New Chinese Subsidiary Launched for Sales of Hydraulic Products

Tokyo, June 10, 2010 — Kawasaki Precision Machinery, Ltd. (KPM) announced today that it has established the Shanghai-based, Kawasaki Precision Machinery Trading (Shanghai) Co., Ltd., a wholly-owned subsidiary specializing in sales of hydraulic components and equipment for construction machinery and ships.

The launch of the new subsidiary will enable KPM to quickly respond to customer needs in the rapidly growing Chinese hydraulic market. KPM is moving forward with an eye to enhancing its sales network and ability to provide customized technical support and after-sale services. The recently launched subsidiary is actually the former Shanghai Sales Office of Kawasaki Precision Machinery (Suzhou) Ltd., a wholly-owned subsidiary of KPM established in December 2005. KPM has worked to significantly bolster the sales, engineering and quality assurance forces at the new subsidiary. The Shanghai subsidiary's enhanced operational capability as well as its new financial functions has enabled it to buy and sell hydraulic products made not only by the Suzhou subsidiary but other companies as well.

China's expansive urban and rural development projects, coupled with a robust national economy, have made its hydraulic excavator market the world's largest. Continued growth over the medium- to long-term will be further cultivated by ongoing infrastructure improvements in irrigation, gas, electricity and transportation networks focused on China's underdeveloped northeastern and inland regions. The outlook for the marine hydraulic market in China also looks bright. The country's rising tide of manufacturing exports and natural resources imports continues to fuel marine traffic and has made China's shipbuilding industry one of the biggest in the world.

Kawasaki is continually looking for new ways to leverage the latest technological developments with an eye to providing extremely reliable, high-performance products to the global hydraulic equipment market. Its drive to improve after-sales and service capabilities is bringing customer satisfaction to new heights.