August 13, 2008
Stock Exchange Listing Tokyo, Osaka
Name of listed company: ISEKI & CO., LTD.
6310
Company Code:(URL http://www.iseki.co.jp) Head Office:Tokyo
Representative: Title President
Name Seiichiro Gamo
Title General Manager of FinanceName Hiroshi Yunoki
Enquiries:
Telephone: +81 3 5604 7671
Date of Submission of Quarterly ReportAugust 13, 2008

Summary Announcement of Consolidated Financial Results
for the Three Months Ended June 30, 2008
I. Financial Results for the Three Months Ended June 30, 2009

(April 1, 2008－June 30, 2008)

A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Three Months

Three Months
%

Ended

June 30, 2007

June 30, 2008
Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per Share (yen)Non-diluted
Fully Diluted

%

Ended

32,328
(526)
(432)
(520)
(2.31)-29,942
(645)
(506)
(438)
(1.94)-(11.0)--

B. Financial Position(Rounded down to millions of yen)

June 30, 2008

June 30, 2007

181,459
52,33028.0%¥224.79

173,198
52,55629.4%¥225.76

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio
Net Assets per Share
Notes: Shareholders’ equity:

First Quarter of FY Mar. 2009 ¥50,761 mil. Year ended March 31, 2008 ¥50,981mil.
II. Dividends

Dividend per share (Yen)(Recorded date)
FY ended March 2008
FY ending March 2009
FY ending March 2009 (forecast)End of 1Q-

End of 2Q－

End of 3Q－

Year-end
0.00－

Annual0.00－－--0.00

0.00(Note) Revision of dividend forecast during the first quarter of FY ending March 2009: None1III. Forecast for the Fiscal Year Ending March 31, 2009 (April 1, 2008－March 31, 2009(% represents comparison with previous year for the full year performance and y-o-y comparison for the cumulative 2Q)

Net Sales

Millions of yen%

2Q (Cumulative)

76,000 6.7

Annual

154,500 6.8

OperatingOrdinaryNet

Net Income

IncomeIncomeIncomeper share

Millions of yen%

500

－

200

3,300 348.6

1,900Millions of yen%

Yen－(600)－(2.66)

－600－

2.66

Millions of yen %(Note) Revision of performance forecast during the first quarter of FY ending March 2009: Yes
IV. Others
A. Change in important subsidiaries during the period (change in specified subsidiaries which accompanies a change
in the range of consolidation): None.
B. Adoption of simplified method in accounting method and unique accounting method for quarterly financial
statements: Yes(Note) For details, please refer to p2 [Qualitative Information.・Financial Statements, etc] 4. Others.
C. Change in principle, procedure and method of statement of accounting procedures in preparation of consolidated
financial statements (as stated in “Changes in essential matters which provide a basis for preparation ofConsolidated Financial Statements”)
1) Change which accompanies revision of accounting standards: Yes
2) Change other than No.1.
None(Note) For details, please refer to p2 [Qualitative Information・Financial Statements, etc] 4. Others.
D. Outstanding shares (Common shares)
1) Outstanding shares (Including treasury shares)
As of June 30, 2008 226,536,329 shares As of March 31, 2008 226,536,329 shares
2) Outstanding treasury shares
As of June 30, 2008 716,293 shares
As of March 31, 2008 711,509 shares
3) Average number of shares during the period (Quarterly consolidated cumulative period)
As of June 30, 2008 225,823,058 shares As of March 31, 2008 225,844,485 shares* Statement regarding proper use of financial performance forecasts and other notes.
(1) The forecast for operating results has been produced based on information presently available. It is possible thatin the future actual results may differ from the anticipated figures for a variety of reasons. Please refer to page 3[Qualitative Information・Financial Statements, etc], [3. Qualitative information regarding performance forecast]/(2) From the current fiscal year, the company adopts the “Accounting Standards for Quarterly Financial Reporting”(ASBJ Statement No.12 issued on March 14, 2007) and its Implementation Guidance No.14 issued on March 14,
2007. We have prepared consolidated quarterly financial statements in accordance with the “Accounting Standard
for Quarterly Financial Reporting”[Qualitative Information・Financial Statements, etc]
1. Qualitative information concerning the status of consolidated financial results
During the first quarter under review, while economic stagnation and financial turmoil persisted in the US,
uncertainty for the future was intensified with an increased concern for economic slowdown and inflation on theback of hike in international commodity prices represented by oil price. In the domestic agricultural machinery
market, in spite of structural problems such as aging and decreasing farming population, there is a sign of recovery

