SUNSTAR

Outline of Business Results for 80th Fiscal Year

Consolidated Balance Sheet

(Mil.yen)

Item		Current Fiscal Year As of March 31, 2006	Previous Fiscal Year As of March 31, 2005	Item		Current Fiscal Year As of March. 31, 2006	Previous Fiscal Year As of March 31, 2005
Current Assets	Cash and cash deposits	5,787	5,258	Current Liabilities	Notes and accounts payable, trade	5,448	4,974
	Notes and accounts receivable, trade	8,958	8,509		Short-term debt	450	500
	Inventories	5,348	4,355		Current portion of long-term debt	1,060	230
	Deferred income taxes	571	604		Accrued expenses	8,270	7,530
	Other current assets	1,170	1,169		Other current liabilities	1,740	1,856
	Total	21,836	19,898		Total	16,970	15,090
Fixed Assets	Buildings and Annexed structures	3,956	4,098	Fixed Liabilities	Bonds	9,707	9,707
	Machinery,equipment and vehicles	3,327	3,061		Long-term debt	1,704	1,784
	Land	9,178	9,645		Reserve for retirement allowance	4,137	4,302
	Others	1,737	1,526		Other non- current liabilities	926	288
	Tangible fixed assets	18,199	18,331		Total	16,476	16,084
	Goodwill	12,379	11,624	Total Liabilities		33,446	31,175
	Others	1,797	2,227
	Intangible fixed assets	14,176	13,851	Common stock		10,782	10,782
	Investment securities	7,805	6,314	Capital reserves		12,338	12,338
	Deferred income taxes	744	886	Retained earnings		9,613	8,462
	Others	1,082	1,677	Revaluation of investment securities		3,566	1,865
	Investments and other assets	9,633	8,879	Translation adjustment		▲2,169	▲3,230
	Total	42,010	41,063	Treasury stock ◆2		▲3,379	▲36
Deferred Assets		350	395	Total Shareholders' Equity		30,750	30,181
Total Assets		64,197	61,356	Total Liabilities and Shareholders' Equity		64,197	61,356

Notes:
1. There were ten consolidated subsidiaries during the fisical year under review.
2. Any fractional sum less than 1 million yen are discarded.

Consolidated Statements of Income

(Mil.yen)

Item	Current Fiscal Year April 1,2005 to March 31,2006	Previous Fiscal Year April 1,2004 to March 31,2005
Sales	69,182	63,878
Cost of goods sold	23,696	21,630
Selling,general and administrative expenses	40,688	38,039
Operating Income	4,797	4,208
Other income	483	254
Other expenses	1,526	1,416
Ordinary Income	3,754	3,046
Extraordinary income	2	65
Extraordinary loss	689	649
Net Interim before Taxes	3,067	2,462
Income taxes-current	1,355	1,135
Income taxes-current deferred	20	82
Net Income	1,619	1,243

Consolidated Statement of Cash Flow

(Mil.yen)

Item	Current Fiscal Year April 1,2005 to March 31,2006	Previous Fiscal Year April 1,2004 to March 31,2005
Cash flows from Operating activities	4,146	4,025
Cash flows from investing activities ◆1	▲455	▲2,039
Cash flows from financing activities ◆2	▲3,252	▲1,861
Effect of increase (decrease) on cash and cash equivalents	91	48
Increase (decrease) in cash and cash equivalents	529	172
Cash and cash equivalents-beginning of fiscal year	5,258	5,085
Cash and cash equivalents-end of fiscal year	5,787	5,258

Highlights of Current fiscal year

◆1	＜Cash flow via investment activities＞ We spent ￥1,683 million on fixed assets such as manufacturing equipment upgrades for toothpaste and toothbrushes. We also earned ￥1,311 million from stock sales. Therefore, total disbursements were ￥455 million.
◆2	＜Cash flow via financing activities, own stock＞ By decision of the board of directors in January this year, the company acquired ￥3,343 million of its own stock. Also, ￥1,139 million in loans were procured for equipment by our US subsidiary, for a total of ￥3,252 million in disbursements. Our own stock we acquired is listed as reserve shares under treasury stock on Balance Sheets.