Regarding the Determination of the Exercise Price of Stock Acquisition Rights as Stock Options to Company Directors

Komatsu Ltd. (hereinafter "Company") hereby makes the following announcement: the exercise price of the stock acquisition rights to be issued as stock options (hereinafter "Stock Acquisition Rights") to its directors and other related items were decided on the date hereof pursuant to the resolution passed at the meeting of the Board of Directors held on July 15, 2008.

1. Total number of the Stock Acquisition Rights: 192 rights

2. Type and number of shares to be issued upon the exercise of Stock Acquisition Rights:
The shares to be issued for the Stock Acquisition Rights shall be ordinary shares, and the number of shares subject to one Stock Acquisition Right ("The Number of Shares Granted") shall be 1,000 shares

3. Amount of assets to be paid upon the exercise of the Stock Acquisition Rights:
Amount of assets to be paid upon the exercise of each Stock Acquisition Right:
2,499,000 yen
Paid-in amount of each share to be issued upon the exercise of the Stock Acquisition Rights (the "Exercise Price"): 2,499 yen

4. Total amount of issue value of the shares to be issued by the exercise of the Stock Acquisition Rights: 479,808,000 yen

5. Subscription amount to be paid for each Stock Acquisition Right ("The subscription amount"):
813,000 yen (The subscription amount of each share: 813 yen)
However, no payment of money should be required.

(1) Date of the resolution of shareholders at the 138th Ordinary General Meeting of Shareholders approving the issuance of the Stock Acquisition Rights:
June 22, 2007

(2) Date of the resolution of the Board of Directors resolving the details of the terms and conditions of the issuance of the Stock Acquisition Rights:
July 15, 2008

(3) Allotment date of the Stock Acquisition Rights (Issue Date): September 1, 2008

(4) Exercise period for the Stock Acquisition Rights:
From September 1, 2009 to August 31, 2016

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