NACHI-FUJIKOSHI CORP.

I trust that all is well for our valued shareholders.

I am pleased to report the results for the NACHI-FUJIKOSHI Group for the fiscal year ended November 30, 2010 (from December 1, 2009 to November 30, 2010).

The business environment surrounding the NACHI-FUJIKOSHI Group during the fiscal year showed a gradual recovery with the robust economies of emerging nations as the backdrop, as evidenced by the turnaround in the auto industry and the increasingly clear signs of the recovery in industrial machinery and consumer markets.

Given this environment, the NACHIFUJIKOSHI Group moved forward with initiatives to cultivate new markets and revitalize existing ones by playing to the strength generated by the Group' s position in the machining, robotics, functional parts, and material businesses.

As a result, sales for the fiscal year totaled 134.8 billion yen, up 25.3% over the previous fiscal year. Of this, sales in the Japan market were 84.1 billion yen, up 20.0% over the previous fiscal year, while overseas sales totaled 50.6 billion yen, up 35.2%.

In terms of profitability, although affected by such factors as deteriorating export margins due to the appreciation of the yen and declining sales prices, improved capacity utilization as the result of the recovery in sales and manufacturing as well as efforts to curb overall costs including a fundamental review of cost structures enabled us to secure 8.2 billion yen in operating profits and 6.4 billion yen in ordinary income. Extraordinary gains and losses such as gains on sales of investment securities and losses on sales of fixed assets, as well as corporate tax and other such items, brought net income for the fiscal year to 5.5 billion yen.

With regard to the fiscal year's-end dividend, since the NACHI-FUJIKOSHI Group was able to record more profit than initially forecast, the group is expressing its appreciation for the support of its shareholders and paying 4 yen in dividends per share, up 2.5 yen from the previous fiscal year.

As for the outlook moving forward, we believe that the global market will be driven by continued high economic growth in China and other emerging nations. However, concerns about declining sales prices due to increasing competition and rising costs as the result of the appreciation of the yen, rising oil and other natural resource prices lead to expectations of an uncertain future.

In the future, the NACHI-FUJIKOSHI Group will endeavor to cultivate emerging markets as well as the energy and infrastructure segments, where long-term growth is anticipated. The company will also move forward with thoroughgoing improvement and cost reduction focused on manufacturing, sales, and research and development. By these means, the company will develop a stable profit structure and work to improve business results.

I would like to express my sincerest appreciation to all of our shareholders for their continued support and understanding.