Establishment of Subsidiary Company in Thailand

We will establish a subsidiary company in Thailand in September 2014 to enhance our marketing structure in South East Asia facing ASEAN integration of 2015.

Contents of business operation of the subsidiary company, owned by 100% Kato Works Co., Ltd. Japan, will be manufacturing and sales of construction equipment.

We expect to expand our business activity in the market focusing on manufacturing of construction equipment in Thailand, and also set up an overseas base of operations with the purpose of reducing our overall costs and strengthening our overseas sales-network.

July 16, 2014