In the fiscal year ended January 31, 2008, we made steady progress in building a foundation for the further strengthening of the overall corporate capability of our Group under our medium-term business vision, which aims to double our corporate capability. To begin with, operations of the new SUMCO Group, including new member SUMCO TECHXIV, made a full-fledged start. Towards our goal of demonstrating the capabilities of the new SUMCO Group to the maximum, the different business sections at both companies took on a great number of constructive measures aimed at realizing synergies in the medium term. Furthermore, we made steady advances toward the establishment of an integrated operating structure that includes our technological, sales, and manufacturing divisions with a project aimed at concentrating our bases. On another note, we decided to liquidate SUMCO France S.A.S, which produced small-size wafers of 150mm or under, further accelerating the Group reorganization designed to meet the growing demand for large-size wafers. Operationally, we further intensified our intention of concentrating our business resources on our 300mm wafer business, by fully utilizing the resources of the Group for advanced capacity expansion. We also made a decision to make additional capital investment on the capacity expansion of silicon wafers for solar energy cells, with a strong expectation of developing it into a new core business. Going forward, the SUMCO Group will take a proactive management approach in meeting strong demands expected in the future, and we will make every effort to meet the expectations of our shareholders and other stakeholders by increasing corporate value.

June. 2008

Kenjiro Shigematsu, President