KOMATSU : Komatsu, Adaro and United Tractors Execute a Basic Agreement Regarding Indonesian Bio Diesel Fuel Project

Komatsu Ltd. (President & CEO: Kunio Noji) ("Komatsu"), PT Adaro Energy Tbk (President Director: Garibaldi Thohir) ("Adaro") and PT United Tractors Tbk (President Director: Djoko Pranoto) ("UT") have executed a basic agreement to jointly advance the Bio Diesel Fuel Pilot Project in Indonesia (the "Project").
By March 31, 2010, Komatsu, Adaro and UT will start the Project to produce Bio Diesel Fuel (*1) ("BDF") from Jatropha (*2) and other feedstock plants and operate Komatsu mining dump trucks (payload: 90-ton class, "Komatsu Dump Trucks") fueled by the BDF at the Adaro coal mine in Kalimantan, Indonesia.
The project aims to ultimately achieve a sustainable environmentally friendly mining operation in the mining concession area of PT Adaro Indonesia, Adaro's wholly owned subsidiary.

Komatsu will establish a BDF plant (production capacity: 1 to 2 tons/day) and a laboratory to ensure quality of the produced BDF on the Adaro coal mine. As a manufacturer, Komatsu will also render the standard warranty to Komatsu Dump Trucks fueled by the BDF produced from the Project.
Adaro will plant Jatropha and other feedstock plants on its reclamation areas and produce BDF from their seeds or fruits to be used by the Komatsu Dump Trucks operating at the Adaro coal mine.
UT, as the Komatsu distributor in Indonesia, will provide product support for the Komatsu Dump Trucks fueled by the BDF.

The target of the Project is to operate 100 units of Komatsu Dump Trucks in and after 2012. When 20% of the currently used mineral diesel fuel will be replaced with BDF to operate dump trucks on a scale of 100 units, approximately 8,000 tons of BDF will be used annually and contribute to the reduction of approximately 20,000 tons of CO2 emissions which are roughly equivalent to 10% of CO2 emissions generated by Komatsu manufacturing plants in Japan. In the event that emission credit will be issued from the Project, Komatsu will be entitled to such credit under the basic agreement.

Notes

*1 BDF is an alternative fuel to mineral diesel oil, produced from vegetable oil or waste food oil. Popular feedstock plants are soybeans, rapeseed and palm. It is regarded that BDF will not increase the amount of CO2 in the air because the feedstock plants absorb CO2 from the air while they are growing.

*2 Jatropha is considered as one of ideal feedstock plants that produces oil from its inedible seeds and grows even on dry and less fertile soil.

[Komatsu Ltd.]

Corporate name	Komatsu Ltd.
Date of establishment	May 13, 1921
Head office	Tokyo, Japan
President & CEO	Mr. Kunio Noji
Common stock	¥ 67,870 million (consolidated, as of 30 September 2009)
Net sales	FY08:¥ 2,021,743 million
Line of business	Manufacture and sale of construction and mining equipment, utilities and industrial machinery
Number of employees	41,291 (consolidated, as of 30 September 2009)

[PT Adaro Energy Tbk]

Corporate name	PT Adaro Energy Tbk
Date of establishment	July 28, 2004
Head office	Jakarta, Indonesia
President Director	Mr. Garibaldi Thohir
Share capital	Rp 3,198.6 billion (as of 30 September 2009)
Net sales	FY08: Rp 18.1 trillion
Line of business	Integrated Coal Mining through Subsidiaries
Number of employees	5,425 (permanent including subsidiaries) (as of 30 September 2009)

[PT United Tractors Tbk]

Corporate name	PT United Tractors Tbk
Date of establishment	October 13, 1972
Head office	Jakarta, Indonesia
President Director	Mr. Djoko Pranoto
Share capital	Rp 831.7 billion (as of 30 September 2009)
Net sales	FY08: Rp 27.9 trillion
Line of business	Heavy equipment distribution, mining contracting & mining
Number of employees	14,000 (consolidated, as of 30 September 2009)

[Reference material] Flowimage of the Project

Members of the Project and Jatropha plantation on Adaro coal mine

Information in the news releases is current on the date of the announcement and is subject to change without notice.