Although the unpredictable business climate we face is expected to continue, our Group will make strong efforts to fulfill customer expectations based on the Fujitsu Way and our “constant pursuit of innovation.” We ask you, our valued shareholders, for your continued support and guidance in our business going forward.

November 2008

Michiyoshi Mazuka, Chairman Kuniaki Nozoe, President

2 Fiscal 2008 Initiatives

Due to financial market instability spreading from the United States, the near-term direction of the global economy is highly uncertain. In the IT market as well, a slowdown in new capital investment and consumer spending appears unavoidable, particularly in the developed economies of North America and Europe. Nevertheless, as IT supports the infrastructure of both society and businesses, we believe that the importance of maintaining and strengthening this infrastructure remains undiminished. We also believe that in today’s uncertain economic environment, IT plays a major role in raising efficiency and promoting management innovation. In order to maintain and further improve our profitability in this challenging environment, we recognize that it is essential to make our overall operations even more efficient and pursue new growth opportunities. As specific efforts to pursue new growth opportunities, in addition to strengthening our global business structure, the Fujitsu Group is promoting Field Innovation as a means of generating internal innovation and delivering greater value to our customers. Moreover, amid global calls for environmental protection, we are offering environmentally friendly solutions across the full spectrum of our business operations.

Strengthening our Global Business Structure

Based on a foundation of strong products and services, we are working to expand our global business. In October 1, 2008, we began implementing a reorganization to integrate our solutions business in North America. In addition, Fujitsu Siemens Computers, our joint venture with Siemens AG that sells servers and other IT products in Europe, is scheduled to become a wholly owned subsidiary of Fujitsu beginning in fiscal 2009. As a subsidiary, Fujitsu Siemens Computers will support the strengthening of our global products business as well as develop stronger collaborative ties with Fujitsu Services, the UK-based leader of our services business in Europe.

Pursuing Field Innovation

The value that customers seek is shifting from “improving systems and functionality” to “improving operations and management.” In order to respond to this changing need, we are broadening our offerings from “IT solutions” to “business solutions.” We are implementing Field Innovation to clarify the problems that customers face and solve those problems, by leveraging the power of IT. As a part of this initiative, we are putting innovations into practice within Fujitsu and applying the resulting know-how toward business innovations for our customers. In order to enhance the progress of Field Innovation, we are developing and deploying personnel who can collaborate with customers to identify and solve their key business issues.

Global Environmental Protection Solutions

In July 2008, we formulated our “Green Policy 2020” medium-term environmental vision, which defines the direction we are pursuing and the role the Fujitsu Group seeks to play, in addressing global environmental issues. The three keywords of this vision are "Creation," "Collaboration," and "Change," and the goal is to spark environmental innovation in the Fujitsu Group and in society as a whole to help build a prosperous, low-carbon society. The Fujitsu Group expects that its initiatives will result in reducing CO2 emissions in Japan by 30 million tons per year by 2020.

3 Operating Conditions of the Fujitsu Group

Overall Conditions

Consolidated net sales for the first half were 2,453.7 billion yen, a decline of 2.4% compared to the first half of fiscal 2007. Sales increased in our Technology Solutions segment due to strong Japan sales of systems integration services, mobile phone base stations, as well as router equipment to telecom carriers. However, due to intensified competition, sales of mobile phones, PCs and logic LSI devices declined, resulting in a decline in the Group’s overall sales. Operating income for the first half was 38.5 billion yen, a decline of 5.3 billion yen compared to the first half of fiscal 2007. Thanks to increased sales of system integration services and mobile phone base stations, and cost reductions in the HDD business, gross profit increased. Due mainly to an increase in upfront strategic investments, particularly research and development expenses within our Technology Solutions segment, and amortization costs for unrecognized retirement benefit obligations, however, the Group’s overall income decreased. Ordinary income came to 29.0 billion yen, on a par with the same period last year. Equity in earnings of affiliates deteriorated as the business results of Fujitsu Siemens Computers were negatively impacted by intensified competition in PCs and servers. This was offset, however, by an improvement in foreign exchange gains as a result of the depreciation of the yen in the first half compared to the end of the previous fiscal year as well as a decrease in disposal costs of fixed assets. There was a 2.9 billion yen gain on sales of investment securities, and a 2.1 billion yen impairment loss in our electronic components business. As a result of the above factors, the consolidated net income was 4.6 billion yen, an increase of 13.9 billion yen compared to the first half of fiscal 2007, when inventory revaluation losses were posted, arising from a change in accounting policies for the measurement of inventories.

4 Review by Business Segment

Consolidated Net Sales

Operating Income and Operating Income Margin

5 Technology Solutions

The Technology Solutions segment consists of System Platforms and Services, which includes systems integration and outsourcing services and platforms which support these services. Technology Solutions is a core business area of the Fujitsu Group from which we expect high earnings and growth. We have continued to provide our customers with total solutions throughout the entire system lifecycle based on a long-term partnership with the customer and have worked to expand our business outside Japan in this area. Consolidated net sales in this segment for the first half were 1,524.9 billion yen, an increase of 1.2% compared to the same period last year. In Japan, we saw strong performance in the Services business, as well as higher sales of servers and related business, mobile phone base stations and router equipment to telecom carriers. Outside Japan, private sector-related Services business expanded. Operating income was 57.3 billion yen, an increase of 18.6 billion yen compared to the same period last year. The impact of higher Japan sales of services, servers and related business, and mobile phone base stations, as well as cost efficiencies, accounted for the improvement.