2

in the situation of buying restraint and wait-and-see attitude caused by dropped rice price and agriculture policy
reform by a move to review the policy as well as curbed drop of rice price, which existed until last year. Under thecircumstances, the ISEKI Group has endeavored to broaden its line-up of new products to meet the diverse needs ofcustomers, and has aggressively evolved promoted sales activities as well trying to increase both domestic andoverseas sales.
In the first quarter, sales increased ¥2.385 billion from the same period of the previous year to ¥32.328 billion(up 8.0%). Domestic sales increased ¥0.617 billon to ¥27.040 billion (up 2.3%) reflecting a move of recovery inagricultural machinery sales. Overseas sales increased ¥1.768 billion to ¥5.287 billion (up 50.2%) mainly
contributed by a return to normal ordering pattern of our OEM partner in North America by their completion ofinventory adjustment. Operating income increased ¥0.118 billion from the same period of the previous year to anoperating income of ¥0.526 billion. Ordinary income increased ¥0.074 billion from the same period of the previousyear to an ordinary loss of ¥0.432 billion. Quarterly net income decreased ¥0.082 billion from the same period of
the previous year to a net loss of ¥0.520 billion due to increased payment of corporate income tax and others.

2. Qualitative information concerning the shifts in consolidated financial position
As of the end of the first quarter, total assets increased ¥8.261 billion from the previous period to ¥181.459
billion. In term of assets, current assets increased ¥8.234 billion from the previous period. The main items were
¥6.996 billion increase in notes and accounts receivable and ¥0.360 billion decrease in inventory assets. Fixed
assets increased ¥0.026 billion from the previous period. Investments and other assets increased ¥0.183 billion
mainly due to an increase in valuation of investment securities. Total liabilities increased ¥8.486 billion from theprevious period mainly due to an increase in short-term borrowings. Total assets decreased ¥0.225 billion from theprevious period to ¥52.330 billion. As a result, equity ratio was 28.0%.

Cash and cash equivalents as of the end of the first quarter under review increased ¥2.191 billion from the endof the previous fiscal year to ¥7.878 billion.
(Cash flows from operating activities)
Cash flow from operating activities resulted in a net expenditure of ¥7.933 billion (net expenditure increased¥0.518 billon from the same period last year) mainly due to an increase in accounts receivable of ¥6.996 billion anda decrease in accounts payable of ¥2.005 billion. As always, accounts receivable tend to increase as of the end of
first quarter every year due to seasonality of agricultural machinery sales and debt collection by our sales
subsidiaries. As a result, cash flows from operating activities in the first quarter become a net expenditure every year.
(Cash flows from investment activities)
Cash flows from investment activities resulted in a net expenditure of ¥0.999 billion (a decrease of ¥0.225
billion from the same period last year), mainly due to capital investment expenditure of ¥1.025 billion.
(Cash flows from financial activities)
Cash flows from financial activities resulted in a net revenue of ¥11.155 billion (an increase of ¥0.701 billion
from the same period last year), due to increased short-term borrowings, etc.

3. Qualitative information regarding performance forecast
In view of our business performance in the first quarter under review and prospect for future, we have revised

3

cumulative business performance forecasts for the second quarter from the previous forecast (May 15, 2008).
As for details of the forecast, please refer to “Notice of Revision to Business Performance Forecast”. To add,
annual business performance forecast has not been amended from the previous forecast.

4. Others(1) Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None.
(2) Adoption of simplified method in accounting method and unique accounting method for quarterly financial
statements
1) Calculation method of income taxes, deferred tax assets and deferred tax liabilities
Concerning calculation of payable tax of income taxes, we employ a method to limit add-subtract items and tax
exemption items to important ones. With respect to evaluation of collectability of deferred tax assets, we rely on amethod to use business performance forecast or tax planning used in the previous consolidated fiscal year in case nosignificant change is recognized in the managerial environment or situation to generate differences.
(3) Changes in principle, procedure and method of statement of accounting procedures in preparation of consolidated
quarterly financial statements.
1) Adoption of Accounting Standard for Quarterly Financial Statements
Starting from the current consolidated fiscal year, we have applied the “Accounting Standard for Quarterly FinancialReporting” (ASBJ Statement No.12, issued on March 14, 2007) and “Implementation Guidance of AccountingStandard for Quarterly Financial Reporting”(ASBJ Implementation Guidance of Corporate Accounting Standards
No.14, issued on March 14, 2007). We have prepared consolidated quarterly financial statements in accordance withthe “Accounting Standard for Quarterly Financial Reporting”.
2) Change in evaluation standards and evaluation method of inventory assets
In appropriation of inventory assets held for sale, we formerly used mostly lower of cost method by total averagemethod. However, starting from the first quarter consolidated accounting period under review, in response toapplication of “Accounting Standard for Evaluation of Inventory Assets” (ASBJ Corporate Accounting Standards
No.9, issued on July 5, 2006”, inventory assets have been calculated mainly by cost method (A method to reducebook value on balance sheet to reflect a declined profitability) of total average method.
As a consequence, operating loss, ordinary loss and before tax net loss have been increased by ¥142 billion
respectively.
3) Adoption of "Practical Solution of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated
Financial Statements“Starting from the current first quarter consolidated accounting period, we have applied the "Practical Solution ofAccounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements”(ASBJ PracticalIssues Task Forces Report No.18, issued on May 17, 2006).
Impact of the application on the profit and loss was negligible.

