FOR IMMEDIATE RELEASE

Kurita Water Announces Earnings for the first quarter to June 30, 2003

Consolidated orders rose 29.3 percent year/year to 42.12billion yen.

Net sales rose 11.1% year/year to 24.95 billion yen.

Consolidated orders for the Water Treatment Chemicals Division increased 5.4% year/year to 12.82
billion yen. Strength in process chemicals for paper&pulp, chemicals for waste incineration andcontract based services pushed sales higher.
Consolidated orders in the Water Treatment Facilities Division increased 43.5% year/year to 29.29
billion yen. Domestically, orders are off to a good start and maintenance services are also higher
compared to last year.

Tokyo, July 31 2003 -- Kurita Water Industries Ltd., a global leader in the water treatment business,announced results for the first quarter ended June 30, 2003. Results were on plan with weakness in certain
areas offset by strength in others and Kurita Water is maintaining its forecast for the interim and full year.
Although stock prices showed signs of bottoming out, the Japanese economy in the first quarter of thecurrent fiscal year was marked by continuing harsh conditions, as there are still few signs of marked
recovery in capital investment, consumer spending and other areas.
The market environment faced by the Kurita Group was also beset by difficult conditions that have carriedover from the previous fiscal year. Capital investment by the private sector stagnated and the government
reined in expenditure for public works projects. SARS also had a negative effect on markets in China andTaiwan.
Operating in this environment, consolidated orders increased 29.3% compared to the first quarter of theprevious year to 42.1 billion yen, and net sales rose 11.1% year/year to 24.95 billion yen. These results
were almost exactly in line with forecasted figures.
Consolidated net sales tend to be lower in Q1 and Q3 mainly because Water Treatment Facilities Division
sales come at the end of the interim period and the end of the year.

-1-

Segment Overview

Water Treatment Chemicals Division
Orders of mainstay boiler chemicals and cooling chemicals marked time compared to Q1 of the previousyear. Orders for process chemicals for pulp and paper industries, fixing agents for heavy metals containedin ash given off during waste incineration and contract based services all exceeded Q1 levels of theprevious year.
As a result, consolidated orders for Water Treatment Chemicals increased 5.4% year/year to 12.82 billion
yen. In line with the increase in orders, sales were solid compared to Q1 of the previous year, increasing
8.3% year/year to 11.27 billion yen.
Water Treatment Facilities Division
Orders for the mainstay ultrapure water production systems for the electronics industry fell short overseasof Q1 levels of the previous year in the wake of drawn out negotiations in China and Taiwan. Domesticallythough orders are off to a solid start compared to the first quarter of last year. Maintenance services also
posted results that exceed last year’s levels. With market competition intensifying, however, orders forwater treatment facilities for general industries and soil remediation registered quarter-on-quarter declines.
In Environmental Control Facilities, orders for mainstay sludge recycling facilities and for sludge reduction
systems for sewage treatment facilities pushed orders up overall compared to Q1 of the previous year.
As a result of these factors, consolidated orders in the Water Treatment Facilities Division increased 43.5%year/year to 29.29 billion yen. Sales are generally lower in the first quarter, but still performed solidly
compared to last year, rising 13.5%year/year to 13.68 billion yen.
Changes in consolidated financial position
Total assets at end-Q1 decreased 4.05 billion yen compared to the end of the previous fiscal year to 169.64
billion yen. Accounts receivable decreased 13.21 billion yen as collection proceeded, cash and deposits
increased 3.75 billion yen, and tangible fixed assets increased 2.67 billion yen due to the acquisition ofbusiness-use assets. These were the primary factors responsible for the result.
Shareholders’ equity totaled 120.41 billion yen, a decrease of 554 million yen compared to the end of theprevious fiscal year caused by dividend payments and other factors. Owing in part to the decrease in total
assets, the equity ratio rose from 69.6% at the end of the previous fiscal year to 71.0%.
Qualitative information regarding results forecasts
Results posted in the first quarter were on the whole solid and put the company on track to achieve its initial
forecasts announced on May 9, 2003 for both interim and full year results. While the forward environment
remains uncertain the company is confident. Therefore Kurita Water will not be making any changes to its
forecasts.

