Revising projected cash dividends for the fiscal year ended March 31, 2007

Komatsu Ltd. (President & CEO: Masahiro Sakane) announced today, the Board of Directors, in its meeting held on April 26, 2007, passed a resolution to revise the projection of cash dividends per share as follows.

Komatsu is building a sound financial position and flexible and agile corporate strength to increase its corporate value. Concerning cash dividends to shareholders, the Company maintains the basic policy of redistributing profits by first striving to continue stable dividends and then considering consolidated business results, while working for the goal of a consolidated payout ratio of 20% or higher.
For the fiscal year ended March 31, 2007, centering on the construction and mining equipment business, the Komatsu Group recorded good business results and larger-than-projected net income from continuing operations. Accordingly, Komatsu plans to increase the year-end dividends to ¥18, up ¥4 from the previous forecast. This increase requires approval of the 138th general shareholders' meeting scheduled for June 22, 2007.
Together with interim dividends of ¥13 per share which were already paid, annual dividends will total ¥31 per share, an increase of ¥13 from the previous fiscal year. Payout ratio based on net income from continuing operations will amount to 20.1%.

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