IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for the Three Months
ended June 30, 2010
Tokyo, Japan, July 29, 2010—Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 39,201 million yen for the three months ended June 30, 2010
(April 1, 2010 – June 30, 2010) and net income of 3,318 million, or 25.79 yen per share.
Results of Operations
Total consolidated orders for the Kurita Group in the three months ended June 30, 2010,
were up 9.6% versus the year-ago first quarter (three months ended June 30, 2009) to44,410 million yen, while net sales increased 7.2% to 39,201 million yen. Operating
income was 5,267 million yen, up 10.1% versus the year-ago first quarter, ordinary
income was 5,559 million yen, up 11.1%, and net income was 3,318 million yen, up
3.8%.
Markets in which the Kurita Group operates remained adverse during the threemonths ended June 30, 2010. Although some signs emerged of improving capacity
utilization at customer plants due to a global economic recovery, new capital
expenditure in Japan remained low.
Overview by Segment
The Kurita Group is composed of segments delineated according to the products andservices handled by each of its business divisions. These reportable segments
correspond to the segments that the Group has used thus far, namely the WaterTreatment Chemicals segment and the Water Treatment Facilities segment.
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 14,550 million
yen, up 7.3% versus the year-ago first quarter, while sales increased 6.1% to 13,604
million yen. Operating income rose 24.6% to 2,334 million yen.
During the three months ended June 30, 2010, the Kurita Group bolstered sales efforts
by strengthening alliances with its domestic and overseas sales subsidiaries and pursued
order bookings through consultative sales to help customers successfully meetchallenges such as productivity enhancement and environmental mitigation.
In Japan, among the Group’s mainstay products, orders for boiler water treatment
chemicals and wastewater treatment chemicals increased versus the year-ago firstquarter.
Overseas orders increased in response to more determined sales activities andrecoveries in production in various industries, mainly in Asia.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 29,859 million yen,up 10.8% versus the year-ago first quarter, while sales rose 7.7% to 25,596 million yen.
Operating income rose 0.7% to 2,932 million yen.
During the three months ended June 30, 2010, the Group worked to generate profits
by focusing on service businesses and pursued order bookings by stepping up bothconsultative sales targeting key customers and sales activities in Asia, with emphasis onChina.
1In the electronics industry, orders for the ultrapure water supply business and toolcleaning services were flat versus the year-ago first quarter, but orders for ultrapure
water production systems increased, mainly overseas. Orders for maintenance servicesrose sharply due to recovery in maintenance services demand at customer plants.
Financial Condition
Current assets totaled 105,414 million yen at the end of the fiscal first quarter (June 30,2010), a decline of 3,883 million yen versus the end of the previous fiscal year (March31, 2010). The decrease was mainly due to sharp declines of 7,369 million yen in tradeaccounts receivable and 6,000 million yen in marketable securities, which were partially
offset by increases of 4,945 million yen in cash and deposits, 1,731 million yen in tradenotes receivable, and 2,431 million yen in work in process. The increase in cash anddeposits resulted from steady progress with collections and a decrease in negotiablecertificates of deposits, which are treated as marketable securities. The increase in tradenotes receivable was due to an increase in trade notes received as payment for accounts
receivable, and the increase in work in process was due to ongoing works in the water
treatment facilities business. The decreases in trade accounts receivable and marketablesecurities are stated above.
Noncurrent assets totaled 138,799 million yen at the end of the fiscal first quarter, adecline of 3,524 million yen versus the end of the previous fiscal year. The decline
mainly reflects a 2,929 million yen decrease in property, plant and equipment due todepreciation related to past years’ investments in facilities used in the ultrapure watersupply business.
Current liabilities totaled 31,788 million yen at the end of the fiscal first quarter, adecrease of 6,804 million yen versus the end of the previous fiscal year. The change ismainly due to decreases of 5,046 million yen in income taxes payable and 1,333 million
yen in trade accounts payable.
Noncurrent liabilities totaled 19,240 million yen at the end of the fiscal first quarter, aslight increase of 152 million yen versus the end of the previous fiscal year.
Total net assets were 193,184 million yen at the end of the fiscal first quarter, adecrease of 755 million yen versus the end of the previous fiscal year. The change ismainly due to a 3,318 million yen increase in retained earnings from quarterly net
income, a 2,444 million yen decrease in retained earnings due to dividend payments,
and a 1,629 million yen decrease in valuation and translation adjustments due to adecrease in unrealized gains on available-for-sale securities reflecting a drop in themarket prices of investment securities held by the Group.
Outlook for the Fiscal Year Ending March 31, 2011
The Group believes that it is on course to achieve its earnings forecasts for both the six
months ending September 30, 2010, and the full fiscal year ending March 31, 2011,
which are detailed in its consolidated earnings release (and in Japanese in the kessantanshin) for the fiscal year ended March 31, 2010, issued on April 30, 2010.

