Financial Highlights

                                                                                               In thousands of   Percent
                                                                  In millions of yen             U.S.dollars     change
                                                        -------------------------------------  ---------------
                                                           1995         1996         1997           1997        1997/1996
---------------------------------------------------------------------------------------------------------------------------
Net sales ............................................  Y3,769,357   Y4,397,192   Y4,948,437    $39,906,750        13%
 C&C operations ......................................   3,591,010    4,202,857    4,728,250     38,131,048        13
  Communications systems and equipment ...............   1,027,118    1,227,016    1,686,594     13,601,565        37
  Computers and industrial electronic systems ........   1,789,394    1,942,858    2,078,480     16,761,935         7
  Electron devices ...................................     774,498    1,032,983      963,176      7,767,548        -7
 Other operations ....................................     178,347      194,335      220,187      1,775,702        13
----------------------------------------------------------------------------------------------------------------------------
Income before income taxes ...........................      74,724      151,318      121,222        977,597       -20
----------------------------------------------------------------------------------------------------------------------------
Income taxes .........................................      51,448       76,376       24,900        200,806       -67
----------------------------------------------------------------------------------------------------------------------------
Net income ...........................................      35,316       77,166       91,581        738,556        19
----------------------------------------------------------------------------------------------------------------------------
Per share of common stock (in yen and U.S. dollars):
 Net income ..........................................       22.92        45.21        51.78          0.418        15
 Cash dividends ......................................       10.00        11.00        11.00          0.089         0
----------------------------------------------------------------------------------------------------------------------------
Per American Depositary Share, each representing
  5 shares of common stock (in yen and U.S. dollars):
 Net income ..........................................         115          226          259           2.09        15
 Cash dividends ......................................          50           55           55           0.44         0
----------------------------------------------------------------------------------------------------------------------------
Total assets .........................................   4,151,320    4,683,120    4,799,165     38,702,944         2
----------------------------------------------------------------------------------------------------------------------------
Shareholders' equity .................................     790,749      878,852    1,003,371      8,091,702        14
----------------------------------------------------------------------------------------------------------------------------
Capital expenditures .................................     300,220      401,999      432,962      3,491,629         8
----------------------------------------------------------------------------------------------------------------------------
R&D expenses .........................................     266,006      298,713      348,537      2,810,782        17
----------------------------------------------------------------------------------------------------------------------------
Employees ............................................     151,069      152,719      151,966                        0
----------------------------------------------------------------------------------------------------------------------------

Notes:

1. U.S. dollar amounts are translated from yen, for convenience only, at the rate of Y124=U.S.$1.

2. Computation of net income per share is based on the average number of shares of common stock outstanding during each year, with consideration of the dilutive effect of common stock equivalents.