Revisions of Projections for Fiscal 2004

Komatsu Ltd. has revised the projections for the fiscal year from April 1, 2003 to March 31, 2004, which the Company announced on November 7, 2003 when it disclosed the interim business results for the fiscal year.

1. Reasons for the Revisions

In its mainstay business of construction and mining equipment, Komatsu made a big gain in results, as market conditions improved more than anticipated in North America and some other regions of the world. In the electronics business, however, Advanced Silicon Materials LLC re-appraised its assets and recorded an impairment loss of 17.5 billion yen, which has resulted in a decline in income before income taxes from the projected figure. Net income for the year surpassed the projection, reflecting the tax effects resulting from the completion of the sale of land and buildings of Komatsu Silicon America, Inc. which had previously stopped production activities.


2. Revisions for Fiscal 2004, ended March 31, 2004