TDK Corporation Consolidated 1H of FY March 2008(U.S. GAAP) I-4) Statements of income Term Item Net sales Cost of sales Gross profit Selling, general and administrative expenses Gain on business transfer to Imation Corp. Restructuring cost Operating income Other income (deductions): Interest and dividend income Interest expense Foreign exchange gain (loss) Other-net Total other income (deductions) Income before income taxes Income taxes Income before minority interests Minority interests Net income Note: 1H of FY2007 (April 1, 2006 Sep. 30, 2006) (Yen millions) % 424,838 100.0 307,092 72.3 117,746 27.7 79,401 18.7 81 0.0 9.0 38,264 1H of FY2008 (April 1, 2007 September 30, 2007) (Yen millions) % (U.S.$ thousands) 433,088 100.0 3,765,983 318,318 73.5 2,767,983 114,770 26.5 998,000 82,547 19.1 717,800 (14,922) -3.5 (129,757) 47,145 409,957 10.9 FY2007 (April 1, 2006 March 31, 2007) Change (Yen millions) 8,250 11,226 (2,976) 3,146 (14,922) (81) 8,881 Change(%) 1.9 3.7 -2.5 4.0 23.2 (Yen millions) % 862,025 100.0 622,819 72.3 239,206 27.7 159,106 18.4 510 0.1 79,590 9.2 0.3 41,252 (617) (17,357) (12,696) 10,582 1,716 38 (1,746) (1,856) (1,848) -60.3 48,362 11.2 420,539 7,033 17.0 88,665 10.3 2.6 13,373 3.1 116,287 2,115 18.8 16,985 2.0 30,071 7.1 34,989 8.1 304,252 4,918 16.4 71,680 8.3 449 0.1 363 0.1 3,156 -19.2 1,555 0.2 29,622 7.0 34,626 8.0 301,096 16.9 70,125 8.1 3,028 (109) (250) 396 3,065 0.7 4,744 (71) (1,996) (1,460) 1,217 41,329 9.7 11,258 U.S.$1=Yen 115, for convenience only. 13 (86) 5,004 7,025 (200) 973 1,277 9,075 1.1