Payment of cash dividends for the fiscal year ended March 31, 2008

In the Board meeting held on April 30, 2008, the Board of Directors of Komatsu Ltd. (hereinafter the "Company", President & CEO: Kunio Noji) made a resolution concerning the following cash dividends from retained earnings as of March 31, 2008, the date of record.

2.Reason for the revision
The Company 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, 2008, the Komatsu Group recorded good business results, centering on the construction and mining equipment business. Accordingly, the Company plans to increase the year-end dividends to ¥22, up ¥2 from the previous forecast. This plan requires approval of the 139th general shareholders' meeting scheduled for June 24, 2008.

Together with interim dividends of ¥20 per share which were already paid, annual dividends will total ¥42 per share, an increase of ¥11 from the previous fiscal year. Payout ratio based on net income will amount to 20.0%.

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