Komatsu Ltd. (President & CEO: Kunio Noji) has completed the construction of a new assembly plant of Komatsu Manufacturing Rus, LLC ("KMR"). On June 2, KMR held a ceremony in Yaroslavl, Russia and embarked on production. This is Komatsu's first assembly plant in Russia for construction and mining equipment.

Equipped with an integrated production line from welding to assembly, the new plant will produce PC200, 220, 300 and 400 hydraulic excavators. KMR will start with the production of PC400 models and plans to expand the hydraulic excavator model range as it monitors the market conditions. Future plans of KMR also include the production of utility equipment including forklift trucks, large construction equipment, mining equipment and pipelayers.

While the Russian market demand for construction equipment is declining at present against the backdrop of a sluggish economy, we are anticipating growth in demand resulting from the development of rich natural resources and its infrastructure in the mid- to long-range outlook.

When the new plant starts local production of the models which we have previously exported from Japan and China, we believe that we will be better positioned to not only reduce both transportation costs and inventories but also further improve our product support capability for local customers, thereby enhancing customers' confidence with Komatsu-brand equipment.
[Outline of Komatsu Manufacturing Rus, LLC (KMR)]