Komatsu Ltd. (hereinafter "Komatsu" and President & CEO: Kunio Noji) has recently purchased all shares of Red Australia Equipment Pty Limited (hereinafter "RED"), a wholly owned subsidiary of Sumitomo Corporation and a distributor of Komatsu forklift trucks, through Komatsu Australian Holdings Pty Ltd, a wholly owned subsidiary of Komatsu. The Company plans to change the name of this new subsidiary from RED to Komatsu Forklift Australia Pty Ltd (hereinafter KFAP).

In view of the fact that the population is increasing more steadily in Australia than other industrialized countries, Komatsu anticipates that the economy will grow in the mid- to long-range span and thus demand for forklift trucks will also continue to rise. KFAP plans to reinforce its marketing and product support capabilities in order to further expand its forklift truck business in Australia.

About Komatsu

Komatsu, Ltd. (www.komatsu.com) a world leader in construction and mining equipment was founded in 1921 in Japan and is based in Tokyo. Komatsu, Ltd., through its affiliates and subsidiaries, employs over 38,000 people worldwide. Komatsu Forklift Co., Ltd. (KFL) (A division of Komatsu, Ltd.) began manufacturing forklifts in 1945.

In 1976, a California corporation was established to sell and distribute these forklifts in the United States. Manufacturing of Komatsu forklifts, in the United States, began in 1987 with the opening of a plant in La Palma, California.

In 1993, the distribution and manufacturing operations were consolidated into one company called Komatsu Forklift U.S.A., Inc. (KFI).In 1994, ground was broken for our new manufacturing facility and corporate headquarters in Covington, Georgia. The plant and new corporate headquarters officially opened in August 1, 1995 and the first forklift drove off the assembly line on August 25, 1995.

In February 1997, a new building for the Product Support Department opened at the same site in Covington. This completed our relocation from California to Georgia.Komatsu Forklift U.S.A., Inc. (KFI) offers a wide range of electric, gasoline, LPG, and diesel forklifts from 2,000 lbs. to more than 35,000 lbs. These products are distributed through over 145 authorized dealers and distributors in the Western Hemisphere.