FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for the Fiscal Year Ended March 2008
Tokyo, Japan, April 30, 2008—Kurita Water Industries Ltd. (TSE Security Code 6370) announced net
sales of 204,875 million yen for the fiscal year ended March 31, 2008, (April 1 2007 – March 31, 2008)
and net income of 18,297 million yen, or 142.21 yen per share.

Results of Operations
Total consolidated orders for the Kurita Group increased 8.4% from a year earlier to 208,689 million yen,while net sales grew 3.9% to 204,875 million yen. Operating income was up 25.5% to 30,468 million yen,and ordinary income rose 23.9% to 31,243 million yen. This resulted in net income of 18,297 million yen,
an increase of 28.8% from a year earlier. By segment, sales in water treatment chemicals grew 3.5% year
on year to 58,646 million yen, while sales in water treatment facilities rose 4.1% to 146,228 million yen.
Markets in which the Kurita Group operates remained strong overall during the fiscal year under review
amid the emergence in the second half of sources of uncertainty regarding future economic conditions,such the subprime mortgage crisis and surging crude oil and materials prices. Capital expenditure levels
were strong in Japan against a background of buoyant demand in the electronics industry forsemiconductor and LCD products. Overseas, capital expenditure slowed in Taiwan as semiconductor
prices declined. In general industries, both factory operating rates and capital expenditures remainedrobust in Japan, mainly in basic materials sectors such as steel, oil refining, and petrochemicals. Overseas,factory operating rates in these industries were largely robust, primarily in Asia.

Segment Information
Water Treatment Chemicals
Total Group orders for the segment increased 4.4% from a year earlier to 59,029 million yen, while sales
grew 3.5% to 58,646 million yen, and operating income rose 8.2% to 9,525 million yen.
During the period, the Group concentrated its efforts on securing stable order flows by further focusing on
expanding sales of mainstay products, such as boiler water treatment chemicals and cooling water
treatment chemicals, while promoting sales based on proposals tailored towards resolving the issues thatclients face, such as the reduction of environmental burdens, operational stabilization, and productivity
improvements. The Group also worked to expand sales of high-value-added products and reduce
manufacturing and logistics costs in order to counter the rise in costs stemming from surging raw
materials prices.
Japan
Of the Group’s mainstay products, orders for boiler water treatment chemicals were flat. Orders for
wastewater treatment chemicals and orders for cooling water treatment chemicals increased as a result ofsales efforts focusing on the Group’s mainstay products. With regard to other products, orders for
packaged water treatment management contracts were flat, while orders for process treatment chemicals
used in the paper and pulp industry increased significantly, buoyed by higher productivity requirements atclient companies.
Overseas
Orders increased sharply in all regions, particularly orders for water treatment chemicals for
petrochemical complexes.
Water Treatment Facilities
Total Group orders for the segment increased 10.1% from a year earlier to 149,659 million yen, whilesales grew 4.1% to 146,228 million yen, and operating income rose 35.3% to 20,939 million yen.
During the period, the Group continued to invest aggressively in service businesses, such as the ultrapure
water supply business and tool cleaning services, while bolstering sales to strategic clients in theelectronics and steel industries. Overseas, the Group worked to secure orders through concentrated sales
efforts aimed at strategic clients in Taiwan and South Korea. To secure revenues and earnings, the Group
continued its efforts to improve design and installation productivity, reduce costs, and improve quality.
1Orders for the Group’s mainline ultrapure water production systems for the electronics industry increasedslightly in Japan and were flat in overseas markets. Orders for water treatment facilities used in generalindustries grew significantly, reflecting increased orders from oil refining and petrochemical industries
and large orders from the steel industry. In service businesses, orders for the ultrapure water supply
business for the electronics industry rose significantly on the back of increased production at clientcompanies. Orders for tool cleaning services for semiconductor and LCD production equipment andorders for related maintenance services increased moderately. Orders for soil remediation services
declined substantially due to a slowdown in land trade.

