FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Third Quarter Earnings
Tokyo, Japan February 3, 2006—Kurita Water Industries Ltd. (TSE Security Code 6370) announced netsales of 103,675 million yen for the first nine months (April 1 – December 31, 2005) of the fiscal year
ending March 31, 2006 and net income of 3,855 million yen, or 29.97 yen per share.

Results of Operations
Total consolidated orders for the Kurita Group increased 9.6% from the same period a year earlier to133,294 million yen, while net sales grew 2.4% year-on-year to 103,675 million yen. Operating income
shrank 23.2% to 6,033 million yen and ordinary income declined 14.4% to 7,031 million yen, resulting in
net income of 3,855 million yen or down 15.4% year-on-year. By segment, water treatment chemicals
sales grew 8.7% year-on-year to 39,788 million yen, while water treatment facilities sales fell 1.2% to63,886 million yen.
During the period, capital expenditures in the electronics industry varied widely in scale across companies
in Taiwan and South Korea but remained strong in Japan. In other industrial sectors for water treatment,
factory operating ratio improved and capital expenditures were robust mainly in the basic materials sector.
On the other hand, the business climate for public expenditures related businesses remained difficult due
to shrinking budgets for public works projects.

Segment Information
Water Treatment Chemicals
Total Group orders for the segment increased 5.9% to 40,358 million yen, while sales grew 8.7% to39,788 million yen.
During the period, the Group focused its efforts on securing stable order flow by pursuing closer
relationships with its clients, emphasizing marketing of products accommodating clients’ needs, andpromoting packaged water treatment management contracts.
Orders for the Group’s mainstay boiler water treatment chemicals and cooling water treatment chemicals
were largely flat compared with the previous year, while wastewater treatment chemicals saw an orderincrease. In other products, orders for agents used to solidify heavy metals contained in waste
incineration fly ash decreased, while orders for process chemicals used in the paper and pulp industry andorders for packaged water treatment management contracts both increased.
Water Treatment Facilities
Total Group orders for the segment increased 11.3% to 92,936 million yen, while sales declined 1.2% to63,886 million yen.
During the period, to secure stable order flow, the Group continued to focus its efforts on expanding its
Ultrapure Water Supply Business and strengthening marketing efforts to strategic clients.
In the private sector, orders for the Group’s mainline ultra-pure water production systems for theelectronics industry grew in overseas markets, and orders for Ultrapure Water Supply Business grew inJapan. In electronics industry related business, new orders increased for maintenance service as well as
for tool cleaning service for semiconductor and FPD production equipment. In other water treatment areas,orders for water treatment facilities mainly for the basic materials sector surged and so did orders for
related maintenance services. Orders for soil remediation also increased sharply on the back of a demandincrease.
In public works projects, orders for sewage treatment facilities and orders for human waste treatment
facilities both decreased compared with the previous year.

1Financial Condition
At the end of the period, total assets on a consolidated basis increased 6,347 million yen from the end of
the previous fiscal year to 198,775 million yen. This mainly reflects a decrease of 16,519 million yen inaccounts receivable (-trade) due to the progress in collection, which was offset by an increase ininventories by 11,156 million yen, largely reflecting progress in construction work in the water treatment
facilities segment, and an increase in tangible fixed assets by 8,433 million yen as the Group acquired
additional operating fixed assets. Total liabilities increased 3,205 million yen to 58,156 million yen,mainly reflecting an increase of 2,995 million yen in accounts payable (-trade). Total shareholders’equity increased 3,008 million yen to 139,374 million yen, mainly reflecting an increase in net unrealized
gains on available-for-sale securities of 2,185 million yen. As a result, the Company’s shareholders’equity ratio decreased from 70.9% at the end of the previous fiscal year to 70.1%.

Outlook for the Full Year
The Group believes that it is on track to achieving its full-year earnings forecast for the fiscal year ending
March 31, 2006 which was included in its consolidated first-half earnings report released October 31,2005.

Business Risks
Major risk factors that could affect the Group’s future performance include, but are not limited to, capital
expenditure trends on water treatment facilities and factory operating ratios at clients, public investment
trends, and price movements in oil and other materials.
Reflecting the seasonal nature of its water treatment facilities business, the Group’s first quarter and thirdquarter sales tend to be lower than other quarters with the water treatment facilities sales skewed toward
the end of the first half and the end of the fiscal year.

About the Kurita GroupThe Kurita Group provides a wide range of products, technologies, and maintenance services related towater treatment. The two core lines of the Group’s business consist of: 1) water treatment chemicals usedfor boiler water, cooling water, waste water and in manufacturing processes, and 2) water treatment
facilities such as ultrapure water production systems, wastewater treatment facilities, and sewage water
treatment facilities. The business scope of both lines includes production, sales, and maintenanceservices. For additional information about the Kurita Group, please visit the Company’s website atwww.kurita.co.jp./english

Forward-Looking Statements
This news release contains various forward-looking statements which are based on current expectations
and assumptions of future events. Except for the historical information contained herein, all figures andstatements with respect to future performance, projections and business plans of the Kurita Group
constitute forward-looking statements. Although Kurita believes that its expectations and assumptions arereasonable, actual results and trends of the Group’s performance could differ materially from thoseexpressed or implied by such figures or statements because of risks and uncertainties, including but notlimited to factory operating ratios at major clients in the steel, petroleum and paper/pulp industries;
capital expenditure trends in the electronics, food, pharmaceuticals, basic material and automobileindustries; and the financial condition and budgeting actions of national and local governments in Japan.