(1) Services In the Services sub-segment, we worked to expand and strengthen our global operations as well as further promote internal reforms in order to improve profitability. In September, we launched a new menu of IT outsourcing services called “Global Infrastructure Services,” which provide multinational customers with consistent and optimal IT infrastructure services throughout the world. In order to make the process of defining system performance requirements more efficient, we have created a detailed menu covering all of our customers’ service needs. Other internal reform initiatives include implementing a structure to better share field knowledge. Net sales in the Services sub-segment for the first half were 1,204.1 billion yen, a 1.2% increase from the same period last year. In Japan, customers continued to make strategic investments to improve compliance and to upgrade their systems, while sales of system integration services to customers in the financial services, public and healthcare sectors increased. Outside Japan, private sector-related business expanded, particularly in Europe. Operating income for the Services sub-segment was 51.2 billion yen, an increase of 3.1 billion yen from the same period last year. Despite incurring upfront costs related to the expansion of private-sector business in Europe, operating income increased due to higher sales in Japan as well as higher cost efficiencies.

6 (2) System Platforms In the System Platforms sub-segment, we raised product competitiveness by promoting research and development activities and utilizing alliances. In July, we launched a new family of SPARC Enterprise UNIX server models, co-developed with Sun Microsystems, Inc., featuring a new quad-core processor, the SPARC64 VII. We also increased sales of our PRIMERGY PC servers by introducing a new, easily deployed blade lineup with preinstalled software and preset configurations. Net sales of System Platforms for the first half were 320.7 billion yen, a 1.1% increase compared to the same period last year. Sales of UNIX servers outside Japan declined. In Japan, however, large-scale system upgrades, the promotion of the TRIOLE IT platform, and higher sales of router equipment to telecom carriers all contributed to the increase. We posted operating income of 6.1 billion yen, a 15.5 billion yen increase compared to an operating loss of 9.3 billion yen in the same period last year. Increased sales as well as cost efficiencies in servers and related business, mobile phone base stations and networking business targeting telecom carriers accounted for the increase.

Ubiquitous Product Solutions

The Ubiquitous Product Solutions segment is comprised of products such as PCs, mobile phones and HDDs, all indispensable to a ubiquitous networking society. In the Ubiquitous Product Solutions segment, we worked to achieve higher profitability by containing costs. We also strove to expand our product lineup, launching a series of PC products with a small footprint and greater choice of colors, in addition to easy-to-use features. In mobile phones, we added unique value to the phone series and increase their competitiveness, for example by including healthcare-related functions such as a pedometer and pulse monitor to the “Raku Raku Phone V”. We strengthened our competitive edge in HDDs by promoting development of groundbreaking products. Net sales in the Ubiquitous Product Solutions segment for the first half were 521.4 billion yen, a decrease of 9.3% compared to the same period last year. The sales decline was caused by lower demand for mobile phones, due to a longer replacement cycle brought about by changes in the mobile phone sales system in Japan, as well as the effects of intensified competition in HDDs and PCs. Operating income for the Ubiquitous Product Solutions segment was 8.8 billion yen, a decrease of 12.9 billion yen compared to the same period last year. Despite improved profitability for HDDs as a result of cost-reduction efforts, profits declined due to the impact of harsher competition in PCs and lower sales of mobile phones as well as higher costs as a result of the increasing functionality of mobile phone handsets.

7

Device Solutions

The Device Solutions segment consists of logic LSI devices and related electronic components used in digital home appliances, automobiles, mobile phones, servers and other products. Net sales of Device Solutions in the first half were 350.9 billion yen, a decrease of 11.8% compared to the first half of fiscal 2007. Although sales of 65nm logic devices for use in server products increased, sales of Flash memory, standard logic devices and 90nm logic devices declined on weak demand for mobile phones and digital home appliances. Sales also declined for electronic components. The operating loss for the Device Solutions segment was 7.3 billion yen, a deterioration of 13.4 billion yen compared to the same period in the previous fiscal year. In addition to such factors as a sales decline in logic LSI, the temporary halt in production of standard logic devices at the Iwate Plant due to earthquakes and price competition in electronic devices impacted results. In Device Solutions, in order to maintain profitability during the rapid change in market environment from September on, we are flexibly reforming our manufacturing structure to respond to changes in customer demand. At the same time, we are accelerating efforts to strengthen general-purpose products, such as ASSP products, microcontrollers and analog devices, in order to maintain our ability to grow.

*We use the term "advanced LSI logic technology" to refer to 90 nm or smaller process technology. "standard LSI logic technology" refers to process technology larger than 90 nm.

8 Stock (As of September 30, 2008)

• Number of Authorized Shares: 5,000,000,000 • Number of Outstanding Shares: 2,070,018,213 • Stated Capital: ¥324,625,075,685 • Shares Issued (from Apr. 1, 2008 to Sept. 30, 2008) : There was no issuance of shares during the current interim period. • Acquisition, disposition and holdings of treasury stock

Shares acquired 1,707,771 ordinary shares Total amount: ¥1,349,007 thousand

Shares disposed 90,866 ordinary shares Total amount: ¥69,494 thousand

Shares held as of Sept. 30, 2008 2,706,654 ordinary shares Note: 1. The above treasury stock acquired was done through the repurchase of odd-lot shares. 2. The above treasury stock disposed was sold in response to requests from the shareholders of odd-lot shares. • Number of Shareholders: 198,595 (10,798 decrease from the end of FY2007) • Principal Shareholders Number of shares held Percentage of Name (thousands) shares held (%) Fuji Electric Holdings Co., Ltd. 94,663 4.58 %

