FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the First Three Months Ended June 2007
Tokyo, Japan July 30, 2007—Kurita Water Industries Ltd. (TSE Security Code 6370) announced net salesof 40,520 million yen for the first three months (April 1 – June 30, 2007) of the fiscal year ending March31, 2008 and net income of 2,907 million yen, or 22.60 yen per share.
Results of Operations
Total consolidated orders for the Kurita Group increased 7.4% from the same period a year earlier to54,647 million yen, while net sales grew 21.5% year-on-year to 40,520 million yen. Operating income
surged 60.6% to 4,697 million yen, and ordinary income also jumped 60.9% to 5,048 million yen, resulting
in net income of 2,907 million yen, an increase of 67.7% year-on-year. By segment, water treatment
chemicals sales grew 4.7% year-on-year to 13,704 million yen, while water treatment facilities sales rose
32.3% to 26,815 million yen.
During the period, the market environment was favorable for the Group with solid capital expenditures inthe electronics industry in Japan, Taiwan and South Korea on the back of buoyant demand forsemiconductors and other related products. In the general industries, factory operating rates and capital
expenditures were robust primarily in materials industries such as steel, oil refining and petrochemicals.
Segment Information
Water Treatment Chemicals
Total Group orders for the segment increased 3.1% year-on-year to 14,924 million yen, while sales grew
4.7% to 13,704 million yen.
During the period, the Group concentrated its efforts on securing stable order flows by further focusing on
expanding sales of mainstay products such as boiler water treatment chemicals and cooling water treatment
chemicals as well as through speedy provision of water treatment technologies and services
accommodating clients’ needs.
Sales in the Japanese market were as follows. Of the Group’s mainstay products, sales for boiler water
treatment chemicals were flat compared with a year earlier, while sales for cooling water treatment
chemicals and wastewater treatment chemicals increased. In other products, sales for process treatment
chemicals used in the oil refining and petrochemical industry and sales for packaged water treatment
management contracts decreased, while sales increased for process treatment chemicals used in the paperand pulp industry. Overseas orders increased sharply due to efforts to expand sales in high-growth markets
such as China and Southeast Asia.
Water Treatment Facilities
Total Group orders for the segment increased 9.1% year-on-year to 39,722 million yen, while sales grew
32.3% to 26,815 million yen.
During the period, the Group accelerated its shift to services businesses such as the Ultrapure Water Supply
Business and tool cleaning for semiconductor and LCD production equipment while strengthening sales
efforts targeting clients in the semiconductor industry which saw continued buoyancy in capital
expenditures. Overseas, the Group focused its sales efforts on strategic clients, primarily in China, Taiwan
and South Korea, in a bid to secure stable order flows.

1Orders for the Group’s mainline ultrapure water production systems, primarily for the electronics industry,
surged in Japan and overseas. In the general industries, orders fell sharply reflecting fewer orders forlarge-sized projects than a year earlier. Turning to services, the Ultrapure Water Supply Business surged
and tool cleaning for semiconductor and LCD production equipment also increased. Orders for related
maintenance services were flat, and orders for soil remediation dropped sharply primarily due to thepostponement of orders for large-sized projects.
Order Intake(In million yen)
Business Segment
Water treatment chemicals
Water treatment facilities
Total

Three months
ended
June 30, 2007
(A)
Amount%14,92427.3
39,722
72.7
54,647 100.0

Three months
ended
June 30, 2006 (B)Amount14,47036,41050,881

%
28.4
71.6
100.0

(Reference)Year ended
March 31, 2007(A) – (B)
Amount454
3,312
3,766%
3.1
9.1
7.4

Amount56,560135,969
192,529%
29.4
70.6
100.0

Net Sales(In million yen)
Business Segment
Water treatment chemicals
Water treatment facilities
Total

Three months
ended
June 30, 2007
(A)
Amount%13,70433.8
26,81566.2
40,520 100.0

Three months
ended
June 30, 2006 (B)Amount13,093
20,26833,362

%
39.2
60.8
100.0

(Reference)Year ended
March 31, 2007(A) – (B)
Amount611
6,547
7,158%
4.7
32.3
21.5

Amount56,667140,479197,146%
28.7
71.3
100.0

Financial Condition
As of the end of the period, total assets had decreased by 2,669 million yen from the end of the previous
fiscal year to 232,468 million yen. Accounts receivable decreased by 10,617 million yen as a result ofprogress in the collection of receivables related to sales that were concentrated at the end of the previous
fiscal year. This offset an 8,889 million yen increase in tangible fixed assets due to the acquisition offacilities for the Ultrapure Water Supply Business and other purposes. Total liabilities decreased 4,428
million yen to 72,509 million yen. This mainly reflects a 5,705 million yen increase in accounts payable
and other accrued expenses due to an increase in obligations associated with the expense of construction
work of facilities for the Ultrapure Water Supply Business, which was more than offset by a 5,067 million
yen decrease in trade accounts payable, which increased at the end of the previous fiscal year, due to thearrival of payment due dates for trade accounts payable, and by a 5,108 million yen decrease in incometaxes payable following the payment of income taxes. Total net assets increased 1,758 million yen to
159,958 million yen. This is primarily due to an increase in retained earnings of 974 million yen in
conjunction with the recognition of quarterly net income of 2,907 million yen, as well as a 739 million yen
increase in valuation and translation adjustments reflecting higher market values of investment securities
held by the Group.

