FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the First Six Months Ended
September 2008
Tokyo, Japan, October 31, 2008—Kurita Water Industries Ltd. (TSE Security Code 6370)
announced net sales of 95,671 million yen for the first six months (April 1 – September 30,2008) of the fiscal year ending March 31, 2009, and net income of 7,478 million yen, or
58.12yen per share.
Results of Operations
Total consolidated orders for the Kurita Group decreased 1.9% from a year earlier to 106,755
million yen, while net sales grew 1.7% to 95,671 million yen. Operating income was down
2.2% to 13,203 million yen, and ordinary income declined 2.9% to 13,655 million yen. This
resulted in net income of 7,478 million yen, a decrease of 0.6% over the previous interim result.
In a breakdown by segment, sales in water treatment chemicals grew 6.3% year on year to30,682 million yen, while sales in water treatment facilities decreased 0.4% to 64,989 million
yen.
Markets in which the Kurita Group operates presented challenging conditions against abackdrop of soaring crude oil and raw materials prices and financial uncertainties stemmingfrom the subprime mortgage crisis. In the electronics industry, although LCD-related capital
expenditure levels were robust, semiconductor-related capital expenditure levels were low bothin Japan and overseas due to the impact of falling semiconductor prices. In general industries,
factory operating rates and capital expenditures in Japan were largely flat during the first quarterbut followed a declining trend in the second quarter. Overseas, factory operating rates werelargely flat, primarily in Asia.
Segment InformationWater Treatment Chemicals
Total Group orders for the segment increased 5.0% from a year earlier to 31,198 million yen,while sales grew 6.3% to 30,682 million yen, and operating income rose 0.9% to 5,043 millionyen.
As factory operating rates at client companies declined, the Group strengthened efforts to
expand sales of mainstay products, such as boiler water treatment chemicals and cooling water
treatment chemicals, while promoting sales based on proposals tailored to resolve the issues thatclients face, such as the reduction of environmental burdens and productivity improvements.
Japan
Among the Group’s mainstay products, orders for boiler water treatment chemicals were flat,orders for cooling water treatment chemicals increased moderately, and orders for wastewater
treatment chemicals increased, buoyed by the need to reduce environmental burdens at clientcompanies. With regard to other products, orders for process treatment chemicals increased on
the back of higher productivity requirements at client companies, while orders for packaged
water treatment management contracts also increased moderately.
Overseas
Overseas, orders for the Group’s products increased-1-Water Treatment Facilities
Total Group orders for the segment decreased 4.4% from a year earlier to 75,557 million yen,while sales declined 0.4% to 64,989 million yen, and operating income was down 3.9% to 8,165
million yen.
During the period, the Group continued investing actively in service businesses, such as theultrapure water supply business and tool cleaning services, while also focusing efforts onshoring up orders by strengthening sales to strategic clients in the electronics and steelindustries. Overseas, the Group worked to secure orders through concentrated sales efforts
aimed at strategic clients in Taiwan and South Korea.
Orders for the Group’s mainline ultrapure water production systems for the electronics industry
decreased sharply in Japan and overseas due to the decline in semiconductor-related capital
expenditure. Order for the ultrapure water supply business rose significantly in response toincreased demand, and orders for tool cleaning services rose moderately. Orders for water
treatment facilities for general industries declined, and those for maintenance services were flat.

-2-Net Sales, Order IntakeNet Sales(In million yen)
Business segment
Water treatment chemicals
Water treatment facilities
Total

Six months ended September 30,
2007
2008
Amount%Amount%28,87530.7
30,682
32.1
65,23669.3
64,98967.994,112
100.0
95,671
100.0

Year ended March
31, 2008
Amount58,646146,228
204,875

%
28.6
71.4
100.0

Order Intake(In million yen)
Business segment
Water treatment chemicals
Water treatment facilities
Total

Six months ended September 30,
2007
2008
Amount%Amount%29,72527.3
31,19829.2
79,07072.7
75,55770.8
108,795
100.0106,755
100.0Year ended March31, 2008
Amount59,029149,659
208,689