Net Sales, Order Intake, and Order Backlog
Net SalesYear ended March 31,
Business segment
Water treatment chemicals
Water treatment facilities
Total

2006
Amount%54,54931.4
119,133
68.6
173,683
100.0

2007
Amount%56,66728.7
140,479
71.3
197,146
100.0(million yen)
2008
Amount%58,64628.6
146,22871.4
204,875
100.0

2006
Amount%53,90329.3
130,00770.7
183,910100.0

2007
Amount%56,56029.4
135,969
70.6
192,529
100.0(million yen)
2008
Amount%59,02928.3
149,659
71.7
208,689
100.0

2006
Amount%3,607
6.0
56,34094.0
59,947100.0

2007
Amount%3,499
6.3
51,83093.7
55,330100.0(million yen)
2008
Amount%3,882
6.6
55,262
93.4
59,144100.0

Order Intake
Year ended March 31,
Business segment
Water treatment chemicals
Water treatment facilities
Total

Order Backlog
Year ended March 31,
Business segment
Water treatment chemicals
Water treatment facilities
Total

Significant Events during the Fiscal Year Ended March 31, 2008
During the year ended March 31, 2008, the Company finalized decisions to make capital investments
totaling 50,000 million yen primarily in facilities used by the ultrapure water supply business.

Outlook for the Fiscal Year Ending March 31, 2009
The Group forecasts 213,000 million yen in net sales, 32,000 million yen in operating income, and 18,500
million yen in net income for the full year ending March 31, 2009.
Amid a global slowdown in economic growth due to the impact of the subprime mortgage crisis, surging
crude oil and raw materials prices, and other factors, the Group is expecting harsher market conditions ascapital expenditure and factory operating rates at client companies decline.
In this environment, as the Group concludes the final year of the current medium-term management plan,
Growth 2008 (G-8), it will focus on accelerating the expansion of the ultrapure water supply business,along with its other service businesses and global businesses, to achieve profitable growth.

2Outlook by Segment
Water Treatment Chemicals
Factory operating rates at clients, which significantly impact order intake, may decline, and there are also
concerns that increased cost-cutting efforts by clients, along with cost increases in this segment, due tosurging oil and basic materials prices, may adversely affect the segment’s profitability. Under suchcircumstances, the Group aims to further expand sales of its mainstay products and will also strive tomaintain and increase order flows by bolstering efforts to build close client relationships, thereby
facilitating sales based on proposals tailored towards resolving the issues that clients face, as well as bystrengthening collaboration with domestic sales subsidiaries and investing resources in strategic overseas
markets.
The Group will continue its efforts to secure earnings by reducing manufacturing and logistics costs forwater treatment chemicals and accelerating the development of new, high-value-added products.
Water Treatment Facilities
Uncertainty remains regarding future capital expenditures on water treatment facilities due to demand
trends in the electronics industry, industry restructuring, and other factors. In the overall manufacturingsector also, there are concerns that capital expenditures by client companies on water treatment facilities
may decline. In this environment, the Group aims to expand orders steadily by accelerating its shift toservice businesses that are not directly affected by capital investment trends at client companies. The
Group also aims to secure a flow of orders for water treatment facilities by concentrating on sales tostrategic clients and promoting sales based on proposals tailored towards resolving the issues that clients
face.
Furthermore, the Group will focus on securing earnings by continuing efforts to enhance quality, reduce
costs, and improve design and installation productivity.

Dividends
The Company has decided on a year-end dividend of 17 yen per share, an increase of 2 yen from theprevious year-end dividend. This takes into account the Group’s business performance and is aimed atrewarding shareholders for their support. This year-end dividend, together with the interim dividend of 15
yen per share (an increase of 2 yen from the previous interim dividend), will result in an annual dividendof 32 yen per share, an increase of 4 yen per share from a year earlier.
For the next fiscal year, the Company intends to pay an interim dividend of 17 yen per share and a
year-end dividend of 17 yen per share for a total annual dividend of 34 yen per share.
Moving forward, the Company will remain committed to the basic policy of maintaining stable dividend
payments. The Company will also strive to increase dividends while taking account of trends in its
business results and working to increase and utilize retained earnings.

