FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for the Nine Months endedDecember 31, 2010
Tokyo, Japan, January 31, 2011—Kurita Water Industries Ltd. (TSE Securities Code6370) announced net sales of 129,237 million yen for the nine months ended December
31, 2010 (April 1, 2010 – December 31, 2010) and net income of 11,984 million, or93.43 yen per share.
Results of Operations
Total consolidated orders for the Kurita Group in the nine months ended December 31,
2010, were up 0.8% versus the year-ago period (nine months ended December 31,2009) to 126,004 million yen, and net sales increased 4.7% to 129,237 million yen.
Operating income was 19,385 million yen, up 5.3% versus the year-ago period; ordinary
income was 20,115 million yen, up 6.8%; and net income was 11,984 million yen, down
0.3%.
Markets in which the Kurita Group operates remained adverse during the nine months
ended December 31, 2010, as new capital expenditure in Japan remained at low levels
despite an ongoing mild economic recovery.
Overview by Segment
The Kurita Group is composed of segments delineated according to the products andservices handled by each of its business divisions. These reportable segments
correspond to the segments that the Group has used thus far, namely the Water
Treatment Chemicals segment and the Water Treatment Facilities segment.
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 42,473 million
yen, up 7.6% versus the year-ago period, and sales increased 5.8% to 42,373 million
yen. Operating income rose 22.6% to 7,797 million yen.
During the nine months ended December 31, 2010, the Kurita Group bolstered salesefforts by strengthening intra-group alliances and pursued order bookings throughconsultative sales to help customers successfully meet challenges such as productivity
enhancement and environmental mitigation.
In Japan, orders for and sales of boiler water treatment chemicals, cooling water
treatment chemicals, and wastewater treatment chemicals, the Group’s mainstay
products, increased versus the year-ago period. The increase was a response toimprovements in capacity utilization at customer plants and a redoubling of consultative
sales efforts.
Overseas, orders and sales increased in response to recoveries in production in variousindustries, mainly in Asia, and more determined sales activities by the Group.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 83,530 million yen,down 2.3% versus the year-ago period, and sales rose 4.1% to 86,863 million yen.
Operating income fell 3.9% to 11,587 million yen.
During the nine months ended December 31, 2010, the Group worked to generate
profits by focusing on service businesses and endeavored to expand order bookings bystepping up both consultative sales targeting key customers and sales activities in Asia,1with emphasis on China.
In the electronics industry, orders for the ultrapure water supply business rose slightly
versus the year-ago period, while orders for ultrapure water production systems
increased overseas. Orders for maintenance services rose due to recovery inmaintenance services demand at customer plants in Japan. Sales of ultrapure waterproduction systems increased on the back of progress on projects in Japan and overseas.
Sales of maintenance services also rose.
In general industries, orders for water treatment facilities declined versus the year-ago
period, while orders for maintenance services increased. Sales of water treatment
facilities declined amid a lull in sales from large projects in the steel industry, and soil
remediation service sales also dropped. Meanwhile, sales of maintenance services
increased versus the year-ago period.
Financial Condition
Current assets totaled 112,023 million yen at the end of the fiscal third quarter(December 31, 2010), an increase of 2,726 million yen versus the end of the previous
fiscal year (March 31, 2010). The increase was mainly due to increases of 11,545
million yen in cash and deposits and 3,818 million yen in work in process, which werepartially offset by declines of 5,864 million yen in trade accounts receivable and 8,500
million yen in marketable securities. The increase in cash and deposits resulted fromprogress with collections and a decrease in negotiable certificates of deposits, which aretreated as marketable securities. The increase in work in process was due to ongoingprogress of works in the water treatment facilities business. The decreases in tradeaccounts receivable and marketable securities are stated above.
Noncurrent assets totaled 134,204 million yen at the end of the fiscal third quarter, adecline of 8,119 million yen versus the end of the previous fiscal year. The decline wasdue to an 8,103 million yen decrease in property, plant and equipment due todepreciation on past years’ investments in ultrapure water supply business facilities
exceeding current period investments in property, plant and equipment.
Current liabilities totaled 32,285 million yen at the end of the fiscal third quarter, adecrease of 6,307 million yen versus the end of the previous fiscal year. The change wasmainly due to a decline in income taxes payable of 5,145 million yen resulting from thepayment of annual and interim taxes.
Noncurrent liabilities totaled 19,285 million yen at the end of the fiscal third quarter, aslight increase of 197 million yen versus the end of the previous fiscal year.
Net assets totaled 194,656 million yen at the end of the fiscal third quarter, anincrease of 717 million yen versus the end of the previous fiscal year. The change
mainly reflects an 11,984 million yen increase in retained earnings due to net income
for the first three quarters. This increase were partially offset by a 4,783 million yen
increase in treasury stock from open market repurchases, a 4,888 million yen decrease
in retained earnings due to dividend payments, and a 1,619 million yen decrease invaluation and translation adjustments due to a decrease in unrealized gains onavailable-for-sale securities reflecting a drop in the market prices of investment
securities held by the Group.

