JAPANESE

Interim Results Confirm Continuous Solid Performance with Record-High Six-Month Sales and Profits

Komatsu Ltd. (President & CEO: Kunio Noji) announced today its consolidated interim business results for the fiscal year ending March 31, 2008.

1.Results for the First Half of the Fiscal Year Ending March 31, 2008
(Amounts are rounded to the nearest million yen)
For the interim period ended September 30, 2007, the Komatsu Group registered its sixth consecutive interim period of growth in consolidated interim sales and profits, which also represents record-high 6-month figures. These results reflect a continued improvement of the construction and mining equipment business as well as a good performance of the industrial machinery, vehicles and others business.


Consolidated Financial Results


Notes:
1) The translation of Japanese yen amounts into US dollar amounts hereafter is included solely for convenience and has been made for the first half ended September 30, 2007 at the rate of ¥115 to $1, the approximate rate of exchange at September 30, 2007.
2) Equity in earnings of affiliated companies:
First half period ended September 30, 2007 : 3,310 millions of yen
First half period ended September 30, 2006 : 1,307 millions of yen
The entire fiscal year ended March 31, 2007 : 3,098 millions of yen
3) In accordance with Statement of Financial Accounting Standards No.144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the consolidated statements of income for the first half ended September 30, 2006 have been retrospectively reclassified as for the discontinued operations.


2.Dividends



3.Projections for the Fiscal Year Ending March 31, 2008

In the construction and mining equipment business, while there are some serious concerns such as declining demand for residential houses and deteriorating economic climate triggered by the subprime loan problem, we anticipate that global demand will remain buoyant driven by thriving infrastructure investments especially in China and India as well as strong resource development activities in Asia, Australia, Latin America, Africa and some other regions.



Notes:
1) Percentages shown above represent the rates of change compared with the corresponding periods a year ago.
2) Refer to "Management Performance and Financial Conditions" for preconditions of the projections above and other related issues.


*For further information, please see the PDF file atached right above.

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

2007/10/30

KOMATSU Corporate Communications
TEL: 03(5561)2616

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