April 28, 2010 Kawasaki Heavy Industries, Ltd. Hitachi Construction Machinery Co., Ltd. KCM Corporation

Regarding Hitachi Construction Machinery’s Equity Stake in KCM Corporation

Kawasaki Heavy Industries, Ltd. (KHI), KHI’s wholly owned subsidiary KCM Corporation (KCM) and Hitachi Construction Machinery Co., Ltd. (HCM) have reached an agreement under which HCM will acquire an equity stake in KCM through a third-party capital increase by around June 2010.

1. Purpose of Equity Stake HCM’s investment in KCM is aimed at building a strong cooperative relationship between HCM and KCM in accordance with an agreement concluded in October 2008 by KHI and HCM to form a business alliance with respect to their wheel loader businesses. As a result of the recent investment, KHI will hold a 66% share in KCM and HCM a 34% share.

2. Current State of Business Alliance and Future Initiatives

(1) Current State of Business Alliance Following the aforementioned agreement to form a business alliance in the wheel loader business, KCM and HCM have been building a structure for mutual cooperation in development, procurement, production and sales. This includes the joint development of new model wheel loaders that comply with (Tier 4) emissions regulations (scheduled to take effect in 2011) and mutually supplying existing models on an OEM basis.

(2) Future Initiatives As a result of HCM’s recent investment, the companies will strive to forge even closer ties in the areas of development, procurement, production and sales. Particularly in joint development and shared production, which will serve as the core of business operations, besides accelerating the development of products that adhere to Tier 4 emissions regulations, the companies will strive to develop new models for emerging markets, work to further develop products that comply with successive future phases of

1 emissions regulations, strengthen competitiveness and expand sales. Additionally, KCM and HCM will utilize their respective technologies in promoting the development of hybrid machinery. Moreover, the three companies will also further strengthen their relationships with initiatives that include raising procurement efficiency and supplementing product lineups by mutually supplying existing models on an OEM basis to invigorate sales. In this manner, the companies will fully utilize the benefits of the business alliance and stabilize and strengthen their business foundations.

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