KOMATSU : Komatsu to Sell Fixed Assets of Subsidiary

Komatsu Ltd. has made a decision to sell fixed assets of Komatsu Silicon America, Inc., a wholly owned subsidiary, as follows.

1. Outline of the Subsidiary

1) Name:	Komatsu Silicon America, Inc.
2) Location:	Hillsboro, Oregon, U.S.A.
3) Representative:	John H. Matlock

2. Reason for the Sale

To reduce and make effective utilization of Komatsu Group's assets, Komatsu has decided to sell the land and buildings of Komatsu Silicon America, which has previously discontinued production activities.

3. Descriptions of the Concerned Assets

1) Description of the Assets and Location:	Land: 378,880 square meters or 93.62 acre Buildings: 39,245 square meters or 422,427 square feet (total floor space) Hillsboro, Oregon, U.S.A.
2) Book Value:	US$35 million
3) Sales Price:	US$5 million
4) Current Condition:	Unused except for the office and warehouse spaces

4. Outline of the Purchaser

1) Name:	The Park Company of Oregon, LLC Parent Company: Park Corporation
2) Address of Head Office of Parent Company:	6200 Riverside Drive, Cleveland, Ohio 44135, USA
3) Representative:	Raymond P. Park, Chairman
4) Major Shareholder:	Park family
5) Main Lines of Business:	Manufacturing and financing
6) Relationship with Komatsu:	None

5. Schedule for the Sale

March 15, 2004: The property to be delivered

6. Outlook

Loss from the sale of the concerned fixed assets has already been accounted for in the projected consolidated business results for the year ending March 31, 2004.

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

Komatsu to Sell Fixed Assets of Subsidiary