Reporting Growth in Both Sales and Profits for the First Quarter ended June 30, 2003

Komatsu Ltd. today announced business results for the first quarter of fiscal 2004 as follows. Komatsu's consolidated financial statements conform with accounting principles generally accepted in the United States of America. Please also be advised that financial figures for the first quarter of the current fiscal year and those of the corresponding period last year are not audited by independent public accountants contacted by the Company.

1. Matters related to the production of the outline of business
1) Accounting principles adopted for the preparation of financial statements and others:
Generally accepted accounting principles (GAAP) in the United States of America.
2) Difference in the ways of recognizing accounting procedures between last consolidated fiscal year and this quarter:
Simplified procedures adopted in certain items for this quarter.
3) Changes in group of entities
Consolidated subsidiaries : Addition:3companies, Removal:1 company
Affiliated Companies accounted for by the equity method Removal : 3 companies
4) Auditing by certified public accountants or audit firms: Unaudited

2.Results of FY2004 first quarter (April 1, 2003 through June 30, 2003)
(1) Consolidated financial results (Amounts are rounded to the nearest million yen)

Notes:
1)The numbers of average common shares outstanding were as follows:
The first quarter ended June 30, 2003: 992,511,912
The first quarter ended June 30, 2002: 954,387,881
The fiscal year ended March 31, 2003: 973,306,865
2) Percentages shown in net sales, operating profit, income before income taxes�@and net income represent the rates of change compared with the corresponding first quarter a year ago.
3) Operating profit 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 under U.S. GAAP.

(2) Consolidated financial position

Notes:The numbers of common shares outstanding at the end of the three months ended June 30, 2003 and 2002, and the fiscal year ended March 31, 2003 were as follows:
June 30, 2003: 992,493,033
June 30, 2002: 954,374,221
March 31, 2003: 992,528,649

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