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FOR IMMEDIATE RELEASE: October 22, 1998


JVC REPORTS NON-CONSOLIDATED RESULTS FOR FY98 FIRST HALF


Victor Company of Japan, Ltd. (JVC) announced today that it registered non-
consolidated sales of \300,068 million for the first half of fiscal 1998 (April 1 -
September 30), a 4% rise from \287,965 million from a year earlier.

Domestic sales, which accounted for 39% of total sales, came to \118,418
million, down 5% from \125,305 million. Export sales of \181,649 million were up
12% from \162,659 million.

The company posted ordinary income of \1,600 million, a 60% drop from \4,022
million, and net income of \1,255 million, a 50% fall from \2,508 million.

Sales in the audiovisual industry were sluggish, and for the year are expected to
fall below last year's level. The Japanese economy, plagued by financial
uncertainty, declining stock prices and rising unemployment, continued to slow
down in the first half. Consumer spending and private-sector capital investment
both declined. Asia's economic crisis began to adversely affect the U.S. and
Europe. Foreign exchange markets were turbulent and stock prices fell
worldwide, slowing growth in the otherwise healthy U.S. economy.

During the first half, JVC inaugurated its RV (Re-Value) 21 medium-term plan for
developing new fields of business and strengthening corporate structure in the
emerging age of multimedia. As a result, sales of S-VHS and MD products, D-ILA
projectors, and highdensity build-up multilayer printed wiring boards all grew.

Despite yen's devaluation, however, profits were adversely affected by falling
prices in the market. Sales of professional products and electronic devices were
lower than a year earlier.

The board of directors announced today an interim dividend of \3.50 per share.

JVC expects to be challenged by the Japanese economy's second consecutive
year of minus growth and economic problems overseas, but the company will
continue to focus on global consolidation, strategically targeted business and
reforms of corporate structure.

JVC forecasts total non-consolidated sales of \610,000 million (FY97: \593,028
million) and ordinary profit of \7,000 million (FY: \8,182 million) for fiscal 1998
ending March 31, 1999. Net profit is expected to be \3,000 million (FY: \3,102
million).


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For further information, please contact:
Masayuki Murakami
Public Relations Department
Tel: 045-450-1489
Fax: 045-450-1498




Attachment


Non-Consolidated Financial Highlights for First Half of Fiscal 1998
(Ended September 30, 1998)