Payment of Cash Dividends for the Fiscal Year Ended March 31, 2009

In the Board meeting held on April 27, 2009, the Board of Directors of Komatsu Ltd. (hereinafter the "Company," President & CEO: Kunio Noji) made a resolution that the Company is going to propose the following cash dividends from retained earnings as of March 31, 2009, the date of record, to the 140th ordinary general meeting of shareholders.

Komatsu is building a sound financial position and flexible and agile corporate strengths to increase its corporate value. Concerning cash dividends to shareholders, the Company maintains the policy of redistributing profits by considering consolidated business results and continuing stable dividends. Specifically, the Company has set the goal of a consolidated payout ratio of 20% or higher, and maintains the policy of not decreasing dividends, as long as a consolidated payout ratio will not surpass 40%.
To further improve its corporate strength for the future, Komatsu has been promoting structural reforms, such as the reorganization of production, sales and service in Japan and overseas, and has recorded its expenses (approximately ¥19.6 billion on income after income taxes basis) with such structural reforms in the consolidated business results for the fiscal year ended March 31, 2009. As a result, net income for the year amounted to ¥78.7 billion.
With respect to annual cash dividends for the fiscal year ended March 31, 2009, while following its basic policy for redistribution of profits, the Company plans to pay ¥40 per share, based on profits which exclude the reform associated expenses above. The consolidated payout ratio translates into 40% based on profits excluding the reform associated expenses.

As interim dividends of ¥22 per share have already been paid, the year-end cash dividends from retained earnings will be ¥18 (compared to ¥22 projected on April 30, 2008). The Company plans to propose these cash dividends from retained earnings to the 140th ordinary general meeting of shareholders scheduled for June 24, 2009.

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