45．Consolidated Quarterly Financial Statements(1)

Consolidated Quarterly Balance Sheets(millions of yen)
FY2009(as at Jun. 30, 2008)

FY2008(as at Mar. 31, 2008)

8,219

5,817

35,837

28,84053

53

Merchandise and products

37,33538,363Work in progress

3,574

3,011

Raw materials and stocks

1,372

1,267

Others

2,649

3,430

Allowance for doubtful accounts

(115)

(93)

88,92680,691

Buildings and structures(net)16,142

16,293

Land

50,74450,729Others(net)12,796

12,797

79,68379,820815

835

Investment securities

6,835

6,324

Others

5,861

6,180

Allowance for doubtful accounts

(662)

(655)

12,033

11,85092,53392,506

181,459

173,198

AssetsCurrent Assets
Cash and time deposits
Notes and accounts receivable
Marketable securities

Total current assets
Fixed Assets
Tangible fixed assets

Total tangible fixed assets
Intangible fixed assets
Investments and other assets

Total investment and other assets
Total fixed assets
Total Assets

5

(millions of yen)
FY2009(as at Jun. 30, 2008)

FY2008(as at Mar. 31, 2008)

Notes and accounts payable

38,78240,788

Short-term borrowings

38,12425,092

40

100

9,352

9,469

Accrued income taxes

351

511

Allowance for bonus

1,222

462

Others

5,127

6,641

93,00083,066

Bonds

2,525

2,545

Long-term debt

18,995

20,726

Deferred tax liability from land revaluation

7,595

7,595

4,179

4,164

469

318

2,362

2,225

36,127

37,575

129,128

120,641

Common stock

22,78422,784

Capital surplus

12,815

12,815Retained earnings

3,560

4,081

Treasury stock

(168)

(167)

38,99239,514

Net unrealized holding gain on securities

1,214

907

Land revaluation reserve

10,527

10,52727

31

11,76911,466

1,569

1,575

Total Net Assets

52,33052,556

Total Liabilities and Net Assets

181,459

173,198

Liabilities
Current Liabilities

Bonds(due within one year)
Long-term debt(due within one year)

Total current liabilities
Long - term Liabilities

gain
Accrued retirement benefits for employees
Accrued directors' retirement benefits
OthersTotal long-term liabilities
Total liabilities
Net Assets
Shareholders' equity

Total shareholders’ equity
Difference of appreciation and conversion

Foreign currency translation adjustments
Total difference of appreciation andconversion
Minority interests in Consolidated Subsidiaries

6(2) Consolidated Quarterly Statements of Income(First Quarter Consolidated Cumulative Period)(millions of yen)
FY2009(Apr.1, 2008 – Jun.30,2008)
Net sales

32,328

Cost of sales

22,222Gross Profit

10,105

Selling, general and administrative expenses
Operating Loss

10,632(526)

Non-operating Income
Interest received

49

Dividend received

80

Foreign exchange gain

184

Others218

Total non-operating income

533

Non-operating Expenses
Interest expenses

313

Others125

Total non-operating expenses

439

Ordinary Loss(432)

Extraordinary Gains
Gain on sale and disposal of property, plant and equipment

11

Gain on sale of investment securities

13

Total Extraordinary Gains

25

Extraordinary Losses
Loss on sale and disposal of property, plant and equipment

32

Reversal of past year allowance for directors’ retirement benefit

144

Others14

Total Extraordinary Losses

191

Income before income taxes and minority interests(598)

Income taxes

239

Reversal of past year corporate and other taxes(309)

Total Income taxes, deferred tax(70)

Minority interests in consolidated subsidiaries(6)(520)

Net Loss7

(3) Consolidated Quarterly Statements of Cash Flows(millions of yen)
FY2009(Apr.1,2008-Jun. 30, 2008)
Cash Flows from Operating Activities
Income before income taxes and minority interests(598)

Depreciation and amortization

1,081

Increase in reserve for retirement benefits

15

Loss (gain) on sales of investment securities(13)

