Kawasaki to Open a New Subsidiary in Dubai

Tokyo, July 30, 2008 — Kawasaki Heavy Industries, Ltd. announced today that it will establish a subsidiary in Dubai, the United Arab Emirates (UAE). The new subsidiary will enhance Kawasaki’s marketing capability in the rapidly growing market of the Middle East and North Africa (MENA).

The recent oil boom has fueled a number of projects currently being planned and implemented in the MENA region. Anticipating an increasing number of business opportunities in this region, Kawasaki has decided to establish a Group operational base that will cover the entire MENA region with an eye to enhancing its mobility

The new subsidiary will be located in the Dubai Airport Free Zone adjacent to the Dubai International Airport. Dubai, which serves as an operational base for many foreign companies, has become the information, transportation and financial hub of the Middle East.

Kawasaki has a proven track record in shipbuilding, constructing cement, fertilizer and other plants, as well as construction and industrial machinery sales in the MENA region. In addition to these existing businesses, Kawasaki plans to step up its group-wide sales activities in the region, focusing on transportation systems, gas turbines for power generation, and civil engineering machinery.

Overview of the new subsidiary:

· Name: Kawasaki Heavy Industries Middle East FZE

· Location: Dubai Airport Free Zone, UAE

· Capitalized at 1,000,000 dirham (approximately 30,000,000 yen, wholly owned by Kawasaki Heavy Industries)

· Operations scheduled to begin in November 2008

· Major operations: marketing and sales across the entire MENA region

· Number of employees: 3