FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for the Three Months to June 30, 2008
Tokyo, Japan; July 30, 2008—Kurita Water Industries Ltd. (TSE Security Code 6370) announced sales of 41,093
million yen for the first three months of the fiscal year ending March 31, 2009 (April 1 – June 30, 2008), and net
income of 2,872 million yen, or 22.33 yen per share.
Results of Operations
Total consolidated orders for the Kurita Group decreased 0.5% from a year earlier to 54,369 million yen, while net
sales increased 1.4% to 41,093 million yen. Operating income was up 3.0% to 4,840 million yen, and ordinary
income rose 1.5% to 5,124 million yen. This resulted in net income of 2,872 million yen for the quarter, a declineof 1.2% from last year’s first-quarter figure.
Conditions in the markets in which the Kurita Group operates were challenging in the three-month period underreview against a backdrop of surging crude oil and materials prices and the escalation of the subprime mortgage
crisis. In the electronics industry, although demand for LCD products remained strong, signs of a slowdown insemiconductor-related capital investment were apparent in both Japan and overseas. Meanwhile in generalindustries, although evidence of decreased factory operating rates and capital investment was seen in some sectors
in Japan, little change was observed in either of these in basic materials sectors such as steel, oil refining, andpetrochemicals. Overseas, factory operating rates remained largely unchanged.
Surging crude oil and materials prices increased costs for the Kurita Group during the three-month period, thus
reducing earnings.
Overview by Segment
Water Treatment Chemicals
Total Group orders for the segment increased 4.5% from a year earlier to 15,602 million yen, and sales
grew 4.6% to 14,338 million yen.
During the three-month period under review, the Group strove to expand 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 that clients face, such as the reduction of environmental
burdens and productivity improvements.
Japan
While orders for boiler water treatment chemicals remained largely unchanged compared to the first quarterlast fiscal year, an increase was seen in orders for other mainstay products—cooling water treatment
chemicals and waste water treatment chemicals, although only a slight rise for the former. With regard toother products, orders for process treatment chemicals used in the paper and pulp industry rose substantiallyas a result of higher productivity requirements at client companies, while orders for packaged water
treatment management contracts edged up slightly.
Overseas
Overseas orders increased.
Water Treatment Facilities
Total Group orders for the segment decreased 2.4% from a year earlier to 38,767 million yen, while sales edged
down 0.2% to 26,755 million yen.
-1-During the period, the Group continued to invest aggressively in service businesses, such as the ultrapure watersupply business and tool cleaning services, while devoting greater resources in sales to securing orders fromstrategic clients in the electronics and steel industries. Outside Japan, the Group focused sales efforts on Taiwan andSouth Korea.
Orders from the electronics industry for the Group’s mainline ultrapure water production systems were downsignificantly year on year in Japan and overseas as a result of lower capital investment, while orders for theultrapure water supply business grew significantly due to higher demand, and orders for tool cleaning services alsorose. Orders for water treatment facilities used in general industries increased considerably due to large orders fromthe steel industry. A slight decline was seen in orders for maintenance services.
Net Sales and Order Intake
Order Intake

Amount14,92439,72254,647

2007
%
27.3
72.7
100.0

(million yen)
2008
Amount%15,60228.7
38,76771.354,369 100.0

Three months ended June 30,
Business segment

Amount2007%(million yen)
2008
Amount%Water treatment chemicals
Water treatment facilities
Total

13,704
26,81540,520

33.8
66.2
100.0

14,33826,75541,093Three months ended June 30,
Business segment
Water treatment chemicals
Water treatment facilities
Total
Net Sales

