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Friday, November 28, 2008

For Immediate Release
Kanamoto Company, Limited
Stock Code 9678
Tokyo Stock Exchange 1st Section; Sapporo Stock Exchange
Nobuhito Utatsu
Director and Corporate Officer, Division Manager, Accounting Division< Contact for inquiries concerning this material >Yuichi Takayama
IR & Public Relations Section Manager, Office of the President
Telephone: + 81 – 11 – 209 – 1631

Notification Concerning Revision of Projected Full-Year Operating
Results for the Business Period Ended October 2008
Kanamoto Company, Limited (Kanchu Kanamoto, President; Head Office: Sapporo, Japan), Japan's leading
construction equipment rental company, has made the following revisions to its projected consolidated andnon-consolidated full-year operating results for the business period ended October 31, 2008 (November 1, 2007 October 31, 2008) released on August 29, 2008.
The Company plans to release its Accounting Bulletin (Consolidated) for the Business Period EndedOctober 2008 on Friday, December 5.

1. Revised projection of consolidated operating results(November 1, 2007 – October 31, 2008)

Fiscal year ending October 2008

Revenues(Millions of yen, except net income per share which is in yen)OperatingOrdinary
Interim net
Net income
incomeincome
incomeper share

Prior projection（A）

71,000

2,800

2,600

1,000

30.45

Revised projection（B）

69,400

2,200

2,000

640

19.49

（B－A）

−1,600

−600

−600

−360

−10.96（%）−2.3%−21.4%−23.1%−36.0%−36.0%

68,626

4,236

4,416

3,035

92.40

Decrease
Rate of change
Prior fiscal year results(FY Ended October 2007)

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2. Revised projection of non-consolidated operating results(November 1, 2007 – October 31, 2008)

Fiscal year ended October 2008

Revenues(Millions of yen, except net income per share which is in yen)
Operating
Ordinary
Interim net
Net income
incomeincomeincome
per share

Prior projection（A）

61,300

2,800

2,700

650

19.79

Revised projection（B）

60,400

2,400

2,300

180

5.48

（B－A）

−900

−400

−400

−470

−14.31（%）−1.5%−14.3%−14.8%−72.3%−72.3%

61,576

4,012

4,372

3,431

104.44

Decrease
Rate of change
Prior fiscal year results(FY Ended October 2007)

3. Reasons for the revision(Fiscal year ended October 2008

Full-year operating results)

During the Kanamoto Group’s Business Period ended October 2008, a variety of factors, including thedelay of construction starts resulting from the effects of enforcement of the revised Building Standard Law
and the sharp rise in oil and construction materials prices, created an extremely severe management
environment throughout the year and significantly affected the construction-related businesses that are
Kanamoto’s main customers, particularly firms whose business bases are in regions that experienced adearth of orders because of cutbacks in public works spending. The hesitant investment and financing
stance among foreign capital investment funds and financial institutions additionally had a serious affect on
the operations of many mid-sized developers.
At the same time, a contraction in credit caused by the disruption of financial systems on a global scale thatwas triggered by the subprime loan problem in the United States, and the progressive appreciation of theyen, cast a long shadow over the operating results of export industries such as automobiles and electricalmachinery, which had been driving the recovery trend in Japan’s economy. These wrenching changes in
the management environment confronted Japan in swift succession with a range of problems it had not
faced previously.
The Kanamoto Group went back to basics, by aggressively launching a sales offensive for small-scale
repair works, and anticipated an improvement in operating results during the fourth quarter, whenconstruction equipment rental demand increases. Nevertheless, sales were lackluster in regions such as
Hokkaido, Tohoku and southern Kyushu, where the volume of work from both public and private sector
demand fell in absolute terms, as Japan’s economy experienced a rapid deceleration caused by turmoil in
the financial economy, which was far greater than initially assumed, and the factors outlined above. For
consolidated subsidiaries of Kanamoto that are developing businesses in these regions as well, revenues
and earnings are projected to decline across the board.
As a result, although consolidated revenues will be marginally higher compared with the previous
consolidated fiscal year, from an earnings perspective all income from operating income through net
income will be lower, and operating results are expected to diverge sharply from the Company’s revisedprojection.

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In addition, as a result of consultations with its audit firm Kanamoto decided to reserve an appropriate
amount during the business period from a standpoint of conservative accounting practices for guaranteesof the loans and debts of certain consolidated subsidiaries, and recorded this as an extraordinary loss.
Although their operating results have been weakened by the deterioration in the management environment,these consolidated subsidiaries remain important to the strategy of the Kanamoto Group, and the Company
will continue without any revisions its policy of supporting the companies in question.

4. Other Matters
Kanamoto does not plan to make any revisions to its year-end dividend.
These projected consolidated operating results were prepared using projections based on information
available to the Company as of the date this material was released and forecasts of the future economic,environment, and include various risks and uncertainty factors. Accordingly, there is a possibility theCompany’s actual consolidated operating results will differ from the projected amounts shown above as aresult of various future factors, including but not limited to economic conditions surrounding the Company,
market trends, and competitive conditions.

End