(Quarterly financial statements are not audited.)

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Listed company name: YASKAWA Electric Corporation
http://www.yaskawa.co.jp/en/
President: Koji Toshima
Stock exchange listings: Tokyo, Fukuoka
Stock ticker number: 6506

Preparation of Summary Nine-months Results

1. Summary of Results for the Third Quarter of Fiscal Year 2006
    (March 21, 2006 to December 20, 2006)
    (Note: This document was translated from the financial statement submitted to the Tokyo Stock
     Exchange for the period stated above. The figures under one million are rounded off.)

*Shareholders' equity ratio=	Total shareholders & equity + Total evaluation and translation adjustments
	Total assets

2. Projected consolidated business results
    Projected consolidated results for the fiscal year 2006 disclosed on October 31, 2006 remain
    unchanged.

		(Millions of yen)
		Year ending March 20, 2007
	Net sales	364,000
	Ordinary income	33,000
	Net income	18,000

Progress on the consolidated business results

   With implementation of three-year mid-term business plan "DASH 100", YASKAWA Group is conducting growth-oriented management. In the first year of "DASH 100", we are working on penetrating further and developing the markets that we focus on, namely, automobile, semiconductor and LCD markets. We are also expanding sales in the growing markets in Asia, especially China, and in Europe and North America. All these efforts have the aim of reinforcing existing businesses and expanding the business domain.

   As a result, net sales at the end of the third quarter (From March 21, 2006 till December 21, 2006) were up by 16.1% at 265,005 million yen compared to the corresponding period last year. Operating income increased by 62.8% to 22,657 million yen and ordinary income increased by 63.4% to 22,908 million yen. Net income significantly increased by 134.2% at 13,494 million yen.

Segment Results

• Motion Control

   The demand for AC servodrives and controllers were robust in the semiconductor and electronic components markets, and in overseas markets. High demand for AC Drives also continued especially in overseas air conditioning markets.
   As a result, net sales in this segment at the end of the third quarter rose by 21.7% to 119,686 million yen and operating income rose by 85.9% to 15,229 million yen compared to the corresponding period last year.

• Robotics

   The demand in the Japanese automobile market is gradually recovering from the slowdown caused by capital expenditure adjustments started in the second half of last fiscal year. On the other hand, we worked on sales expansion in the European and North American markets while there was a sign of restrained capital expenditures in those markets. Meanwhile, we worked on market expansion in the LCD and semiconductor markets by providing products optimized for each purpose and market.
   As a result, net sales in this segment rose by 5.4% to 89,544 million yen. However, operating income was down by 13.7% at 6,066 million yen because of a decrease in sales of high-value added products, and intensifying competition in the European and North American markets.
   (Note: The name of the segment was changed from the former "Robotics Automation" to "Robotics" this fiscal year.)

• System Engineering

   The System Engineering segment progressed with a reform in the profit structure by specializing in its strong businesses and by cost reductions. Also, efforts were made to take in the increasing demand for electrical systems for steel plants. Sales of control systems for loading and unloading cranes for the Chinese market increased.
   As a result, net sales in the System Engineering segment increased by 44.3% to 31,728 million yen, compared to the corresponding period last year. Although operating loss of 634 million yen occurred, it improved by 1,899 million yen from the corresponding period last year.

• Information Technologies

   As for the Information Technologies segment, positive market conditions continued for system integration for telecommunication businesses, and control software for semiconductor/LCD equipment manufacturers, as well as for multimedia equipments, especially card readers.
   As a result, net sales increased by 14.4% to 18,421 million yen compared to the corresponding period last year, and operating income rose by 568 million yen to 528 million yen.

• Other

   Net sales for the Other segment fell by 17.3% to 5,623 million yen, and operating income was 1,430 million yen, up by 13.1% compared to the corresponding period last year.

Changes on the consolidated financial position

Assets, liabilities, and net assets
   Current assets increased by 16,490 million yen from the end of the previous fiscal year and were 185,682 million yen. Fixed assets decreased by 2,206 million yen from the end of the previous fiscal year and were 83,824 million yen.

   As a result, total assets were 269,507 million yen and decreased by 14,284 million yen from the end of the previous fiscal year.

   Current liabilities decreased by 788 million yen from the end of the previous fiscal year and were 128,185 million yen. Long-term liabilities increased by 406 million yen from the end of the previous fiscal year and were 69,815 million yen.

   As a result, total liabilities decreased by 382 million yen from the end of the previous fiscal year and were 198,000 million yen.

   Total net assets were 71,506 million yen, because of an increase in retained earnings.

Cash flows
   Cash flows from operating activities increased by 9,066 million yen because of income before income taxes and minority interests although there was an increase in trade receivables, inventories and income taxes paid.

   Cash flows from investing activities declined by 3,609 million yen because of acquisition of property, plant and equipment.

   As a result, free cash flows, which are a sum of cash flows from operating activities and investing activities, rose by 5,457 million yen.

   As for cash flows from financing activities, repayments of interest-bearing debt and payment of a dividend resulted in an expenditure of 6,699 million yen.

   As a result, cash and cash equivalents totaled 12,008 million yen at the end of the third quarter, which was an increase of 864 million yen from the corresponding date of last year.

Warning
The information within this document is made as of the date of writing. Any forward-looking statements are made according to the assumptions of management and are subject to change as a result of risks and uncertainties. YASKAWA Electric undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

[Appendix]

1.Consolidated Balance Sheet (Summary)
2.Consolidated Statements of Income (Summary)
3.Consolidated Statement of Changes in Net Assets
4.Consolidated Statements of Cash Flows (Summary)
5.Segment Information