Yokohama, Japan, September 20, 2002 (JCN Newswire) - INNOTECH Corporation (JASDAQ: 9880), one of Japan's leading semiconductor trading companies, announced that its financial results for the year ending March 31, 2003, will be lower than the Company's previously stated estimates made on May 17, 2002 in its financial results for the year ended March 31, 2002. Details of the changes follow.

Revisions to Consolidated Forecasts

(1) Current Interim Period (April 1, 2002 - September 30, 2002)

Reason for the Revisions
Though the semiconductor design business, which centers upon the sale of semiconductor design tools, made steady progress, sales failed to meet up to expectations in the electronic systems and manufacturing equipment businesses. Moreover, the appreciation of the yen resulted in unfavorable foreign exchange adjustments. Consequently, the expected ordinary profit of 60 million yen has been revised to an ordinary loss of 400 million yen, a negative revision of 460 million. Net loss for the period is forecast to come to 410 million yen.

(2) Current Fiscal Year (April 1, 2002 - March 31, 2003)

Reason for the Revisions
In spite of dedicated marketing efforts in the electronic systems and manufacturing equipment businesses, the net sales forecast for the full fiscal year has been revised downwards 2 billion yen to 58 billion yen. Though INNOTECH will remain vigilant throughout the remainder of the year with regard to cost-reduction measures, these efforts look unlikely to cover the poor results of the current interim period. As such, management has taken the decision to also revise the ordinary profit forecast for the year down 500 million yen to 270 million yen. INNOTECH predicts as a result of the foregoing factors that net income for the year will fall short of the original forecast by 300 million yen, yielding a net loss of 150 million yen.

(3)REFERENCE: Previous Year Results(April 1,2001-March 31,2002)

2.Revisions to Non-Consolidated Forecasts

(1)Current Interim Period(April 1,2002-September 30,2002)

Reason for the Revisions
Net sales are predicted to improve upon the earlier forecast of 16.5 billion yen, coming to 17 billion yen as steady progress in the semiconductor design business outweighs the weak demand afflicting the manufacturing equipment business. However, due to the appreciation of the yen outlined above, ordinary profit forecasts have been revised down 30 million yen to 250 million yen. Net income forecasts have been revised down the same amount to 130 million yen.

(2) Current Fiscal Year (April 1, 2002 - March 31, 2002)

Reason for the Revisions
The net sales forecast has been revised down 1.5 billion yen to 33.5 billion yen due to the weakness of demand in the electronic systems and manufacturing equipment businesses. Despite INNOTECH's extensive cost-reduction measures, ordinary profit forecasts have been revised down 600 million yen to 400 million yen due to the abovementioned net sales forecast revision. Net income forecasts have also been revised downwards 350 million yen to 200 million yen.

(3)REFERENCE: Previous Year Results(April 1,2001-March 31,2002)

About INNOTECH
Founded in 1987, INNOTECH is Japan's premier importer of high-end semiconductor devices and equipment and a skilled support partner to many of Japan's top electronics makers. The Company maintains direct relationships with every major semiconductor manufacturer in Japan. Today's INNOTECH is a high-paced company that prides itself on making swift but informed decisions to keep up with the pace of an ever-changing electronics market. In recent years INNOTECH has begun to leverage its built-up corporate knowledge and technological expertise to expand in development, and licensing of our own patented technology in Japan.