FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for theNine Months to December 31, 2007
Tokyo, Japan; January 30, 2008—Kurita Water Industries Ltd. (TSE Security Code 6370) announced
sales of 139,474 million yen for the first nine months (April 1 – December 31, 2007) of the fiscal year
ending March 31, 2008, and net income of 11,432 million yen, or 88.86 yen per share.
Results of Operations
Total consolidated orders for the Kurita Group increased 4.9% from a year earlier to 151,725 million
yen, while sales grew 8.3% to 139,474 million yen. Operating income was up 30.5% to 19,657 million
yen, and ordinary income rose 31.3% to 20,475 million yen. This resulted in net income of 11,432
million yen, an increase of 27.4% over last year’s third-quarter figure.
Capital expenditure levels were strong in Japan throughout the period against a background of
buoyant demand in the electronics industry for semiconductor and LCD products. Overseas, however,signs of a slowdown in capital investment were seen in South Korea and South East Asia. In generalindustries, both factory operating rates and capital expenditures in Japan remained robust, mainly inbasic materials sectors such as steel, oil refining, petrochemicals, and paper and pulp. Overseas,factory operating rates in all industries, mainly in Asia, were strong overall.
Overview by Segment
Water Treatment Chemicals
Total Group orders for the segment increased 4.4% from a year earlier to 43,833 million yen, whilesales grew 4.4% to 43,534 million yen.
During the period, the Group concentrated its efforts on securing stable order flows through sales
efforts that focus on presenting proposals tailored towards resolving the issues that clients face, whilefurther strengthening efforts to expand sales of mainstay products, such as boiler water treatment
chemicals and cooling water treatment chemicals.
In Japan, although orders for boiler water treatment chemicals remained flat compared with figuresfrom the same period last year, orders for cooling water treatment chemicals grew strongly, and thosefor waste water treatment chemicals were higher owing to strong demand from the paper and pulp
industry. Orders for process treatment chemicals increased on the back of favorable performanceattributable to a strong need for improved productivity in the paper and pulp industry. Orders for
packaged water treatment management contracts declined. Overseas, orders rose in all areas where theKurita Group conducts business.
Water Treatment Facilities
Total Group orders for the segment increased 5.1% from a year earlier to 107,892 million yen, whilesales grew 10.2% to 95,940 million yen.
In the water treatment facilities segment, the Group strengthened sales efforts aimed at clients inindustries such as electronics and steel. The Group also focused its energy on expanding service
businesses, such as ultrapure water supply and tool cleaning services. Overseas, the Group worked tosecure orders through concentrated sales efforts aimed at strategic clients in Taiwan and South Korea.
Orders for the Group’s mainline ultrapure water production systems for the electronics industry
increased slightly in Japan but declined slightly in overseas markets. Orders for water treatment1

facilities for general industries increased as a result of growth in orders from the steel industry andother areas during the first half of the fiscal year. In service businesses, orders for the ultrapure watersupply business rose substantially as a result of increased demand from existing clients, and orders fortool cleaning services for semiconductor and LCD production equipment also increased. Orders in thesoil remediation business fell owing to a sluggish land market, while those for maintenance services
were flat.
Net Sales and Order Intake
Order Intake(In million yen)
Business Segment

Water treatment chemicals
Water treatment facilities
Total

Nine months
ended
December 31,
2006 (A)Amount%Nine months
ended
December 31,2007 (B)Amount%(For reference)Year ended
March 31, 2007(B) – (A)Amount%Amount%41,97829.0

43,833

28.9

1,854

4.4

56,56029.4

102,627

71.0

107,892

71.1

5,264

5.1

135,969

70.6

144,606

100.0

151,725

100.0

7,119

4.9

192,529

100.0

Net Sales(In million yen)
Business Segment

Water treatment
chemicals
Water treatment facilities
Total

Nine months
ended
December 31,
2006 (A)Amount%Nine months
ended
December 31,
2007 (B)
Amount%(For reference)Year ended
March 31, 2007(B) – (A)Amount%Amount%41,682

32.4

43,534

31.2

1,851

4.4

56,66728.7

87,072

67.6

95,940

68.8

8,867

10.2

140,479

71.3

128,754100.0

139,474

100.0

10,7198.3

197,146

100.0

Financial Condition
Total assets at the end of the third quarter amounted to 223,939 million yen, a decline of 11,198
million yen compared to the end of last fiscal year. Major increases and decreases in assets were as
follows: a 12,933 million yen increase in tangible fixed assets due to acquisitions, primarily ofultrapure water supply facilities, which was offset by the resulting 14,022 million yen decline in cash
and deposits and marketable securities; and a 15,216 million yen decline in trade accounts receivable,due to progress made in the collection of these accounts.
Total liabilities came to 57,877 million yen, a decline of 19,060 million yen compared to the end oflast fiscal year. This was mainly attributable to declines of 11,879 million yen in trade accounts
payable, 4,187 million yen in income taxes payable, and 3,120 million yen in other accounts payable
and accrued expenses.
Total net assets came to 166,061 million yen, an increase of 7,861 million yen compared to the end oflast fiscal year. This was mainly attributable to the downward effect of 3,859 million yen in dividend
payments being offset by a 7,579 million yen increase in retained earnings following the realization of
11,432 million yen in net income over the nine-month period under review.

