KOMATSU : Komatsu to Sell Fixed Asset

At the Board of Directors meeting held on November 17, 2003, the Board made a resolution to sell a fixed asset as follows.

1. Reason for the Sale

As part of its production restructuring move undertaken in 1995, Komatsu Ltd. transferred the production lines to other plants. Komatsu has utilized the concerned former plant site as the base for its subsidiaries. To promote its assets, Komatsu has decided to sell it.

2. Descriptions of the Concerned Asset

1) Description of the Asset and Address:	Land (73,128 square meters), 20-1, 3-chome Nakase, Kawasaki-ku, Kawasaki-shi, Kanagawa Prefecture, Japan
2) Book Value:	¥ 1,800 million
3) Sales Price:	¥ 11,280 million
4) Current Condition:	Former plant site

3.Outline of the Purchaser

1) Name:	Shimachu Co., Ltd.
2) Address of Head Office:	1555, 5-chome Mihashi, Nishi-ku, Saitama-shi, Saitaima Prefecture, Japan
3) President:	Takao Kojima
4) Capitalized:	¥ 16,533 million (As of August 31, 2003)
5) Major Shareholder:	The Master Trust Bank of Japan, Ltd. (Trust Account) (9.3%) (As of August 31, 2003)
6) Main Lines of Business:	A large-scale chain store specializing in furniture and other interior items
7) Relationship with Komatsu:	None

4.Schedule for the Sale

November 17, 2003:	Resolved by the Board of Directors
December 2, 2003:	Contract to be concluded (planned)
July 31, 2004:	The property to be delivered (planned)

5. Outlook

In line with the sale of the concerned asset, Komatsu plans to include ¥ 7.7 billion, the anticipated proceed after the sale and other expenses, in extraordinary profits for the fiscal year ending March 31, 2005.

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