Page 1/2

Thursday, June 12, 2008

For Immediate Release
Kanamoto Company, LimitedStock Code 9678
Tokyo Stock Exchange 1st Section; Sapporo Stock Exchange
Kanchu KanamotoPresident< Contact for inquiries concerning this material >Yuichi Takayama
Manager, Investor and Public Relations, Office of the President
Telephone: + 81 – 11 – 209 – 1631

Notification Concerning Acquisition of Stock(Conversion to Subsidiary Company)
At its Board of Directors meeting held on June 6, 2008, the Board of Directors of Kanamoto Company, Limited (KanchuKanamoto, President; Head Office: Sapporo, Japan), Japan’s leading construction equipment rental company, approved aresolution to acquire the stock of Toyo Industry Co., Ltd. (President: Masayuki Seki; Head Office: Taito Ward, Tokyo) andmake that company a subsidiary. Both companies signed a mutual agreement today to conclude the transaction.

1. Reason for the acquisition of stock (conversion to a subsidiary)
Toyo Industry Co., Ltd. is the largest company in the rental industry for various equipment used with the shield tunnelingmethod. Many of its customers are large, well-respected general contractors, and Kanamoto and Toyo Industry believe thisstock acquisition and conversion of Toyo Industry to a Kanamoto subsidiary will result in synergistic effects for futurebusiness development. In addition, although the trend for works using the shield tunneling method is declining in Japan,
Kanamoto believes it can achieve significant results in the future both domestically and overseas because this techniquewill be necessary and indispensable for urban civil engineering works in developing countries, and because Kanamoto cantake maximum advantage of Toyo Industry’s knowledge and experience in combination with techniques such as ground
improvement works in which Kanamoto excels.
2. Summary of the transferred subsidiary(1)

Trade nameToyo Industry Co., Ltd.

(2)

RepresentativePresident(3)

Head office location and URL

2-21-13, Yanagibashi, Taito Ward, Tokyo(4)

Established

December 1965

(5)

Business

Rental and sale of related equipment used for shield tunneling works(6)

Fiscal year-end

November 30(7)Employees

40(8)OfficesHead Office, Osaka Branch, Chiba Plant, Nagara Kizai Center(9)

Capital and total issued shares

Capital: 31 million yen Total issued shares: 62,400 sharesMasayuki Seki
http://www.toyoindustry.co.jp/(10) Shareholders

Treasury stock (52.4%); Norikazu Seki, others (47.6%)(11) Most recent FY operating results

Revenues: 1,112 million yen (FY ended November 2007)

Notice Concerning Acquisition of Stock (Conversion to Subsidiary Company) 2008/6/12 Page 2/2

3. Stock to be acquired and number of acquired shares
Kanamoto will acquire all of the shares of Toyo Industries except treasury stock from Toyo Industry’s shareholders.
4. Schedule
June 06, 2008

Approval of resolution by Kanamoto’s Board of Directors

June 12, 2008

Signing of mutual agreement (Agreement to Sale and Acquisition of Shares)

Early July 2008

Expected date for sale and purchase of stock

5. Outlook for Toyo Industry Co., Ltd.’s future operating results
For the time being Toyo Industry will continue operating under its current organization, with Kanamoto planning to dispatch
several executives to Toyo Industries in the future. Details of other matters are undecided at present. For the consolidated
accounting settlement for the Business Period ending October 2008, Kanamoto plans to consolidate Toyo Industry on thebalance sheet only as a consolidated subsidiary. The new subsidiary will be included in Kanamoto’s Consolidated
Statements of Income beginning from the next Business Period. As a result, the acquisition will not have any affect on
Kanamoto’s operating results for the current business period.
End