YASKAWA Electric Corporation (Kitakyushu, Fukuoka, Japan), a leading global provider of servo motors, AC Drives, robotics and other automation and motion control products, reported its 2001 business results.

Fiscal 2001 revenues were 222.7 billion yen, a decline from the previous year of approximately 16.3%. The decrease is mainly due to the effects of the weakened economy on YASKAWA's core Motion Control business segment.

Following is a discussion of FY 2001 Business Segment results and the outlook for 2002.

Motion Control
The core AC servo business was greatly affected by the global downturn in both the semiconductor and Machine Tool markets. As a result, performance fell during fiscal year 2001 The first half increase in the AC Drive segment were offset by the weakening of that market during the second half.
Sales declined 28.7% from the previous year for a total of 81.5 billion yen. Operating losses totaled 6.09 billion yen.

Robotics Automation
Robotics for both the automotive and FPD handling markets saw a trend in increasing sales during Fiscal 2001. However, sales of robotics related to semiconductor manufacturing were also greatly affected by the fall in semiconductor manufacturing equipment investment. As a result, the division was down 11.0% compared to the previous year to 67.9 billion yen. Income from operations was 191 million yen, down 94.9% compared to last year's results.

System Engineering
Sales declined slightly with the decrease in measurement systems for water utilities offset by the increase in steel plant systems. The segment ended the year with 37.3 billion yen in sales (0.9% down from last year) and an operating profit of 872 million yen.

Other Business Segments
Information services sales increased, but were more than offset by the decline in transportation and storage areas. Sales for this business group decreased 4.7% compared to the last year for a total of 35.8 billion yen. Operating profits of 1.26 billion yen were a decrease of 61.2% from last year.

Following the trend in declining revenues, current assets decreased 37.1 billion to 147.9 billion yen. Fixed assets, led by investments in marketable securities and capital, increased from the previous year by 19.1 billion yen to 86.5 billion yen. Total assets for 2001 Year End totaled 234.5 billion yen. Liabilities also decreased by 7.96 billion yen down to 194 billion yen.
Shareholders Equity decreased as a result of losses in the business segments. A decrease of 10.5 billion yen led to a total of 36.5 billion yen for the year-end.

Outlook for 2002
Fiscal Year 2002 is the final stage in YASKAWA's mid-term management plan "Win21" The 4 Areas of Business Improvements will transform YASKAWA into a high-profit organization.

In particular, the cost management plan will realize exceptional results. Among the efforts in this area are centralized purchasing, expense control, overseas and outsourced manufacturing, inventory and variable expense management improvements.
As a result of the improvements discussed above , the company's management environment will undergo drastic changes. Therefore , the present forecast for period ending march 2003 is as follows:

Forecasted Consolidated Results

Forecasted Non-consolidated Results

Note: Next period exchange rate is 130 yen /dollar and 115 yen /Euro.

Notice: This release is made as of the date of writing. Any forward-looking statements are subject to change as a result of risks and uncertainties. The Company undertakes no obligations to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.