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Omron Reports First-Half Results

TOKYO — OMRON Corporation (TOKYO:6645)(ADR:OMRNY) today reported consolidated performance for the interim period of fiscal 2010, ending March 31, 2011.

“Notes Regarding Use of Projections of Results and Other Matters.” Consolidated net sales in the interim period (April 1 – September 30, 2010) increased 28.2 percent compared with the same period of the previous fiscal year to JPY 297,905 million, reflecting the continued upturn in capital investment among manufacturers, despite the significant impact of the strong yen. Operating income was JPY 24,444 million as a result of the success of the structural reforms and cost reductions the Omron Group has implemented. Income before income taxes was JPY 23,517 million, and net income attributable to shareholders was JPY 14,990 million.

Note: All amounts are rounded to the nearest million yen.

1. Overview of Conditions

The economy moved toward recovery during the period, although market uncertainty increased with movements in exchange rates and stock prices from the first half into the second half.

The Japanese economy showed a pickup with the effect of economic stimulus measures and other factors, despite signs of weakening in the export-led recovery due to the surging yen. Looking at overseas economies, a sense of slowdown is building in the United States, but the U.S. economy has continued to recover moderately, aided by the effects of government measures. In Europe, the economic recovery trend continued, supported by growth in exports due to higher demand in newly industrialized countries and the weaker euro. In China and Southeast Asia, economic growth remained firm, led by expansion mainly of internal demand due in part to the effect of economic stimulus measures.

In markets related to the Omron Group, special demand due to exceptionally hot summer weather in the Northern Hemisphere and policy measures to stimulate consumption in various countries fueled strong demand for electronic components, primarily for household electrical appliances and automotive electronics. In China and other newly industrialized countries, in addition to demand for components used in digital devices, capital investment demand was solid, primarily in the semiconductor, electronic components and automotive industries, reflecting rising interest in the environment and energy savings in developed countries.

The Omron Group's net sales for the six months ended September 30, 2010 increased 28.2 percent compared with the same period of the previous fiscal year to JPY 297,905 million, reflecting the continued upturn in capital investment among manufacturers, despite the significant impact of the strong yen. Operating income was JPY 24,444 million as a result of the success of the structural reforms and cost reductions the Omron Group has implemented. Income before income taxes was JPY 23,517 million, and net income attributable to shareholders was JPY 14,990 million.

The average exchange rates for the six months ended September 30, 2010 were USD 1 = JPY 88.7 and EUR 1 = JPY 114.6 (6.4 yen and 17.5 yen less than the same period of the previous fiscal year, respectively).

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