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Monday, May 28, 2007

To All Concerned Parties
Kanamoto Company, Limited
Stock Code 9678
Tokyo Stock Exchange 1st Section; Sapporo Stock Exchange
Nobuhito Utatsu
Director and Corporate Officer, Division Manager, Accounting Division< Contact for inquiries concerning this material >Yuichi Takayama
IR & Public Relations Section Manager, Office of the President
Telephone: + 81 – 11 – 209 – 1631

Notification Concerning Revision of Projected Interim
and Full-year Operating Results

Kanamoto Company, Limited (Kanchu Kanamoto, President; Head Office: Sapporo, Japan), Japan’s
leading construction equipment rental company, has made the following revisions to its projectedconsolidated and non-consolidated interim and full-year operating results for the fiscal year ending
October 31, 2007 (November 1, 2006 - October 31, 2007) provided in the Accounting Bulletin(Consolidated) and Summary of Company Financial Statements, respectively, released on December 8,
2006. These revisions reflect the trends in the Company’s most recent operating results.
SEC Accounting Standards: The Company has not adopted SEC accounting standards(Millions of yen, except net income per share which is in yen)

1. Revised projection of consolidated operating results(1) Fiscal year ending October 2007, interim period(November 1, 2006 – April 30, 2007)

Revenues

Operatingincome

Ordinary
incomeInterim net
incomeNet income
per share

Prior projection（A）

35,530

2,940

2,870

1,830

60.28

Revised projection（B）

36,230

3,430

3,420

2,380

72.44

Increase (decrease)（B－A）

700490

550

550

―

（%）

2.0%

16.7%

19.2%

30.1%

―

34,520

2,873

2,801

1,048

35.12

Rate of change
Prior fiscal year interim results(Fiscal year ended October 2006)

Revision of Projected Operating Results

2007/05/28 Page 2/3(November 1, 2006 – October 31, 2007)(2) Fiscal year ending October 2007, full year
Revenues

Operatingincome

Ordinary
incomeNet income

Net income
per share

Prior projection（A）

68,570

4,230

4,020

2,360

71.82

Revised projection（B）

68,700

4,600

4,700

2,400

73.05

Increase (decrease)（B－A）

130370

680

40―

（%）

0.2%

8.7%

16.9%

1.7%

―

68,023

4,068

3,788

1,742

57.41

Rate of change

Prior fiscal year results(Fiscal year ended October 2006)

2. Revised projection of non-consolidated operating results(November 1, 2006 – April 30, 2007)(1) Fiscal year ending October 2007, interim period
Revenues

Operatingincome

Ordinaryincome

Interim netincome

Net income
per share

Prior projection（A）

32,010

2,610

2,700

1,770

58.31

Revised projection（B）

32,440

3,070

3,190

2,320

70.61

Increase (decrease)

（B－A）

430

460

490

550

―

（%）

1.3%

17.6%

18.1%

31.1%

―

30,764

2,496

2,569

955

31.99

Rate of change

Prior fiscal year results(Fiscal year ended October 2006)(2) Fiscal year ending October 2007, full year

(November 1, 2006 – October 31, 2007)

Revenues

OperatingincomeOrdinaryincome

Net income

Net income
per share

Prior projection（A）

61,540

3,900

4,000

2,410

73.34

Revised projection（B）

62,000

4,300

4,700

3,000

91.31

Increase (decrease)

（B－A）

460

400

700

590

―

（%）

0.7%

10.3%

17.5%

24.5%

―

60,753

3,715

3,739

1,720

56.67

Rate of change

Prior fiscal year results(Fiscal year ended October 2006)

3. Reasons for the revision
In the Honshu Region, net sales are growing as planned as the Company diligently pursues
private sector demand in response to projected continuing cutbacks in public works. In addition,
revenues in the Hokkaido Region have risen substantially compared with the same period of theprevious fiscal year because of effective, detailed business development efforts. As a result of
these and other factors, revenues are increasing in each of the Company’s markets throughout
Japan, and are projected to exceed the Company’s initial interim projection.

Revision of Projected Operating Results

2007/05/28 Page 3/3

From an earnings perspective, Kanamoto projects operating income, ordinary income and net
income will exceed its initial projection because the Company has been able to sustain the strong,
positive effects generated by implementation of Kanamoto’s long-term management plan
beginning in the previous consolidated fiscal year.
During the second half of the fiscal year, the business environment surrounding the Kanamoto
Group will be unchanged and will remain severe, as a result of negative factors such as
anticipated delays in the start of new construction works under the influence of the upcoming
House of Councilors election. Kanamoto believes it is especially susceptible to these influences,because its consolidated subsidiaries are small in size and are developing their businessesmainly in local areas. Consequently, the revisions to Kanamoto’s full year operating results
projection have been limited to extremely conservative corrections.
End