Ajinomoto Net Sales Up 6% 

10/11/06 Ajinomoto Co., Inc. has announced its results for the interim period ended September 30, 2006. On a consolidated basis, net sales were 574.3 billion yen (a 6% increase from the same period of the previous year), operating income was 27.6 billion yen (a 27% increase), ordinary income was 27.2 billion yen (a 19% increase) and net income was 13.6 billion yen (a 5% increase).

Sales of the Domestic Food Products business increased slightly compared with the same period of the previous year. Operating income decreased due to higher raw material costs and proactive investments in the health and nutrition business. Sales of HON-DASHI and consommé increased slightly compared with the same period of the previous year. Chinese-style soup stocks performed strongly. Sales of umami seasoning AJI-NO-MOTO decreased. As prices of vegetables increased, sales of Cook Do decreased slightly. Sales of Knorr Cup Soup and other products increased steadily. Although total sales of mayonnaise and mayonnaise-type dressings decreased from the same period of the previous year, Pure Select Saralear mayonnaise-type dressing grew substantially.

In the Overseas Food Products business, sales and income increased substantially with significant growth of flavor seasonings in Asia and South America, and a favorable currency exchange effect in addition to the price increases for seasoning products. The seasonings business of the Amoy Food Group, which was included in consolidated statement, contributed to the increase in sales.

In the Amino Acids business, feed-use amino acids increased in sales and deceased in income due to increase of cost in energy and raw materials, while sales volume increased. Jino amino acid-based cosmetics and electronic materials contributed to increases in both sales and income for the segment as a whole.

In the Pharmaceuticals business, LIVACT granules and infusions have been struggled in sales, but sales and income of the segment increased due to a significant increase in sales of lifestyle-related diseases drugs and other products compared with the same period of the previous year, and the contribution from the receipt of one-off payment upon concluding a contract for the new diabetes drug AJD101.

For the fiscal year ending March 31, 2007, Ajinomoto aims to achieve consolidated net sales of 1,180.0 billion yen, operating income of 71.5 billion yen, ordinary income of 69.0 billion yen and net income of 35.5 billion yen, in line with its initial forecast. This forecast assumes a U.S. dollar/yen exchange rate of 115 yen.

Ajinomoto plans to pay a year-end dividend of 8 yen per share, an increase of 1 yen from the previous fiscal year. Together with the interim dividend of 7 yen per share, the total dividend payment for the full fiscal year is scheduled to amount to 15 yen per share.