The company is engaged in the development, manufacture and sale of electronic products that comprise primarily three product categories: communications systems and equipment, computers and industrial electronic systems, and electron devices. The company's principal business activities are based on the integration of computer and communications products and technology ("C&C"), supported by semiconductor and software technology. For the years ended March 31, 1996 and 1997, the company's C&C operations represented 96 percent of consolidated net sales, which are composed of: sales of communications systems and equipment--28 percent and 34 percent; computers and industrial electronic systems--44 percent and 42 percent; and electron devices--24 percent and 20 percent, respectively. The company operates manufacturing plants in Japan, the United States of America, Europe, Asia and other countries. The company's products are sold through sales offices in Japan and other countries throughout the world. During the years ended March 31, 1996 and 1997, sales to customers in Japan were approximately 72 percent and 78 percent of consolidated net sales, respectively. In these Notes, references to the "company" are (unless the context does not so permit) to the parent company and its consolidated subsidiaries.
