FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Third Quarter Earnings
Tokyo, Japan January 29, 2004 -- Kurita Water Industries Ltd. (TSE Ticker 6370) today
announced its operating results for the nine months ended December 31, 2003. (Note:As this is the first time the company has released third quarter operating results on a yearto-date basis, no year-on-year comparisons are available for operating and net income).
Results of Operations
Net sales for the first nine months of the fiscal year ending March 2004 increased by
2.4% from the corresponding period in the previous fiscal year to 89.922 billion yen. Of
this amount, the water treatment chemicals segment saw revenues increase by 0.3% to34.962 billion yen while revenues from the water treatment facilities segment rose 3.7%
to 54.959 billion yen. The Company’s net sales tend to be lower in the first and thirdquarters of a fiscal year, as sales in the water treatment facilities segment tend to berecorded toward the end of the annual and semi-annual accounting periods (second andfourth quarters).
Operating income for the period was 4.504 billion yen, with no year-on-year comparison
available. Net income for the nine month period was 3.251 billion yen, which included anextraordinary profit of 1.414 billion yen as a result of the sale of bank stocks. Earnings
per share, based on 128,585,031 shares outstanding, were 25.29 yen for the period.
Strong Growth in New Orders
Orders received during the period increased by 17.5% year-on-year to 110.677 billion yen.
Of this amount, the water treatment chemicals segment saw an increase in new orders of
2.5% to 35.604 billion yen, particularly in the areas of process treatment chemicals andchemicals for incinerators, as well as orders for maintenance services. On the other hand,orders for the segment’s main products such as water treatment chemicals used for boiler
water, cooling water, and waste water, declined somewhat from the same period of theprevious year.
Orders in the water treatment facilities segment rose 26.3% to 75.072 billion yen. The
substantial increase in new orders for this segment was primarily due to strong demand
for ultra-pure water systems from the electronics industry in both Japan and in overseas
markets such as China, Taiwan and Korea. In addition, increased demand for toolcleaning and maintenance services, as well as healthy gains in new orders forenvironment facilities, particularly for renewal and repair of human waste treatment
facilities, have fueled the segment’s order growth. This strong improvement helped tooffset declines in orders for water treatment facilities and maintenance services from thefood, pharmaceuticals, basic materials, automobile, and electric power industries, as
capital expenditure by these industries remains under pressure. Likewise, a decline inpublic sector orders for sewage treatment systems and maintenance services is areflection of the continuing budgetary difficulties of local and regional governments.
Full year projection
The Group’s previously announced projection for the full fiscal year ending March 2004
remains unchanged, with net sales projected at 147.500 billion yen, ordinary (current)
income at 13.300 billion yen, and net income after tax of 7.700 billion yen. Earnings per
share are forecast to be 58.90 yen.

About The Kurita GroupThe Kurita Group provides a wide range of products, technologies, and maintenanceservices related to water treatment. The two core lines of the Group’s business consist of:1) water treatment chemicals used for boiler water, cooling water, waste water, and in
manufacturing processes; and 2) water treatment facilities such as ultra-pure watersystems, waste water treatment systems, and sewerage water treatment facilities. The
business scope of both lines includes production, sales, and maintenance services. For
additional information about the Kurita Group, visit the Company's website atwww.kurita.co.jp.
Except for historical information contained herein, matters discussed in this news release
may contain forward-looking statements that involve risks and uncertainties. These risks
and uncertainties include the extent to which the water treatment chemicals business has
an impact on the operating results of the Group, given that demand for these products
fluctuates in accordance with changes in factory capacity utilization rates of the Group’smajor clients in the steel, oil, paper and pulp industries. In addition, trends in capital
expenditure by the Group’s major clients in the electronics, food, pharmaceuticals,
electric power, basic materials, and automobile industries have an impact on theoperating results of the water treatment facilities business. Similarly, businessconditions affecting the Group’s environmental facilities used in the public works ofmunicipal and regional governments also have an impact on the Group’s operating results,
in that demand for such facilities will fluctuate in accordance with local governments’financial conditions and budgetary concerns.

