To our valued stockholders,
I hope that all of you are doing well in the days of early summer, as I offer my greetings in this 42nd report on Alpine’s business results.

Consolidated results for the period show a reduction in income and profits under the impact of a slowdown of the North American economy, shift of new car demand to medium size and small models, model changes by major customers, and other trends. Regarding dividends, since one of our main priorities is to return profits to our stockholders and we have established a stable dividend payment policy, the year-end dividend is 15 yen per stock (as in the previous period), for an annual dividend of 25 yen per stock.

During the forty-third period that began this April, the rising yen and soaring raw materials prices, slumping new car sales accompanying the slowdown in the U.S. market and other aspects of the business environment will become increasingly harsh. In this industry, the expansion in the emphasis on automotive comfort to include fuel efficiency and safety, and that trend will accelerate the use of new electronic information technologies, concurrently with the continued rationalization of mobile products, presenting Alpine with a good opportunity to expand its business.

Alpine has enacted its Eleventh Mid-term Business Plan for 2010, in order to respond to the business environment described above. It will accelerate the initiatives—development structural reforms, cost structural reforms, and indirect structural reforms—that are all part of our “Challenge 30” program. At the same time we promote the creation of First-one Products as a growth strategy and work to strengthen and establish DA (Drive Assist) technology—a new business area. These measures are intended to achieve an immediate sharp bounce-back in profitability to consolidated sales of 300 billion yen in 2010.

To all our stockholders and investors, we appreciate your support and look forward to your continued support and confidence.

(Alpine Report 2008/6)