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<!-- Begin Block Tagged Note 3 - kmtuf:AcquisitionAndDivestitureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>3. Acquisition and Divestiture</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>(1) Komatsu NTC Ltd.</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On January 16, 2008, the Company decided to purchase additional shares of NIPPEI TOYAMA CORPORATION
(it was renamed Komatsu NTC Ltd., hereinafter “NTC”) through a tender offer at ¥1,250 per share
with the purpose of making NTC a wholly owned subsidiary of the Company. The purchase price was
determined by comprehensively taking into consideration the market price of NTC common stock, NTC’s
financial condition and future earnings prospects. As a result, the Company purchased 32,594,444
shares for ¥40,743 million in cash tendered in the period from January 22, 2008 through March 17,
2008. Prior to the acquisition, the Company held a 29.3% equity interest in NTC and accounted for
the investment by the equity method. As a result of the additional investment, the Company’s
ownership increased to 93.7% and NTC became a consolidated subsidiary of the Company effective
March 25, 2008.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NTC is a manufacturer of transfer machines and various kinds of grinding machines used for
manufacturing automobile engines in the machine tools market as well as laser machines and
wire-saws for semiconductor and solar cell industries in the industrial machinery market. The
Company has concluded that the acquisition of NTC will promote business development on a global
scale, collaboration in R&D, and joint development of new business domains that would lead to the
reinforcement of its industrial machinery business.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Following is a summary of the assets acquired and liabilities assumed adjusted to reflect
purchase price allocation as of the date of acquisition:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="77%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">59,831</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">22,861</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">29,219</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">12,815</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">5,123</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets acquired
</div></td>
<td> </td>
<td> </td>
<td align="right">129,849</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(53,882</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,291</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Noncontrolling interests
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,479</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total liabilities assumed
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(73,652</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net assets acquired
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">56,197</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Intangible assets of ¥29,219 million consist of intangible assets subject to amortization of
¥21,852 million and intangible assets not subject to amortization of ¥7,367 million. The intangible
assets subject to amortization mainly include customer relationships of ¥14,000 million, technology
assets of ¥4,475 million and software of ¥2,194 million. The amortization periods are 17, 17 and 5
years, respectively. The intangible assets not subject to amortization are trademarks of ¥7,367
million.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The goodwill of ¥12,815 million was assigned to the industrial machinery and others segment.
The goodwill is not deductible for tax purpose.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The differences between net assets acquired of ¥56,197 million and purchase consideration
including direct costs of ¥41,234 million represents the portion of the net assets previously held
and accounted for under the equity method in period prior to the acquisition of a controlling
interest.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The business results of NTC from the date of acquisition to March 31, 2008 are included as
equity in earnings in the consolidated statements of income for the fiscal year ended March 31,
2008, and are consolidated for the fiscal year ended March 31, 2009.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table presents unaudited pro forma consolidated operating results for Komatsu as
if the acquisition of NTC had occurred on April 1, 2007. The unaudited pro forma consolidated
operating results are for information purposes only and are not intended to represent what
Komatsu’s consolidated results of operation would have been if the acquisition had actually
occurred on those dates.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="77%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Sales
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">2,317,784</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income attributable to Komatsu Ltd.
