KOMATSU : Dissolution and Liquidation of a Subsidiary

Komatsu Ltd. will hereby notify that it has decided to dissolve Komatsu Metal Ltd., its consolidated subsidiary.
Note

1. Outline of Komatsu Metal Ltd.

Date of Founding	July 1, 1988
Location	Komatsu-shi, Ishikawa, Japan
President	Kanetake Nakatani
Capitalization	\300 million(As of March 31, 2003)
Main Business	Manufacture and sales of cast products
No. of Employees	79 (As of June 30, 2003)
Ownership	Komatsu 100%

Recent Performances and Finances (in millions of yen)

2. Background of Dissolution

As part of the group-wide restructuring of casting operations, Komatsu Ltd. has decided to transfer the business of Komatsu Metal to Komatsu Castex Ltd., its wholly-owned subsidiary, and dissolve the company.

3. Schedule

Liquidation will be completed in March 2004.

4. Effect on Komatsu's Consolidated Results

As the Company already reserved the allowance for the loss of the liquidation by the end of March 2003, no impact on its fiscal 2004 business results is expected.

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