2Financial Statements — Consolidated
Balance Sheets — Consolidated(millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipment
Intangible fixed assets
Investments and other assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable – trade
Accounts payable - trade
Income taxes payable
Allowances
Other
Total current liabilities
Noncurrent liabilities
Accrued employees’ retirement benefits
Other allowancesOther
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

As ofJune 30, 2010
AmountAs ofMarch 31, 2010
Amount21,308
7,124
42,60622,500
1,496
5,031
1,279
4,135(68)
105,414

16,363
5,393
49,97528,500
1,334
2,600
1,186
4,075
(132)
109,297

34,70654,454
24,409113,571
2,154

35,68551,65929,154
116,500
2,173

23,270(197)
23,073
138,799244,21323,854(205)
23,649142,323
251,620

1,374
14,2992,384
1,859
11,871
31,788

1,198
15,6327,430
2,924
11,406
38,592

9,724
431
9,084
19,24051,028

9,465
449
9,172
19,08857,68013,45011,426
173,590(4,857)
193,611

13,45011,426
172,717(4,855)
192,738300(764)(1,315)(1,778)1,352
193,184
244,213

1,989(764)(1,374)(149)
1,350
193,939
251,620

3

Statements of Income — Consolidated(millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and directors’ remuneration
Provision for employees’ bonuses
R&D expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange loss
Other
Total non-operating expenses
Ordinary incomeExtraordinary income
Gain from cancellation of contracts
Total extraordinary income
Extraordinary losses
Loss on liquidation of businessTotal extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income

Three months ended
June 30, 2009
Amount36,584
23,317
13,267

Three months ended
June 30, 2010
Amount39,201
25,077
14,123

2,981
675
908
3,916
8,481
4,785

3,215
723
936
3,980
8,856
5,267

29
125
126
281

29
148
205
383

655
62
5,004537
48
91
5,559

646
646-

136
136
5,514
2,278-

5,559
2,244
3,314

38(3)

3,197

3,318

4

Statements of Cash Flows — Consolidated(millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowances(Increase) decrease in notes and accounts receivable trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable trade
Income taxes paid
OtherNet cash provided by (used in) operating activities
Cash flows from investing activities
Deposits into time deposit accounts
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketablesecurities
Payments for purchases of property, plant andequipment
Proceeds from sale of property, plant and equipment
Payments for purchases of investment securities
Other payments
Other proceeds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of theperiod
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at the end of the period

Three months
ended
June 30, 2009
AmountThree months
ended
June 30, 2010
Amount5,514
3,663(1,154)

5,559
3,970
(952)

10,142

5,640(3,906)(2,646)(2,445)(1,488)(3,709)2,625
10,729(7,321)
1,090
3,851(2,099)(8,186)(15,500)

2,916

18,500(6,865)(1,070)

6(3)
(294)
621
(5,720)8(1,641)(169)
49(8,008)

60
(101)
(1)
(1,866)(78)(1,988)

199
(116)
(1)
(2,272)(11)(2,201)

727

58

3,748

(6,300)25,262

20,59060

46

29,071

14,3365

Notes on the Going-concern Assumption
Three months ended June 30, 2010 (April 1, 2010 – June 30, 2010)

Not applicable

Segment Information
Business segment information
Three months ended June 30, 2009 (April 1, 2009 – June 30, 2009)(millions of yen)Sales(1) Sales to outside customers(2) Inter-segment sales ortransfers
Total
Operating income

Water
Treatment
Chemicals

Water
Treatment
Facilities

12,82023,76436,584-36,584

64

1276

(76)

-

12,885
1,873

23,776
2,911

36,661
4,785

(76)
(0)

36,584
4,785

Eliminationor corporate

Total

Consolidated

Geographical segment information
Three months ended June 30, 2009 (April 1, 2009 – June 30, 2009)(millions of yen)

Otherregions

Japan
Total
Sales
(1) Sales to outside customers
33,522
3,062
36,584(2) Inter-segment sales or267
101
369
transfers
Total
33,7893,164
36,954
Operating income
4,438
272
4,711
Notes:
1. Geographic segmentation is based on geographic proximity.
2. “Other regions” in the above table consists of Asia and other areas.

