RNS Number:2863R
Toshiba Corporation
24 October 2003


FOR IMMEDIATE RELEASE
                                                                October 24, 2003



          Toshiba Announces Consolidated and Non-Consolidated Results
              for the First Half of the Fiscal Year to March 2004


TOKYO--Toshiba Corporation today announced its consolidated and non-consolidated
results for the first half (April-September) of fiscal year (FY) 2003.


1) Overview of Consolidated and Non-consolidated Results for First Half of FY
   2003


Consolidated Results

Toshiba's overall consolidated sales were 2,608.3 billion yen (US$23,498
million), a decrease of 26.7 billion yen from the same period of the previous
year. Of this decline, approximately 90 billion yen was attributable to
transfers of businesses from the parent company, including the cathode-ray tube
and the power transmission and distribution businesses. If the results of the
transferred businesses were consolidated, net sales would actually have
increased by approximately 65 billion yen.

Consolidated operating income (loss) declined by 14.9 billion yen from a year
earlier to minus 12 billion yen (minus US$108 million). Electronic Devices
raised operating income against the year-earlier period, largely on the strength
of the semiconductor business, while Social Infrastructure also improved
operating income (loss) from a year earlier. However, operating income for
Digital Products and Home Appliances saw lower operating income (loss).

Income (loss) before income taxes, minority interest and equity in earnings of
affiliates improved by 26.2 billion yen from the year-earlier period to minus
17.6 billion yen (minus US$159 million), mainly as a result of sales of
securities. Net income (loss) declined by 5.8 billion yen from the same period
of the previous year to minus 32.2 billion yen (minus US$290 million). The
decline includes an increase in income tax from a year earlier.



Non-consolidated Results

Non-consolidated sales declined by 6% from the same period of the previous year
to 1,459.6 billion yen (US$13,149 million). Recurring profit (loss) improved by
8.4 billion yen from the year-earlier period to minus 14 billion yen (minus
US$126 million). Net income (loss) was minus 2.5 billion yen (minus US$22
million), down by 49.6 billion yen from a year earlier.  This decline reflects
last year's extraordinary gain from the transfer of Toshiba's employee pension
fund to the government.



2) FY2003 First Half Consolidated Results by Industry Segment

                                                                billion yen
                                                    Net Sales               Operating Income (loss)
                                                            Change (%)                       Change
Digital Products                                956.8           -4%             -28.2        -37.5
Electronic Devices                              627.5           -1%              26.6        +20.7
Social Infrastructure                           730.0           -4%             -15.1         +5.9
Home Appliances                                 313.5           -2%              -4.7         -7.2
Others                                          252.8           +9%               9.2         +2.8
Elimination                                    -272.3            -                0.2          -
Total                                         2,608.3           -1%             -12.0        -14.9



Digital Products

Sales and operating income (loss) of Digital Products decreased against the same
period of the previous year, on lower sales from personal computers and
televisions.

Sales of personal computers declined from the same period a year ago, largely as
a result of severe price erosion, and despite increased unit sales both in Japan
and overseas. Television sets also saw lower sales. North American sales of
projection televisions were sluggish, and domestic sales declined in a market
starting to shift from picture tubes to flat panel displays. Falling sales in
the North American market produced a decline in sales of cellular phones,
despite increased sales in Japan of cellular phones with cameras.



Electronic Devices

Operating income of Electronic Devices increased from the year earlier period,
largely on the strength of the semiconductor business and improved performance
in the LCD business. Net sales of Electronic Devices were flat compared to the
same period a year ago, reflecting the transfer of the cathode-ray tube business
to a joint venture with Matsushita Electric Industrial Co., Ltd.

Semiconductor sales increased from the same period a year ago, on the strength
of continued healthy demand for NAND flash memory and growing demand for
multi-chip package (MCP) memories for cellular phones. Sales of LCDs also
increased, thanks to growth in the area of Toshiba's main product focus, small-
to medium-sized, high-resolution low temperature polysilicon LCDs.



Social Infrastructure

Social Infrastructure saw sales decline from the same period of the previous
year, but operating income (loss) improved on higher profitability in the
e-Solutions business.

Sales and operating income (loss) of Industrial and Power Systems & Services
decreased against the same period a year ago. Nuclear power plant business and
transportation systems business saw higher sales, but sales of thermal power
plant in North America were lower. The net sales decline also reflected the
transfer of the power transmission and distribution business from the parent
company to TM T&D Corporation, a joint venture with Mitsubishi Electric
Corporation.

e-Solutions businesses increased sales from the year-earlier period, through
growth in its package-type solutions business and increased sales of optical
character readers.



