June 6, 2008
Second Aid for the Quake-Devastated Area in Sichuan Province, China

Kobe Steel, Ltd. and the Kobelco Construction Machinery Group extend our sincere sympathy to the victims of the earthquake in Sichuan Province, China.

Kobelco Construction Machinery Co., Ltd. (Kobelco) (Head office: Shinagawa-ku, Tokyo; President & CEO: Hiroo Shimada), a group company of Kobe Steel, will provide support for one of the elementary schools in Pengzhou, Sichuan Province, which collapsed during the earthquake, together with its joint ventures in China, Chengdu Kobelco Construction Machinery Group Co., Ltd. (CKCMG) and Chengdu Kobelco Construction Machinery Co., Ltd. (CKCM).

Kobelco, CKCMG and CKCM will offer a monetary donation of approximately 8 million yuan (equivalent to almost 120 million yen) for the reconstruction of the school buildings, including the dormitories and the dining hall, as well as for the purchase of necessary furnishings. This one-year reconstruction work is scheduled to start in 2008 and be completed in 2009. Kobelco bears the majority of the cost, while CKCMG and CKCM share the remaining cost. 　

The Kobelco group is the sole construction machinery manufacturer located in the center of this quake-devastated area. Since 1994, Kobelco has been developing its business activities in Chengdu City, which was also greatly damaged by the quake. From a standpoint of social contribution to the community where the group belongs, Kobelco contacted the Chengdu Municipal Government so as to provide aid for reconstruction work. The government introduced the elementary school that suffered most seriously and required reconstruction in that area. Kobelco formally announces its support to the recommended school.

<Details of the Support>

* This support aims not only to provide a monetary donation but also to be totally involved in reconstruction of the buildings and purchase of the furnishings through repeated consultations with the Municipal Government until complete reproduction of the school functions.

We sincerely hope that the devastated area will recover as soon as possible.

The first support activity was jointly implemented by Kobe Steel, Ltd. and Kobelco Construction Machinery Co., Ltd. The support almost totaled to 75 million yen.