The Master Trust Bank of Japan, Ltd. (for trust) 92,363 4.47

State Street Bank and Trust Company 92,037 4.45

Japan Trustee Services Bank, Ltd. (for trust) 90,298 4.37

Fuji Electric Systems Co., Ltd. 74,188 3.59

Japan Trustee Services Bank, Ltd. (for trust 4G) 73,576 3.56

Asahi Mutual Life Insurance Company 40,743 1.97

Mizuho Corporate Bank, Ltd. 32,654 1.58

State Street Bank and Trust Company 505225 27,260 1.32

Fujitsu Employee Shareholding Association 24,893 1.20 Notes: 1. The investment ratio is calculated after exclusion of treasury stock holdings. 2. On August 27, 2008, Alliance Bernstein L.P. and two of its affiliates submitted a report (“Tairyo Hoyu Hokokusho”) on changes to its holdings of Fujitsu Limited shares to the Kanto Local Finance Bureau, but because Fujitsu has not been able to confirm the actual number of shares held as of September 30, 2008, we have not included them in the above list of major shareholders. According to the report, Alliance Bernstein L.P. owns 245,231 thousand shares, AXA Rosenberg Investment Management Ltd. owns 19,575 thousand shares, and Alliance Bernstein Japan Ltd. owns 5,501 thousand shares, for a total of 270,308 thousand shares.(which accounts for 13.06% of the number of outstanding shares). 3. The Shares held by The Master Trust Bank of Japan, Ltd. (for trust), Japan Trustee Services Bank, Ltd. (for trust), Japan Trustee Services Bank, Ltd. (for trust 4G) pertain to the trust business by the institutions. 4. Of the shares held by Fuji Electric Holdings Co., Ltd and Fuji Electric Systems Co., Ltd., 1,412 thousand shares and 66,067 thousand shares, respectively, are trust assets that are trusted to Mizuho Trust & Banking Co., Ltd., and re-trusted to Trust & Custody Services Bank, Ltd., as retirement benefit trust assets. The voting

9 rights involved in these shares are set forth to be exercised upon order of the respective companies. The Company’s shares held by the overall Fuji Electric Group, including the shares above explained, in the form of retirement benefit trust assets are 123,042 thousand shares in total. (Ownership ratio which is calculated after exclusion of treasury stock holding, is 5.95%). 5. Of the Company’s shared held by the Mizuho Corporate Bank, Ltd., 212 thousand shares are trust properties that are trusted to Mizuho Trust & Banking Co., Ltd., and re-trusted to Trust & Custody Services Bank, Ltd., as retirement benefit trust assets. The voting rights involved in these shares are set forth to be exercised upon order of Mizuho Corporate Bank, Ltd.

• Equity Shareholdings by Type of Shareholder

10 Members of the Board and Auditors (As of September 30, 2008)

Areas of responsibility, primary positions, and Position Name representation of other companies and organizations Chairman, Michiyoshi Mazuka Representative Director President, Kuniaki Nozoe Representative Director Vice Chairman, Director Chiaki Ito In charge of Service Business Corporate Senior Executive Koichi Hironishi President, Solution Business Support Group Vice President, In charge of Products Business Group Director Tatsuo Tomita President, Ubiquitous Products Business Group Hiroshi Oura Senior Executive Advisor, Advantest Corporation Ikujiro Nonaka Professor Emeritus, Hitotsubashi University Outside Board Member President and Representative Director, Fuji Electric Haruo Ito Holdings Co., Ltd. Haruki Okada President, Fujitsu Microelectronics Ltd. Senior Executive Advisor, Director Naoyuki Akikusa Masamichi Ogura Standing Auditor Akira Kato Yoshiharu Inaba President and CEO, Fanuc Ltd. Tamiki Ishihara Corporate Adviser, Seiwa Sogo Tatemono Co., Ltd. Outside Auditor Professor , University of Tokyo Graduate Schools for Megumi Yamamuro Law and Politics Notes: 1. Mr. Ikujiro Nonaka and Mr. Haruo Ito are outside board members under Item 15, Article 2 of the Company Law. 2. Mr. Yoshiharu Inaba, Mr. Tamiki Ishihara, and Mr. Megumi Yamamuro are outside auditors under Item 16, Article 2 of the Company Law.

Changes in Accounting Standard in the Current Consolidated Reporting Period

1. Adoption of Accounting Standard and Guidance for Quarterly Financial Reporting

Starting with the first quarter of the current fiscal year, we have applied the “Accounting Standard for Quarterly Financial Reporting” (Accounting Standards Board of Japan, Statement No. 12 dated March 14, 2007) and “Implementation Guidance on Accounting Standard for Quarterly Financial Reporting” (Accounting Standards Board of Japan Guidance No. 14 dated March 14, 2007). In addition, quarterly consolidated financial reports are prepared in conformity with the “Rules for Presentation of Quarterly Consolidated Financial Statements.”

2. Adoption of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements

We have adopted the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (Accounting Standards Board of Japan, Practical Issues Task Force, No. 18 dated May 17, 2006) from the first quarter of the current fiscal year. The effect of this accounting change on first-half operating income, ordinary income and income before taxes is insignificant. Outside Japan, starting with Fujitsu Services Holdings PLC in the UK (and its subsidiaries) in fiscal 2005, several subsidiaries such as those in Australia and Singapore had already adopted International Financial Reporting Standards (IFRS). Starting with the first quarter of the current fiscal year, however, these standards are applied to all the Group’s subsidiaries outside Japan.

11 For such subsidiaries that are applying IFRS for the first time from the first quarter of the current fiscal year, accounting procedure changes reflecting the change in accounting standards have been applied to previous years, resulting in a 1,585 million yen decrease in retained earnings at the beginning of the first-quarter consolidated accounting period.