2

Outlook for the Fiscal Year Ending March 31, 2008
The Group’s earnings for the three-month period were largely in line with the initial forecast, and the Group
believes that it is on track to achieving its interim and full-year earnings forecasts for the fiscal year ending
March 31, 2008. These forecasts were included in the consolidated earnings report for the fiscal year ended
March 31, 2007, released on April 27, 2007.

Business Risks
Major risk factors that could affect the Group’s future performance include, but are not limited to,
economic trends, trends in capital expenditure on water treatment facilities and factory operating rates atclients, price movements in basic materials, and competition with peers.

Other – Adoption of Simplified Accounting Method
The Company recognizes income taxes based on calculations using annual expected tax rates based onstatutory effective tax rates. The Company uses simplified accounting methods for certain items where theimpact of such use is negligible.

About the Kurita GroupThe Kurita Group provides a wide range of products, technologies and maintenance services related towater treatment. The two core lines of the Group’s business consist of: 1) water treatment chemicals usedfor boiler water, cooling water and wastewater in manufacturing processes, and 2) water treatment facilities
such as ultrapure water production systems and wastewater treatment facilities. The business scope of bothlines includes production, sales and maintenance services. For additional information about the Kurita
Group, please visit the Company’s website at: www.kurita.co.jp/english
Forward-Looking Statements
This news release contains various forward-looking statements that are based on current expectations andassumptions regarding future events. Except for the historical information contained herein, all figures andstatements with respect to future performance, projections and business plans of the Kurita Group
constitute forward-looking statements. Although Kurita believes that its expectations and assumptions arereasonable, actual results and trends in the Group’s performance could differ materially from thoseexpressed or implied by such figures or statements because of risks and uncertainties.

3

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

As ofAs ofJune 30, 2007 June 30, 2006
(A)
(B)
[Assets]
Current assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securitiesInventories
Other
Allowance 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(A) – (B)
Amount%125,361
33,85910,59756,143
5,090
15,241
4,575(146)
107,106
76,177
2,722
28,206
232,468

120,109
30,003
9,343
54,242
7,352
15,4093,877(119)
88,15556,6852,881
28,589208,264

5,252
3,856
1,254
1,901
(2,262)
(168)
698
(27)
18,951
19,492(159)(383)
24,204

4.4
12.9
13.4
3.5
(30.8)
(1.1)
18.0
22.7
21.5
34.4
(5.5)
(1.3)
11.6

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

61,103
2,056
27,25150,4552,780
24,202

10,648
(724)
3,049

21.1
(26.0)
12.6

65,4962,433
32,31818,846

10,994

7,852

71.4

13,141

2,390
6,112
4,446
11,406

1,737
6,746
3,994
11,368

653
(634)
452
38

37.6
(9.4)
11.3
0.3

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

8,479

8,388

91

1.1

8,392

2,926
72,5092,980
61,824(54)
10,685

(1.8)
17.3

3,047
76,937

154,487
13,45011,426
134,420(4,810)3,991
1,480
159,958
232,468

142,738
13,45011,426
122,656(4,795)2,329
1,372
146,440
208,264

11,74911,764
(15)
1,662
108
13,51824,204

8.2
9.6
0.3
71.4
7.9
9.2
11.6

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

Condensed Statements of Operations - Consolidated(In million yen)Three months ended Three months ended
June 30, 2007 (A) June 30, 2006 (B)(Reference)Year ended
March 31, 2007(A) – (B)

Amount%Amount%Amount%Amount%Net sales
Cost of sales
Gross profit
Selling, general andadministrative expenses

40,52026,706
13,813

100.0
65.9
34.1

33,362
21,923
11,438

100.0
65.7
34.3

7,158
4,783
2,375

21.5
21.8
20.8

197,146
137,819
59,326

100.0
69.9
30.1

9,116

22.5

8,512

25.5

604

7.1

35,05017.8

Operating income
Non-operating income
Non-operating expense
Ordinary income
Extraordinary losses
Income before income taxes
Income taxes
Minority interests inearnings of consolidated
subsidiaries

4,697
393
41
5,048
5,048
2,064

11.6
1.0
0.1
12.5
12.5
5.1

2,925
268
56
3,137
3,137
1,289

8.8
0.8
0.2
9.4
9.4
3.9

1,772
60.6
125
46.6
(15) (26.8)
1,911
60.9
1,911
60.9
775
60.1

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

76

0.2

115

0.3

(39) (33.9)

314

0.2

Net income

2,907

7.2

1,733

5.2

14,2077.2

1,174

67.75