2

Outlook for the Fiscal Year Ending March 31, 2011
In light of recent operating performance, the Kurita Group has revised the earnings
forecast that it issued on April 30, 2010 for the fiscal year ending March 31, 2011 (April1, 2010 – March 31, 2011) as follows.
Revised full-year consolidated earnings forecast for the fiscal year ending
March 31, 2011 (April 1, 2010 – March 31, 2011)
Net sales
Previous forecast (A)Revised forecast (B)Change (B – A)
Percent change
For reference:
Fiscal year ended
March 31, 2010
(actual)195,000
185,000(10,000)(5.1)%
178,520

OperatingOrdinary
incomeincome(millions of yen)
29,50030,00027,50028,000(2,000)(2,000)(6.8)%(6.7)%
26,35827,096

17,30016,500(800)(4.6)%Net income
per share(yen)134.47130.27——

17,288134.38Net income

The Kurita Group continues to face an adverse market environment and murky
economic outlook. In this environment, the Kurita Group worked to expand earnings
through consultative sales aimed at helping customers successfully meet challenges
such as productivity enhancement and environmental mitigation. Nevertheless,customers’ capital expenditure demand has been slow to recover, and the Group has
therefore revised its earnings forecast as detailed above.

3Financial Statements — Consolidated
Balance Sheets — Consolidated
As ofDecember 31, 2010
AmountAssets
Current assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipmentIntangible fixed assets
Investments and other assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable – trade
Accounts payable - trade
Income taxes payable
Allowances
Other
Total current liabilities
Noncurrent liabilities
Accrued employees’ retirement benefits
Other allowances
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets(millions of yen)

As ofMarch 31, 2010
Amount27,9086,276
44,111
20,000
1,399
6,418
1,536
4,422
(50)
112,023

16,363
5,393
49,97528,500
1,334
2,600
1,186
4,075
(132)
109,297

32,54650,54025,309108,397
1,964

35,68551,65929,154
116,500
2,173

24,008(165)
23,842
134,204
246,227

23,854(205)
23,649142,323
251,620

1,715
15,562
2,285
1,873
10,84732,285

1,198
15,6327,430
2,924
11,406
38,592

9,957
437
8,891
19,28551,571

9,465
449
9,172
19,08857,68013,45011,426
179,812(9,638)
195,052

13,45011,426
172,717(4,855)
192,738814(764)(1,818)(1,768)
1,372
194,656
246,227

1,989
(764)
(1,374)(149)
1,350
193,939
251,620

4

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 and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Commissions paid
Loss on disposal of properties
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain from cancellation of contracts
Total extraordinary incomeExtraordinary losses
Loss on liquidation of affiliated companies
Loss on liquidation of businessTotal extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income

Nine months ended
December 31, 2009
Amount123,458
79,58543,873Nine months ended
December 31, 2010
Amount129,237
83,42645,810

10,316641
2,923
11,57625,45818,415

10,900699
3,023
11,801
26,424
19,385

65
233

76
307

211

220

189
700

353
958

21
50
212
28418,831

22
55
56
94
228
20,115

1,505
1,505-

136
136
20,1998,139-

73
73
20,041
7,956
12,08440

100

12,01911,984

5

Statements of Cash Flows — Consolidated(millions of yen)

Nine months
ended
December 31,
2009
AmountNine months
ended
December 31,
2010
AmountCash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowances(Increase) decrease in notes and accounts receivable - trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable - tradeIncrease (decrease) in advances received
Income taxes paid
OtherNet cash provided by (used in) operating activities

20,19911,468(1,273)14,002(5,100)(1,849)1,081(8,546)
1,335
31,316

20,041
12,046(717)
4,974(4,304)169(12,875)(668)
18,666

Cash flows from investing activities
Deposits into time deposit accounts
Withdrawals from time deposits
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketable securities
Payments for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchases of investment securities
Other payments
Other proceeds
Net cash provided by (used in) investing activities(2,099)2,916(17,337)49(7)(1,431)
1,398(16,513)(29,678)
12,759(50,000)
54,000(3,766)26(1,952)(443)
170(18,884)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities

(0)
(327)
(6)
(4,111)(78)(4,525)509(352)(4,782)(4,870)(11)(9,506)

660

(183)

10,93825,262(9,907)
20,59060

4636,261

10,729Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at the end of the period

6Notes on the Going-concern Assumption
Nine months ended December 31, 2010 (April 1, 2010 – December 31, 2010)

