yNEWS RELEASEz

July 2, 2001

Issuance of "Environment Accounting" for fiscal year 2000 and "Environment Report"
- Environment Performance Index has been introduced for carrying out the more efficient environment preservation activities in the future -

@@@FUJITSU TEN LIMITED (Head Office: Kobe; President: Takamitsu Tsuchimoto; Capital: Yen 5,300 million ) has finalized the environment Accounting for fiscal year 2000 (from April 1, 2000 to March 31, 2001 ) and issued the Environment Report including said environment accounting.

@@@In our company, we are going on to carry out the environment accounting starting from fiscal year 1999 as a means of evaluating the efficiency of our environment preservation activities.

@@@Further, starting from fiscal year 2000, we have introduced the environment performance index (consisting of the environment efficiency (–1) and the environment burden improvement efficiency (–2) ) for further promoting the more efficient and more effective environment preservation activities.

@@@In the environment accounting for the fiscal year 2000, FUJITSU TEN, as a single base, has successfully achieved 110% in the cost vs. efficiency (a 25 points-increase compared with the previous year ) (i.e., against the environment cost for about yen 260 million, the effective amount proved to be about yen 280 million ) attributable to our new addressing in reducing the amount of corrugated cardboard boxes used for transportation of the products among our plants, also reducing the amount of paper used and so forth.

@@@With respect to the environment performance index, the "environment efficiency" has been improved to yen 23.7 million of production per 1 tonnage/carbon of the amount of environmental burden (carbon discharge amount ) in fiscal year 2000 from yen 16.2 million in fiscal year 1999. With respect to the "environment burden improvement efficiency, "however, we failed to have controlled enough the portion of increase in the amount of energy used associated with the increased production which was exceeding the budget, and therefore, the result was a minus amount, - 6.4 t-c/yen 100 million.

@@@The "Environment Report" (A4 sized pamphlet of 24 pages" was issued for the second time in this year following the previous year and we have made improvements in the following areas this time:

- We have newly added one page in which the conditions of our addressing to the environmental impact in the life cycle of our products and the environmental preservation activities can be seen in a list at a glance.

- We have posted the evaluation result through the environment performance index.

- We have enriched the explanation on the environmental data by production base.

@@@Our company will be very sure to further control and improve our business for the coming years through the compilation of the budget of the environmental cost/efficiency and the environment performance index so that our more efficient environment preservation activities can be spread out globally.

@@@In the meantime, in the fiscal year 2001, we are aiming to realize the environment accounting system through the consolidation of the of the FUJITSU group companies all over the world including our overseas base points.

(–1) Environment efficiency = Amount of production (in yen 100 million )/Amount of environmental burden (tonnage/carbon )
The environment efficiency will be the index representing the additional value (amount of production) to be obtained from the amount of environmental burden (carbon discharge amount ). In other words, that is the index representing that the more the environment should be improved, the more the economical value will be advanced. Thus, we can evaluate the usage efficiency of the direct environmental burden in our business activities.

(–2 ) Environment burden improvement efficiency = Amount of reduction (t-c ) of environmental burden/Environmental cost (in yen 100 million ).
The environment burden improvement efficiency is the index representing how much the environmental burden (carbon discharge amount ) could have been reduced for yen 100 million of expenses required for the environmental preservation. Hence, we can compare it on a time series base, and therefore, can evaluate the efficiency of the environment measures by and large.

In both cases, as to the amount of environmental burden, we are using the carbon dioxide discharge coefficient being presented by the Environment Agency.

As to the amount of environmental burden, within the framework of the "energy (electricity, fuel and gas )," "waste articles (used plastic cases, waste oil, and general waste matters ) for which the respective carbon dioxide discharge coefficient being presented, we have totaled the respective amounts of burdens by converting them to the carbon amount.

yEnvironment Accounting for Fiscal Year 2000 (from April 1, 2000 to March 31, 2001z@@ @ (Unit: million yen )
Classification
Contents
FY 1999
FY 2000
Single Consolidated
(domestic)
Single Consolidated
(domestic)
Environment cost Costs within business area Pollution prevention costs Costs for air and noise pollution, etc. and personnel expenses pertaining to operations of environment-related facilities. 89 9 10
Earth environment preservation costs Expenses for energy saving measures and costs for prevention for global warming, etc. 20 2025 25
Resource circulation costs Recycling expenses, etc. of waste and costs for efficiently using of resources 26 3638 53
Drainage experience Public drainage expenses. -- 8 9

Up/down stream costs
Costs for controlling the burdens arising from up/down stream production associated from the production/service activities. (Production recycling costs ) 44 29 29
Administration activities costs Environment preservation costs for administrative preservation activities (including authorization maintenance costs, etc. ). 74 8175 82

R&D costs
Environment preservation costs for R&D activities. (Environment-friendly products and drawing and development expenses for eco-friendly technology ) 39 3964 64
Social activity costs Environment preservation costs required for social activities (Tree-planting promotion campaign, etc. ) 47 7 12

Environment damage repairing costs
Costs for damage repairing expenses relating to the environment facilities. (Repairing costs of soil and underground water pollution facilities, etc. , compensation meneys, etc. 11 0 0
Environment business costs Costs pertaining to environmental business. 00 0 0
Environment costs Total (A) 180 200259 288
Environment effect Business area effect Pollution prevention effect Out of the additional value to be obtained from the production activities, the contribution portion of the environment preservation activities (Note * ). 44 5 5
Global environment preservation effect Expenses reduction amount in association with the decrease of use of electricity, fuel, gas, etc. 16 1713 14
Resources circulation effect Reduced amount of waste produced and amount reduced thanks to the efficient use , etc. 35 67 68
Up/down stream effect Sales amount of valuable products and re-used products generated by recycling of waste products, etc. and different amount of the proceeds received by using those parts-re-used. 105 105169 169
Other effect Control activities effect Effectuation generated thanks to structuring of ISO14001 and education effect of the employees in the company. 11 129 9
S&D effect Amount of contributed sales of environment-friendly products and environment-considered-type of products and receipts of license fees 11 129 9
Social activities effect Amount of contribution due to the improved corporate business sentiment thanks to the environment PR activities. 10 1018 18
Environment damage effect Evasion amount of compensation, etc. to residents thanks to the pollution measures taken against the groundwater pollution measures, etc. 11 0 0
Environment business effect Sales contribution amount of environment business. 00 0 0
Environment effect Total (B) 153 157284 286
Balance Total (B) - (A) -26 -4324 -2
Effect/Environment cost 85% 79% 110% 99%

(Note ) Any fraction amount stated less than yen 1 million shall be omitted.

(–) The additional amount of the products generated from the production activities shall have been calculated as the contribution amount from the percentage of the environment preservation activities involved by the business office.

y Environment Performance Index for Fiscal Year 2000 (from April 1, 2000 to March 31, 2001 )z
Performance Index
FY 1999
FY 2000
Single
Consolidated
Single
Consolidated
Environment effect (yen 100 million /t-c ) 0.162 0.1910.237 0.241
Environment burden improvement effect (t-c/yen 100 million )| |£6.4 £6.0