PRESS RELEASE
March 31, 2008
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Chiyoda Corporation
Takashi Kubota
6366First Section of the Tokyo Stock Exchange
Shinji Kusunoki
General Manager, Accounting Department+81-45-506-9410

Chiyoda Announces Revisions to Forecasts of Financial Results
Chiyoda Corporation today announced the following revisions to its forecast of financial results that wereannounced on November 9, 2007.
1. Revision to the consolidated full-year financial results forecast (year ending March 31, 2008)(Millions of yen)
Net income
OperatingRecurringNetRevenues
per share
Incomeincomeprofit(Yen)
Previous forecast (A)570,000
22,00032,00019,500101.43(announced November 9, 2007）
Revised forecast (B)590,000
7,000
18,00010,50054.61
Increase (decrease) (B-A)
20,000(15,000)(14,000)(9,000)－Percentage increase (decrease) (%)
3.5(68.2)(43.8)(46.2)－(Reference) Results for fiscal year
484,895
28,70036,79723,531
122.41
ended March 2007

2. Reasons for revisions to financial results forecast
The forecast of revenue increased due to increase of change orders in overseas projects now in peak progress of
their construction work.
Declines in income and profit forecasts were brought because construction cost increase caused by increasedlabor costs due to the tight market for construction workers as well as lower productivity has been enlarged
beyond the level foreseeable at the latest forecast announcement on November 9, 2007.
To overcome such a severe situation, Chiyoda has been continuing discussions with clients on the changes of thecontract conditions, with regard to schedule extension and additional compensation for the increased construction
costs. Agreements on the changes have been concluded for the Qatargas II Train 4 & 5, and the Rasgas Train 6& 7, in a month period starting from the end of January 2008. Discussions of the changes for Qatargas III (Train6), and for Qatargas IV (Train 7), will be finalized beyond the end of this fiscal year. Because settlement for thelatter two trains remains outstanding through the end of the fiscal year, while additional payments for
subcontractors and prolongation costs for these projects have been disbursed in advance and provisions havebeen set aside, we are obliged to report the substantial decrease in the financial result of the 4th quarter of thisfiscal year ending March 31, 2008.
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The labor shortages and material cost increase, mainly causing decreased financial result, are the phenomenon
solely occurring in Qatar in a scale far beyond control of the internationally recognized contractor like us.
Performance of the projects in other oversea countries and domestic, and results of our group companies are asprojected. The world largest LNG trains, now under construction in Qatar, will be completed one by one fromnext fiscal year. Chiyoda will exert its best effort, to deliver total 6 such trains to the clients in accordance withthe schedule, and to recover part of suffered losses by acquiring change orders from the clients.
Chiyoda also revised the exchange rate assumption used for the above forecasts from 110 yen to 100 yen to the
U.S. dollar.

3. Revision to the year-end dividend forecast
The year-end dividend forecast, 18 yen per share, has been changed to 10 yen per share, accordingly.

Cash Dividend

Dividend per share (Yen)Year EndYear Total

Previous forecast (A)(announced November 9, 2007）

1818

Revised forecast (B)1010Increase (decrease) (B-A)
Results for fiscal year ended March
2007

(8)

(8)

15

15

4. Reasons for revisions to dividend forecast
Because of the substantial decrease of income forecast as above, we have to revise forecast of the dividend pershare from 18 yen to 10 yen accordingly. This revision was made in accordance with our basic dividend policy tomaintain steady dividend of 10 yen or more every year.

5. Responsibility of the Corporate Management
In order to correctly recognize the managements’ responsibility for the above revision, we will resolve to cut themanagement compensation.

6. Forward-looking Statements
The forecasts and plans in this announcement are based on information available to management on March 31,
2008, the date these materials were prepared. Actual results may differ significantly from these forecasts for anumber of factors, including but not limited to changes in economic conditions and operating environment inJapan and overseas. We strongly request you not to rely only on this forecast, in making investment decisions.

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