Financial Condition
Assets, Liabilities, and Net Assets
Current assets at the end of the fiscal year amounted to 121,562 million yen, a decline of
15,441 million yen compared to the end of last fiscal year. This was mainly attributable to declines of
27,444 million yen in cash and deposits, 3,212 million yen in trade accounts receivable, and
1,143 million yen in inventories, as well as an increase of 18,114 million yen in marketable securities.
The decline in cash and deposits was primarily due to the shift of negotiable deposits, which were
included in cash and deposits, into marketable securities and the payment of accounts payable. The
decline in accounts receivable was due to progress made in the collection of receivables.
Fixed assets at the end of the fiscal year totaled 109,935 million yen, an increase of 11,802 million yen
compared to the end of last fiscal year. This was mainly attributable to the 14,695 million yen increase intangible fixed assets, due to the acquisition of facilities primarily for use by the ultrapure water supply
business, although investment securities declined.

3

Current liabilities at the end of the fiscal year totaled 49,080 million yen, a decline of 16,416 million yen
compared to the end of last fiscal year. This was mainly attributable to declines of 10,974 million yen in
trade accounts payable and 4,102 million yen in other accounts payable and accrued expenses.
Total net assets came to 171,061 million yen, an increase of 12,860 million yen compared to the end oflast fiscal year. This was mainly attributable to an increase in retained earnings of 14,428 million yen due
to net income of 18,297 million yen being achieved, and comes despite a 1,889 million yen decrease inunrealized gains on other securities due to a decline in market values of investment securities held by the
Kurita Group.
Cash Flows
Consolidated net cash and cash equivalents at the end of the year stood at 30,360 million yen, a decreaseof 7,082 million yen, or 18.9%, from the end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to 20,380 million yen, a decline of 6,689 million yen
from the end of last fiscal year. This primarily reflects net inflows in the form of income before income
taxes of 31,279 million yen, a 4,987 million yen decrease in trade notes and accounts receivable, anddepreciation and amortization totaling 9,425 million yen, which were offset by a 11,203 million yen
decrease in trade notes and accounts payable and the payment of income taxes in the amount of 12,475
million yen.
Cash Flows from Investing Activities
Net cash used in investing activities was 23,156 million yen, a decline of 6,702 million yen from a year
earlier, primarily reflecting outflows of 10,055 million yen for the acquisition of marketable securities and26,101 million yen for the acquisition of tangible fixed assets, such as equipment for use in the ultrapure
water supply business, which were offset somewhat by 13,299 million yen in proceeds from theredemption and sale of marketable securities.
Cash Flows from Financing Activities
Net cash used in financing activities was 4,365 million yen, an increase of 906 million yen from a year
earlier, mainly reflecting dividend payments of 3,857 million yen.
Cash Flow Indicators
Fiscal year ended March 31,
Equity ratio (%)
Equity ratio (based on market
capitalization) (%)
Interest-bearing debt to cash flow
ratio (%)
Interest coverage ratio (times)

2005
70.9

2006
68.3

2007
66.7

2008
73.2

112.7

152.3

155.9

203.9

13.8

8.9

4.1

4.0

230.5

322.2

601.6

452.9

Notes:
1. All indicators are calculated using financial figures produced on a consolidated basis.
2. Market capitalization is calculated by multiplying the closing stock price at the end of the period by the
number of shares issued and outstanding (i.e. excluding treasury stock) at the end of the period.
3. The cash flow variable used in the calculations represents cash flow from operating activities.
4. Interest-bearing debt refers to all debts recorded on the consolidated balance sheet that incur interest
payments.

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 and factory operating
rates at client companies, price movements in basic materials, and competition with industry peers.
Factors that may affect the Group’s business performance
The performance of the water treatment chemicals business is affected by fluctuations in demand levels
reflecting changes in factory operating rates at companies in the steel, petroleum refining and4petrochemical, and pulp and paper industries—the Group’s main sources of clients for the business. The
Group’s business performance is also affected by movements in the prices of basic materials.
The performance of the water treatment facilities business is affected by demand fluctuations caused bytrends in capital expenditures at companies in electronics-related industries, the Group’s main source ofclients for the business. The Group’s business performance is also affected by movements in the prices ofmajor raw materials and outsourcing costs, which influence equipment production costs.
The Group considers the potential impact of exchange rate movements on its business performance 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 towater 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 and wastewater treatment facilities. The scope ofboth business lines includes production, sales, and maintenance services. For additional information about
the Kurita Group, please visit the Company’s website at: http://www.kurita.co.jp/english/.