Not applicable

Segment Information
Business segment information
Nine months ended December 31, 2009 (April 1, 2009 – December 31, 2009)

Sales(1) Sales to outside customers(2) Inter-segment sales ortransfers
Total
Operating income(millions of yen)

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

40,054

83,403

123,458-

123,458

297

59

356

(356)

-

40,352

83,462

123,814(356)

123,458

6,359

12,055

18,415-

18,415

Eliminationor corporate

Consolidated

Geographical segment information
Nine months ended December 31, 2009 (April 1, 2009 – December 31, 2009)(millions of yen)

Otherregions

Japan
Total
Sales
(1) Sales to outside customers
112,661
10,796
123,458(2) Inter-segment sales or
1,127
185
1,312
transfers
Total
113,788
10,982
124,771
Operating income
17,044
1,152
18,196
Notes:
1. Geographic segmentation is based on geographic proximity.
2. “Other regions” in the above table consists of Asia and other areas.

Eliminationor corporate

Consolidated-

123,458(1,312)-(1,312)
218

123,458
18,415

Overseas sales
Nine months ended December 31, 2009 (April 1, 2009 – December 31, 2009)(millions of yen)I.

Overseas sales

Asia
8,641

NorthAmerica
1,163Europe
1,038

Other
1,815

Total
12,659II. Consolidated net sales
123,458
III. Ratio of overseas sales to total
7.0%
1.0%
0.8%
1.5%
10.3%
consolidated sales
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:Brazil
3. “Overseas sales” comprises sales by the Company and its consolidated subsidiaries in countries orregions other than Japan.

7Additional information
Effective the first quarter of the fiscal year ending March 31, 2011, the Company adopted the Revised
Accounting Standard for Disclosures about Segments of an Enterprise and Related Information (ASBJ
Statement No. 17, revised March 27, 2009) and its accompanying Guidance on the Accounting Standardfor Disclosures about Segments of an Enterprise and Related information (Guidance No. 20, March 21,2008).
1. Overview of reportable segments
The Company’s reportable segments are components of the Company about which separate financial
information is available. These segments are subject to periodic examinations to enable the Company’sboard of directors to decide how to allocate resources and assess performance.
The Company’s business divisions are based on product and service categories. Each of the divisions
conduct business based on comprehensive strategies formulated for the products and services that theyhandle. The Company’s consolidated subsidiaries conduct business under relevant business divisions’supervision.
The Group’s operations are therefore segmented based on the products and services handled by eachof the divisions. The Company’s reportable segments correspond to the segments it has used thus far,namely the Water Treatment Chemicals segment and Water Treatment Facilities segment.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals andequipment and provides maintenance services. The Water Treatment Facilities segment manufacturers
and sells water treatment equipment and facilities, provides ultrapure water, chemical cleaning, toolcleaning, soil and groundwater remediation services, and provides maintenance services thatencompass operation, maintenance, and management of water treatment facilities.
2. Sales and income by reportable segment
Nine months ended December 31, 2009 (April 1, 2009 – December 31, 2009)
Reportable segment
Water
WaterTreatment
Treatment
Facilities
Chemicals
Total
Sales
(1) Sales to outside customers(2) Inter-segment sales or transfers
Total
Segment income(millions of yen)Amounts reported on
the quarterly
Adjustments statements of income(note 1)
(note 2)

42,373276
42,65086,863
115
86,979129,237391
129,629

(391)
(391)

129,237
129,237

7,797

11,587

19,385019,385

Notes:
1. “Adjustments” represent the elimination of inter-segment transactions.
2. Segment income represents operating income.

Notes on Significant Changes in Shareholders’ Equity
Nine months ended December 31, 2009 (April 1, 2009 – December 31, 2009)

Not applicable8

Other Information — Consolidated
Order Intake(millions of yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,20092010
Amount%Amount39,48731.6
42,473%
33.7

Water Treatment Facilities

85,537

68.4

83,530

66.3

Total

125,024100.0

126,004

100.0

Net Sales(millions of yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2009
2010
Amount%Amount40,05432.4
42,373%32.8

Water Treatment Facilities

83,403

67.6

86,863

67.2

Total

123,458100.0

129,237

100.0

Capital Expenditures (Property, Plant and Equipment)(millions of yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2009
2010
Amount%Amount
560
10.8
508

%
15.8

Water Treatment Facilities

4,635

89.2

2,721

84.2

Total

5,196

100.0

3,230

100.0

Depreciation (Property, Plant and Equipment)(millions of yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,20092010
Amount%Amount
963
8.8
887

%
7.7

Water Treatment Facilities

10,00891.2

10,651

92.3

Total

10,972100.0

11,539100.09