-2-

Financials
A summary of relevant financials follows.

Summary of Consolidated First Quarter Results for theYear Ending March 2004 (April 1, 2003 to June 30, 2003)
July 31, 2003
Listed company name: Kurita Water Industries Ltd.
LISTINGS / EXCHANGES:FIRST SECTION, TOKYO STOCK EXCHANGE, OSAKA SECURITIESEXCHANGESecurity Code:

6370

Head Office:Tokyo

Homepage:

http://www.kurita.co.jp

Representative:

Hiroshi Fujino, President

Contact:

Mitsuru Ogawa, General Manager, Finance and Accounting Department

Tel:+813 3347-3214

1. Regarding the preparation of quarterly results
Changes in accounting methods from the recent consolidated fiscal year: Yes
Standard for calculating income taxes: Calculated based on forecasted income tax rates for the full year on aconsolidated basis
Simplified procedures are used for other items whose impact on results is negligible.
Changes in the scope of consolidation and companies accounted for by the equity method: Yes
Consolidated subsidiaries newly included: 2 Excluded: 0Companies accounted for the by equity method newly included: 0 Excluded: 0
Number of consolidated subsidiaries: 30
Number of non-consolidated subsidiaries accounted for by the equity method: 1
Number of affiliated companies accounted for by the equity method: 4

2. First Quarter Results for the Year Ending March 2004 (April 1, 2003 to June 30, 2003)
1) Consolidated operating results(Unit: Millions of yen)
FY03 First Quarter
1 April 2003 – 30 June 2003

(Reference) Full Term Period
1 April 2002 – 31 Mar 2003

AmountChange (%)

AmountChange (%)

24,952--

141,628-0.7

Operating Income

389

--

12,307+14.1

Ordinary Income

540--

12,400+6.8

Net Income for First Quarter

249

--

5,476

-3.4

Net Sales

Note: This is the first year the Company has announced quarterly results, so Q1 results from the previous year andquarter-on-quarter comparisons have not been included.

-3-(2) Consolidated Financial Position(Units: Millions of yen)
Total Assets

FY03 First Quarter
169,636

Year Ended March 2003
173,689

120,415120,969

71.0%

69.6%

936.46939.78

Shareholders’ Equity
Shareholders’ Equity Ratio (%)
Shareholders’ Equity per Share(yen)Note: This is the first year the Company has announced quarterly results, so Q1 results from the previous year andquarter-on-quarter comparisons have not been included.

3. Consolidated Forecast for the Year Ending March 2004 (April 1, 2003 to March 31, 2004)yen) (Units: Millions of yen)InterimFull YearNet Sales

64,300147,500

Ordinary Income

4,600

13,300Net Income

2,700

7,700

21.00

58.99

Forecast Net Income per Share(yen)Note: The above forecasts are based on information currently available and are inherently subject to a variety of risks anduncertainties. Actual results may differ from forecasted figures.

-4-Supplementary Statements

1. Condensed Consolidated Quarterly Financial Statements(Unit: Millions of yen)

(1) Condensed Consolidated Statements of Income

Item

Current Quarter(April 1, 2003 to June 30, 2003)% of Net
AmountSales

Previous Fiscal Year
(April 1, 2002 to March 31, 2003)% of Net
AmountSales

Net Sales

24,952100.0

141,628

100.0

Cost of Sales

16,603

66.5

97,846

69.1

Gross Profit

8,34833.5

43,781

30.9

SG&A Expenses

7,958

31.9

31,474

22.2

Operating Income

389

1.6

12,307

8.7

Non-Operating Income

295

1.2

1,012

0.7

Non-Operating Expense

144

0.6

919

0.6

Ordinary Income

540

2.2

12,4008.8

Special Gains----

Special Losses

--

2,136

1.5

Income Before Income Taxes

540

2.2

10,263

7.3

Income Taxes
Minority Interests in Earnings ofConsolidated Subsidiaries
Net Income

