Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change(%)	Factors
Overall
Sales	168,586	196,666	(14.3)	-
Operating income	200	(10,645)	-	-
Ordinary income	807	(5,051)	-	-
Current net income	(1,249)	(9,290)	-	-
Audio systems division
Sales	71,029	89,107	(20.3)	-Sales of audio systems decreased year-on-year because of the following factors: requirements for some factory-installed car audio systems returned to the normal level after automakers used their inventories in stock. The Company, however, failed to achieve a solid recovery in sales, since the volume of vehicle production has been climbing only at a modest pace.
Operating income	1,096	(332)	-
Information/communication systems division
Sales	98,339	108,595	(9.4)	-Sales of information/communication systems dropped year-on-year due to the following factors: Despite sales of factory-installed products showing signs of recovery due to increased demand for car navigation systems in North America and China, (markets where sales of luxury vehicles and large vehicles took an upturn), overall sales, however, decreased year-on-year due to a significant fall in demand in the first half of the year.
Operating income	3,833	(3,709)	-

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Outlook for FY2010

(in billions of JPY)

	FY2010 (Forecast)	FY2009 (Actual)	Year-on-year Fluctuation
Sales	180.0	168.5	11.5
Operating income	6.0	0.2	5.8
Ordinary income	6.0	0.8	5.2
Net income	4.5	(1.2)	5.7

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Group	18,191	26,390	27,191
Audio System Division	3,247	6,864	7,631
Information/ Communication System Division	14,944	19,526	19,560

Licensing of Technology from Other Companies

(As of Mar. 31, 2010)

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 N.V.	Netherlands	Licensing of patent rights related to DVD players	From Oct. 12, 1999 To Dec. 26, 2010
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)

	FY2009	FY2008	FY2007
Group	4,378	10,160	8,068
Audio System Division	2,084	5,323	13,673
Information/Communication System Division	2,287	4,830	5,452

Audio Systems Division
-The Company invested 509 million JPY for tangible fixed assets, mainly dies; and 421 million JPY to develop software.
-The Company invested 233 million yen in installing additional equipment to manufacture audio systems at Alpine Electronics Manufacturing of Europe Ltd.
-The Company invested 567 million yen in installing additional equipment to manufacture audio systems at Taicang Alpine Electronics Co. Ltd. in China.

Information/Communication Systems Division
-For the purpose of developing new products and increasing production efficiency, the Company invested 822 million yen in acquiring tangible, fixed assets; and 680 million yen in developing software.
-The Company invested 280 million yen in installing additional equipment to manufacture information/communication systems at Alpine Electronics Manufacturing of Europe Ltd.

New Facilities

Name	Location	Type of facility	Planned investment amount (million JPY)	Starting date	Planned completion
Alpine Electronics, Inc.	Iwaki city, Fukushima Pref.	Machinery/ apparatus	453	2010.04	2011.03
		Industrial tools, equipment, and dies	1,996
Alpine Electronics Manufacturing of Europe Ltd.	Biatorbagy, Hungary	Machinery/ apparatus	147	2010.04	2011.03
Dalian Alpine Electronics Co. Ltd.	Dalian, China	Machinery/ apparatus	132	2010.04	2011.03