Forward-Looking Statements
This news release contains various forward-looking statements based on current expectations andassumptions regarding future events. Except for the historical information contained herein, all figuresand statements 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 in the Group’s performance could differ materially from thoseexpressed or implied by such figures and statements due to risks and uncertainties.

5

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

As of March 31,
2007 (A)2008 (A)AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Inventories
Deferred tax assets
Other
Allowance 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
Short-term borrowings
Accounts payable - other / Accrued
expenses
Income taxes payable
Advances received
Accrued employees’ bonuses
Allowance for product warranty
Other
Fixed liabilities
Deferred tax liabilities related torevaluation
Accrued employees’ retirement
benefits
Accrued retirement benefits for
directors and corporate auditors
Other
Total liabilities
Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Valuation and translation
adjustments
Minority interests
Total net assets
Total liabilities and net assets

Change(B) – (A)137,004
37,761
10,32066,7605,830
12,065
2,713
1,716
(164)
98,13367,2882,607
28,237
235,137

121,562
10,316
8,666
63,54823,945
10,921
2,912
1,410
(159)
109,935
81,9842,497
25,454
231,498(15,441)(27,444)(1,653)(3,212)
18,114(1,143)199(306)
411,802
14,695(110)(2,783)(3,638)65,4962,433
32,318333
13,141
7,498
4,920
2,327
1,230
1,291
11,44049,0801,990
21,344
102
9,039
8,128
3,584
2,401
1,131
1,357
11,357(16,416)(443)(10,974)(230)(4,102)629(1,335)
73
(98)
65
(83)

1,526

1,519

(7)

8,392

8,358

(34)

696

709

13

825
76,937769
60,437(55)(16,499)

153,519
13,45011,426
133,446(4,803)

167,924
13,45011,426
147,874(4,827)

14,404
14,428
(24)

3,252

1,478

(1,774)

1,427
158,200
235,137

1,658
171,061
231,498

230
12,860(3,638)6

Condensed Statements of Income — Consolidated(millions of yen)

Year ended March 31,

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses2007 (A)Amount%197,146
100.0
137,81969.9
59,32630.1

2008 (B)
Amount%204,875
100.0
138,549
67.6
66,325
32.4

Change(B) – (A)Amount
7,728
729
6,998

35,05017.8

35,85717.5

807

Operating income
Non-operating income
Non-operating expense
Ordinary income
Extraordinary gains
Extraordinary losses
Income before income taxes
Income taxes
Current
Deferred
Minority interests in earnings ofconsolidated subsidiaries

24,276
1,242
293
25,226634
24,591

12.3
0.6
0.1
12.8
0.3
12.5

30,4681,190
415
31,243302
266
31,279

14.9
0.5
0.2
15.2
0.2
0.1
15.3

6,191
(52)
121
6,017
302
(367)
6,687

11,131(1,061)5.6(0.5)

13,113
(469)

6.4
(0.2)

1,982
591

314

0.2

337

0.2

22

Net income

14,207

7.2

18,297

8.9

4,090

7

Statements of Cash Flows — Consolidated(millions of yen)
Year ended March 31,

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of negative consolidation goodwill
Equity in earnings of unconsolidated subsidiaries andaffiliates
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for employees’
retirement benefits
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other allowancesInterest and dividend income
Other non-operating income
Interest expense
Other non-operating expenses and extraordinary losses
Losses (gains) on sale/disposal of tangible fixed assets
Decrease in notes and accounts receivables - trade
Decrease (increase) in inventories
Decease (increase) in other current assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Increase (decrease) in other current liabilities
Bonus paid to directors
Other
Sub totalInterest and dividend received
Other non-operating income received
Interest paid
Other non-operating expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

2007 (A)Amount2008 (B)
AmountChange(B) – (A)Amount24,5916,512(56)

31,279
9,425
-

6,687
2,913
56

(172)

(115)

56

(66)

59

125

103

(42)

(146)

119
694
(566)
(350)
50
745
141
708
(3,945)
98
2,192
2,846
1,256
(230)
34,673
649
360
(45)
(536)
(8,032)
27,070

(114)
(93)
(652)
(422)
45
343
(42)
4,987
1,073
(187)
(11,203)(1,338)(1,106)(14)
77
31,957
747
411
(45)
(215)
(12,475)
20,380

