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Monday, November 27, 2006

To All Concerned Parties
Kanamoto Company, Limited
Stock Code 9678
Tokyo Stock Exchange 1st Section; Sapporo Stock Exchange
Nobuhito Utatsu
Director and Corporate Officer, Division Manager, Accounting Division< Contact for inquiries concerning this material >Yuichi Takayama
IR & Public Relations Section Manager, Business Planning Division
Telephone: + 81 – 11 – 209 – 1631

Notification Concerning Revision of Projected Full-year
Operating Results

Kanamoto Company, Limited (Kanchu Kanamoto, President; Head Office: Sapporo, Japan), Japan’s
leading construction equipment rental company, has made the following revisions to its projectedconsolidated and non-consolidated full-year operating results for the fiscal year ending October 31,
2006 (November 1, 2005 - October 31, 2006) provided in the Interim Financial Statements Bulletin(Consolidated) and Summary of Company Interim Financial Statements, respectively, released onJune 9, 2006.

1. Fiscal year ending October 2006

Revision of projected operating results(November 1, 2005 – October 31, 2006)(Consolidated)(Millions of yen)
Revenues

OperatingOrdinary

Fiscal year

incomeincomenet income

Prior projection（A）

66,050

3,630

3,420

1,260

Revised projection（B）

68,020

4,060

3,780

1,740

Increase (decrease)

（B－A）

1,970

430

360480（%）

3.0%

11 . 8 %

10.5%

38.1%

63,975

1,404

1,550

352

Rate of change

Prior fiscal year operating results(Fiscal year ended October 2005)

Reference: Projected net income per share (full-year) ¥57.41

Revision of Projected Operating Results

2. Fiscal year ending October 2006

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Revision of projected operating results(November 1, 2005 – October 31, 2006)(Non-consolidated)(Millions of yen)
Revenues

OperatingOrdinary

Fiscal yearincome

incomenet income

Prior projection（A）

59,600

3,330

3,430

1,310

Revised projection（B）

60,750

3,710

3,730

1,720

Increase (decrease)

（B－A）

1,150

380300

410

（%）

1.9%

11 . 4 %

8.7%

31.3%

57,202

1,526

1,960

609

Rate of change

Prior fiscal year operating results(Fiscal year ended October 2005)

Reference: Projected net income per share (full-year) ¥56.67

3. Reasons for the revision
Based on the decline in demand in regions where economic recovery has been slow andcutbacks in orders for public works construction by local governments, the Company initiallyprojected demand in Kanamoto’s main business of construction equipment rentals also would
experience slow growth in the second half of the fiscal year. Demand in the Tohoku Region has
remained robust because of Kanamoto’s ability to secure orders for private sector demand,
however, and demand in other areas of Honshu and the Kyushu Region also has expanded at acomparatively steady pace.
Furthermore, the Company has been able to respond accurately to construction equipment rental
demand throughout Japan and maintain operating results at the level of the previous fiscal year,
even in the Hokkaido Region where Kanamoto anticipated an especially severe environment. Asa result, the outlook for revenues now exceeds management’s previous (interim period)
projection.

From an earnings perspective, the Company steadily improved operating income and ordinary
income as well. This reflected the gradual realization of results from various measures instituted
under the long-term management plan the Company currently is implementing, including
improved operating efficiency of rental equipment assets, as projected when Kanamoto
announced its interim period operating results. Net income also is projected to substantiallyexceed the Company’s initial expectation, boosted by extraordinary profits including gains onsale of land appropriated for business use.

Kanamoto plans to announce its Accounting Bulletin (Consolidated) and Summary of Company
Financial Statements for the fiscal year ending October 2006 on Friday, December 8, 2006.

End