Dissolution and Liquidation of a Subsidiary

Komatsu Ltd. will hereby notify that it has decided to dissolve Komatsu Finance (Netherlands) B.V., its consolidated subsidiary.

Note

1.Outline of Komatsu Finance (Netherlands) B.V.

Date of Founding	May 26, 1987
Location	Teleportboulevard 140, 1043 EJ Amsterdam, The Netherlands
President	Yoshinori Komamura
Capitalization	EUR 138 thousand (As of March 31, 2005)
Main BusinessFinance	within the Komatsu Group and fundraising
OwnershipKomatsu 100%	Komatsu 100%

Recent Performances and Finances

(in thousands of EUR)

2. Background of Dissolution

The aforesaid subsidiary has already ceased its main business and the Company has no plan to use the subsidiary for other purpose.

3. Schedule

Dissolution and liquidation of the aforesaid subsidiary will be resolved at its extra general meeting of shareholders on July 14, 2005.
Liquidation is expected to be completed in September 2005.

4. Effect on Komatsu's Business Results

Minor impact of the liquidation is expected on the Company's business results for the fiscal year ending March 31, 2006.

(end)

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

2005/07/13

No. 0013i1945j
KOMATSU Corporate Communications
TEL: 03(5561)2616