34.9
65.1
100.0

Financial Condition
Current assets at the end of the first quarter totaled 110,643 million yen, a decline of 10,919 million yen from theend of the previous fiscal year. This decrease was mainly a result of a 7,843 million yen decline in trade accounts
receivable and a 13,827 million yen decline in marketable securities, despite a 7,610 million yen increase in cash
and deposits and a 2,724 million yen increase in work in process. The increase in work in process was due toheadway made in works being constructed in the water treatment facilities business; the decrease in tradeaccounts receivable was attributable to progress made in collecting on amounts owed; while the decrease inmarketable securities was mainly due to the redemption of securities.
Fixed assets at the end of the first quarter totaled 111,969 million yen, an increase of 2,033 million yen from theend of the previous fiscal year, mainly reflecting a 3,397 million yen increase in tangible fixed assets due to theacquisition of facilities for the ultrapure water supply business.
Current liabilities at the end of the period came to 38,760 million yen, a decline of 10,319 million from the endof the previous fiscal year. The decline was mainly attributable to a 3,887 million yen decrease in trade accounts
payable, due to progress made in paying off accounts payable from the end of the previous fiscal year, and a6,224 million yen decrease in income taxes payable due to the payment of income taxes.
Total net assets came to 172,214 million yen, an increase of 1,153 million yen from end of the previous fiscalyear. This rise was mainly due to a 2,187 million yen increase in retained earnings from net income posted in thethree-month period under review and a 1,345 million yen rise in unrealized gains on marketable securities due toan increase in the market value of investment securities held by the Group. These factors were offset somewhat
by a 2,187 million yen decline in retained earnings due to the payment of dividends.
-2-Outlook for the Fiscal Year Ending March 31, 2009
The Group’s consolidated performance was solid overall during the three-month period under review, and theGroup believes that it is on course to achieve the earnings forecasts for the interim period ending September 30,
2008, and the full fiscal year ending March 31, 2009, that appeared in the consolidated earnings release (and inJapanese in the kessan tanshin) for the fiscal year ended March 31, 2008, issued on April 30, 2008.

-3-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(millions of yen)

As of June 30,2008As of March 31,
2008

AssetsCurrent assets
Cash and deposits
Notes 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
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

Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Short-term borrowings
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-4-

17,927
8,689
55,705
10,117
1,548
1,571
10,852
4,377(147)
110,643

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

21,64336,651
27,08785,382
2,338

22,00237,703
22,27881,984
2,497

24,344(95)
24,248111,969
222,61325,547(93)
25,454
109,935
231,498

1,901
17,457
80
1,903
1,419
1,084
14,91338,7601,990
21,344
102
8,128
2,401
1,182
13,93049,080

8,596

8,358

739
2,302
11,63750,398709
2,288
11,35760,437

Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Total shareholder's equity
Valuation and translation
adjustments
Net unrealized gains (losses) on
available-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-5-

13,45011,426
148,560(4,831)
168,606

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

3,119

1,773

(750)

(750)

(409)

455

1,959

1,478

1,648
172,214222,613

1,658
171,061
231,498

Statements of Income — Consolidated(millions of yen)Three months ended June 30,2008
Amount2007
AmountNet sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Salaries and directors’
remuneration
Provision for employees’
bonuses
R&D expensesOther
Total selling, general andadministrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expense
Interest expense
Other
Total non-operating expense
Ordinary income
Income before income taxes
Income taxes
Minority interests in earnings ofconsolidated subsidiaries

41,093
27,174
13,91940,52026,706
13,813

2,910

-

695

-

1,073
4,399

-

9,078

9,116

4,840

4,697

80
173
67
322

393

8
30
38
5,124
5,124
2,066

41
5,048
5,048
2,064

185

76

Net income

2,872

2,907Accounting standards applied this fiscal year differ from those applied last fiscal year, so last year’s quarterly
results are provided for reference only.

-6-Segment Information• Business segment information
Three months ended June 30, 2008 (April 1, 2008 – June 30, 2008)

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

Watertreatment
facilities

Total

14,33856
14,3942,269

26,75529
26,785
2,583

41,093
86
41,1794,852

Eliminationor corporate Consolidated

(86)
(86)
(11)

41,09341,093
4,840• Geographical segment information
Three months ended June 30, 2008 (April 1, 2008 – June 30, 2008)

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

Japan

Otherregions

Total

36,791
418
37,209
4,422

4,302
19
4,322
337

41,093438
41,531
4,759(million yen)
Eliminationor corporate Consolidated

(438)
(438)
80

41,09341,093
4,840

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

I.

Overseas sales

II. Consolidated sales
III. Ratio of overseas sales to total
consolidated sales(million yen)

Asia
3,781

North
America
218

Europe381

Other845

Total
5,227

----

41,093

9.2%

0.5%

0.9%

2.1%

12.7%

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 or regions
other than Japan.

-7-