RAYTEX CORPORATION 1-33-3 Ochiai,Tama City, Tokyo, 206-0033 JAPAN TEL: 042-338-2844　 FAX: 042-338-2846 e-mail: info@raytex.com http://www.raytex.com

President and CEO Jun Takamura 　The semiconductor industry has faced a transition to lower levels of activity overall during this fiscal period, due to increased raw material prices and the silicon cycle coming full circle. However, an increase in semiconductor demand, in conjunction with the proliferation of household electronics and intensified investment in 300mm wafer production equipment, has been observed. In the current situation, Raytex has continued the strategy of its past fiscal period in appealing to semiconductor wafer manufacturers and device manufacturers through the utility of our products, aiming at market expansion. Raytex has made concrete successes with sales of its 300mm model EdgeScan edge inspection system, and sales of its EdgeScan B+ Plus edge and backside combination inspection system to wafer manufacturers. Patent and trademark rights to the DynaSearch XP wafer measurement system were secured in June of 2004, boosting Raytex’s recognition factor across the semiconductor industry and leading to further expansion in our installed tool base. In addition, our EdgeScan + edge inspection system, geared toward applications in the semiconductor manufacturing process, is enjoying a high volume of sales to device manufacturers. As a result of these achievements, our business results for this consolidated fiscal year have reached JPY 3,622M in sales, JPY 281M in working profit, and JPY 135M in current period net profit, enabling us to achieve the target figures as set forth in our initial plans. Per-share current period net profit was JPY 30.02. 　During this fiscal period, Raytex has focused its efforts on reinforcing its product lineup and strengthening its overseas operation sites. Our product lineup has been enhanced through the securing of rights to the NanoPro NP1 wafer measurement system from the KLA-Tencor Corp.(U.S.)in September of 2004. The NanoPro NP1 is a wafer dual-surface measurement system featuring glancing incidence interferometry, and is poised to satisfy increased demand for double-side polished wafers. In terms of our overseas operating locations, the Raytex USA Corporation, our subsidiary located in the U.S., has moved to a new office location and constructed a new cleanroom. In the future, this will equip Raytex USA to not only service existing customer accounts but also serve as the development center for our NanoPro NP1 product. Raytex has also established offices in Korea, Taiwan and France to enable direct sales of our edge inspection equipment to overseas device manufacturers in their respective sales regions. As Raytex offers the most revolutionary and leading-edge product solutions available, we would experience limitations under an agent sales scenario. By establishing and reinforcing these overseas locations, customer requirements can be understood in precise detail, and we have thereby created a global network that will allow us to accelerate our product development cycle. 　In our industry, equipment shipments tend to cluster in the second half of the fiscal year due to the timing of our industry customers’ equipment investments. In order to rectify this trend and ensure stable year-round high sales and profits, we feel it is necessary to broaden our customer base. Creating and implementing sales strategies targeting both domestic and overseas device manufacturers is an integral facet of reaching this goal. An increased number of clients will also bring about new topics and challenges. One of these will be supporting timely shipments. Through Raytex’s choice of a fully-outsourced, “fab-less” production scenario, we have been able to grasp market fluctuations well in advance, and to ship our products based on the appropriate timing. To deal with an increased customer base in the future, Raytex is committed to providing service and support targeted precisely to each customer’s production scenario and equipment investment timeframe. Another challenge in our future will be maintaining an effective organization. When Raytex USA was listed on the Tokyo Stock Exchange Mother’s Market in April of 2004, our company headcount was 58 employees. As of May of this year, we have reached an employee headcount of 87 persons. Our organization has expanded rapidly over a very brief span of time, and we plan to continue deploying our personnel resources effectively, so as not to lose the drive which is one of our great strengths, as well as to assure our ability to respond completely to ever-evolving customer requirements. 2005.8.