Outline for the First Half of the Fiscal Year 2006

The Japanese economy for the first half of fiscal 2006 entered a new phase of not quick yet lasting recovery emerging from its standstill state, bolstered by steady personal consumption due to improved employment and income wage conditions against the backdrop of high corporate earnings and regained capital investment.

Under such operating circumstances, in the domestic market, there were indications of the brake being put on a fall in crane rental rates, and demand for construction cranes increased substantially due to replacement demand. In overseas markets, exports to North America and Europe in addition to the Middle East saw steady growth predicting the possibility of further expansion of our international shipment. Neverthless, ever- rising primary material costs continued to put pressure on our product costs, and we revised selling prices moderately, but not as fast as the rise in material costs, the result of which affected our export business particularly in terms of profitability.

Domestic sales, bolstered by replacement demand for construction cranes, rose 11.5% to 36.143 billion yen and export sales rose 28.4% to 19.781 billion yen due to a substantial increase in sales of construction cranes for North America and Europe. As a result, total sales posted 55.924 billion yen, a 17.0% increase compared with the same period of the previous year. Net income posted 2,562 billion yen, up 39.5% on the previous year in the same priod, due to sales increase despite partially declined production efficiency caused by a deteriorated raw material procurement environment.

Outline of Key Product Lines

Construction Cranes
In the domestic market, sales of all terrain cranes grew steadily in addition to replacement demand centered around the mainstay 25-ton and 50-ton capacity rough terrain cranes. As a result, sales of construction cranes rose 18.7% to 12.272 billion yen compared with the same period of the previous year.

In overseas markets, sales increased 29.7% to 13.821 billion yen due mainly to introduction of new rough terrain cranes for North America as well as the ATF-160G (160-ton capacity) and ATF-110G (110-ton capacity) all terrain cranes manufactured by Faun, a manufacturing subsidiary of Tadano, destined for North America and Europe. In addition there were increased exports to the Middle East where construction and capital investment projects were active favored by oil prices remaining high.

As a result, total sales of construction cranes were 26.093 billion yen, a substantial increase of 24.2% over the same period of the previous year.

Truck Loader Cranes
Sales grew steadily as we pursued expanded marketing for cargo cranes in response to replacement demand for trucks that meet new diesel emission regulations, becoming brisk in the central and western regions of Japan.

As a result, sales of truck loaders cranes rose 11.8% to 7.930 billion yen for the first half of this fiscal year.

Aerial Platforms
Sales of aerial platforms increased substantially to 5.104 billion yen, a 24.1% rise compared with the same period of the previous year, as we expanded our sales efforts targeting the electric utilities and rental industry as well as the telecommunication sector at the backdrop of increased capital investment.

Others
Whilst the domestic sales of parts, used cranes and other items remained at a level consistent with the previous year, total sales in this segment increased to 14.749 billion yen, a 8.6% rise from the previous year due to a substantial increase of sales in overseas markets.