2Outlook for the Fiscal Year Ending March 31, 2008
The Group’s consolidated performance was solid overall during the nine-month period under review,and the Group believes that it is on track to achieve the earnings forecasts appearing in the interim
consolidated earnings report for the fiscal year ending March 31, 2008, released on October 31, 2007.
Business Risks
Major risk factors that could affect the Group’s future performance include, but are not limited to,trends in capital expenditure related to water treatment facilities at client companies, factory operating
rates, and movements in the price of oil and basic materials.
Other Matters
Use of simplified accounting methods:• Reporting standard for income taxes: calculated using the estimated annual rate based on effective
statutory tax rates.
• Partly simplified accounting methods are used for other items where the effect of such use isnegligible.

3Condensed Financial Statements - Consolidated
Condensed Balance Sheets - Consolidated(In million yen)

As of
As of
December 31, December 31,
2006
2007
(A)
(B)
AmountAmountAssets
Current assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Inventories
OtherAllowance 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
Accounts payable - other/accrued
expenses
Income taxes payable
Advances received
Other
Fixed liabilities
Accrued employees’ retirement
benefits
Other
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets(Reference)
As ofMarch 31,2007
Amount(B) – (A)Amount%123,81931,087
10,51149,5926,902
21,6654,182(123)
92,26062,2592,672
27,328216,079

114,717
11,075
10,322
51,544
18,494
19,131
4,307(158)
109,22180,221
2,495
26,503223,939(9,101)(20,011)
(188)
1,952
11,592(2,534)124(35)
16,961
17,961
(176)
(824)
7,859

(7.4)
(64.4)
(1.8)
3.9
168.0
(11.7)
3.0
28.5
18.4
28.8
(6.6)
(3.0)
3.6

137,004
37,761
10,32066,7605,830
12,0654,430(164)
98,13367,2882,607
28,237
235,137

52,112
1,964
29,23846,0401,994
20,439(6,072)29(8,798)(11.7)
1.5(30.1)

65,4962,433
32,318

8,993

10,021

1,027

11.4

13,141

3,032
4,696
4,187
11,476

3,311
5,608
4,665
11,837

278
911
478
361

9.2
19.4
11.4
3.1

7,498
4,920
5,182
11,440

8,494

8,889

394

4.6

8,392

2,981
63,5892,948
57,877(33)(5,711)

(1.1)
(9.0)

3,047
76,937

148,308
13,45011,426
128,232(4,801)
2,786
1,395
152,490
216,079

161,078
13,45011,426141,025(4,825)
3,318
1,664
166,061
223,939

12,76912,793(24)532
268
13,571
7,859

8.6
10.0
0.5
19.1
19.2
8.9
3.6

153,519
13,45011,426
133,446(4,803)
3,252
1,427
158,200
235,1374

Condensed Statements of Income - Consolidated(In million yen)

Nine months ended Nine months ended
December 31, 2006 December 31, 2007
(A)
(B)

Net sales
Cost of sales
Gross profit
Selling, general andadministrative expenses
Operating income
Non-operating income
Non-operating expense
Ordinary income
Extraordinary gains
Extraordinary losses
Income before income taxes
Income taxes
Minority interests inearnings of consolidated
subsidiaries
Net income(Reference)Year ended
March 31, 2007(B) – (A)Amount%Amount%Amount%Amount%128,754
87,78740,967

100.0
68.2
31.8

139,474
92,86846,606

100.0
66.6
33.4

10,719
5,081
5,638

8.3
5.8
13.8

197,146
137,819
59,326

100.0
69.9
30.1

25,903

20.1

26,948

19.3

1,045

4.0

35,05017.8

15,064699
174
15,58971
15,517
6,362

11.7
0.5
0.1
12.1
0.1
12.0
4.9

19,657985
167
20,475186
74
20,587
8,886

14.1
0.7
0.1
14.70.1
0.0
14.8
6.4

4,592
286(7)
4,886
186
3
5,070
2,524

30.5
40.9(4.0)
31.3
4.2
32.7
39.7

24,276
1,242
293
25,226634
24,591
10,070

12.3
0.6
0.1
12.8
0.3
12.5
5.1

179

0.1

268

0.2

89

49.7

314

0.2

8,976

7.0

11,432

8.2

2,456

27.4

14,207

7.2

Change in Presentation Method
Negotiable deposits (13,800 million yen at the end of the nine months under review), which werepreviously included in the “cash and deposits” item, are now included in “marketable securities.” Thischange was made in conjunction with revisions to official guidelines on the application of regulations
governing financial statement terminology, format, and method of presentation.
The balance of negotiable deposits was 20,100 million yen and 25,300 million yen at the end of the ninemonths under review and the end of the previous fiscal year, respectively.

5