Revision of Projections for the Fiscal Year ending March 31, 2008

Komatsu Ltd. has revised the projections for consolidated and non-consolidated results for the fiscal year ending March 31, 2008, which the Company announced on April 26, 2007.

With respect to the construction and mining equipment business, we anticipate that global demand will grow more than our earlier projection. More specifically, while demand in the Americas will decline more than our projection, as mainly affected by slowing U.S. housing starts, demand will increase more in Europe & CIS, China, Asia & Oceania and some other areas of the world.
In addition, by considering foreign exchange gains under Japanese yen's depreciation which we anticipate during our current fiscal year, we are revising our projection of full-year business results as follows: ¥80 billion more on consolidated net sales, ¥24 billion more on operating income, ¥25 billion more on Income from continuing operations before income taxes, minority interests and equity in earnings of affiliated companies, and ¥15 billion more on net income.
The table below shows the changes of our assumption on foreign exchange rates.

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Cautionary Statement
The announcement set forth herein contains forward-looking statements which reflect management's current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as "will," "believes," "should," "projects" and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.
Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company's principal products, owing to changes in the economic conditions in the Company's principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving the Company's objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the Company's research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.