Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change(%)	Factors
Overall
Sales	196,666	252,071	(22.0)	-
Operating income	(10,645)	7,000	-	-
Ordinary income	(5,051)	6,403	-	-
Current net income	(9,290)	3,554	-	-
Audio systems division
Sales	89,107	123,637	(27.9)	-Sales of CD audio systems for automakers decreased in North America in the second half onward because production shifted toward small cars.
Operating income	(332)	5,359	-
Information/communication systems division
Sales	108,595	129,498	(16.1)	-Sales of genuine parts for automakers decreased in the North American market which is the Company's main market, because of a decline in sales of navigation systems and visual products. Those products are often installed on luxury cars and large-sized cars, but such cars saw sales decline. -Orders for "large system products" centering on car navigation systems for European luxury car manufacturers increased and sales remained steady. However, in the second half onward, orders decreased due to a decline in production volume at automakers.
Operating income	(3,709)	9,478	-

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Group	26,390	27,191	28,723
Audio System Division	6,864	7,631	7,017
Information/ Communication System Division	19,526	19,560	21,706

Licensing of Technology from Other Companies (As of Mar. 2009)

Contract signed with	Country	Contract details	Contract period
Dolby Laboratories Licensing Corporation	U.S.A.	Licensing of patent rights related to noise reduction devices for DVD players etc.	From Jan. 1, 1977 until the termination of patent period
Koninklijke Philips Electronics NV.	Netherlands	Licensing of patent rights related to DVD players	From Oct. 12, 1999 To Oct. 11, 2009
Thomson S.A.	France	Licensing of patent rights related to DVD players	From Oct. 1, 2000 To Sep. 30, 2005 After that, renewed every 5 years automatically.
Toshiba Corporation	Japan	Licensing of patent rights related to DVD players	From Dec. 31, 2000 To Dec. 31, 2007
MPEG LA LLC	U.S.A.	Licensing of patent rights related to DVD players	From Jan. 1, 2002 To Dec. 31, 2010

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Group	10,160	8,068	12,619
Audio System Division	5,323	13,673	7,316
Information/Communication System Division	4,830	5,452	5,303

Audio Systems Division
-The Company invested 1,025 million JPY for tangible fixed assets, mainly dies; and 1,250 million JPY to develop software.

-The Company invested 1 billion 724 million yen in its production base in Europe, "Alpine Electronics Manufacturing of Europe Ltd.", in production facilities in order to respond to the automakers' request for increased production and quality requirement for customers.

-The Company invested 411 million yen for its production base in China, "Dalian Alpine Electronics Co., Ltd.", to promote automation of standard lines.


Information/Communication Systems Division
-The Company spent 1,406 million JPY for capital investments in this division in order to develop new products; and to expand and rationalize production operations.

-The Company spent 1,714 million JPY to build an information network within the Company.

-In order to raise its capacity in Europe, the Company invested 664 million JPY.


New Facility

Name	Location	Type of facility	Planned investment amount (million JPY)	Starting date	Planned completion
Alpine Electronics, Inc.	Iwaki city, Fukushima Pref.	machinery/ apparatus	416	Apr. 2009	Mar. 2010
		Industrial tools, equipment, and dies	2,505
Alpine Electronics Manufacturing of Europe Ltd.	Biatorbagy, Hungary	machinery/ apparatus	394	Apr. 2009	Mar. 2010
Dalian Alpine Electronics Co. Ltd.	Dalian, China	machinery/ apparatus	238	Apr. 2009	Mar. 2010