JAPANESE

Results For The Fiscal Year Ended March 31, 2003

Consolidated Financial Highlights (For the fiscal years ended March 31, 2003 and 2002)

Millions of yen & US dollars
except per share amounts

2003
2002
Changes (2003-2002)
Increase (Decrease)

Yen

Dollar

Yen

Yen

(%)

Net sales

1,089,804

9,236

1,035,891

53,913

5.2

Operating profit (loss)

33,178

281

(13,221)

46,399

---

Income (loss) before income taxes, minority interests and equity in earnings (losses)

12,905

109

(106,724)

119,629

---

Net income (loss)

3,009

26

(80,621)

83,630

---

Net income (loss) per share

Basic

¥3.09

2.6¢

¥(84.46)

87.55

---

Diluted

¥3.09

2.6¢

¥(84.46)

87.55

---

Return on Equity

0.8%

(18.5%)

19.3%

---

Return on Total Assets

1.0%

(7.8%)

8.8%

---

Return on Sales

1.2%

(10.3%)

11.5%

---

Notes:
1) Consolidated financial information is prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America.
2) The translation of Japanese yen amounts into US dollar amounts is included solely for convenience and has been made for fiscal 2003 at the rate of ¥118 to $1, the approximate rate of exchange at March 31, 2003
.3) Equity in earnings (losses) of affiliated companies:
March 31, 2003: (786) millions of yen
March 31, 2002: 398 millions of yen
4) The numbers of average common shares outstanding were as follows:
March 31, 2003: 973,306,865
March 31, 2002: 954,530,062
5) Adopted new accounting standards.
6) Net income (loss) per share above is based on the provisions of Statements of Financial Accounting Standards No.128,"Earnings per share"
7) Operating profit (loss) stated above is the sum of segment operating profit. The amount is consistent with custom of the Japanese accounting practice by subtracting cost of sales and selling general and administrative expenses from net sales. This amount does not represent consolidated operating profit (loss) under U.S.GAAP.


Projections for FY2004 (From April 1, 2003 to March 31, 2004)

Millions of yen

Net sales

Income before income taxes

Net income

The first half of FY2004

540,000

11,000

3,000

The entire FY2004

1,115,000

28,000

11,000

Notes:
1) Forecast of net income per share (basic): 11.08 yen
2) Refer to"Management Performance and Financial Conditions"
for preconditions of the projections for FY 2004 above and other related issues.


Information in the news releases is current on the date of the announcement and is subject to change without notice.

2003/05/09

KOMATSU Corporate Communications
TEL: 03(5561)2616