%
28.3
71.7
100.0

Outlook for the Fiscal Year Ending March 31, 2009
Business results for the interim period were largely in line with the initial forecast. The full-year
consolidated forecast remains unchanged from the forecast that appeared in the earnings release
for the year ended March 31, 2008, announced on April 30, 2008.
Financial Condition
Consolidated current assets at the end of the interim period totaled 117,560 million yen, adecrease of 4,002 million yen from the end of the previous fiscal year. This mainly reflects an
8,799 million yen increase in cash and deposits and a 2,217 million yen increase in work inprocess, which were more than offset by a 4,854 decrease in accounts receivable and a 10,578
million yen decrease in marketable securities. The increase in work in process was due to theprogress of works underway in the water treatment facilities business. The decrease in tradeaccounts receivable was due to steady progress made in collections, and the decrease inmarketable securities is primarily due to redemptions.
Fixed assets amounted to 132,704 million yen, an increase of 22,768 million yen from the endof the previous fiscal year. This primarily reflects an increase in tangible fixed assets of 26,556
million yen due to the acquisition of facilities for the ultrapure water supply business.
Current liabilities amounted to 63,803 million yen, an increase of 14,722 million yen from theend of the previous fiscal year. This primarily reflects a 3,093 million yen decrease in income
taxes payable due to the payment of income taxes for the previous fiscal year, which was morethan offset by a 18,703 increase in trade accounts payable associated with the acquisition of thefacilities for the ultrapure water supply business.
Net assets totaled 174,868 million yen, an increase of 3,807 million yen from the end of theprevious fiscal year. This primarily reflects a net increase in retained earnings comprising a2,187 million yen decrease due to the payment of dividends and an increase due to quarterly net
income of 7,478 million yen.

-3-Business Risks
Major risk factors that could affect the Group’s future performance include, but are not limited
to, economic trends, trends in capital expenditure related to water treatment facilities andfactory operating rates at client companies, movements in prices of basic materials, andcompetition with industry peers.
Factors that may affect the Group’s business performance
The performance of the water treatment chemicals business is affected by fluctuations indemand levels reflecting changes in factory operating rates at companies in the steel, petroleum
refining and petrochemical, and pulp and paper industries—the Group’s main sources of clientsfor the business. The Group’s business performance is also affected by movements in the pricesof basic materials.
The performance of the water treatment facilities business is affected by demand fluctuations
caused by trends in capital expenditures at companies in electronics-related industries, theGroup’s main source of clients for the business. The Group’s business performance is also
affected by movements in the prices of major raw materials and outsourcing costs, which
influence equipment production costs.
The Group considers the potential impact of exchange rate movements on its businessperformance to be insignificant as its overseas operations account for only a small proportion of
its overall sales.
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, and wastewater and in manufacturing
processes; and 2) water treatment facilities such as ultrapure water production systems andwastewater treatment facilities. The scope of both business lines includes production, sales, andmaintenance services. For additional information about the Kurita Group, please visit theCompany’s website at: http://www.kurita.co.jp/english/.
Forward-Looking Statements
This news release contains various forward-looking statements that are based on current
expectations and assumptions regarding future events. Except for the historical information
contained herein, all figures and statements with respect to future performance, projections, andbusiness plans of the Kurita Group constitute forward-looking statements. Although Kurita
believes that its expectations and assumptions are reasonable, actual results and trends in theGroup’s performance could differ materially from those expressed or implied by such figuresand statements due to risks and uncertainties.

-4-Financial Statements — Consolidated
Effective this fiscal year, the Company has adopted the “Accounting Standards for Quarterly Financial Reporting”(ASBJ Statement No. 12) and “Guidance on Accounting Standards for Quarterly Financial Reporting” (ASBJ
Guidance No. 14). Consolidated financial statements for the period under review are prepared based on the“Regulations on the Terminology, Form and Preparation of Quarterly Financial Statements.”

Balance Sheets — Consolidated

AssetsCurrent assets
Cash and depositsNotes receivable - trade
Accounts receivable - tradeMarketable securities
Finished products
Raw materials
work in process
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings
Machinery and equipment
Construction in progress
Other
Total for tangible fixed assets
Intangible fixed assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets(millions of yen)