Interest and dividend income(129)Interest expenses

313

Effect of foreign exchange rate changes(12)

Loss on sales of tangible and intangible fixed assets

20

Decrease in notes and accounts receivable
Decrease(increase)in inventories(6,996)360

Increase(decrease) in notes and accounts payable(2,005)

Others606

Subtotal(7,360)Interest and dividends received

128Interest paid

(341)

Income taxes paid

(361)

Net cash provided by (used in) operating activities(7,933)

Cash Flows from Investing Activities
Payments for purchases of tangible and intangible fixed assets
Proceeds from sale of tangible and intangible fixed assets(1,025)
106

Payments for purchase of investment securities

0

Proceeds from sale of investment securities

18

Net decrease in time deposits(209)

Others112

Net cash used in (provided by)investing activities(999)

Cash Flows from Financing Activities
Net increase in short-term borrowings

13,085

Proceeds from long-term debt

1,080

Repayments of long-term debt

(2,928)

Redemption of bonds(80)

Payments for purchases of treasury stock(1)

Net cash used in financing activities

11,155

Effect of Exchange rate Changes on Cash and Cash Equivalents(30)

Net Increase in Cash and Cash Equivalents

2,191

Cash and Cash Equivalents at beginning of year

5,687

Cash and Cash Equivalents at end of year

7,8788Starting from the current consolidated fiscal year, we have applied the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ Statement No.12, issued on March 14, 2007) and “Implementation Guidance ofAccounting Standard for Quarterly Financial Reporting”(ASBJ Implementation Guidance of Corporate AccountingStandards No.14, issued on March 14, 2007). We have prepared consolidated quarterly financial statements inaccordance with the “Accounting Standard for Quarterly Financial Reporting”.
(4) Note on going concern premises
There is no corresponding item.
(5) Note in case there is a substantial change in the amount of shareholders’ equity
There is no corresponding item.

9[Reference material]
Financial statements etc. disclosed in the” Quarterly Management Performance・Financial Statements, etc” of theprevious period are as follows.
(Summary） Consolidated Quarterly Statements of Income
First quarter consolidated cumulative period of the previous year (April 1, 2007 – June 30, 2007)(millions of yen)
st1 Quarter
FY2008(Apr.1 2007 – Jun.1, 2007)

AccountAmountI

Net sales

29,942

IICost of sales

19,968Gross ProfitIIIIVV

9,973

Selling, General and Administrative Expenses
Operating Income(645)Non-operating Income

520

Interest and dividend received

92

Others428

Non-operating Expenses

381

Interest expenses

286

Others95

Ordinary IncomeVI

VII

10,619(506)

Extraordinary Gains

758

Gain on sale and disposal of property, plant and equipment

15

Gain on sale of investment securities

713

Others29
1,006

Extraordinary Losses
Loss on sale and disposal of property, plant and equipment

45

Special retirement benefit

920

Others40

Income before income taxes and minority interests

Income taxes

(754)

(320)

Minority interests in consolidated subsidiaries
Net Income3(438)* Notes: “Income taxes” includes “corporate income tax, residents tax” and “Income taxes adjustment”.

10(Summary) Consolidated Quarterly Statements of Cash FlowsFirst quarter consolidated cumulative period of the previous year (April 1, 2007 – June 30, 2007)(millions of yen)
st1 Quarter
FY2008(Apr.1,2007 -Jun. 30, 2007)
AmountDescription
I

Cash Flows from Operating Activities
Income before income taxes and minority interests(754)

Depreciation and amortization

1,041Interest and dividend income(92)Interest expenses

257

Increase in notes and accounts receivable(405)

Increase in inventories(3,106)

Decrease in notes and accounts payable(3,448)Others(288)
Subtotal(6,795)Interest and dividends received

94

Interest paid

(292)

Income taxes paid

(420)

Net cash provided by (used in) operating activities
II

Cash Flows from Investing Activities
Sales (purchase) of investment securities

379

Sales (purchase) of tangible fixed assets(1,427)

Net decrease in time deposits(201)

Others23

Net cash used in (provided by)investing activities
III(1,225)

Cash Flows from Financing Activities
Net increase (decrease) in short-term borrowings

10,478Net process from issuance and redemption of bonds(20)

Payments for purchases of treasury stock

0Others(3)

Net cash used in financing activities
IV(7,415)

10,454

Effect of Exchange Rate Changes on Cash and Cash

19

Equivalents
V

Net Decrease in Cash and Cash Equivalents

1,832

VI

Cash and Cash Equivalents at beginning of the Period

4,985

VII

Cash and Cash Equivalents at end of the Period

6,818

11