3. Changes in Accounting Standards for Completed Construction Revenue and Costs

We have already applied the percentage-of-completion method as the standard for accounting for revenue from software development contracts, a core business of the Fujitsu Group, while we have applied the completed contract method as the standard for accounting for revenue from contract construction. For contract construction work as well, for contracts in progress as of the end of the second quarter for which we are accurately able to confirm the degree of completion, we have applied the percentage-of-completion method beginning with the first quarter of the current fiscal year. This reflects the early adoption of the “Accounting Standard for Construction Contracts” (Accounting Standards Board of Japan, Statement No. 15 dated December 27, 2007) and “Guidance on Accounting Standard for Construction Contracts” (Accounting Standards Board of Japan, Guidance No. 18 dated December 27, 2007) allowing the application of the percentage-of-completion method prior to the fiscal year beginning April 1, 2009. The effect of this accounting change on first-half net sales, operating income, and income before income taxes and minority interests is insignificant. In addition, beginning with this accounting period, we are disclosing under “provision for construction contract losses” the estimated amount of future losses relating to software development projects whose profitability potentially has deteriorated. In the previous fiscal year’s consolidated accounts, this estimated loss (6,135 million yen) was mainly included under “other current liabilities” and “notes and accounts payable, trade.”

Business and Other Risks

Listed below are the principal business and other risks affecting the Fujitsu Group (Fujitsu Limited and its consolidated subsidiaries) that we believe may influence investors’ decisions. With a view to proactively disclosing information to investors, we have also included items that may not necessarily have significant bearing on such decisions. We are aware of these risks and are making efforts to prevent them from arising, avoid potential risks altogether and immediately confront risks should they occur. Among the risks listed below are some items related to future developments, but the list only includes items that the Group deems necessary to publicly disclose as of November 28, 2008.

1. Economic and Financial Market Trends Economic and financial market trends have an impact on the Group’s business results, financial base and other aspects of its operations. Examples of such risks are listed below.

1) Economic Trends in Key Markets The Fujitsu Group provides IT products and services, telecommunications infrastructure equipment, as well as semiconductors, hard disk drives (HDDs) and other components, to corporate and institutional clients and consumers in every region of the globe. Hence, sales and income generated from these operations are greatly affected by economic conditions in each respective market. This is particularly true of Japan, North America, Europe, and Asia (including China), key markets where economic trends can significantly impact Fujitsu Group operations.

12 2) High-tech Market Volatility The IT sector is periodically subject to dramatic changes in the balance of supply and demand that exceed the scope of normal cyclical market variations. This tendency is particularly evident with regard to semiconductors, PCs, and other general-purpose products. The Fujitsu Group gives ample consideration to market cycles and volatility when deciding to launch new products, initiate volume production, or scale back production, among other actions. Nonetheless, we may fail to accurately forecast market changes, or changes in market conditions could exceed our forecasts. Accordingly, there is a risk that we may be unable to recoup investment costs, as well as the risk of opportunity losses. Further, the Group continuously implements structural reforms in a bid to respond to market changes. However, drastic market changes could force us to enact structural reforms on a far greater scale than initially expected, resulting in a temporary increase in related expenses.

3) Exchange Rates The Fujitsu Group imports a substantial amount of components and materials and exports various products. While import and export costs tend to roughly balance out over the course of a given year, sudden fluctuations in exchange rates and other factors could force the Group to incur losses on foreign currency translation. In addition, with respect to overseas assets held by the Group, as well as liabilities, there is the possibility that exchange rate fluctuations could lead to depreciation of assets and/or appreciation of liabilities.

4) Interest Rates The Fujitsu Group has interest-bearing loans which include debt directly impacted by interest rate fluctuations. Consequently, rising interest rates could increase borrowing costs.

5) Capital Markets Stock market trends in Japan and overseas have a substantial effect on the value of Group stockholdings in other companies and the management of pension assets. Weak stock market performance could thus force us to incur losses on the devaluation of marketable securities held or a reduction in pension assets, exposing the Group to the risk of higher losses.

2. Customers Fujitsu Group operations are highly influenced by the business trends of strategic key customers. Examples of potential risks are described below.

1) Changes in Customers’ IT Investment Trends A large proportion of our IT systems and services, as well as communications infrastructure and other business, is with telecommunications carriers, financial institutions, and large manufacturers. The business environment within these industries, including shifting market trends and structural reforms, could lead to changes in customers’ IT investment trends, having a significant impact on Group sales and profitability. In semiconductors, HDDs and other operations where the Group provides components and other products, both demand and prices are impacted to a large extent by customers’ sales and inventory adjustments of PCs, digital home electronics, mobile phones, automobiles and other products in which these parts are used. Accordingly, soft demand and falling prices for customers’ products, or a decline in customers’ market share, could negatively impact Group sales and earnings. Alongside corporate clients, national and local governments represent another important customer base for the Fujitsu Group. In the UK, for example, government-related projects are an especially important part of our business. Accordingly, changes in the approach to e-Government and other national-level IT utilization policies being promoted in Japan and elsewhere could impact sales and profitability.

13 2) Ability to Maintain Lasting Ties with Customers The Fujitsu Group is committed to bolstering ties with customers, striving to serve as a business partner and provide solutions across the full IT system lifecycle. For semiconductors, HDDs and other operations where the Group provides components and other products, business stability hinges on maintaining lasting ties with customers that represent key sources of demand for our products. An inability to secure repeat business and retain contract relationships with such customers could therefore affect sales and profitability.

3. Competitors/Industry The IT sector is characterized by intense competition and fast-paced technological innovation. Events within the industry or actions by competitors could therefore have a substantial impact on our business results. Examples of such potential risks are listed below.

1) Price Competition Intensifying competition is directly linked to declining prices for products and services. Anticipating such technology- and competition-driven price erosion, we are pursuing a variety of measures to reduce costs, including the introduction of Toyota Production System reforms, standardization of system development methodologies, and software modularization, as well as efforts to expand sales of new products and services. Despite these steps, the Group still faces the risk of larger-than-expected declines in prices, as well as the risk of being unable to achieve sufficient cost reductions and sales growth due to fluctuations in the price of semiconductors and other components, either of which could negatively impact Group sales and profitability.