As of September 30,
2008

As of March 31,
2008

19,116
8,679
58,693
13,366
1,522
1,458
10,345
4,545(168)
117,560

10,316
8,666
63,54823,945
1,428
1,365
8,128
4,323
(159)
121,562

21,24237,31532,22517,757
108,541
2,332

22,00237,703
4,664
17,614
81,984
2,497

21,924(94)
21,830132,704
250,265

25,547(93)
25,454
109,935
231,498

1,891
18,93451
26,816
5,035
2,890
1,022
7,161
63,803

1,990
21,344
102
8,113
8,128
2,401
1,182
5,816
49,080

8,503

8,358

742
2,346
11,59275,396709
2,288
11,35760,437

Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Short-term borrowings
Accounts payable - other / Accrued
expenses
Income taxes payable
Accrued employees’ bonuses
Other reserves
Other
Total current liabilities
Fixed liabilities
Accrued employees’ retirement
benefits
Other reserves
Other
Total fixed liabilities
Total liabilities-5-Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Total shareholder's equity
Valuation and translation adjustments
Unrealized gains onavailable-for-sale securities
Unrealized gains (losses) onrevaluation of land
Foreign currency translation
adjustments
Total Valuation and translation
adjustments
Minority interests
Total net assets
Total liabilities and net assets-6-

13,45011,426
153,165(4,840)173,20213,45011,426
147,874(4,827)
167,924

896

1,773

(750)

(750)

69455

214

1,478

1,451
174,868
250,2651,658
171,061
231,498

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 andadministrative expenses

Six Months ended Six Months ended
September 30,
September 30,
2008
2007
AmountAmount
95,671
94,11264,01962,45931,652
31,652

6,024

-

1,386

-

2,404
8,632

-

18,44818,156

Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expense
Interest expense
Loss on disposal ofproperties
Other
Total non-operating expense
Ordinary income
Extraordinary losses
Valuation loss on
investment securities
Total extraordinary losses
Income before income taxes
Income taxes
Minority interests in earnings ofconsolidated subsidiaries

13,203

13,496

146
165
260
572

693

19-

29-

72
120
13,655126
14,063317-

317
13,337
5,667

63
13,999
6,328

191

148

Net income

7,478

7,522

Accounting standards applied this fiscal year differ from those applied last fiscal year, so last year’squarterly results are provided for reference only.

-7-

Statements of Cash Flows — Consolidated(millions of yen)Six months ended
September 30,2008
AmountCash flows from operating activities
Income before income taxes and minority interest
Depreciation and amortization
Increase (decrease) in allowances(Increase) decrease in notes and accounts receivables 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
Payments for purchases of marketable securities
Proceeds from redemption and sale of marketablesecurities
Payments for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipmentPayments for purchases of investment securities
Proceeds from liquidation of subsidiaries
Other expenses
Other income
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayment of long-term borrowings
Payments for purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders ofconsolidated subsidiaries
Repayment for finance lease obligation
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of theperiod
Cash and cash equivalents at the end of the period-8-13,337
5,346
531
4,698
(2,587)(2,401)(8,643)525
10,806(3,497)
4,698(11,155)
25
(5)
1,451
(735)
177
(9,040)(50)(12)(2,184)(44)(7)(2,300)(320)(854)
30,36029,505

Segment Information
Business segment information
Six months ended September 30, 2008 (April 1, 2008 – September 30, 2008)(millions of yen)Water
treatmentchemicals

Watertreatment
facilities

Total

30,682135
30,8175,043

64,98957
65,047
8,165

95,671
193
95,864
13,208

Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income

Eliminationor corporate Consolidated

(193)
(193)
(4)

95,671
95,671
13,203

Geographical Segment Information
Six months ended September 30, 2008 (April 1, 2008 – September 30, 2008)

Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income

Japan

Otherregions

Total

86,176993
87,17012,040

9,494
59
9,554
979

95,671
1,053
96,72413,019(millions of yen)Eliminationor corporate Consolidated(1,053)(1,053)
184

95,671
95,671
13,203

Notes:
1. Geographic segmentation is based on geographic proximity.
2. "Other regions" in the above table consists of Asia and other areas.
Overseas Sales
Six months ended September 30, 2008 (April 1, 2008– September 30, 2008)

I.

Overseas sales

II.

Consolidated sales

III.

Ratio of overseas sales to total
consolidated sales (%)(millions of yen)

Asia
9,472

North
America502

Europe
840

Other
1,691

Total
12,507----

95,671

9.9

0.5

0.9

1.813.1Notes:
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” includes sales by the Company and its consolidated subsidiaries in countries orregions other than Japan.

-9-