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                      Market Review: 
        Domestic Market Trend of Medical Imaging System From 
January through December 2007  | 
                     
                    
                      Diagnostic Imaging and Therapeutic Systems (production, exports, imports, domestic market) 
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                      Review of the full year (January to December) of 2007 | 
                     
                    
                       The percentage in (  ) refers to the increase or decline over the previous year. 
                          1.	The total count of medical imaging systems was as follows:
                          
                            
                              
                                | - Production | 
                                470.8 billion yen (+3 %) | 
                               
                              
                                | - Export1 | 
                                249.5 billion yen (+9 %) | 
                               
| - Import | 
110.4 billion yen (-21%) | 
 
                              
                                | Total domestic market | 
                                331.7 billion yen (-10 %) | 
                               
                           
                           
                          2.	The domestic market of major equipment was as follows:
                          
                            
                              
                                | - X-ray | 
                                103.8 billion yen (-9 %) | 
                               
                              
                                | - CT | 
                                65.0 billion yen (-8 %) | 
                               
                              
                                | - Diagnostic ultrasound | 
                                41.7 billion yen (-5 %) | 
                               
                              
                                | - Magnetic resonance imaging system (MRI) | 
                                44.2 billion yen (-26 %) | 
                               
                              
                                | - Image processing systems | 
                                31.1 billion yen (+15 %) | 
                               
                              
                                | - Nuclear medicine | 
                                15.1 billion yen (-34 %) | 
                               
| Total diagnostic equipment decreased to | 
317.0 billion yen (-11 %) | 
 
| On the other hand, the therapeutic equipment increased to  | 
14.7 billion yen (+23 %) | 
 
                              
                                |   | 
                               
                              
                                | The following X-ray increased. | 
                               
                              
                                | - General-purpose radiography | 
                                13.6 billion yen (+1%) | 
                               
| On the other hand, the following decreased. | 
 
| - General-purpose R/F | 
23.1 billion yen (-10 %) | 
 
                              
                                | - Cardio & angio X-ray R/F | 
                                18.1 billion yen (-12 %) | 
                               
                              
                                | - Dental | 
                                4.5 billion yen (-7 %) | 
                               
                              
                                | - Mammography | 
                                5.1 billion yen (-40 %) | 
                               
                              
                                | - Mobile | 
                                1.6 billion yen (-17 %) | 
                               
| Total X-ray | 
103.8 billion yen (-9 %) | 
 
                           
                            
                           
                          3.	The total production output increased to 470.8 billion yen (+3%).
                          
                            
                              
                                | - CT | 
                                122.7 billion yen (-1 %) | 
                               
                              
                                | - MRI | 
                                32.1 billion yen (-9 %) | 
                               
| - Nuclear medicine | 
8.0 billion yen (-21 %) | 
 
| On the other hand, the following increased: | 
 
| -  X-ray | 
140.0 billion yen (+3 %) | 
 
                              
                                | - Diagnostic ultrasound | 
                                96.8 billion yen (+5 %) | 
                               
                              
                                | - Image processing systems | 
                                29.4 billion yen (+25 %) | 
                               
                              
                                | - Therapeutic equipment | 
                                8.4 billion yen (+53 %) | 
                               
                              
                                |   | 
                               
                              
                                | Some  X-ray increased as follows. | 
                               
                              
                                | - General-purpose radiography | 
                                24.8 billion yen (+11%) | 
                               
| - Mobile | 
3.9 billion yen (+14 %) | 
 
| On the other hand, the following decreased: | 
 
                              
                                | - General-purpose R/F | 
                                29.4 billion yen (-5 %) | 
                               
                              
                                | - Dental  | 
                                6.8 billion yen (-2 %) | 
                               
                              
                                | - Mammography | 
                                1.6 billion yen (-39 %) | 
                               
                           
                           
                          4.	The total exports increased to 249.5 billion yen (+9 %). 
                          
                            
| For major equipment, the following increased: | 
 
                              
                                | - CT | 
                                83.5 billion yen (+1 %) | 
                               
                              
                                | - Diagnostic ultrasound | 
                                65.6 billion yen (+13 %) | 
                               
                              
                                | -  X-ray | 
                                57.5 billion yen (+18 %) | 
                               
                              
                                | - MRI | 
                                16.9 billion yen (+9 %) | 
                               
                              
                                | On the other hand, nuclear medicine decreased to | 
                                0.3 billion yen (-66 %) | 
                               
                              
|   | 
 
  | Some  X-ray increased as follows. | 
                             
| - General-purpose radiography | 
11.5 billion yen (+14 %) | 
 
| - General-purpose R/F | 
6.5 billion yen (+22 %) | 
 
| - Dental | 
2.4 billion yen (+11 %) | 
 
| - Mobile | 
2.3 billion yen (+46 %) | 
 
                              
                                | - Mammography | 
                                0.03 billion yen (+13%) | 
                               
                              
                                On the other hand, cardio & angio X-ray  
R/F decreased to | 
                                6.2 billion yen (-8 %) | 
                               
                           
                            
                           
                          5.	The total imports decreased to 110.4 billion yen (-21%).
                          
                            
                              
                                | For major equipment, the following decreased: | 
                               
                              
                                | - MRI | 
                                29.0 billion yen (-28 %) | 
                               
| - CT | 
25.8 billion yen (-12 %) | 
 
                              
                                | - X-ray | 
                                21.3 billion yen (-34 %) | 
                               
                              
                                | - Nuclear medicine | 
                                7.5 billion yen (-46 %) | 
                               
                              
                                | - Image processing systems | 
                                5.8 billion yen (-22 %) | 
                               
| On the other hand, only therapeutic systems increased to | 
9.0 billion yen (+2 %) | 
 
|   | 
 
                              
                                | Some diagnostic X-ray decreased as follows. | 
                               
                              
                                | - Cardio & angio X-ray R/F | 
                                11.2 billion yen (-22 %) | 
                               
                              
                                | - Mammography | 
                                3.6 billion yen (-41%) | 
                               
                              
                                | - General-purpose radiography | 
                                0.3 billion yen (-73%) | 
                               
                           
                           
                          6.Summary
                          
                            As mentioned above, in the 2007 domestic market, the therapeutic system increased. However, the following diagnostic equipment decreased: the X-ray, the CT, the diagnostic ultrasound, the MRI, and the nuclear medicine. As a result, the total market decreased (-10 %). In this year, the X-ray decreased to 103.8 billion yen (-9 %), the CT decreased to 65.0 billion yen (-8 %), and the MRI decreased to 44.2 billion yen (-26 %). The related items and accessory market has remained almost constant in previous years, but in this year, it decreased to 16.0 billion yen (-16 %). On the other hand, while the total market decreased, image processing systems increased to 31.1 billion yen (+15%), and the therapeutic systems increased to 14.7 billion yen (+23 %). 
                       
                      Diagnostic Imaging and Therapeutic Systems 
(production, exports, imports, domestic market) 
 
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