FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for the First Nine Months Ended Dec. 2006
Tokyo, Japan January 31, 2007—Kurita Water Industries Ltd. (TSE Security Code 6370) announced net sales of128,754 million yen for the first nine months (April 1 – December 31, 2006) of the fiscal year ending March 31,
2007 and net income of 8,976 million yen, or 69.76 yen per share.

Results of Operations
Total consolidated orders for the Kurita Group increased 8.5% from the same period a year earlier to 144,606
million yen, while net sales grew 24.2% year-on-year to 128,754 million yen. Operating income surged 149.7%
to 15,064 million yen and ordinary income also jumped 121.7% to 15,589 million yen, resulting in net income of8,976 million yen, an increase of 132.8% year-on-year. By segment, water treatment chemicals sales grew 4.8%
year-on-year to 41,682 million yen, while water treatment facilities sales rose 36.3% to 87,072 million yen.
During the period, the market environment was favorable for the Group in both Japan and overseas markets.
Capital expenditures in the electronics industry were solid in Japan, Taiwan, South Korea and China on the backof buoyant demand for liquid crystal display (LCD) TVs, plasma display panel (PDP) TVs and semiconductors,etc. In the general industry, capital expenditures were robust on the whole and factory operating rates stayed athigh levels.

Segment Information
Water Treatment Chemicals
Total Group orders for the segment increased 4.0% year-on-year to 41,978 million yen, while sales grew 4.8% to41,682 million yen.
During the period, the Group concentrated its efforts on securing sales by further expanding sales of mainstay
products and promoting “solution business” aimed at solving clients’ issues.
Sales in the Japanese market were as follows. Of the Group’s mainstay products, sales for wastewater treatment
chemicals slightly decreased compared with a year earlier, while sales for boiler water treatment chemicals wereflat and those for cooling water treatment chemicals increased modestly. In other products, sales for packaged
water treatment management contracts grew slightly, and those for process treatment chemicals used in thepaper/pulp and oil refining/petrochemical industries increased.
Water Treatment Facilities
Total Group orders for the segment increased 10.4% year-on-year to 102,627 million yen, while sales grew
36.3% to 87,072 million yen.
During the period, the Group actively invested in the ultra-pure water supply business and other services, andstrengthened its drive to expand business in the Asian markets, primarily in Taiwan, South Korea and China, in abid to secure stable order flows.
Orders for the Group’s mainline ultra-pure water production systems for the electronics industry surged in Japan.
Meanwhile, the ultra-pure water supply business, maintenance services for the ultra-pure water production
systems and tool cleaning for semiconductor and LCD production equipment all maintained strong performance,
resulting in a significant increase in orders. In the general industry, orders for water treatment facilities decreased,
affected by the stagnancy in large capital expenditures. Orders for soil remediation remained brisk.

1Regarding the water treatment facilities business for the public sector, the Group withdrew from businessactivities involving new construction projects for sludge treatment (human waste treatment) facilities, effective
May 19, 2006. Also, effective December 27, 2006, the Group withdrew from all business activities involving
construction projects commissioned by the state and municipal governments.

Financial Condition (consolidated)
As of the end of the period, total assets increased by 3,305 million yen from the end of the previous fiscal year to216,079 million yen. Accounts receivable decreased 17,365 million yen as a result of the progress in thecollection of receivables related to sales that were concentrated at the end of the previous fiscal year. Inventories,including work in process, increased 13,595 million yen due to the progress in construction works in the water
treatment facilities segment, and tangible fixed assets rose 8,268 million yen, mainly reflecting the acquisition offixed assets in the ultra-pure water supply business. Total liabilities decreased 2,522 million yen to 63,589
million yen. Accounts payable and accrued expenses decreased 4,500 million yen as a result of payments ofconstruction expenses mainly related to fixed assets for business purposes.

Outlook for the Fiscal Year Ending March 31, 2007
The Group’s earnings for the nine-month period were largely in line with the initial forecast and the Group
believes that it is on track to achieving its full-year earnings forecasts for the fiscal year ending March 31, 2007,
which were included in its consolidated earnings report for the first six months released on October 31, 2006.

Business Risks
Major risk factors that could affect the Group’s future performance include, but are not limited to, capital
expenditure trends in water treatment facilities and factory operating rates at clients, price movements in oil andother basic materials, and competition with peers.

Significant Events That Occurred during the Period
Kurita Water Industries Ltd. on January 16, 2007 received an order from the Japan Fair Trade Commission topay a surcharge in accordance with Section 7-2, (1) of the Act Concerning Prohibition of Private Monopolizationand Maintenance of Fair Trade (Antimonopoly Act) for committing an act that violated a provision of Section 3(unreasonable restraint of trade) of the same law in connection with bidding for a project to construct sludge
treatment (human waste treatment) facility. The summary of the order and the expected impact on the company’sbusiness performance are as follows.
1. Summary of surcharge payment order:
(1)
(2)
(3)
(4)

Date of issue
Surcharge payment order No.
Amount of surcharge
Deadline for payment

January 16, 2007
Order No. 2 of 2007
¥328,860,000
April 17, 2007

2. Impact on business performance:
The projected earnings performance of fiscal year ending March 31, 2007 (issued on October 31, 2006) remains
unchanged.

