Komatsu to Accept Third Party Allotment of Shares

Komatsu Ltd. (President: Kunio Noji) ("Komatsu") has decided to make an equity investment in Fuji Technica Inc. (President: Fukuo Yamamura) ("Fuji Technica") by acquiring all of the shares (643,473 shares) issued by Fuji Technica in a third party share allotment in order to further strengthen their business alliance. As a result of this investment, Komatsu shall own eight percent (8%) of the total shares issued and outstanding of Fuji Technica.

Komatsu has positioned the industrial machinery business, centering on presses for use in the molding of automobile components, as the core businesses of the Komatsu Group along with the construction and mining equipment business by defining as "industrial-use machinery" in a broader sense of the term.

Fuji Technica is well known in the industry for its advanced technological capability to manufacture press molds which are used in the manufacture of automobiles. Fuji Technica and Komatsu have been working together under a business alliance arrangement which serves to enhance the technological expertise of the two companies by combining Fuji Technica's mold manufacturing technology with Komatsu's stamping press technology and increase the business opportunities by sharing market information. Through this equity investment, Komatsu believes its alliance relationship with Fuji Technica, including its Servo press technology, will be further strengthened, and greater synergy will be achieved.

[Outline of Fuji Technica Inc.]
Corporate name : Fuji Technica Inc.
Date of establishment : February 6, 1957
Location : 20 Matoba, Shimizu-cho, Sunto-gun, Shizuoka-ken
Representative Director : Fukuo Yamamura
Capital : 730 million yen
Listing : Jasdaq Securities Exchange, Inc.
Net sales : 20.5 billion yen (fiscal year ended March 2007)
Business activities : Manufacture and sales of automotive stamping dies and welding tools used for producing automobiles
Manufacturing bases : Mishima, Izu-Nagaoka, and Niigata, Japan
Number of employees : 739 (on a consolidated basis as of March 31, 2007)

[Outline of Share Acquisition through Third Party Share Allotment]
Number of shares to be acquired : 643,473 shares of common stock
Purchase price : 558 yen per share
Total purchase price : 359,057,934 yen
Payment date : December 12, 2007

Komatsu believes this acquisition of shares via third party share allotment will only have a minimal impact on its business performance for the current fiscal year.

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