2) Competition from New Market Entrants and Others In addition to challenges posed by existing industry peers, competition from new market entrants continues to intensify in the IT sector. Today, new entrants continue to emerge in market areas where the Fujitsu Group wields a competitive advantage, thus entailing the risk that we may lose our competitive edge, or fail to secure a clear competitive advantage in future business operations.

3) Competition in Technology Development Technological advancement in the IT sector occurs at an extremely fast pace, leading to rapid turnover in new products and technologies. In this context, remaining competitive requires the continuous development of state-of-the-art technology. While the Fujitsu Group does its utmost to maintain highly competitive technologies, a loss in competitiveness versus other companies in the race to develop innovative technologies could lead to a decline in the Group’s market share and profitability, which would negatively impact sales and earnings. Further, sales and profitability could be affected by the development of groundbreaking technologies and other actions by competitors that would severely compromise the value of the Group’s products and services. Additionally, there is also the risk of an adverse effect on sales and profitability as a result of the time it takes to implement mass-production chip technologies for semiconductors, such as in solving technological issues concerning cutting-edge process development technology.

4. Suppliers, Alliances, etc. In the course of its operations, the Fujitsu Group conducts business with a range of different companies, including suppliers and alliance partners. Accordingly, any significant changes in relationships with these and other business partners could affect the Group’s business.

1) Procurement The Fujitsu Group utilizes sophisticated technologies to provide a range of products and services. There is therefore a risk that we may encounter difficulties in procuring a stable supply of certain key components or raw materials, or in cases where regular supply channels are unavailable, that we

14 may be unable to secure alternative procurement sources. There is also the risk that the Group may be unable to sufficiently procure certain parts or raw materials in the large volumes required. Moreover, natural disasters, accidents and other events, as well as any deterioration in business conditions at suppliers, could hinder the ability of business partners to provide the Group with a stable supply of required components or raw materials. These and other events could cause delays in the provision of products and services, resulting in postponement of deliveries to customers and opportunity losses, among other problems. With respect to component procurement, foreign exchange rate fluctuations, tight supply and demand conditions, and other pressures could drive procurement costs higher than initial estimates, leading to diminished returns on products and services, as well as lower sales due to the need to raise prices. Additionally, while we make every effort to ensure the quality of procured components, we cannot guarantee that all components purchased will be free of defects. The discovery of such issues could result in processing delays, as well as defective products, opportunity losses, repair costs, and disposal costs for defective goods, plus the potential obligation to pay damages to customers.

2) Collaborations, Alliances and Technology Licensing To enhance competitiveness, the Fujitsu Group works with a large number of companies through technology collaborations, joint ventures and other means, a practice that we intend to continue for the foreseeable future. If, however, as a result of managerial, financial, or other causes, it becomes difficult to establish or maintain such collaborative ties or to gain sufficient results from them, the Group’s business could be adversely affected. Moreover, many of our products and services employ other companies’ patents, technologies, software, and trademarks with the consent of their owners. However, there is no guarantee that other companies will continue to grant or license the right to use their property under terms acceptable to the Fujitsu Group.

5. Public Regulations, Public Policy, and Tax Matters The business operations of the Fujitsu Group are impacted by a variety of public regulations and trends in public policy, as well as laws pertaining to taxation. Specifically, wherever it operates, the Group must comply with a variety of regulations, such as authorizations for business or investment, import/export regulations and restrictions, as well as laws pertaining to antimonopoly policies, intellectual property rights, consumers, the environment and recycling, labor conditions, and taxation. Earnings might be affected by increased compliance costs associated with measures to make stricter or otherwise revise such laws and regulations. We also provide solutions in certain fields and business domains such as healthcare and communications that are subject to other public regulations, meaning that regulatory trends in these sectors may potentially impact the Group’s business.

6. Other Operational Risks The Fujitsu Group makes every effort to eliminate known risks but can offer no guarantee of its ability to always achieve every desired outcome in the course of executing business operations. Some of the specific risks faced in this respect are detailed below.

1) Deficiencies or Flaws in Products and Services Quality is a core value of the Fujitsu Group. We are committed to improving quality at the design and development stages as well as in manufacturing. We are also promoting stricter quality control when purchasing components from external suppliers. These efforts notwithstanding, it is impossible to totally eliminate the possibility of deficiencies or flaws occurring in products, including software. While the Group is also promoting software modularization, standardization of development work, and enhanced security measures in order to improve the quality of system development and other services, the possibility of defects arising cannot be excluded. With respect to systems that play a critical role in supporting social infrastructure, following the incidents involving system problems at the Tokyo Stock Exchange in November 2005, we have been checking for any potential problems in

15 these systems, including the operating environment, software and hardware, in cooperation with our customers. We cannot, however, entirely eliminate the possibility of deficiencies or flaws. In the event that such deficiencies or flaws occur, the Group may have to initiate product recalls or repairs, engage in system recovery work, pay damages to customers or suffer opportunity losses, all of which would negatively impact Group sales and profitability.

2) Project Management Due to such factors as the increasing scale of systems and more rigorous demands from customers, as well as the advance of open system environments, system development work is becoming increasingly complex. At the same time, greater competition is leading to increasingly intense pricing pressures. To deal with this situation and prevent incidences of loss-generating projects, we have taken the lead in revising our approach to making contracts with customers, advancing the standardization of sales and system engineering business processes, and working to manage risk from the business negotiation stage through actual project implementation. The Group continues to maintain reserves for losses as necessary. In addition, we are striving to industrialize the system development process in order to strengthen our cost competitiveness. Nevertheless, in spite of these measures, there is a possibility that we may be unable to completely prevent the occurrence of loss-generating projects.