KURITA WATER INDUSTRIES, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(in million yen)

Item

Net Sales
Cost of Sales
Gross Profit
Selling, General andAdministrative Expenses
Operating Income
Non-operating Income
Non-operating Expense
Ordinary Income
Special Gains
Special Losses
Income before Income Taxes
Income Taxes
Minority Interests in Earnings
of Consolidated Subsidiaries
Net Income

Third Quarter Year to Date
(April 1, 2003 December 31, 2003)
Amount% ofNetSales
89,922100.0
60,86767.7
29,054
32.3

Previous Fiscal Year
(April 1, 2002 toMarch 31, 2003)
Amount% ofNetSales
141,628100.0
97,84669.1
43,781
30.9

24,55027.3

31,474

22.2

4,504
686
649
4,541
1,414
5,955
2,596

5.0
0.7
0.7
5.0
1.6
6.6
2.9

12,307
1,012
919
12,4002,136
10,263
4,674

8.7
0.7
0.6
8.8
1.5
7.3
3.3

107

0.1

112

0.1

3,251

3.6

5,476

3.9

CONDENSED CONSOLIDATED BALANCE SHEET(in million yen)

Item
[Assets]
Current Assets
Cash and Deposits
Notes Receivable - Trade
Accounts Receivable - Trade
Marketable Securities
Inventories
Other
Allowance for Doubtful Accounts
Total Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments and Other Assets
Total Fixed Assets
Total Assets[Liabilities]
Current Liabilities
Notes Payable - Trade
Accounts Payable - TradeOutstanding Payments/Expenses
Income Taxes Payable
Accrued Employees’ Bonuses
Other
Total Current Liabilities
Fixed Liabilities
Accrued Employees’ Retirement
Benefits
Other
Total Fixed Liabilities
Total Liabilities
Minority Interests
Minority Interests[Shareholders’ Equity]
Common Stock
Additional Paid-in Capital
Retained Earnings
Revaluation Surplus of OtherSecurities
Foreign Currency Translation
Adjustments
Treasury Stock
Total Shareholders’ Equity
Total Liabilities, Minority Interests
and Shareholders’ equity

Third Quarter(as of December 31, 2003)

Previous Fiscal Year End(as of March 31, 2003)Amount% of total

Amount% of total

31,20810,35535,4198,967
13,622
6,014(132)
105,454

18.2
6.0
20.7
5.2
8.0
3.5
(0.1)
61.5

31,838
10,25549,442
6,615
6,301
2,896
(169)
107,180

18.3
5.9
28.5
3.8
3.6
1.7
(0.1)
61.7

42,384
3,333
20,397
66,115
171,570

24.7
1.9
11.9
38.5
100.0

38,3102,659
25,53866,508
173,689

22.1
1.5
14.7
38.3
100.0

1,550
18,988
5,938
650
2,468
5,307
34,905

0.9
11.1
3.5
0.4
1.4
3.1
20.4

1,420
22,8416,391
3,335
2,154
2,498
38,643

0.8
13.2
3.7
1.9
1.2
1.4
22.2

11,3996.6

12,282

7.1

1,185
12,58547,490

0.7
7.3
27.7

837
13,12051,763

0.5
7.6
29.8

1,058

0.6

956

0.6

13,450
11,398102,713

7.8
6.6
59.9

13,450
11,398
101,637

7.7
6.6
58.5

1,033

0.6

(87)

(0.1)

(685)

(0.4)

(543)

(0.3)

(4,888)123,021

(2.8)
71.7

(4,885)
120,969

(2.8)
69.6

171,570

100.0

173,689

100.0

========= =========SOURCE: Kurita Water Industries, Ltd.
CONTACT: Kurita Water Industries, Ltd.
Corporate Communications Section
ir@kurita.co.jp<END>