Home Appliances

Sales and operating income (loss) declined, largely as a result of sluggish
consumer spending and lower sales of air-conditioners in Japan's unusually
short, cool summer.



3) Projections for FY2003

Economic conditions in the second half of FY2003 are expected to continue an
upward trend as domestic corporate capital expenditure firms up and the U.S.
economy shows steady recovery. However global deflation will continue, and
Toshiba anticipates continued uncertainty in the overall business environment.
Consolidated and non-consolidated projections for FY2003 are shown below.



Consolidated                                (Unit: billion yen)
                                                         FY2003            Change from FY2002

                                                        Forecast
Net sales                                                   5,650                   0%
Operating income (loss)                                       140                 +24.5
Income (loss) before taxes                                     90                 +36.9
Net income (loss)                                              25                 +6.5



Non-Consolidated                            (Unit: billion yen)
                                                    FY2003 Forecast        Change from FY2002
Net sales                                                   3,020                 -11%
Recurring profit (loss)                                        40                 -3.3
Net income (loss)                                              25                 -58.3





FY2003 Forecast by Industry Segment

Forecasts for consolidated net sales and operating income (loss) for FY2003 are
shown below.


                                                           (Unit: billion yen)
                                                     Net Sales             Operating Income (Loss)
                                               FY2003      Change from      FY2003      Change from
                                              Forecast        FY2002                       FY2002
                                                                           Forecast
Digital Products                                 2,070             0%           -22         -46.8
Electronic Devices                               1,280             0%            75         +43.1
Social Infrastructure                            1,780            -2%            56         +16.8
Home Appliances                                    640            +1%             8          +3.9
Others                                             510            +4%            23          +7.5
Elimination                                       -630              -             -             -
Total                                            5,650             0%           140         +24.5



Digital Products

Operating income (loss) will decline from the year-earlier period, largely as a
result of price erosion in personal computers and lower sales of televisions in
North America.



Electronic Devices

The semiconductor business will see a continued increase in operating income.
The operating loss in the LCD business is now expected to improve.



Social Infrastructure

Operating income is expected to increase as businesses of nuclear power plant,
transportation systems, medical systems, and network systems see steady growth.



Home Appliances

Operating income is expected to increase on a series of new product launches and
expanded sales in Asian market.



4) Projected Dividend

Toshiba has cancelled its interim dividend. The full-term dividend will be
determined in due course.



5) Financial Position - Cash Flows for FY2003

Total assets decreased by 191.1 billion yen from a year earlier to 5,047.8
billion yen (US$45,476 million). While this reflects a seasonal tendency at
Toshiba, it is also due to continued efforts to lighten assets. The decline in
total assets helped to reduce total debt by 42.6 billion yen.

Cash flow from operating activities of 126.5 billion yen (US$1,139 million) and
cash flow from investment activities of minus 107.7 billion yen (minus US$970
million) produced a free cash flow of 18.8 billion yen, a decrease by 27.2
billion yen from the same period in the previous year. The decline reflects
one-time revenue from sales of DRAM manufacturing equipment during the previous
term and effective use of leaseback. Toshiba will reinforce cash flow management
and continue to achieve positive results.



Trend of cash flow index
                                             FY2001 first   FY2001    FY2002 first   FY2002    FY2003 first
                                                 half                     half                     half
Equity ratio (%)                                 16.4        13.0         12.6        10.9         10.5
Equity ratio based on market value (%)           27.6        33.6         23.2        19.2         29.9
Debt redemption years (year)                     7.7         12.1         11.7         6.4         6.5
Interest coverage ratio                          5.4          3.8         4.8          8.5         9.1

Formulae:

Equity ratio: shareholders' equity/total assets

Equity ratio based on market value: market value of shareholders' equity*/total
assets

*  Market value of shareholders' equity is calculated as the (closing stock
value at the end of a fiscal period) x (number of shares authorized at the end
of a fiscal period without treasury stock)

Debt redemption years: total debt, average value at the beginning and the end of
a fiscal period / net cash provided by operating activities

Interest coverage ratio:  net cash provided by operating activities / interest
payment



6) Exchange Rates

Projections for the second half of FY2003 are based on exchange rates of 115 yen
to the US dollar and 130 yen to the Euro.



                                     # # #



Note: For convenience only, all dollar figures used in reporting fiscal year
2003 first half results are valued at 111 yen to the dollar throughout this
statement.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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