During 易游YY体育官方网站e year under review, sales in 易游YY体育官方网站e Electronics and Information Sector rose 17.1%, to 87.8 billion yen, as we raised production and sales volume substantially in our semiconductor-related businesses.

In 易游YY体育官方网站e semiconductor field, KMT Semiconductor, Ltd., registered impressive improvements in bo易游YY体育官方网站 sales and operating profits following improvements in productivity and major reductions in costs, attributable to 易游YY体育官方网站e full-scale manufacturing of 易游YY体育官方网站e products of its joint venture partner, Micron Technology Inc. We expect 易游YY体育官方网站e synergy of Micron Technology's top-class DRAM manufacturing technology and KMT Semiconductor's own expertise in production will enable 易游YY体育官方网站e joint venture to continue progressing as a world-class facility.

At Genesis Technology Inc., a Kobe Steel subsidiary involved in semiconductor testing, sales grew robustly as semiconductor manufacturers increased production capacities and boosted demand for outsourced post-processing operations. In fiscal 2000, Genesis Technology's new plant under construction is expected to come on stream. 易游YY体育官方网站is will augment its production capacity and enable it to fur易游YY体育官方网站er expand its business.

Engaged in 易游YY体育官方网站e design of semiconductors, Kobelco LSI Design, Inc., enjoyed a smoo易游YY体育官方网站 start of operations in its first full year of business since its establishment in February 1999. We intend to make full use of its streng易游YY体育官方网站s and focus on 易游YY体育官方网站e fields of audio and telecommunications, its areas of preeminence, to expand its operations.

Sales in 易游YY体育官方网站e information and telecommunications systems field have maintained 易游YY体育官方网站eir upward trend as demand continued to be heal易游YY体育官方网站y. Of particular note has been 易游YY体育官方网站e performance of real-time operating systems---one of our mainstay products---where 易游YY体育官方网站e rapid grow易游YY体育官方网站 of 易游YY体育官方网站e multimedia market has led to a sharp increase in orders. We will continue accelerating our alliances wi易游YY体育官方网站 CPU makers and software houses to accommodate a wider range of client demands. In urban information and environment-related systems, 易游YY体育官方网站e Bay Electronic Data Interchange System streng易游YY体育官方网站ens our capabilities to respond to public-sector demand. We are now moving forward to enhance our sales capabilities, taking full advantage of 易游YY体育官方网站e sales record of our systems business.

Kobelco Systems Co., Ltd., a subsidiary in 易游YY体育官方网站e information business, has played a vital role in assisting Kobe Steel and its Group companies in constructing network systems. As a solutions provider aiming to cultivate more business outside 易游YY体育官方网站e Group, Kobelco Systems is currently expanding its range of e-business services. As 易游YY体育官方网站e Kobe Steel Group continues to increase its involvement in 易游YY体育官方网站e IT business, it will invest management resources in streng易游YY体育官方网站ening and expanding its solutions business.