3) Investment Decisions In the IT industry, large investments in R&D, capital expenditure, and business acquisitions are necessary to maintain competitiveness. Accordingly, the success or failure of investment choices has a profound effect on the business results of the Fujitsu Group. When making such investment decisions, we give ample consideration to a range of factors such as market trends, customer needs, the superiority of Group technologies, the financial performance of acquisition candidates and our business portfolio. There is, however, the risk that markets and technologies, as well as acquisition candidates deemed attractive by the Group, may fail to grow as anticipated, or that supply and demand imbalances or price erosion may be more severe than expected. Investment in semiconductor facilities and equipment represents one such area with a high degree of risk. In addition to substantial funding requirements, this field is characterized in particular by short product cycles, major changes in the market landscape and stiff competition from other companies. The Group takes a number of steps to mitigate this risk, including responding to these inherent fluctuations by dividing investment into multiple phases and forging agreements with customers prior to investment. Nonetheless, there is no guarantee that the Group can generate sufficient returns on such investments.

4) Intellectual Property Rights The Fujitsu Group has accumulated technologies and expertise that help distinguish its products from those of other companies. Legal restrictions in certain regions, however, may impair our ability to fully protect some of the Group’s proprietary technologies, with the result that we could be unable to effectively prevent the manufacture and sale of similar products developed by third parties using the Group’s own intellectual property. Moreover, the creation of comparable or superior technologies by other companies could erode the value of the Group’s intellectual property. The Group has instituted internal policies, including stringent clearance procedures prior to launching new products and services, to ensure that no infringement of other companies’ intellectual property occurs. However, there is the possibility that the Group’s products or technologies may be found to infringe on other companies’ intellectual property, and that earnings may be impacted by such consequences as the need to pay for usage rights or cover costs associated with having to modify designs. In addition, the Group has previously instituted a program to compensate employees for innovations that they make in the course of their work, and will continue to implement this program in the future in accordance with the revision of patent laws in respective countries. Nevertheless, the

16 Group faces potential risk from lawsuits initiated by employees in regard to compensation for innovation created in the workplace.

5) Human Resources The growth and profitability of the Fujitsu Group depends heavily on human resources. As such, a major issue for the Group is the ability to recruit and foster talented technical experts, system engineers, managers and other key personnel; the inability to do so could negatively impact the Group’s growth and profitability.

6) Environmental Pollution While committed to minimizing environmental burden in accordance with the Fujitsu Way and the Fujitsu Group Environmental Policy, the Group cannot guarantee that environmental pollution will not occur as a result of its operations. Moreover, although we monitor soil and wastewater as well as engage in clean-up activities at former factory sites, this does not mean that pollution will not be found at such sites in the future. In the event that environmental pollution were to occur or be identified, clean up and other costs could be incurred, which would adversely affect the Group’s earnings.

7) Information Management In order to safeguard the personal and confidential information of customers and business partners, the Group has taken such measures as establishing strict regulations, instituting training programs for employees, and providing consultation to business subcontractors. Nevertheless, the Group cannot absolutely guarantee that information will not be leaked. In the unlikely event that this should occur, trust in the Fujitsu Group could decline and the Group may be obligated to pay damages to customers.

8) Credit Ratings and Other Factors that Affect the Group’s Credit In addition to having a major influence on financing, credit ratings by outside institutions serve as reliable sources of information when conducting transactions with business partners. Lower credit ratings caused by failure to meet earnings targets, deteriorating financial conditions and other reasons could influence our ability to procure needed funds and place the Group at a disadvantage in bidding for projects and in other business dealings.

7. Natural Disasters and Unforeseen Incidents Natural disasters and other unforeseen situations could have a major impact on the business results and financial standing of the Fujitsu Group. Examples of the potential risks posed are found below.

1) Damage from Earthquakes, Other Natural Disasters and Accidents The Group has taken measures to make its business sites more resistant to earthquakes and conducts regular inspections and disaster readiness drills. Nevertheless, there is a possibility that the Group may be prevented from continuing operations due to damage to facilities and equipment or interruptions in the supply of electricity or water as a result of earthquakes or other natural disasters and accidents. Such occurrences could interrupt shipments to customers or disrupt shipments of parts for the Group’s internal use, thereby affecting factory production at other Group business sites. Semiconductor fabs and other plants where high-precision processing is carried out are particularly susceptible to the effects of earthquakes and other events. In the wake of such incidents, some time may be required to resume normal operations due to the array of highly specialized equipment and devices used at these sites. Damage caused by natural disasters may also hinder our ability to provide information system support for Group customers, which could interrupt their business activities. We have a well-developed system in place to ensure the integrity and stable operation of critical

17 in-house networks, which are a key element of our business infrastructure. However, the Group cannot guarantee its ability to prevent invasive computer viruses and other disruptions from impeding network operations.

2) Geopolitical Risk Conflicts, political instability, currency crises, natural disasters, epidemics or other events in nations or regions where the Fujitsu Group operates could have a significant impact on its businesses.

8. Financial Statements In addition to business and other risks described above, the Group may also be impacted by the following risks related to its Financial Statements.

1) Revenue Recognition Revenue from sales of IT systems and products, excluding software development contracts, is recognized upon acceptance by the customers, whereas revenue from sales of personal computers, other equipment and electronic devices is recognized when the products are delivered to customers. Revenue mainly from software development contracts is recognized on a percentage-of-completion basis. We stringently assess the potential revenue recoverable on projects for which estimated costs have exceeded estimated revenue, and recognize as losses the amounts assessed as non-recoverable. If the estimated costs relating to such contracts increase further in the future, additional losses may be recognized.

