November 22, 2002

1. Summary of consolidated financial results

	Millions of Yen
	1st half of FY2002	1st half of FY2001	FY2001
Sales	97,920	108,785	222,707
Operating profit (loss)	(2,891)	(1,843)	(3,727)
Ordinary profit (loss)	(4,383)	(2,589)	(6,009)
Net profit (loss) after tax	(6,850)	(4,967)	(12,657)
	Yen
Net profit (loss) per share	(29.52)	(21.41)	(54.54)

2. Summary of consolidated financial position

	Millions of Yen
	September 20,2002	September 20,2001	March 20,2002
Total assets	231,628	226,832	234,559
Shareholders' equity	27,314	40,501	36,525
Shareholders' equity ratio	11.8%	17.9%	15.6%
	Yen
Shareholders' equity per share	117.72	174.53	157.41

3. Summary of consolidated cash flows

	Millions of Yen
	September 20,2002	September 20,2001	March 20,2002
Net cash provided by (used in) operating activities	3,900	1,104	(11,543)
Net cash provided by (used in) investing activities	(2,652)	(5,286)	(8,007)
Net cash provided by (used in) financing activities	361	6,013	23,188
Cash and cash equivalents at the end of year	17,688	14,461	16,227

4. Forcast of consolidated earnings for FY2002 (March 21,2002 - March 20,2003)

	Millions of Yen
	FY2002
Sales	225,000
Ordinary profit	4,700
Net profit after tax	1,500
	Yen
Net profit per share	6.46

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.

Business Results for the First Half of FY2002
During the first half of fiscal year 2002, YASKAWA's sales, effected by the diminished orders during the second half of the previous year, decreased 10% to 97.92 billion yen. Profits for the first half, despite efforts to cut expenses, were negative for the period. Operating loss totaled 4.383 billion yen while net loss totaled 6.850 billion yen.

Motion Control
Within this segment, general-purpose AC Drives, particularly in China and Europe, recovered with favorable sales results. In addition, in comparison to the weak sales in the second half of the previous year, AC Servo sales trended upwards.

The segment sales as a whole, as a result of lower orders during the second half of last year, fell by 11.5% from the same period last year to 38.93 billion yen, while operating loss totaled 1.802 billion yen.

Robotics Automation
Robotics Automation was able to end in a favorable position in the areas of automobile related business and LCD handling equipment as a result of entering new markets and acquiring large orders. Clean and vacuum robots for the semiconductor manufacturing equipment sector improved from last year's weak sales.

The segment finished the year at 15.2% below last year's first half results to end at sales of 29.382 billion yen, due to the weak orders from the previous year. Operating profit was down 94% from the same period last year to end at 78 million yen.

Systems Engineering
Sales of electrical systems for both the major application areas, steel plants and water utilities, declined slightly. As a result, compared to the same period in the previous year, sales decreased by 7.2% to 12.807 billion yen. It is characteristic of this business that first half sales are usually lower than the second half. The first half operating loss totaled 1.627 billion yen.

Other Business Segments
Information services experienced firm market conditions, leading to an increase of 2.8% in sales, for a total of 16.8 billion yen. Operational profit increased 9.5% over the same period in the previous year to end at 437 million yen.

Financial Condition at the End of the First Half of FY 2002

Balance Sheet Highlights
Current assets declined, mainly as a result of lower notes and accounts receivable during the 6 months despite the increase in production affecting ending inventory for an increase of 1.791 billion yen compared to the previous period. Current assets decreased 2.016 billion yen from the previous period to end at 145.945 billion yen.

Depreciation created a decrease in fixed assets to end 914 million yen lower than the previous period at 85.683 billion yen.
As a result, total assets decreased 2.930 billion yen to 231.628 billion.

Current liabilities increased by 3.512 billion over the previous period to 134.126 billion yen, as a result of increases in payments in advance as well as other items,.
Fixed liabilities increased by 2.855 billion yen over the previous period ending at 67.198 billion yen, mainly due to additional retirement reserves.
Total liabilities increased 6.368 billion yen from the last period to 201.235 billion yen.
Shareholder's Equity, reflecting the period's net loss, decreased from the previous period by 9.21 billion yen to 27.314 billion.

Cash Flow
Cash flow based on operations were, in spite of net loss before taxes of 8.262 billion yen, positively influenced due to depreciation and other expenses not related to cash totaling 6.941 billion yen. Also, lower trade receivables, higher payables and other accounts reduced working capital by 1.018 billion yen, which increased cash flow by 3.9 billion yen.

In terms of Income from investment activities, sales of securities created 617 million yen in cash. However, capital expenditure and investments in Information Technology totaled 3.27 billion yen, bringing the total cash flow to minus 2.652 billion yen. Finally, free cash flow increased to 1.247 billion yen.

Cash flow from financing activities ended at a positive 361 million yen. The result was affected by the increase in long-term debt by 6.012 billion yen, which was meant primarily to cover long and short-term loan obligations.

Based on the results reported above, cash and cash equivalents increased 1.521 billion yen to end the period at 17.688 billion yen.

Revised Outlook for FY2002
As published in YASKAWA's Mid-Term "Win 21" Plan, based on the Four Areas of structural reform, the company planned to transform into a highly profitable organization.
Particularly through cost reduction and asset efficiency, YASKAWA was positioned for greatly improved earnings potential.
Principally, as part of an extreme cost improvement campaign in order to greatly improve YASKAWA's global competitiveness, we have reinforced our Chinese production facilities and spun off manufacturing companies to serve the Motion Control business more effectively. As a result of manufacturing outsourcing to these new companies, reduced production costs and modification in fixed overhead costs will lead to improved efficiency overall.

At present, the outlook for year ending March 2003 is as follows:

Consolidated

Sales Operating Profit Ordinary Profit Net Profit After Tax

225 billion yen (1% increase over the previous fiscal year) 6.1 billion yen 4.7 billion yen 1.5 billion yen

Unconsolidated

Sales Operating Profit Ordinary Profit Net Profit After Tax

120 billion yen (5.8% increase over the previous fiscal year) 0.43 billion yen 2.0 billion yen 1.07 billion yen

	Notes:
	1.	Exchange rates for the second half period are set in advance at 120 yen/US dollar and 115 yen/euro.
	2.	Dividends for the period are still pending.

Warning
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 obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.