euro adhoc: Fujitsu Limited / Earnings Forecast / REVISION OF FORECAST (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

Fujitsu Announces Revised Financial Results

Forecast for Fiscal 2003 and Resumes Dividends

Tokyo, April 22, 2004-Following a meeting of its Board of Directors today, Fujitsu Limited issued the following
revised projections and guidance regarding its financial
results for the fiscal year ended March 31, 2004 (FY
2003). The company now forecasts FY 2003 consolidated net
income of 50 billion yen, an increase over previous
projections. Unconsolidated net income is now forecast at
17 billion yen, a decrease over previous estimates.
Fujitsu also announced that a fiscal year-end dividend of
3 yen per share would be paid.

Revised FY 2003 Consolidated and Unconsolidated Financial
Results Forecast

Taking into account an extraordinary gain recorded in
conjunction with the transfer of the substitutional
portion of its employees' pension plan to the Japanese
government and proceeds from the sale of fixed assets, as
well as extraordinary losses relating to restructuring
charges and valuation losses on affiliated companies,
Fujitsu revised its projected FY 2003 financial results
as follows:

FY 2003 Consolidated Financial Results Forecast
(For fiscal year from April 1, 2003 to March 31, 2004)

(billion yen)

Net Sales Operating Net Income Income Previous 4,750.0 150.0 30.0 forecast (A) Revised 4,766.0 150.0 50.0 forecast (B) Increase or 16.0 0 20.0 decrease (B - A) Percentage of 0.3 % 0.0 % 66.7 % increase or decrease FY 2002 4,617.5 100.4 -122.0 results

FY2003 Unconsolidated Financial Results Forecast
(For fiscal year from April 1, 2003 to March 31, 2004)

(billion yen)

Net Sales Operating Net Income Income Previous 2,730.0 40.0 120.0 forecast (A) Revised 2,788.0 33.0 17.0 forecast (B) Increase or 58.0 -7.0 -103.0 decrease (B - A) Percentage of 2.1% -17.5% -85.8% increase or decrease FY 2002 2,695.0 21.8 -175.0 results

Explanation of Revisions to FY 2003 Financial Results
Forecast

Gains on Transfer of Substitutional Portion of Employees'
Pension Plan

In response to the enactment of the Contributed Benefit
Pension Plan Law in Japan, Fujitsu applied for an
exemption from the obligation to pay benefits for future
employee services related to the substitutional portion.
On March 23, 2004, the company received approval of the
exemption from the Minister of Health, Labor and Welfare.
Applying the transitional provisions as prescribed in
paragraph 47-2 of "Practical Guidelines of Accounting for
Retirement Benefits - Interim Report" (Accounting
Committee Report No. 13 issued by the Japanese Institute
of Certified Public Accountants), Fujitsu accounted for
the elimination of the future and past benefit
obligations of the substitutional portion as well as the
related government-specified portion of the employees'
pension plan assets at the date of the approval.

As a result, for FY 2003 the company recorded an
extraordinary gain of 146.5 billion yen on a consolidated
basis and 81.3 billion yen on an unconsolidated basis.

Sale of Fixed Assets

In order to fund its shareholders' equity, which has been
reduced over the past two years of operational
restructuring, Fujitsu sold investment securities and
tangible fixed assets in FY 2003. The company also
securitized the land and buildings of its newly
constructed Fujitsu Solution Square in Kamata, Tokyo and
sold some employee fringe benefit-related real estate and
other assets. As a result, on both a consolidated and
unconsolidated basis, the company recognized gains of
13.6 billion yen on the sale of these assets.

Restructuring Charges

Global restructuring focusing on North America
Under the banner of "One Fujitsu," the company has been
pursuing the development of a global business structure
that can provide customers in each region with
high-quality, one-stop solutions. During FY 2003,
focusing primarily on restructuring of its North American operations, Fujitsu took such measures as reducing
overlapping functions and personnel at its overseas
operations and disposing of underperforming assets. These
measures resulted in an extraordinary loss of about 75.7
billion yen on a consolidated basis (4.3 billion yen of
which was booked during the first three quarters of the
fiscal year).

Separately, on an unconsolidated basis, Fujitsu recorded
an extraordinary loss of about 201.0 billion yen (22.8
billion yen of which was booked during the first three
quarters) owing to valuation losses on subsidiaries in
connection with the liquidation of its North American
holding company, Fujitsu IT Holdings. With respect to
consolidated accounts, operating results of its
subsidiaries were already included in income in FY 2003
or earlier periods and thus not recorded as valuation
losses.

Fundamental reform of domestic software and services
business

In the software and services business, increasingly
diverse customer requirements and a broader range of
options accompanying the shift toward open standards have
increased the complexity of systems development work.
Moreover, constant changes in customers' business
environments and quicker development turnaround times
have increased project management risk. At the end of FY
2003, along with recognizing future losses relating to
projects whose worsening prospects for profitability
became apparent, Fujitsu carried out an exhaustive
analysis of all projects under development at fiscal
year-end to predict future returns, including for work
not yet implemented. In this regard, the company recorded
an extraordinary loss of about 68.3 billion yen on a
consolidated basis, and about 64.0 billion yen on an
unconsolidated basis.

Going forward, through such measures as increasing the transparency of contractual arrangements with customers
and suppliers, Fujitsu will reform its business methods
from the ground up, redoubling efforts to further improve
customer satisfaction. In addition, along with further
advancing its development technologies, the company will
strive to increase awareness of income throughout the
project lifecycle, thereby improving overall visibility
and profitability management moving toward implementation
of percentage of completion accounting.

Dividend Forecast

At today's meeting of Fujitsu's Board of Directors, a
planned fiscal year-end distribution of 3 yen per share
was decided.

FY 2003 Year-end Dividend Forecast
(For period from April 1, 2003 - March 31, 2004)

(per share)

Previous Current FY2002 Forecast Forecast (actual) Year-end undecided 3.0 yen 0.0 yen dividend per share Dividends in Recent Years (per share) Full-year Mid-year Year-end Dividend dividend dividend FY 2001 5.0 yen 2.5 yen 2.5 yen FY 2002 0.0 yen 0.0 yen 0.0 yen FY 2003 3.0 yen 0.0 yen 3.0 yen

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace.
Pace-setting technologies, highly reliable computing and telecommunications platforms, and a worldwide corps of
systems and services experts uniquely position Fujitsu to
deliver comprehensive solutions that open up infinite
possibilities for its customers' success. Headquartered
in Tokyo, Fujitsu Limited (TSE:6702) reported
consolidated revenues of 4.6 trillion yen (US$38 billion)
for the fiscal year ended March 31, 2003. For more
information, please see: http://www.fujitsu.com/.

Further inquiry note:
Media Inquiries
Fujitsu Limited
Public & Investor Relations Inquiries:
http://pr.fujitsu.com/en/news/fjcontacts.html
Tel: +81(0) 3-6252-2176
FAX: +81(0) 3-6252-2783
Email: pr@fujitsu.com

Emittent: Fujitsu Limited 1-5-2 Higashi Shimbashi, Minato-Ku UK-1057123 Tokyo Tel: +81(0) 3-6252-2176 FAX: +81(0) 3-6252-2783 Email: pr@fujitsu.com WWW: http://www.fujitsu.com ISIN: JP3818000006 WKN: 0354912 Indizes: Börsen: official dealing Frankfurter Wertpapierbörse, SWX Swiss

end of announcement euro adhoc

Exchange, London Stock Exchange
Branche: Hardware
Sprache: Englisch

OTS-ORIGINALTEXT UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS | OTB0005