2) Property, Plant and Equipment Depreciation of property, plant and equipment is mainly calculated by the straight-line method based on the estimated useful lives of the respective assets, which vary according to the circumstances of each business. In the future, in cases where assets are no longer in use owing to obsolescence from technological advances, or due to the exiting of a business, useful life may end up being shorter than current estimates. As such, there is a risk that incidental losses may occur.

In addition, there is a risk of asset impairment losses if anticipated cash flow from assets declines as a result of sudden changes in the operating environment that lead to higher rates of idle equipment or lower rates of capacity utilization.

3) Intangible Assets (Software) For the depreciation of software intended for commercial sale, we have adopted a method based on projected sales volume over the estimated life of the product. While projected sales volume is calculated based upon reasonable sales plans, one-time losses may occur if unit sales fall short of the original sales plan.

For software used in-house, we utilize the straight-line method based on the estimated useful life of the software. Should actual useful life in the future be less than the original estimate, there is a risk of incidental losses.

4) Goodwill In terms of goodwill, incidental losses may occur if the profitability of an acquired business declines or we sell or exit from an acquired business.

5) Marketable Securities In regard to other marketable securities that have market value, the value of such securities may change due to fluctuations in market value and, as a result, net assets may increase or decrease. In addition, when the fair value of other marketable securities decreases significantly, and excepting

18 those cases in which the value is deemed to be recoverable, an impairment loss is posted. In future, should there be a significant decrease in fair value, and such value is not deemed to be recoverable, there is a possibility of impairment losses.

6) Deferred Tax Assets The amount of deferred tax assets is posted appropriately on our balance sheet taking into account the balance of losses carried forward and other temporary differences. In the event that projected taxable income is higher or lower because of variations in future financial performance, there is a risk that the balance of deferred tax assets may increase or decrease. In addition, in the event that future revisions to tax regulations cause a change in the effective tax rate, there is a risk that the balance of deferred tax assets may increase or decrease.

7) Provision for Product Warranties To prepare for expenses to cover costs relating to the free repair and exchange of products covered under contracted warranty periods, we record at the time of sales a provision, based on past experience, to cover future estimated product repair and exchange costs. The Fujitsu Group is pursuing vigorous quality control measures at the manufacturing, development and procurement stages. However, should product defects exceed estimated levels, there is the possibility that additional expenses may arise.

8) Retirement Benefit Obligations Expenses and obligations for employee retirement benefits are calculated according to a variety of actuarial assumptions (discount rate, retirement rate, mortality rate, expected income rate, etc.). If actual experience differs from these underlying assumptions, or if the underlying assumptions themselves change, there is a possibility that it will affect the amount of the expense or obligation for retirement benefits.

In addition, in the event of a change in accounting standards in the countries in which our overseas subsidiaries are located or in Japan, there may be an impact on the amount of the expense or obligation for retirement benefits or shareholders’ equity.

9) Provision for Loss on Repurchase of Computers A portion of the computers manufactured by the Fujitsu Group are sold to Japan Electronic Computer Co. Ltd. (JECC) and other leasing companies, which lease them to end users. Fujitsu enters into a contract with the leasing companies to repurchase the computers in the future, and at the time of sale a provision is recorded reflecting the expected loss that will be incurred at the time of repurchase. In the event there are changes in usage trends among customers, additions or reductions to the provision may be needed.

19 Consolidated Interim Financial Statements (Unaudited)

Consolidated Balance Sheet Yen(Millions) September 30 March 31 2008 2008 Assets Current assets: Cash and time deposits, marketable securities ¥ 559,428 549,408 Notes and accounts receivable, trade 844,293 1,017,916 Inventories 422,564 383,106 Other current assets 204,972 219,507 Total current assets 2,031,257 2,169,937 Non-current assets: Property, plant and equipment, net of accumulated depreciation 798,263 839,764 Intangible assets 222,138 219,555 Other non-current assets 528,497 592,707 Total non-current assets 1,548,898 1,652,026 Total assets 3,580,155 3,821,963 Liabilities and net assets Liabilities Current liabilities: Notes and accounts payable, trade 622,887 772,164 Short-term borrowings and current portion of long-term debt 484,826 160,227 Other current liabilities 608,172 678,949 Total current liabilities 1,715,885 1,611,340 Long-term liabilities: Bonds payable, long-term borrowings 425,681 727,109 Other long-term liabilities 333,688 353,338 Total long-term liabilities 759,369 1,080,447 Total liabilities 2,475,254 2,691,787

Net assets Shareholders' equity: Common stock 324,625 324,625 Capital surplus 249,035 249,038 Retained earnings 338,801 338,903 Treasury stock (2,145) (869) Total shareholders' equity 910,316 911,697 Valuation and translation adjustments: Unrealized gain and loss on securities, net of taxes 68,777 89,879 Deferred hedge gain and loss 75 124 Revaluation surplus on land 2,452 2,449 Foreign currency translation adjustments (62,539) (55,945) Total valuation and translation adjustments 8,765 36,507 Share warrants 26 - Minority interests 185,794 181,972 Total net assets 1,104,901 1,130,176 Total liabilities and net assets ¥ 3,580,155 3,821,963

20 Consolidated Statements of Operations Yen (Millions) 1st Half 1st Half FY2008 FY2007 Net sales ¥ 2,453,782 2,513,113 Cost of sales 1,812,834 1,879,405 Gross profit 640,948 633,708 Selling, general and administrative expenses 602,406 589,776 Operating income 38,542 43,932

Other income: Interest income and dividend income 9,099 9,705 Equity in earnings of affiliates, net - 2,363 Gain on foreign exchange, net 2,098 - Gain on sales of investment securities 2,907 11,606 Gain on change in interest - 2,002 Others 5,889 8,692 Total other income 19,993 34,368

Other expenses: Interest expense 9,711 10,131 Equity in losses of affiliates, net 4,932 - Loss on disposal of property, plant and equipment and intangible assets 2,278 6,473 Loss on foreign exchange, net - 367 Revaluation loss on inventories - 25,045 Impairment loss * 2,123 289 Others 9,629 17,786 Total other expenses 28,673 60,091

Income before income taxes and minority interests 29,862 18,209

Income taxes 19,130 21,199

Minority interests 6,099 6,348

Net income (loss) ¥ 4,633 (9,338)

Notes: * Impairment loss refers to the electronic components business.

