Kubota Corporation Consolidated Results of Operations for the Six Months Ended September 30, 2004

OSAKA, Japan--Nov. 8, 2004--Net sales of Kubota Corp. (hereinafter "the Company") during the six months under review were 445.8 billion yen, a 5.7% increase from the prior corresponding period. Domestic sales were 261.9 billion yen, a 3.3% decrease, resulting principally from the business transfer of building materials operations with the sales of 19.5 billion yen in the prior corresponding period. Overseas sales were 183.9 billion yen, a 22.1% increase, mainly due to the favorable sales increase of construction machinery and engines and, most of all, strong sales of tractors in North America. The percentage of overseas sales to total sales was 41.2%, 5.5 percentage points higher than the prior corresponding period.

Operating income was 51.1 billion yen, a 207.7% increase. In spite of the high appreciation of yen and soaring prices of raw materials, operating income soared due to large decrease of pension cost by 20.6 billion yen from the prior corresponding period, in addition to sales increase in Internal Combustion Engine and Machinery and implementation of a company-wide cost reduction program in Pipes, Valves and Industrial Castings.

Income before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies was 57.1 billion yen, a 205.8 % increase, which reflected an improvement in interest income and foreign exchange gains, as well as well as increase of operating income. As a result, after 0.7 billion yen of income taxes, 1.6 billion yen of minority interests in earnings of subsidiaries and the equity in net income of affiliated companies, net income during the six months under review was 54.8 billion yen, a 681.2% increase from the prior corresponding period.