232

0.9

4,674

3.3

57

0.3

112

0.1

249

1.0

5,476

3.9-5-

(Unit: Millions of yen)

(2) Condensed Consolidated Balance Sheets
ItemCurrent Quarter(as of June 30, 2003)
Amount% of Total

Previous Fiscal Year End(as of March 31, 2003)
Amount% of Total[Assets]
Current Assets
Cash and Deposits
Notes Receivable - Trade
Accounts Receivable - Trade

35,588
10,78336,2307,537
9,467
2,857(106)

21.0
6.4
21.4
4.4
5.6
1.6
(0.1)

31,838
10,25549,4426,615
6,301
2,896(169)

18.3
5.9
28.5
3.8
3.6
1.7(0.1)

Total Current Assets
Fixed Assets

102,357

60.3

107,180

61.7

Tangible Fixed Assets
Intangible Fixed Assets
Investments and Other Assets40,980
2,846
23,451

24.2
1.7
13.8

38,3102,659
25,538

22.1
1.5
14.7

Total Fixed Assets

67,27839.7

66,508

38.3

Total Assets

169,636

100.0

173,689

100.0

Marketable Securities
Inventories
Other
Allowance for Doubtful Accounts[Liabilities]
Current Liabilities
Notes Payable - Trade
Accounts Payable - Trade

1,599

0.9

1,420

0.8

20,961

12.4

22,841

13.2

Income Taxes Payable

690

0.4

3,335

1.9

2,356

1.4

2,154

1.2

Accrued Employees’ Bonuses
Other

10,155

6.0

8,890

5.1

Total Current Liabilities
Fixed Liabilities

35,76221.1

38,643

22.2

Accrued Employees’ Retirement Benefits

11,616
820

6.8
0.5

12,282
837

7.1
0.5

Other
Total Fixed Liabilities

12,437

7.3

13,120

7.6

Total Liabilities

48,19928.4

51,763

29.8

1,020

0.6

956

0.6

13,450
11,398100,684
394

7.9
6.7
59.4
0.2

13,450
11,398
101,637
(87)

7.7
6.6
58.5
(0.1)

(625)

(0.3)

(543)

(0.3)

(4,886)(2.9)(4,885)(2.8)

Total Shareholders’ Equity

120,41571.0

120,969

69.6

Total Liabilities, Minority Interests
and Shareholders’ Equity

169,636

100.0

173,689

100.0

Minority Interests
Minority Interests[Shareholders’ Equity]
Common Stock
Additional Paid-in Capital
Retained Earnings
Revaluation Surplus of Other Securities
Foreign Currency Translation
Adjustment
Treasury Sock-6-2. Orders and Sales Results(Unit: Millions of yen, %)(1) Orders
Current Quarter
Business(April 1, 2003 to June 30,(April 1, 2002 to June 30,2003)

2002)

AmountTotal

Previous Fiscal Year
Increase

Segment
Water Treatment
Chemicals
Water Treatment
Facilities

Previous First Quarter% of total

Amount(Decrease)(April 1, 2002 to March31, 2003)% of total

AmountAmount% of total

12,82330.4%

12,16337.3%

660

46,45036.2%

29,294

69.6

20,420

62.7

8,874

81,981

63.8

42,118100.0

32,584

100.0

9,534

128,431

100.0(Unit: Millions of yen, %)(2) Sales
Current Quarter

Previous First Quarter

Previous Fiscal Year
Increase

Business(April 1, 2003 to June 30,(April 1, 2002 to June 30,Segment

2003)

2002)

AmountWater Treatment
Chemicals
Water Treatment
Facilities
Total% of total

Amount(Decrease)(April 1, 2002 to March31, 2003)% of totalAmountAmount% of total

11,27345.2%

10,40646.3%

867

47,11633.3%

13,67954.8

12,047

53.7

1,632

94,512

66.7

24,952100.0

22,453

100.0

2,499

141,628100.0-7-