Komatsu Executes Agreement with Marubeni and Fabrica ToyamaConcerning the Acquisition of Shares of NIPPEI TOYAMA

Komatsu Ltd. (President: Masahiro Sakane) ("Komatsu") executed a Share Transfer Agreement today to acquire 8.38% and 0.56% of the shares of NIPPEI TOYAMA CORPORATION (President: Hiroyuki Horii) ("NIPPEI TOYAMA") from Marubeni Corporation (President: Nobuo Katsumata) ("Marubeni") and from Fabrica Toyama Corporation (President: Yoshitsugu Yoshioka) ("Fabrica Toyama"), respectively. Upon the completion of procedures, such as notifications, approvals, etc. under the competition laws of relevant jurisdictions, the share acquisition is scheduled to be completed by the end of December of this year.
On October 31, 2006, Komatsu executed a Share Transfer Agreement with TOYOBO CO., LTD. ("TOYOBO") to purchase 20.40% of the shares of NIPPEI TOYAMA and to become the largest shareholder of NIPPEI TOYAMA. The purchase of the shares from TOYOBO is scheduled to be conducted by the end of December of this year and, upon the completion of this purchase of a total of 8.94% of the shares from Marubeni and Fabrica Toyama, the shareholding ratio of Komatsu will be 29.33%.
After this purchase of shares, Komatsu will focus on strengthening its alliance with NIPPEI TOYAMA based on mutual trust.

Corporate name:NIPPEI TOYAMA CORPORATION
Date of establishment:July 26, 1945
Location:6-26-2 Minami-Oi, Shinagawa-ku, Tokyo
Representative Director:Hiroyuki Horii
Capital:JPY6 billion
Listing:Second section of the Tokyo Stock Exchange
Net sales:JPY73.6 billion (Fiscal year ended March 31, 2006)
Business activities:Manufacture and sales of machine tools, industrial machines, real estate sales, etc.
Manufacturing bases:Toyama and Kanagawa, Japan
Number of employees:1,526 (Consolidated, as of March 31, 2006)

Corporate name:Marubeni Corporation
Date of establishment:December 1, 1949
Location:1-4-2 Otemachi, Chiyoda-ku, Tokyo
Representative Director:Nobuo Katsumata
Capital:JPY262.7 billion
Listing:First sections of the Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya Stock Exchange
Net sales:JPY8,686.5 billion (Fiscal year ended March 31, 2006)
Number of employees:27,377 (Consolidated, as of March 31, 2006)

Corporate name:Fabrica Toyama Corporation
Date of establishment:May 23, 1951
Location:1-7-13 Azuchi-machi, Chuo-ku, Osaka-shi, Osaka
Representative Director:Yoshitsugu Yoshioka
Capital:JPY0.6 billion
Listing:Second section of the Osaka Securities Exchange
Net sales:JPY5.4 billion (Fiscal year ended March 31, 2006)
Business activities:Manufacture and sales of industrial machines and textiles
Manufacturing bases:Toyama, Japan
Number of employees:207 (Consolidated, as of March 31, 2006)

Number of shares owned prior to acquisition:0 shares (ownership ratio: 0%)*
Number of shares acquired:4,520,000 shares (ownership ratio: 8.94%)
Acquisition amount:JPY4,023 million

*Note: As mentioned above, Komatsu executed a Share Transfer Agreement to purchase 10,315,000 shares (ownership ratio: 20.40%) from TOYOBO.

Komatsu believes this acquisition of shares will have only a minimal impact on its consolidated business performance for the current fiscal year.

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