A Message to Our Shareholders:

In the second half of FY 2008 the global business economy experienced a rapid slowdown due to the financial crisis that was brought on by Lehman shock. Additionally, a dramatic decline in corporate spending on personal computers, and consumer spending on digital consumer electronics and mobile phones caused DRAM demand to suffer a sharp decline. As a result, DRAM makers lowered production, but in the absence of inventory adjustments, selling prices for PC DRAMs stayed below manufacturing costs. The situation as whole continued to have unfavorable consequences for Elpida's business results.

Meanwhile, the prospects for a global business recovery are unclear. However, as DRAM industry makers continue to reduce production and the market continues to see inventory adjustments, we can expect to see over the near-term, improvements in the supply-demand balance and a price recovery. As for Elpida, we are aiming for an early recovery in business results through the use of global top-class processing technology and high productivity at our fabs to further reduce costs.

The DRAM slump that has lasted since 2007 is increasingly likely to lead to restructuring in the industry. Elpida is leveraging its technology partnerships with Taiwan companies and making more strenuous all-around efforts to strengthen our position in the industry. As we deal with the current challenging environment, we greatly appreciate your understanding and continued support.

The information in this message is current as of the date of its release in April 2009.