Consolidated Business Results for Six Months of the Fiscal Year Ending March 31, 2010 (U.S. GAAP)

Tokyo, Japan, October 29, 2009 -- Komatsu Ltd. today announced its business results for the first six-month period of the fiscal year ending March 31, 2010. Highlights are described below.

While both sales and profits declined, we secured both operating income and net income attributable to Komatsu Ltd. in the black through fixed cost reduction and other efforts.

Construction, Mining & Utility Equipment:
[Sales] Demand in China turned positive year-on-year growth from June 2009, clearly showing signs of recovery. Demand in Indonesia also showed signs of slight recovery. Demand in Japan, North America and Europe remained sluggish. As a result, sales declined by 45.8% from the corresponding period a year ago.
[Segment profit] Segment profit dropped by 86.0%, as particularly affected by the Japanese yen�fs appreciation in addition to large-scale adjustment of production we made to attain an appropriate level of inventories. However, we sustained segment profit in the black due to fixed cost reduction and other efforts.
Industrial Machinery & Others:
New orders were slack, as automobile and other manufacturing industries continued to restrain their capital investment. Sales declined by 51.4% from the corresponding period a year ago, and segment profit by 73.7%. However, we sustained segment profit in the black due to fixed cost reduction and other efforts as well as a reversal of allowance for doubtful accounts.

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