Announcement Concerning the Completion of the Transfer of KEM's Shares

As announced in its press release of October 12, 2006, entitled "Announcement Concerning the Change of Subsidiary Company", Komatsu Ltd. completed the transfer of fifty-one percent of total issued shares of Komatsu Electronic Metals Co., Ltd. (KEM) held by Komatsu to SUMCO Corporation on October 18, 2006. (Ratio of shares held by Komatsu Ltd. after the transfer : 10.93%)
Thus, KEM and its subsidiaries are no longer consolidated subsidiaries of Komatsu Ltd.

Removed from the Komatsu Group
- Komatsu Electronic Metals Co., Ltd.
- Komatsu Silicon Europe N.V.
- Formosa Komatsu Silicon Corporation


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