FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for the Nine Months Ended
December 31, 2009
Tokyo, Japan, January 29, 2010—Kurita Water Industries (TSE Securities Code 6370)
announced net sales of 123,458 million yen for the nine months ended December 31,
2009 (April 1 – December 31, 2009), and net income of 12,019 million yen, or 93.42
yen per share.
Results of Operations
Total consolidated orders for the Kurita Group in the nine months ended December 31,
2009, were down 17.0% versus the year-ago period (nine months ended December 31,2008) to 125,024 million yen, while net sales declined 10.9% to 123,458 million yen.
Enhanced cost-cutting efforts helped the Group achieve operating income of 18,415
million yen, up 3.7% versus the year-ago period, ordinary income of 18,831 million yen,up 1.8%, and net income of 12,019 million yen, up 35.9%.
Markets in which the Kurita Group operates were extremely challenging overall
during the nine months ended December 31, 2009. Despite some signs of improvement
mainly in Asian markets, capital expenditure fell sharply in the electronics industry andgeneral industries, both in Japan and overseas. Customers’ capacity utilization is in amoderate recovery but remained low.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 39,487 million
yen, down 12.8% versus the year-ago period, while sales fell 11.6% to 40,054 million
yen.
During the nine months ended December 31, 2009, Kurita bolstered sales efforts bystrengthening alliances with its domestic and overseas sales subsidiaries and pursued
order bookings based on a consultative sales approach to help customers successfully
meet challenges such as productivity enhancement and environmental mitigation. TheGroup also worked to increase future orders by developing and expanding sales of newproducts.
In Japan, overall orders fell versus the year-ago period, including those for theGroup’s mainstay boiler water treatment chemicals, cooling water treatment chemicals,
and wastewater treatment chemicals, as the recovery in customers’ capacity utilization
lacked vigor.
Overseas orders also decreased amid the global economic slowdown.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 85,537 million yen,down 18.8% versus the year-ago period, while sales fell 10.6% to 83,403 million yen.
During the nine months ended December 31, 2009, the Group worked to generate
profits by focusing on service businesses and secure orders by stepping up consultative
sales efforts aimed at key customers, including those undertaking overseas projects. TheGroup also worked on developing and expanding sales of new products.
1

In the electronics industry, orders for the ultrapure water supply business were up
markedly versus the year-ago period as new facilities went into operation, but orders for
the Group’s ultrapure water production systems fell substantially as semiconductor- andLCD-related capital expenditures remained sluggish. Orders for water treatment
facilities for general industries dropped considerably versus the year-ago period due to afall in capital expenditure, while orders for maintenance services also fell considerably
because of a decline in customers’ capacity utilization and maintenance frequency.
Outlook for the Fiscal Year Ending March 31, 2010In light of the Group’s recent operating performance, the Group has revised its earnings
forecasts for the full fiscal year ending March 31, 2010, detailed in its consolidatedearnings release (and in Japanese in the kessan tanshin) for the fiscal year ended March31, 2009, issued on April 28, 2009. Revisions are shown in the following table.

Previous forecast(A)
Revised forecast(B)
Change (B – A)
Percent change
For reference:
Fiscal year ended
March 31, 2009(actual)

Net sales

Operatingincome

Ordinaryincome

Net income

Net income
per share

192,000

26,00026,50015,000116.59180,000

26,00026,50015,000116.59————————

27,93528,917

16,299126.69(12,000)(6.3)%
199,706

Markets in which the Kurita Group operates remain extremely challenging amid thehighly uncertain economic outlook and ongoing efforts by customers to curb capital
expenditure and reduce expenses. Consequently, the Group has downwardly revised its
consolidated sales forecast for the full fiscal year ending March 31, 2010.
By virtue of efforts to cut costs and expenses, the Group believes that it is on course
to achieve previously issued forecasts for operating income, ordinary income, and netincome.
Financial Condition
Current assets totaled 102,011 million yen at the end of the fiscal third quarter(December 31, 2009), an increase of 3,322 million yen versus the end of the previous
fiscal year (March 31, 2009). This was mainly due to increases in marketable securitiesof 19,967 million yen and work in process of 5,444 million yen, which were partly
offset by sharp decreases in cash and deposits of 10,301 million yen and trade accounts
receivable of 11,915 million yen.
Despite steady collection of trade accounts receivable, cash and deposits decreased
due to an increase in certificates of deposit, which are recorded as marketable securities.
The decline in trade accounts receivable was due to both steady collections as well as adecrease in sales. The increase in marketable securities reflects the increase incertificates of deposit, while the increase in work in process was due to the progress ofongoing works in the water treatment facilities business.
Noncurrent assets totaled 140,229 million yen at the end of the third quarter, a declineof 6,488 million yen versus the end of the previous fiscal year. This mainly reflects a
7,773 million yen decrease in property, plant and equipment, which more than offset a
1,427 million yen increase in the “Investments and other assets” account reflecting
2

