We hereby provide notice as follows concerning the impairment loss occurring during the third quarter of the fiscal year ending March 31, 2013 (April 1, 2012 - December 31, 2012).

1. Posting of impairment loss (extraordinary loss)

The Funai Group recorded losses on impairment in the following asset groups.

Use

Location

Type

Idle assets

Funai Electric Co., Ltd. (Daito, Osaka)

Long-term prepaid expenses, etc.

During the first nine months, the Company revised its production model in line with decreasing global demand. As a result, the Company revalued its licensing of patents based on their expected future degree of use, thereby reducing the expected amount collectible for these assets by ¥1,614 million.
This impairment loss was recorded as an extraordinary loss.

2. Effect on results

The above

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