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

Forward-Looking Statements
This news release contains various forward-looking statements, which are based on current expectations andassumptions of future events. Except for the historical information contained herein, all figures and statementswith respect to future performance, projections and business plans of the Kurita Group constituteforward-looking statements. Although Kurita believes that its expectations and assumptions are reasonable,actual results and trends of the Group’s performance could differ materially from those expressed or implied bysuch figures or statements because of risks and uncertainties, including but not limited to factory operating rates
at major clients in the steel, petroleum and paper/pulp industries; and capital expenditure trends in the electronics,
food processing, pharmaceuticals, basic material and automobile industries.

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

As of
As of(Reference)
December 31, December 31,
As of2006
2005
March 31, 2006
(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
expenses
Income taxes payable
Advances received
Other
Fixed liabilities
Accrued employees’ retirement
benefits
Other
Total liabilities(A) – (B)(A) – (C)123,81931,087
10,51149,592
6,902
21,6654,182(123)
92,26062,2592,672
27,328216,079

112,309
29,331
10,461
44,6394,402
19,2314,365(122)
86,46652,2882,965
31,211
198,775

125,231
30,107
10,11566,957
6,162
8,070
3,944
(125)
87,542
53,991
2,863
30,687
212,774

11,510
1,756
50
4,953
2,500
2,434
(183)
(1)
5,794
9,971
(293)
(3,883)
17,304(1,412)980
396(17,365)740
13,595
238
2
4,718
8,268
(191)
(3,359)3,305

52,112
1,964
29,238
8,993
3,032
4,696
4,187
11,47648,022
1,761
29,637
6,494
6,112
4,016
10,13454,877
1,638
28,773
13,493
4,376
2,055
4,540
11,233

4,090
203
(399)
2,499
3,032
(1,416)171
1,342(2,765)326
465(4,500)(1,344)
2,641
(353)
243

8,494
2,981
63,5898,717
1,416
58,156

8,261
2,972
66,111

(223)
1,565
5,433

233
9(2,522)4

As of
As of(Reference)
December 31, December 31,As of2006
2005
March 31, 2006
(A)
(B)
(C)
[Minority interests]
Minority interests[Shareholders’ equity]
Common stock
Additional paid-in capital
Retained earnings
Net unrealized gains (losses) onother securities, etc.
Foreign currency translation
adjustments
Treasury stock
Total shareholders’ equity
Total liabilities, minority interests andshareholders’ equity[Net assets]
Shareholders’ capital
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Valuation and translation
adjustments
Minority interests
Total net assets
Total liabilities and net assets(A) – (B)(A) – (C)

-

1,245

1,295

-

-

-

13,45011,426
115,784

13,45011,426
122,350

-

-

-

3,994

3,132

-

-

-

(492)

(200)

-

-

-

(4,789)139,374(4,793)
145,366---

198,775

212,774--

148,308
13,45011,426
128,232(4,801)

-

-

-

-

2,786

-

-

-

-

1,395
152,490
216,079----5

Condensed Statements of Income - Consolidated(In million yen)Amount%Amount%Amount(Reference)Year ended
March 31, 2006
Amount%Net sales
Cost of sales
Gross profit
Selling, general andadministrative expenses

128,754
87,78740,967

100.0
68.2
31.8

103,675
72,19731,477

100.0
69.6
30.4

25,07915,5909,490

173,683
122,630
51,052

100.0
70.6
29.4

25,90320.1

25,44324.6

460

33,741

19.4

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary gains
Extraordinary losses
Income before income taxes
Income taxes
Minority interests inearnings of consolidated
subsidiaries

15,064699
174
15,58971
15,517
6,362

11.7
0.5
0.1
12.1
0.1
12.0
4.9

6,033
1,167
169
7,031
247
6,783
2,810

5.8
1.1
0.2
6.7
0.2
6.5
2.7

9,031
(468)
5
8,558
(176)
8,734
3,552

17,3111,334
220
18,4251,205
1,430
18,200
7,496

10.0
0.7
0.1
10.6
0.7
0.8
10.5
4.3

179

0.1

117

0.1

62

184

0.1

Net income

8,976

7.0

3,855

3.7

5,121

10,519

6.1

Nine months ended
Nine months ended
December 31, 2006 (A) December 31, 2005 (B) (A) – (B)6Order Intake and Sales
Order Intake

Business segment
Water treatment chemicals
Water treatment facilities
Total

Nine months ended
December 31, 2006
(A)
Amount%41,97829.0
102,62771.0
144,606 100.0

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

Nine months ended
December 31, 2006
(A)
Amount%41,682
32.4
87,072
67.6
128,754 100.0

Nine months ended
December 31, 2005
(B)
Amount%39,78838.4
63,886
61.6
103,675 100.0(A) – (B)
Amount1,620
9,691
11,312(In million yen)
(Reference)Year ended
March 31, 2006
Amount%53,90329.3
130,00770.7
183,910
100.0

Sales

Business segment
Water treatment chemicals
Water treatment facilities
Total(A) – (B)
Amount1,894
23,18625,079(In million yen)
(Reference)Year ended
March 31, 2006
Amount%54,54931.4
119,133
68.6
173,683100.07