increased market values of investment securities held by the Group. Property, plant andequipment declined because depreciation on large-scale capital expenditures executed inprevious years exceeded capital expenditure during the first three quarters.
Current liabilities totaled 35,400 million yen at the end of the third quarter, a declineof 12,535 million yen versus the end of the previous fiscal year. This was mainly due toa 9,904 million yen decrease in other current liabilities, due to the payment of accrued
expenses associated with facilities for the ultrapure water supply business acquired in
the previous fiscal year, and a 1,350 million yen decrease in accrued employees’
bonuses mainly due to the payment of bonuses.
Noncurrent liabilities totaled 18,771 million yen at the end of the third quarter, aslight decrease of 73 million yen versus the end of the previous fiscal year.
Net assets were 188,069 million yen at the end of the third quarter, an increase of
9,443 million yen versus the end of the previous fiscal year. Despite dividend paymentsof 4,374 million yen, net assets increased due to positive net income for the nine months
ended December 31, 2009, that resulted in a 12,019 million yen increase in retained
earnings. Valuation and translation adjustments added 1,818 million yen due to a rise inunrealized gains on available-for-sale securities reflecting higher market values ofinvestment securities held by the Group.
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 consistof: 1) the Water Treatment Chemicals segment, which provides water treatment
chemicals used for boiler water, cooling water, and wastewater and in manufacturing
processes; and 2) the Water Treatment Facilities segment, which encompasses ultrapure
water production systems, wastewater treatment facilities, and the ultrapure watersupply business. The scope of both business lines includes production, sales, andmaintenance services. For additional information about the Kurita Group, please visit
the Company’s website at: http://www.kurita.co.jp/english/.
Forward-Looking Statements
This news release contains various forward-looking statements that are based on current
expectations and assumptions regarding future events. Except for the historicalinformation contained herein, all figures and statements with respect to future
performance, projections, and business plans of the Kurita Group constituteforward-looking statements. Although Kurita believes that its expectations andassumptions are reasonable, actual results and trends in the Group’s performance could
differ materially from those expressed or implied by such figures and statements due torisks and uncertainties.

3Financial Statements — Consolidated
Balance Sheets — Consolidated(millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Income taxes payable
Allowances
Other
Total current liabilities
Noncurrent liabilities
Accrued employees’ retirement benefits
Other allowances
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earningsTreasury stock
Total shareholders’ equity
Valuation and translation adjustments
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

As ofDecember 31, 2009
AmountAs ofMarch 31, 2009
Amount15,7606,208
40,19821,000
1,408
9,737
1,149
6,696
(147)
102,011

26,061
8,284
52,113
1,033
1,414
4,293
1,440
4,188
(140)
98,68936,89553,36528,029118,2902,144

39,29050,82135,950126,063
2,285

19,923(128)
19,795140,229
242,241

18,520(152)
18,368
146,717
245,406

1,145
16,5603,624
2,034
12,03535,4001,820
17,0103,781
3,384
21,93947,935

9,046
449
9,275
18,771
54,172

8,644
738
9,462
18,844
66,77913,45011,426
167,437(4,854)
187,460

13,45011,426
159,792(4,847)
179,821

1,610
(750)
(1,571)(712)
1,321
188,069
242,241170(750)(1,950)(2,530)
1,335
178,626
245,406

4

Statements of Income — Consolidated(millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and directors’ remuneration
Provision for employees’ bonuses
R&D expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Loss on disposal of properties
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain from cancellation of contracts
Total extraordinary income
Extraordinary losses
Valuation loss on investment securities
Legal settlement
Loss on liquidation of businessTotal extraordinary losses
Income before income taxes and minority interests
Income taxes
Minority interests in earnings of consolidated
subsidiaries
Net income

Nine months ended
December 31, 2009
Amount123,458
79,58543,873Nine months ended
December 31, 2008
Amount138,599
93,47545,123

10,316641
2,923
11,57625,45818,415

10,412652
3,391
12,91327,36917,753

65
233

212
303

211

219

189
700

218
954

21
50
212
284
18,8313055
132
218
18,4891,505
1,505-136
136
20,199
8,139

1,513
480
1,993
16,496
7,420

40

232

12,0198,843

5

Statements of Cash Flows — Consolidated(millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowances(Increase) decrease in notes and accounts receivable trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received
Valuation (gain) loss on investment securities
Income taxes paid
Other (net)Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketablesecurities
Payments for purchases of property, plant andequipment
Proceeds from sale of property, plant and equipment
Payments for purchases of investment securities
Proceeds from liquidation of subsidiaries
Other payments
Other proceeds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of long-term borrowings
Repayment of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of theperiod
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at the end of the period

Nine months
ended
December 31,
2009
AmountNine months
ended
December 31,
2008Amount

20,19911,468(1,273)

16,496
8,079(821)

14,002

12,225(5,100)(7,161)(1,849)(1,457)

