Chiyoda Announces Stellar Financial Results for the Fiscal Year Ended March 2005; Contracts and Net Profit Up Sharply; Dividend Resumed and Further Increase Projected.

YOKOHAMA, Japan -- Chiyoda Corporation (OTC:CHYCF), Japan's leading engineering and construction firm, today reported consolidated financial results for the fiscal year ended March 31, 2005.

Consolidated operating profit rose 88.4% from the previous fiscal year to 11,077 million yen on a gain in construction contracts of 29.4% to 267,655 million yen, exceeding the forecast for the fiscal year. Net profit was up 93.5% to 12,863 million yen. Net profit per common share climbed to 68.62 yen. The Group plans to pay a dividend of 6 yen per share and is resuming dividend payment for the first time in nine years.

With regard to the global plant market, the price of crude oil rose to a record high as global energy demand increased, and the price of natural gas remained high as well. The result is a large volume of investments by gas-producing nations and the energy majors in natural gas development, production, liquefaction and transport. These investments are occurring in Asia, the Middle East, Africa and other gas-producing regions as well as in energy consuming nations like the U.S., India and China. Since global demand for ethylene continues to grow, the price of ethylene is holding steady at an extremely high level. In this environment, the Chiyoda Group, which has considerable experience in ethylene and its derivative products, recorded a strong performance in the oil and chemical plant markets.

Due to these and other factors, consolidated new contracts were 411,292 million yen, 41.5% higher than in the prior fiscal year. This was far higher than the Group's new contract forecast for the fiscal year. New contracts in Japan totaled 89,496 million yen, up 24.3%, and overseas new contracts were 321,796 million yen, up 47.2%.

On a non-consolidated basis, gross profit on construction contracts grew 59.0% to 15,134 million yen as the volume of construction contracts increased and gross profit rate improved by 1.15 percentage points. Helped by further reduction in SG&A expenses, operating profit surged 137.0% to 8,744 million yen. Lower interest burden and interest-bearing debt lifted ordinary profit 129.3% to 9,194 million yen. A reversal of allowance for doubtful accounts, reflecting progress in the recovery of delinquent long-term receivables, boosted net profit 179.1% to 11,877 million yen.

For the fiscal year ending March 31, 2006, Chiyoda is forecasting consolidated new contracts of 350,000 million yen, construction contracts of 310,000 million yen, ordinary profit of 14,000 million yen and net profit of 14,500 million yen. The forecasts assume an exchange rate of 100 yen to the U.S. dollar. Management is projecting a dividend of 8 yen per common share, up by 2 yen from the previous fiscal year.

Chiyoda Corporation, headquartered in Yokohama, Japan, provides services on a global basis in the field of engineering, procurement and construction (EPC) for gas processing, refineries, and other hydrocarbon or other industrial plant projects, particularly for LNG, GTL and DME.