2

Condensed Statements of Operations - Consolidated(In million yen)Amount%Amount%Amount(Reference)Year ended
March 31, 2005
Amount%103,675
72,19731,477

100.0
69.6
30.4

101,240
68,69532,544

100.0
67.8
32.2

2,435
3,502
-1,067

160,896
112,077
48,819

100.0
69.7
30.3

25,44324.6

24,68424.4

759

32,867

20.4

6,033
1,167
169
7,031
247

5.8
1.1
0.2
6.7
0.2

7,860
679
326
8,212
-

7.8
0.6
0.3
8.1
--1,827488-157-1,181
247

15,951
1,068
295
16,725
128
477

9.9
0.7
0.2
10.4
0.1
0.3

6,783

6.5

8,212

8.1

-1,42916,376

10.2

2,810

2.7

3,542

3.5

-732

6,838

4.3

117

0.1

114

0.1

3154

0.1

3,855

3.7

4,555

4.5

-700

9,383

5.8

Nine months ended
Nine months ended
December 31, 2005 (A) December 31, 2004 (B) (A) – (B)Net sales
Cost of sales
Gross profit
Selling, general andadministrative expenses
Operating income
Non-operating income
Non-operating expense
Ordinary income
Extraordinary gains
Extraordinary losses
Net income before income
taxes
Income taxes
Minority interests inearnings of consolidated
subsidiaries
Net income3

Condensed Financial Statements - Consolidated
Condensed Balance Sheets - Consolidated(In million yen)

As of
As of(Reference)
December 31, December 31,
As of2005
2004
March 31, 2005
(A)
(B)
(C)
[Assets]
Current assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Inventories
OtherAllowance for doubtful accounts
Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Total assets[Liabilities]
Current liabilities
Notes payable - trade
Accounts payable - trade
Accounts payable - other/Accrued
expensesAccrued employees’ bonuses
Other
Fixed liabilities
Accrued employees’ retirement
benefits
Other
Total liabilities[Minority interests]
Minority interests[Shareholders’ equity]
Common stock
Additional paid-in capital
Retained earnings
Net unrealized gains onavailable-for-sale securities
Foreign currency translation
adjustments
Treasury stock
Total shareholders’ equity
Total liabilities, minority interests andshareholders’ equity(A) – (B)(A) – (C)112,309
29,331
10,461
44,6394,402
19,2314,365-122
86,46652,2882,965
31,211
198,775

112,781
36,052
10,592
41,563
4,100
16,8983,705-131
68,96543,4693,265
22,230181,746

116,400
30,6799,958
61,158
2,794
8,075
3,891
-156
76,02843,8553,180
28,993
192,428-472-6,721
-131
3,076
302
2,333
660
9
17,501
8,819
-300
8,981
17,029-4,091-1,348503-16,519
1,608
11,156474
34
10,438
8,433
-215
2,218
6,347

48,022
1,761
29,637
6,494
1,294
8,834
10,13438,071
1,908
23,978
5,124
1,058
6,000
11,03544,465
1,521
26,642
7,413
2,060
6,828
10,485

9,951
-147
5,659
1,370
236
2,834
-901

3,557
240
2,995
-919
-766
2,006
-351

8,717
1,416
58,156

9,099
1,935
49,107

8,689
1,795
54,951

-382
-519
9,049

28-379
3,205

1,245

1,115

1,110

130

135

13,45011,426
115,784

13,45011,409110,496

13,45011,409115,318

17
5,288

17
466

3,994

1,695

1,809

2,299

2,185

-492

-701

-790

209

298

-4,789139,374-4,827
131,523-4,830136,366

38
7,851

41
3,008

198,775

181,746

192,428

17,0296,3474Order Intake

Business Segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Nine months ended
December 31, 2005
(A)
Amount%40,35830.3
92,936
69.7
133,294 100.0

Nine months ended
December 31, 2004
(B)
Amount%38,101
31.3
83,494
68.7
121,595 100.0

Nine months ended
December 31, 2005
(A)
Amount%39,78838.4
63,886
61.6
103,675 100.0

Nine months ended
December 31, 2004
(B)
Amount%36,60336.2
64,63663.8
101,240 100.0(A) – (B)
Amount2,257
9,442
11,699(In million yen)
(Reference)Year ended
March 31, 2005
Amount%52,12030.4
119,213
69.6
171,334
100.0

Sales

Business Segment
Water Treatment Chemicals
Water Treatment Facilities
Total(A) – (B)
Amount
3,185
-750
2,435

(In million yen)
(Reference)Year ended
March 31, 2005
Amount%50,63731.5
110,25968.5
160,896
100.05