Kubota Corporation Reported Today Its Consolidated Results of Operations for the Nine Months Ended December 31, 2006.

OSAKA, Japan -- Net sales of Kubota Corp.(NYSE:KUB) (hereinafter "the Company") during the nine months under review, net sales increased 71.2 billion yen (9.6%), to 811.7 billion yen from the corresponding period in the prior year. Overseas sales in Internal Combustion Engine and Machinery grew substantially, while the domestic sales slightly decreased from the corresponding period in the prior year.

Domestic sales decreased 1.0 billion yen (0.2%), to 418.6 billion yen from the corresponding period in the prior year. Although sales of engines and construction machinery increased, sales in Internal Combustion Engine and Machinery decreased due to downturn of sales in farm equipment. Sales in Pipes, Valves, and Industrial Castings decreased due to a decrease of sales in industrial castings, while Pipes and Valves remained at the same level as the corresponding period in the prior year. Sales in Environmental Engineering rose due to an increase of sales in Waste Engineering Division. Sales in "Other" segment increased on account of sales expansion of vending machine, though sales in construction business decreased.

Overseas sales increased 72.2 billion yen (22.5%), to 393.1 billion yen from the corresponding period in the prior year. In Internal Combustion Engine and Machinery, sales of tractors, farm machinery, engines and construction machinery increased. As for tractors, the Company recorded steady sales in North American and European markets. In addition, sales of tractors in Asia, especially in Thailand, increased substantially. For the reason of sales expansion of combine harvester in China, sales of farm machinery increased. Sales of engines increased due to favorable order from major client in the U.S. and Europe. With regard to construction machinery, the Company recorded increase of sales both in Europe and North America. In addition, sales in Pipes, Valves, and Industrial Castings increased largely for the reason that sales of ductile iron pipes and reformer tubes for petrochemical plants increased. Sales in Environmental Engineering decreased owing to a decrease in sales in pumps, while sales of submerged membrane system increased.

Operating income increased 10.8 billion yen (12.0%), to 100.4 billion yen from the corresponding period in the prior year. Operating income in Internal Combustion Engine and Machinery increased largely due to an increase of sales in the overseas markets, and weaker yen exchange rates against U.S. dollar and the Euro compared with the corresponding period in the prior year. Operating income in Pipes, Valves and Industrial Castings increased owing to promoted cost reduction and an increase of overseas sales in ductile iron pipes and industrial castings. However, operating income in Environmental Engineering decreased due to an impairment loss on business assets and profit deterioration resulted from price declines.

Income before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies decreased 4.2 billion yen (3.7%), to 109.2 billion yen from the corresponding period in the prior year, mainly due to a decrease in other income by 15.0 billion yen resulted from an absence of the gain on nonmonetary exchange of securities of UFJ Holding Inc. (15.9 billion yen). Income taxes were 41.7 billion yen (38.2% of effective tax rate), and net amount of minority interests in earnings of subsidiaries and equity in net income of affiliated companies to deduct was 4.0 billion yen. As a result, net income was 63.5 billion yen, decreased 1.8 billion yen (2.7%) from the corresponding period in the prior year.