Komatsu Signs a Letter of Intent Regarding Establishment of a Joint Venture Company for Its Distribution Business in Thailand

Komatsu Ltd. (President & CEO: Kunio Noji) ("Komatsu") and Bangkok Motor Works Co., Ltd. (President: Phornthep Phornprapha) ("BMW"), Komatsu's distributor of construction and mining equipment in Thailand, have signed a letter of intent ("LOI") regarding the transfer of the distribution business of Komatsu's construction and mining equipment in Thailand from BMW to a joint venture company. Business is planned to commence on April 1, 2010.

According to the LOI, BMW will incorporate a new company and transfer to the new company the distribution business of Komatsu's construction and mining equipment in Thailand, with its assets, liabilities and employees. Subject to the execution of the definitive agreement and fulfillment of other conditions, Komatsu will acquire 40% of the shares of the new company through its wholly owned subsidiary, Komatsu Asia & Pacific Pte Ltd. BMW and its president Dr. Phornprapha will continue to hold 60% of the shares of the company.

BMW has long been engaged in the sales of Komatsu's construction and mining equipment in Thailand. Through the new joint venture company, Komatsu and BMW will improve sales and profits of the construction and mining equipment business by reinforcing the marketing and product support capabilities of the new joint venture company under the closer alliance arrangement between the distributor and the manufacturer.

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