Tokyo, Japan, January 28, 2010 -- Komatsu Ltd. today announced its business results for the first nine-month period of the fiscal year ending March 31, 2010. Highlights are described below.

Komatsu firmly recovered profitability in the third quarter (October - December 2009), improving both sales and profits over the first (April - June 2009) and second quarters (July - September 2009). When compared to the previous nine-month period (April - December 2008), however, consolidated net sales for the nine months (April - December 2009) declined 38.9% to JPY1,003.9 billion (USD10,795 million, at USD1=JPY93), as global demand, excluding that in China, did not come back to the level of the pre-financial meltdown. An additional contributing factor was the Japanese yenfs appreciation against major currencies. With respect to profits for the nine months compared to the nine-month period a year ago, operating income decreased 82.0% to JPY36.0 billion (USD388 million). Income before income taxes and equity in earnings of affiliated companies amounted to JPY34.6 billion (USD373 million), down 80.5%. Net income attributable to Komatsu Ltd. declined 83.8% to JPY18.3 billion (USD197 million).

Note: The translation of Japanese yen amounts into US dollar amounts is included solely for convenience and has been made for the nine months ended December 31, 2009 at the rate of JPY93 to USD1, the approximate rate of exchange at December 31, 2009.