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OMRON Reports Fiscal 2010

TOKYO — OMRON Corporation (TOKYO:6645)(ADR:OMRNY) today reported consolidated performance for fiscal 2010, ended March 31, 2011.

Consolidated net sales for the year ended March 31, 2011 increased 17.7 percent compared with the previous fiscal year to JPY 617,825 million with the recovery of the capital investment environment in the manufacturing industry and the contribution of measures including expansion into emerging markets and introduction of new products, although the impact of the strong yen was significant. Operating income increased 267.4 percent compared with the previous fiscal year to JPY 48,037 million as a result of the success of the structural reforms and cost reductions the Omron Group has implemented, together with increased sales in core businesses. Income before income taxes was JPY 41,693 million, and net income attributable to shareholders was JPY 26,782 million.

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

1. Overview of Conditions
Economic conditions were solid at the beginning of fiscal 2010 (ended March 31, 2011), with factors including the ongoing recovery in capital investment resulting from improvement in corporate performance. However, the Great East Japan Earthquake that occurred near the end of the fiscal year on March 11, 2011 had a profound impact on corporate production activities and logistics. While the direct impact of the earthquake on the Omron Group was minor because the Group's main production bases are located outside of the affected area, difficulties in procuring such items as raw materials and components have led to curtailed production of certain components and reduced capacity utilization rates.

Despite these conditions, looking at the Japanese economy for the full fiscal year, capital investment demand was solid because corporate results improved.

As for overseas economies, China and Southeast Asia remained strong, with continued expansion driven by internal demand. The U.S. economy recovered moderately although the unemployment rate remained high. In Europe, overall economic conditions improved despite the worsening financial situation apparent in some countries.

In markets related to the Omron Group, demand for electronic components was strong, primarily for household electrical appliances and automotive electronics. Moreover, capital investment demand was solid, primarily in the semiconductor, electronic component and automotive industries, reflecting rising interest in the environment and energy savings in developed countries, as well as expansion of demand resulting from economic growth in emerging markets.

The average exchange rates for the year ended March 31, 2011 were USD 1 = JPY 85.8 and EUR 1 = JPY 113.5 (7.1 yen and 16.8 yen less than the previous fiscal year, respectively).

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