1,081(8,546)
1,335
31,316

3,414
1,513(15,068)(940)
16,279(2,099)(4,497)

2,916

6,897

(17,337)(16,772)49(7)(1,431)
1,398(16,513)

53
(8)
1,451
(1,787)201(14,460)

(0)
(327)
(6)
(4,111)(78)(4,525)

(99)
(25)
(17)
(4,111)(44)(4,298)

660

(536)

10,938(3,015)25,26230,36060-36,261

27,345

6

Segment Information
Business segment information
Nine months ended December 31, 2009 (April 1, 2009 – December 31, 2009)(millions of yen)

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

Water
treatmentchemicals

Watertreatment
facilities

Total

40,054297
40,352
6,359

83,40359
83,462
12,055

123,458
356
123,814
18,415

Eliminationor corporate

Consolidated(356)(356)-123,458
123,458
18,415

Nine months ended December 31, 2008 (April 1, 2008 – December 31, 2008)(millions of yen)

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

Water
treatmentchemicals

Watertreatment
facilities

Total

45,288248
45,537
6,930

93,31074
93,385
10,823

138,599323
138,922
17,754

Eliminationor corporate

Consolidated

(323)
(323)
(0)

138,599
138,599
17,753Note:
1. Effective the first quarter of the fiscal year ending March 31, 2010, the Company adopted theAccounting Standard for Construction Contracts and its accompanying Guidance on theAccounting Standard for Construction Contracts. Due to this change, for the nine months ended
December 31, 2009, sales were 3,434 million yen higher and operating income was 908 million
yen higher than would have resulted with the previous accounting method.

Geographical segment information
Nine months ended December 31, 2009 (April 1, 2009 – December 31, 2009)(millions of yen)

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

Japan

Otherregions

Total

112,661
1,127
113,788
17,044

10,796
185
10,982
1,152

123,458
1,312
124,771
18,196

Eliminationor corporate(1,312)(1,312)
218

Consolidated

123,458
123,458
18,415

Nine months ended December 31, 2008 (April 1, 2008 – December 31, 2008)(millions of yen)

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

Japan

Otherregions

Total

123,157
1,599
124,756
15,98815,441
204
15,645
1,498

138,599
1,803
140,402
17,486

Eliminationor corporate(1,803)(1,803)266

Consolidated

138,599
138,599
17,7537

Notes:1. Geographic segmentation is based on geographic proximity.
2. “Other regions” in the above table consists of Asia and other areas.
3. Effective the first quarter of the fiscal year ending March 31, 2010, the Company adopted theAccounting Standard for Construction Contracts and its accompanying Guidance on theAccounting Standard for Construction Contracts. Due to this change, for the nine months ended
December 31, 2009, in Japan sales were 3,434 million yen higher and operating income was 908
million yen higher than would have resulted with the previous accounting method.

Overseas sales
Nine months ended December 31, 2009 (April 1, 2009 – December 31, 2009)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated salesAsia
8,641-

North
America
1,163-

Europe1,038-

Other
1,815-

Total
12,659123,458

7.0%

1.0%

0.8%

1.5%

10.3%

Nine months ended December 31, 2008 (April 1, 2008 – December 31, 2008)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated sales

Asia
15,553-

North
America
824-

Europe1,298-

Other
2,474-Total
20,149138,599

11.2%

0.6%

0.9%

1.8%

14.5%

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” comprises sales by the Company and its consolidated subsidiaries in countries orregions other than Japan.
4. Effective the first quarter of the fiscal year ending March 31, 2010, the Company adopted theAccounting Standard for Construction Contracts and its accompanying Guidance on theAccounting Standard for Construction Contracts. Due to this change, for the nine months ended
December 31, 2009, sales in Asia were 560 million yen higher than would have resulted with theprevious accounting method.

8

Net Sales, Order Intake
Net Sales(millions of yen)

Business segment
Water treatment chemicals

Nine months ended December 31,2009
2008
Amount%Amount40,05432.4
45,288%32.7

Water treatment facilities

83,403

67.6

93,310

67.3

Total

123,458

100.0

138,599

100.0

Order Intake(millions of yen)

Business segment
Water treatment chemicals

Nine months ended December 31,2009
2008
Amount%Amount39,48731.6
45,262%
30.1

Water treatment facilities

85,53768.4

105,278

69.9

Total

125,024100.0

150,541

100.0

Capital Expenditures (Property, Plant and Equipment)(millions of yen)

Business segment
Water treatment chemicals

Nine months ended December 31,2009
2008
Amount%Amount
560
10.8
1,005

%
2.4

Water treatment facilities

4,635

89.2

40,972

97.6

Total

5,196

100.0

41,977100.0

Depreciation (Property, Plant and Equipment)(millions of yen)

Business segment
Water treatment chemicals

Nine months ended December 31,2009
2008
Amount%Amount
963
8.8
1,018

%
13.7

Water treatment facilities

10,008

91.2

6,432

86.3

Total

10,972

100.0

7,451

100.0

9