21 Unconsolidated Interim Financial Statements (Unaudited)

Unconsolidated Balance Sheet Yen

(Millions) September 30 March 31

2008 2008 Assets Current assets: Cash and time deposits, marketable securities ¥ 362,024 357,696 Notes and accounts receivable, trade 322,554 437,884 Inventories 141,833 122,180 Other current assets 231,628 309,687 Total current assets 1,058,041 1,227,449 Non-current assets: Property, plant and equipment net of accumulated depreciation 215,955 223,966 Intangible assets 82,830 75,819 Other non-current assets 970,140 1,009,325 Total non-current assets 1,268,926 1,309,111 Total assets 2,326,968 2,536,561

Liabilities and net assets Liabilities Current liabilities: Notes and accounts payable, trade 543,017 668,662 Short-term borrowings and current portion of long-term debt 391,496 106,800 Other current liabilities 220,487 285,927 Total current liabilities 1,155,001 1,061,390 Long-term liabilities: Bonds payable, long-term borrowings 415,623 717,768 Other long-term liabilities 112,530 120,550 Total long-term liabilities 528,153 838,318 Total liabilities 1,683,154 1,899,708

Net assets Shareholders' equity: Common stock 324,625 324,625 Capital surplus: Other capital surplus 169,177 169,181 Total capital surplus 169,177 169,181 Retained earnings: Legal retained earnings 1,655 620 Other retained earnings: Reserves for special depreciation 1,845 2,343 Retained earnings brought forward 80,533 52,244 Total retained earnings 84,033 55,207 Treasury stock (2,145) (869) Total shareholders’ equity 575,690 548,144 Valuation and translation adjustments: Unrealized gain and loss on securities, net of taxes 68,050 88,585 Deferred hedge gain and loss 72 122 Total valuation and translation adjustments 68,123 88,708 Total net assets 643,813 636,852 Total liabilities and net assets ¥ 2,326,968 2,536,561

22 Unconsolidated Statements of Operations Yen (Millions) 1st Half 1st Half

FY2008 FY2007 Net sales ¥ 1,194,702 1,400,103 Cost of sales 900,655 1,101,745 Gross profit 294,046 298,357 Selling, general and administrative expenses 282,431 317,129 Operating income (loss) 11,614 (18,771)

Other income: Interest and dividend income 40,029 75,968 Gain on sales of investment securities 2,869 7,052 Gain on reversal of provision for loss on guarantees 10 2,204 Others 5,912 8,372 Total other income 48,822 93,597

Other expenses: Interest expense 5,392 5,597 Revaluation loss on inventories - 24,236 Loss on devaluation of subsidiaries’ and affiliates’ stock 1,815 5,689 Provision for loss on guarantees 260 351 Others 7,226 18,136 Total other expenses 14,693 54,011

Income before income taxes 45,744 20,814 Income taxes: Current (7,426) (6,007) Deferred 14,000 (3,000) Net income ¥ 39,170 29,822

23 Related Party Transactions (Unaudited)

(Million Yen)

Relationship Percentage with the related party Common of Transactions Account Ending Attribute Name Address Business Transactions stock voting Amount title balance Interlocking rights Business directors, relationship etc.

Sale of 2 inter- fixed Amount 795 Receivables107 locking Ownership assets Sales and directors, Leasing leasing of etc. Fujitsu Direct transaction Shinjuku-ku, information / Affiliate Leasing 1,000 22.5% and Leases Tokyo processing 2 directors, Co., Ltd. interlocking obligations 2,522 and other etc. are (short-term) Indirect of directors Leasing equipment transferred Payment 1,208 5.0% transaction from Fujitsu Leases Limited obligations 5,590 (long-term)

Notes: 1. Transactions listed above generally have terms of business based on the fair value. 2. Consumption taxes are not included in the transaction amount. Consumption taxes are included in the ending balance.

Responsibility Statement

"I, Kuniaki Nozoe, being Representative Director of Fujitsu Limited, confirm that, to the best of my knowledge, the condensed set of financial statements (unaudited) has been prepared in accordance with Japanese accounting standard relating to interim reporting and that the interim management report includes a fair review of the information required by Disclosure Rules and Transparency Rules 4.2.7 and 4.2.8 of the Financial Services Authority in the United Kingdom."

Kuniaki Nozoe

November 28, 2008

24 Corporate Data

Corporate Name: FUJITSU LIMITED Registered at: 4-1-1 Kamikodanaka, Nakahara-ku, Kawasaki-shi, Kanagawa 211-8588, Japan Corporate Headquarters: Shiodome City Center, 1-5-2 Higashi-Shimbashi, Minato-ku, Tokyo 105-7123, Japan Established and Registered on: June 20, 1935 Stock Exchange Listings: Tokyo, Osaka, Nagoya, London, Frankfurt, and Swiss Home Page Address: www.fujitsu.com

Fujitsu's web site offers not only this report but also the latest annual report and financial results. English http://www.fujitsu.com/global/about/ir/ Japanese http://pr.fujitsu.com/jp/ir/

25