Announcement Concerning Reorganization of Japanese Sales and Service Structure for Construction Equipment

In September 2008, Komatsu Ltd. (hereinafter "Komatsu") (President & CEO: Kunio Noji) decided on a reorganization designed to further reinforce its sales and service capabilities for construction equipment in Japan in order to ensure sustainable growth and further business expansion. As a main part of this reorganization, Komatsu Tokyo Ltd. (hereinafter "Komatsu Tokyo") and 11 other consolidated sales and service subsidiaries (of all 30 distributors in Japan) and Komatsu All Parts Support Ltd., a wholly owned subsidiary engaging in the sale of wear-out parts for construction equipment, will be merged, effective April 1, 2009.
In conjunction with this reorganization, Komatsu resolved at its Board of Directors' meeting, held on January 29, 2009, that Komatsu Tokyo, a wholly owned subsidiary of Komatsu and Successor Company of the above-mentioned merger (hereinafter "Merger"), will succeed Komatsu's sales and service business for construction equipment (excluding underground construction equipment) in Japan (hereinafter "Split-off Business") in the form of a company split (absorption-type split) (hereinafter "Company Split").
As this Company Split is a simplified absorption-type company split in which the wholly owned subsidiary will become the Successor Company, some disclosure items and details are omitted in this news release.
Komatsu expects that the effects of this Company Split on its consolidated business results will be minimal. In addition, as of the effective date of the Merger (planned for April 1, 2009), Komatsu Tokyo Ltd. will change its name to Komatsu Construction Equipment Sales and Service Japan Ltd. (hereinafter "Komatsu C.E. Sales & Service Japan").

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