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1
Translation

Notice: This English version is a translation of the original Japanese document and is only for reference purposes. In the case
where any differences occur between the English version and the original Japanese version, the Japanese version will prevail.

Member of the Financial Accounting Standards Foundation

January 27, 2010

CONSOLIDATED FINANCIAL RESULTS
for the Third Quarter of the Year Ending March 31, 2010 (Unaudited)
Company name:
Nippon Electric Glass Co., Ltd.
Listing:
First Section of the Tokyo Stock Exchange

First Section of the Osaka Securities Exchange
Securities identification code: 5214 URL: http://www.neg.co.jp/ Representative:
Masayuki Arioka, President and Representative Director
Inquiries:
Masami Atsuji, Director and Executive Vice President

TEL: +81-77-537-1700 (from overseas)

Scheduled date to file quarterly report:

February 12, 2010
Scheduled date to commence dividend payments:
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(in millions of yen with fractional amounts discarded, unless otherwise noted)
1.
Consolidated performance for the third quarter of the year ending March 31, 2010 (From April 1, 2009 to December 31, 2009)
(1) Consolidated operating results (cumulative)
(Percentages indicate year-on-year changes.)

Net sales
Operating income
Ordinary income
Net income
For the nine months ended

%
%
%

%
December 31, 2009
235,050
(14.9)
62,587
(17.6)
57,177
(19.0) 35,259 (11.7)
December 31, 2008
276,045
-
75,987
-
70,617
-
39,913
-
Net income per share
Diluted net
income per share
For the nine months ended
yen
yen
December 31, 2009
70.88
-
December 31, 2008
80.24
-
(2) Consolidated financial position

Total assets
Net assets
Equity ratio
Net assets per share
As of
% yen
December 31, 2009
633,027
384,175
60.1
764.92
March 31, 2009
588,413
352,744
59.3
701.62
Reference: Equity
As of December 31, 2009: 380,525 million yen As of March 31, 2009:
349,043 million yen

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2. Cash
dividends

Cash dividends per share

First quarter-end Second quarter-end Third quarter-end
Year-end
Total
yen
yen
yen
yen
yen
For the year ended
March 31, 2009
- 5.00
-
5.00
10.00
For the year ending
March 31, 2010
- 5.00
-
–––

–––
For the year ending
March 31, 2010 (Forecasts)
–––

–––
–––
5.00 - 6.00
10.00 - 11.00
Note: Revision of the forecasts in the third quarter of the year ending March 31, 2010: None
3.
Consolidated earnings forecasts for the fiscal year ending March 31, 2010 (From April 1, 2009 to March 31, 2010)
(Percentages indicate year-on-year changes.)

Net sales
Operating income
Ordinary income
Net income
Net income
per share

%
%
%
% yen
For the year ending
March 31, 2010
325,000 -
335,000
(3.2) -
(0.2)
92,500 -
97,500
21.0 -
27.6
85,500 -
90,500
32.9 -
40.7
52,500 -
55,500
140.5 -
154.2
105.53-
111.56
Note: Revision of the forecasts in the third quarter of the year ending March 31, 2010: Yes
As detailed on page 4, in the section of “3. Qualitative information regarding consolidated earnings forecasts of [Qualitative Information and Financial Statements],” earnings forecasts are disclosed in the form of a range.

4. Others (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting
in the change in scope of consolidation): None
(2) Application of simplified accounting and special accounting for preparing the quarterly
consolidated financial statements: Yes
(3) Changes in accounting policies, procedures, and methods of presentation for preparing the
quarterly consolidated financial statements (changes to be described in the section of “Changes in basis of preparation for quarterly consolidated financial statements”) A. Changes due to revisions to accounting standards: None B. Changes due to other reasons: None
(4) Number of issued shares (common stock)
A. Total number of issued shares at the end of the period (including treasury stock)
As of December 31, 2009:
497,616,234 shares
As of March 31, 2009:
497,616,234 shares
B. Number of treasury shares at the end of the period
As of December 31, 2009:
145,521 shares
As of March 31, 2009:
131,778 shares
C. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the nine months ended December 31, 2009: 497,477,403 shares For the nine months ended December 31, 2008: 497,446,843 shares
* Proper use of earnings forecasts, and other special directions The forward-looking statements, including earnings forecasts, contained in these materials are based on certain assumptions deemed to be reasonable by the Company and include risks and contingencies. Actual business results may differ substantially due to a number of factors. For more details, please refer to the section of “3. Qualitative information regarding consolidated earnings forecasts of [Qualitative Information and Financial Statements]” on page 4.

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3
[Qualitative Information and Financial Statements]
1.
Qualitative information regarding consolidated operating results

(Nine months ended December 31, 2009)
(1) Overview
Concerning the global economy, in Asia, the Chinese economy followed a course of recovery centered on internal demand. As for the U.S. and Europe, although the economic situation remained serious, the downward slide appears to have stopped due to the effect of economic stimulus measures and the like. In the Japanese economy, there was an increase in exports mainly in Asia and signs of a recovery in personal consumption boosted by the effect of economic stimulus measures and the like. However, corporate earnings and the employment situation continued to be severe, and capital investment and housing investment also were sluggish, which together with other factors caused economic circumstances overall to remain severe. Against the backdrop of such circumstances, the Company and its consolidated subsidiaries (“the NEG Group”) enjoyed a recovery in the sales of glass for flat panel displays (FPDs), as a result of a recovery in demand in our customer industry. In the other business sector, the progress of recovery is gradual overall and there were earnings improvements in several business areas.

