February 13, 2006

Summary of Business Results for the

First Three
Quarters of Fiscal 2005
(on a consolidated basis)


1. Matters relating to preparation of quarterly report
1) Simplified method employed for accounting:
(Details)
Accounting standard for calculation of income taxes:
Calculation of tax amounts based on estimated income taxes for
the term using the statutory effective tax rate

2) Changes in accounting standards from those used for the
latest account settlement: changes made
(Details)
With effect from the reporting period, impairment accounting
has been applied to fixed assets on a consolidated basis. As
a result, an impairment loss in the amount of ¥738 million has
been registered as an extraordinary loss.

3) Changes in the scope of consolidation or accounting for
equity method: 4 newly consolidated firms; 2 companies excluded
from scope of consolidation; 1 company excluded from scope of
accounting as equity-method affiliate

2. Outline of business operations for the first three quarters
(April 1 to December 31, 2005)

(1) Operating results
(Amounts less than ¥1 million are omitted.)
Net
sales
Operating
profit
Recurring
profit
Net income

(¥ million) (¥ million)
(¥ million)
(¥ million)
First 3 quarters of
fiscal 2005
283,286 18,836
18,576
9,795
First 3 quarters of
fiscal 2004
200,496 15,202
15,017
8,177
Reference: FY2004
full term
300,055 20,727
20,805
11,568

Earnings
per share
(Yen)
First 3 quarters of fiscal 2005
24.31
First 3 quarters of fiscal 2004
24.78
Reference: FY2004 full term
32.76

Note: Taiyo Nippon Sanso Corp. was created through the merger of
Nippon Sanso Corp. (the surviving entity) and Taiyo Toyo Sanso Co.
on October 1, 2004. Accordingly, Nippon Sanso’s consolidated results
for the previous nine-month period (April 1 to Dec. 31, 2004) include
the six-month term ended September 30, 2004 as Nippon Sanso, and the
three-month period ended December 31, 2004 as Taiyo Nippon Sanso.
As no direct comparison of like with like is possible, no year-on-year
comparison of performance for the nine-month reporting period is
given.

Supplemental disclosure on business performance
During the reporting nine-month period, demand for the
Company’s gas products in the domestic market remained firm,
while sales by our U.S. subsidiaries increased in line with our
projections. In addition, sales of plants and equipment posted
an increase as a result of the completion of air separation
plants, mainly for overseas customers. As a result, business
performance as a whole for the first three quarters of fiscal
2005 was in line with our initial projections. On a consolidated
basis, net sales for the nine-month term ended December 31, 2005
came to ¥283,286 million, operating profit to ¥18,836 million,
recurring profit to ¥18,576 million, and net income to ¥9,795
million.

(2) Financial position (¥ million)
(As of end of terms; amounts less than ¥1 million are omitted.)
Total
assets
(¥ million)
Shareholders’
equity
(¥ million)
Shareholders’
equity ratio (%)
Shareholders’
equity per share (¥)
First 3 quarters of
fiscal 2005 (Dec. 31,
2005)
452,636
170,101
37.6 422.46
First 3 quarters of
fiscal 2004 (Dec. 31,
2004)
411,558
151,945
36.9 375.37
Reference: FY2004
full term (March 31,
2005)
404,668
154,207
38.1 380.70

Cash flows
(¥ million; Amounts less than ¥1 million are omitted.)
Net
cash
provided by
operating
activities
Net cash used
in investing
activities
Net cash
provided by
(used in)
financing
activities
Cash and cash
equivalents at end
of first 3 quarters
First 3 quarters of
fiscal 2005
22,376
(15,595)
(6,379) 20,033
First 3 quarters of
fiscal 2004
15,567
(22,446)
1,779 19,517
Reference: FY2004
full term
27,703
(32,235)
(2,679) 17,839

Supplemental disclosure on financial position
Total assets on a consolidated basis increased by ¥47,967
million compared with the end of fiscal 2004, to ¥452,636
million, due mainly to the net increase in the number of
consolidated subsidiaries by two. Shareholders’ equity rose by
¥15,893 million, to ¥170,101 million.

Turning to cash flows, net cash provided by operating
activities amounted to ¥22,376 million; net cash used in
investing activities amounted to ¥15,595 million, mainly as a
result of the acquisition of fixed assets; and net cash used
in financing activities amounted to ¥6,379 million, principally
as a result of the repayment of interest-bearing liabilities.
Owing to the net increase of two in the number of consolidated
subsidiaries, cash and cash equivalents grew by ¥1,665 million

over the previous term-end. As a result, cash and cash
equivalents amounted to ¥20,033 million.

3. Forecast on a consolidated basis for the full term
(April 1, 2005 to March 31, 2006)
Net
sales
(¥ million)
Recurring profit
(¥ million)
Net income
(¥ million)
Full term
390,000
25,500
13,800
(For reference: Earnings per share (full-term forecast) is ¥34.27.
Disclaimer: The forecasts above are prepared on the basis of information
available to the Company’s management as of the date of writing, and are
subject to various factors beyond the Company’s control, notably exchange
rate fluctuations and unforeseeable economic conditions. Actual results
may thus differ substantially from the above forecasts.

Supplemental disclosure on performance forecasts
The Company’s business performance for the first three quarters
of fiscal 2005 was roughly in line with the management’s
projections, and no significant change in the business
environment is foreseen between now and the end of the term on
March 31, 2006. As business circumstances are expected to remain
favorable, we have made no revisions to our full-term business
result forecasts issued on November 14, 2005. (It was recently
discovered that the structural strength of the supporting
structures of 99 low-temperature liquefied gas tanks
manufactured by our subsidiary Cryo One Inc. do not meet
earthquake resistance criteria. We are taking urgent measures
to rectify this situation, but the expenses required for these