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">211,975</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="77%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Yen</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income attributable to Komatsu Ltd. per share
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px">Basic
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">213.07</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px">Diluted
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">212.79</td>
<td> </td>
</tr>
<tr style="font-size: 1pt">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 3px double #000000">2008</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company and NTC entered into a share exchange agreement with the purpose of making NTC a
wholly owned subsidiary of the Company in April, 2008. The Company’s ownership of NTC became 100.0%
at August 1, 2008, the effective date of the share exchange. The additional acquisition did not
have material impact on purchase price allocation as of the date of acquisition or pro forma
consolidated operating results for Komatsu as if the additional acquisition of NTC had occurred on
April 1, 2007.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>(2) BIGRENTAL Co., Ltd.</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During February 2008 the Company acquired 57.9% of the shares in BIGRENTAL Co., Ltd (hereinafter
“BR”). The acquisition cost of the shares was ¥8,564 million and was paid in cash.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">BR is a construction equipment rental company with a business presence in Tohoku and northern
Kanto regions of Japan. The Company acquired BR with the expectation to strengthen its rental
business and to expand its rental and used equipment business on a global scale.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In addition, a synergy from integration was expected to arise from the effective use of
resources, such as personnel, assets and offices.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Following is a summary of the assets acquired and liabilities assumed adjusted to reflect
purchase price allocation as of the date of acquisition:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="77%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">9,423</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">39,260</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">3,133</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">1,533</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">922</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets acquired
</div></td>
<td> </td>
<td> </td>
<td align="right">54,271</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,191</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(31,807</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Noncontrolling interest
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,709</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total liabilities assumed
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(45,707</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net assets acquired
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">8,564</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Total intangible assets of ¥3,133 million consist primarily of customer relationships of
¥1,182 million, business model of ¥1,182 million and software of ¥667 million. The amortization
periods are 7, 10 and 5 years, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The goodwill of ¥1,533 million was assigned to the construction, mining and utility equipment
segment. The goodwill is not deductible for tax purposes.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The business results of BR are not included in the consolidated statements of income for the
fiscal year ended March 31, 2008 and the business results of BR are included in the consolidated
financial statements of income for the fiscal year ended March 31, 2009.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On an unaudited pro forma basis, net sales, net income attributable to Komatsu Ltd. and the
per share information of Komatsu, with assumed acquisition dates for BR of April 1, 2007 would not
differ materially from the amounts reported in the consolidated financial statements for the fiscal
years ended March 31, 2008.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Komatsu Rental Japan Ltd. (hereinafter “KR”), a consolidated subsidiary of the Company, and BR
entered into a share exchange agreement with the purpose of making BR a wholly owned subsidiary of
KR in February 2008. The Company’s ownership in BR increased to 79.0% from 57.9% at April 1, 2008,
the effective date of the share exchange. The additional acquisition did not have material impact
on purchase price allocation as of the date of acquisition or pro forma consolidated operating
results for Komatsu as if the additional acquisition of BR had occurred on April 1, 2007. BR was
merged with KR in April 2009.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: .05in; width: 7.50in">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>(3) Komatsu Australia Corporate Finance Pty. Ltd.</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In May, 2009, Komatsu acquired the additional shares of Komatsu Australia Corporate Finance Pty.
Ltd. (hereinafter “KACF”) according to a capital increase of KACF at ¥1,684 million ($18,107
thousand), 3,144,898 shares out of 3,489,796 shares.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Prior to the additional acquisition, Komatsu held a 50.0% equity interest in KACF and
accounted for the investment by the equity method. As a result of the additional investment,
Komatsu’s ownership increased to 60.0% and KACF became a consolidated subsidiary of Komatsu.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Komatsu expects the acquisition will expand its business in relation to construction and
mining equipment in the entire value chain including retail finance in Oceania strengthening its
control and governance to KACF.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Following is a summary of the consideration paid for KACF and the assets acquired and
liabilities assumed adjusted to reflect purchase price allocation as of the date of acquisition as
well as the fair value at the acquisition date of the noncontrolling interest:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="66%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Thousands of</td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left" colspan="2" style="border-bottom: 1px solid #000000">Millions of yen</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">U.S. dollars</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Consideration
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">1,684</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18,107</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of total consideration
transferred
</div></td>
<td> </td>
<td> </td>
<td align="right">1,684</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,107</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of Komatsu’s equity
interest in KACF held before the
business combination
</div></td>
<td> </td>
<td> </td>
<td align="right">696</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,484</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">2,380</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,591</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Recognized amounts of identifiable
assets and liabilities assumed
Current assets
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">34,478</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">370,731</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">15,692</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">168,731</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,495</td>
<td> </td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets acquired
</div></td>
<td> </td>
<td> </td>
<td align="right">50,404</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">541,979</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(33,174</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(356,710</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13,999</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(150,527</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Total liabilities assumed
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(47,173</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(507,237</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net assets acquired
</div></td>
<td> </td>
<td> </td>
<td align="right">3,231</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,742</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff; padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Noncontrolling interest
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,587</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,065</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="padding-top: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">736</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,914</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">¥</td>
<td align="right">2,380</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,591</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The goodwill of ¥736 million ($7,914 thousand) was assigned to the construction, mining and
utility equipment segment. The goodwill is not deductible for tax purposes.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Remeasurement to fair value its 50% equity interest in KACF held before the business
combination did not have a material impact on consolidated income statement for the year ended
March 31, 2010.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The amounts of KACF’s sales and net income attributable to Komatsu Ltd. included in Komatsu’s
consolidated income statement for the year ended March 31, 2010 were immaterial. The sales and net
income attributable to Komatsu Ltd. of the combined entity had the acquisition date been April 1,
2009 or April 1, 2008 would not also differ materially from the amounts reported in the
consolidated financial statements for the fiscal years ended March 31, 2010 and 2009.
</div>
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