(233)
(788)
(85)
(71)
(4)
(402)
(183)
4,278
5,018
(285)
(13,395)(4,184)(2,362)(14)
307(2,716)97
50
0
320(4,442)(6,689)(113)
34(11,124)(50)
15(10,055)

63
(19)
1,068

Cash flows from investing activities
Deposits into time deposit accounts
Withdrawals from time deposits
Payments for purchases of marketable securities
Proceeds from redemption and sale of marketablesecurities
Payments for purchases of tangible fixed assets
Proceeds from sale of tangible fixed assets
Payments for purchases of investment securities
Proceeds from sale of investment securities
Other expenses
Other income
Net cash provided by (used in) investing activities

14,843

13,299(1,544)(18,846)
43(1,224)
514
(786)
205
(16,453)(26,101)350(1,988)1,914(1,040)500(23,156)(7,255)
306
(763)
1,399
(253)
295
(6,702)

Cash flows from financing activities
Proceeds from and repayment of short-term borrowings
Proceeds from and repayment of long-term borrowings
Acquisition of treasury stock
Dividends paid
Dividends paid to minority shareholders
Net cash provided by (used in) financing activities

(81)
(192)
(10)
(3,086)(88)(3,458)

(235)
(139)
(24)
(3,857)(108)(4,365)

(154)
52
(13)
(770)
(20)
(906)

280

(18)

(299)

7,438

(7,160)(14,598)

29,87137,442

7,570

132

78

(54)

37,44230,360(7,082)

Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of theperiodCash and cash equivalents of newly consolidated
subsidiaries at the beginning of the period
Cash and cash equivalents at the end of the period8Segment Information
By business type for the year ended March 31, 2007 (April 1, 2006 – March 31, 2007)(millions of yen)

I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating cost and expenses
Operating income
II. Assets, depreciation and capital
expenditures
AssetsDepreciation and amortization
Capital expenditures

Water
treatmentchemicals

Watertreatment
facilities

Total

56,667262
56,93048,123
8,806

140,47978
140,557
125,086
15,471

197,146340
197,487
173,20924,278

(340)
(340)
(339)
(1)

197,146
197,146
172,870
24,27637,726
1,648
1,324

141,952
4,864
18,238

179,679
6,512
19,56355,458-235,137
6,512
19,563Eliminationor corporate Consolidated

By business type for the year ended March 31, 2008 (April 1, 2007 – March 31, 2008)(millions of yen)

I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating cost and expenses
Operating income
II. Assets, depreciation and capital
expenditures
AssetsDepreciation and amortization
Capital expenditures

Water
treatmentchemicals

Watertreatment
facilities

Total

58,646310
58,95749,431
9,525

146,22887
146,315
125,375
20,939204,875397
205,272
174,80730,465

(397)
(397)
(400)
2

204,875
204,875
174,40730,46837,791
1,732
1,617

150,225
7,692
22,480188,017
9,425
24,09743,481-

231,498
9,425
24,097

Eliminationor corporate Consolidated

9

Geographical Segment Information
Geographical segment information for last fiscal year is omitted as the Japanese market accounted formore than 90% of both sales and total assets as a proportion of total sales and total assets, respectively,
across all segments.
Year ended March 31, 2008 (April 1, 2007 – March 31, 2008)

I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating cost and expenses
Operating income
II. Assets

Japan

Other
regions

Total

183,867
2,272
186,139
158,222
27,917
178,960

21,007802
21,81019,6002,210
10,028204,875
3,075
207,950
177,82230,127
188,989(millions of yen)
Eliminationor corporate Consolidated(3,075)(3,075)(3,415)340
42,509204,875
204,875
174,40730,468231,498

Overseas SalesYear ended March 31, 2007 (April 1, 2006 – March 31, 2007)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated sales

Asia
22,635-North
America
3,424-Europe
1,296
-

Other
2,171
-

Total
29,528
197,146

11.5%

1.7%

0.7%

1.1%

15.0%

Year ended March 31, 2008 (April 1, 2007 – March 31, 2008)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated sales

Asia
23,723-

North
America
2,759-Europe
1,736
-

Other
3,107
-

Total
31,327
204,875

11.6%

1.3%

0.9%

1.5%

15.3%

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

10