Eliminationor corporate

Consolidated-36,584(369)-(369)
74

36,584
4,785

Overseas sales
Three months ended June 30, 2009 (April 1, 2009 – June 30, 2009)(millions of yen)

Asia
2,038
-NorthAmerica
268-Europe
OtherTotal
I. Overseas sales
340
609
3,256
II. Consolidated net sales
36,584
III. Ratio of overseas sales to total
5.6%
0.7%
0.9%
1.7%
8.9%
consolidated sales
Notes:
1. Geographic segmentation is based on geographic proximity.
2. Major countries or regions in each category are as follows:(1) Asia:
Korea, China, Taiwan, Singapore, Indonesia, and Thailand(2) North America:
U.S.A.
(3) Europe:
Germany(4) Other areas:
Brazil3. “Overseas sales” comprises sales by the Company and its consolidated subsidiaries in countries orregions other than Japan.

6Additional information
Effective the first quarter of the fiscal year ending March 31, 2011, the Company adopted the Revised
Accounting Standard for Disclosures about Segments of an Enterprise and Related Information (ASBJ
Statement No. 17, revised March 27, 2009) and its accompanying Guidance on the Accounting Standardfor Disclosures about Segments of an Enterprise and Related information (Guidance No. 20, March 21,2008).
1. Overview of reportable segments
The Company’s reportable segments are components of the Company about which separate financial
information is available. These segments are subject to periodic examinations to enable the Company’sboard of directors to decide how to allocate resources and assess performance.
The Company’s business divisions are based on product and service categories. Each of the divisions
conduct business based on comprehensive strategies formulated for the products and services that theyhandle. The Company’s consolidated subsidiaries conduct business under relevant business divisions’supervision.
The Group’s operations are therefore segmented based on the products and services handled by each ofthe divisions. The Company’s reportable segments correspond to the segments it has used thus far,namely the Water Treatment Chemicals segment and Water Treatment Facilities segment.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals andequipment and provides maintenance services. The Water Treatment Facilities segment manufacturers
and sells water treatment equipment and facilities, provides ultrapure water, chemical cleaning, toolcleaning, soil and groundwater remediation services, and provides maintenance services thatencompass operation, maintenance, and management of water treatment facilities.
2. Sales and income by reportable segment
Three months ended June 30, 2010 (April 1, 2010 – June 30, 2010)(millions of yen)

Reportable segmentWater
Water
Treatment
Treatment
Chemicals
Facilities
Total

Amounts reported on
the quarterly
Adjustments statements of income(note 1)
(note 2)Sales
(1) Sales to outside customers
13,60425,596
39,201
39,201(2) Inter-segment sales or transfers
82
18
101
(101)
Total
13,686
25,61539,302(101)
39,201
Segment income
2,334
2,932
5,267
5,267
Notes:
1. “Adjustments” represent the elimination of inter-segment transactions.
2. Segment income is based on operating income, and there is no difference between segment income
and operating income reported in the statements of income for the corresponding period.

Notes on Significant Changes in Shareholders’ Equity
Three months ended June 30, 2010 (April 1, 2010 – June 30, 2010)

Not applicable

7

Other Information — Consolidated
Order Intake(millions of yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,
2009
2010
Amount%Amount13,56033.5
14,550%32.8

Water Treatment Facilities

26,942

66.5

29,859

67.2

Total

40,503100.0

44,410100.0

Net Sales(millions of yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,
2009
2010
Amount%Amount12,820
35.0
13,604%
34.7

Water Treatment Facilities

23,76465.0

25,596

65.3

Total

36,584100.0

39,201

100.0

Capital Expenditures (Property, Plant and Equipment)(millions of yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,
2009
2010
Amount%Amount
156
6.9
106%
14.8

Water Treatment Facilities

2,102

93.1

609

85.2

Total

2,259

100.0

715

100.0

Depreciation (Property, Plant and Equipment)(millions of yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,
2009
2010
Amount%Amount308
8.8
286%
7.5Water Treatment Facilities

3,191

91.2

3,513

92.5

Total

3,499

100.0

3,799

100.08