(2) Operating
results
(Billions of yen)
Nine months ended
December 31, 2008
Nine months ended
December 31, 2009
Change (%)
Net sales
276.0
235.0
(14.9)
Operating income
75.9
62.5
(17.6)
Ordinary income
70.6
57.1
(19.0)
Net income
39.9
35.2
(11.7)
Note: Amounts less than 100 million yen are omitted.

(Net sales) Although sales in the first, second and third quarters have continued to recover from the bottom level experienced in the fourth quarter of the previous fiscal year (January 1 to March 31, 2009), net sales fell year on year. Glass for display devices: Sales of glass for FPDs rebounded, but glass for cathode ray tubes further contracted in market size and its sales decreased. Glass for electronic devices: Sales maintained a gradual path of recovery, particularly glass related to optical communication and glass for image sensors. Glass fiber: Sales of glass fiber for auto parts, a mainstay product, recovered. Building materials, heat-resistant glass, glass tubing and other products: Under the influence of the stagnation of demand for housing and construction both in Japan and overseas, sales remained weak. (Profits) Despite being lower than the same period of the previous fiscal year, profits improved in each quarter as a result of the sales recovery of glass for FPDs, a lift in operations and productivity improvements. A loss on retirement of noncurrent assets arising from the reorganization of assets and loss on liquidation of subsidiaries and affiliates related to the dissolution of a subsidiary in China occurred and these were recorded as extraordinary loss. On the other hand, a tax effect was also generated from this subsidiary and this helped raise net income.

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4
2.
Qualitative information regarding consolidated financial position

(Billions of yen)
As of March 31, 2009
As of December 31,
2009
Change
Total assets
588.4
633.0
44.6
Liabilities 235.6
248.8
13.2
Net assets
352.7
384.1
31.4
Note: Amounts less than 100 million yen are omitted.
(Total assets) In current assets, there was an increase in cash and cash equivalents. Also, a recovery in sales brought an increase of notes and accounts receivable-trade and a decrease of merchandise and finished goods. In noncurrent assets, property, plant and equipment increased mostly with the expansion of facilities related to glass for FPDs.

(Liabilities) In current liabilities, notes and accounts payable-trade increased due to the lift in operations, and income taxes payable increased due to a recovery in profit. Also, current portion of bonds decreased due to bonds reaching maturity. In noncurrent liabilities, new bonds were issued. (Net assets) In addition to an increase in retained earnings, valuation difference on available-for-sale securities increased due to a recovery in the stock market.
3.
Qualitative information regarding consolidated earnings forecasts
(Billions of yen)
Fiscal year ended
March 31, 2009
Fiscal year ending
March 31, 2010
Change (%)
Net sales
335.6
325.0 — 335.0
(3.2) – (0.2)
Operating income
76.4
92.5 – 97.5
21.0 – 27.6
Ordinary income
64.3
85.5 – 90.5
32.9 – 40.7
Net income
21.8
52.5 – 55.5
140.5 – 154.2
Note: Amounts less than 100 million yen are omitted.

Looking at the fourth quarter, demand for glass for FPDs is expected to be generally steady. While ensuring production output corresponds to demand trends, the Company shall also aim to raise profitability through productivity improvement and cost reduction efforts. In the other business sector, despite having recovery expectations for some products, the Company expects that it will take time to achieve a full-scale recovery overall, and it shall continue to focus on improving profitability while responding to the respective market trends. Based on the above circumstances, the Company expects fourth quarter earnings to be slightly higher than the third quarter. Looking at the earnings forecast for the fiscal year ending March 31, 2010 by considering the earnings of the nine months (April 1 to December 31, 2009) with the above projections, as shown in the table above, the Company expects net sales to fall year on year, but all types of income to rise year on year. The change occurring in the business environments surrounding the Company is immense and the future trends of product demand and prices, as well as other factors, will significantly impact earnings. It is therefore difficult to provide accurate earnings forecasts of the future. Consequently, earnings forecasts for the fiscal year ending March 31, 2010 are disclosed in the form of a range. If the various factors turn out more favorable than the Company expected (plan at the beginning of the fiscal year), earning results are expected to be close to the higher limit of the range; conversely, if the various factors deteriorate, then the earning results are expected to be close to the lower limit of the range.

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5
(Concerning Disclosure of Earnings Forecasts) To deliver earlier and more appropriate earnings information, in addition to disclosing earnings forecasts according to timely disclosure standards as stipulated by the stock exchanges, the Company will notify shareholders and investors of earnings forecasts according to the following schedule.

Content of forecast
Disclosure schedule
Earnings forecast
for current reporting period
(cumulative basis)
(disclosure of numerical figures)
Outlook for next reporting period
(three-month basis)
(disclosure of range for net sales and
operating income)
Late June
Three months
Second quarter
Late September
Six months
Third quarter
Late December
Nine months
Fourth quarter
Late March
Full year
First quarter
The forward-looking statements, including earnings forecasts, contained in these materials are based on certain assumptions deemed to be reasonable by the Company and include risks and contingencies. Actual business results may differ substantially due to a number of factors. Factors that may impact actual business results include the economic conditions of global markets, various rules and regulations such as those concerning trade, significant fluctuation of supply and demand of products in principal markets as well as the financial situation showing extensive changes in prices on capital markets and extensive changes in exchange rates between the yen and other major currencies such as the U.S. dollar and the Euro, interest rates and rapid technological advancement. Factors not mentioned here also could have a significant impact on business results.