Kubota Corporation Reported Today its Consolidated Results of Operations for the Nine Months Ended December 31, 2005.

OSAKA, Japan -- Net sales of Kubota Corp. (NYSE:KUB) (hereinafter "the Company") during the nine months under review, net sales were 740.5 billion yen, an 11.6% increase from the corresponding period in the prior year.

In the domestic market, sales in Internal Combustion Engine and Machinery, Pipes, Valves, and Industrial Castings and Environmental Engineering increased. In Internal Combustion Engine and Machinery, sales of farm equipment and engines as well as construction machinery increased. Especially, sales of engines for manufacturers of construction and industrial machinery increased sharply. In Pipes, Valves, and Industrial Castings, sales of plastic pipes increased favorably due to the effect of business integration. In addition, sales of industrial castings increased largely from the corresponding period in the prior year due to brisk capital expenditures of the steel industries and the energy industries. In Environmental Engineering, sales of Water & Sewage Engineering division and Waste Engineering division expanded. In Other segment, sales decreased resulting from a sale of a subsidiary at the beginning of this fiscal year, although sales of vending machines and electronic equipped machinery increased. As a result, total domestic sales were 419.5 billion yen, a 4.5% increase from the corresponding period in the prior year.

In overseas market, sales in Internal Combustion Engine and Machinery increased sharply from the corresponding period in the prior year. The sales of tractors in the North American market maintained steady growth and sales in Europe rose due to an introduction of new models. Sales of tractors in Asia, notably in Thailand, expanded sharply. Sales of construction machinery increased considerably due to growing worldwide demand as well as increasing market-share. Sales of engines also grew largely in North America and Europe. Sales in Pipes, Valves, and Industrial Castings also increased due to an increase in sales of ductile iron pipes and industrial castings. As a result, total overseas sales were 321.0 billion yen, a 22.4% increase from the corresponding period in the prior year.

Operating income was 89.6 billion yen, a 24.8% increase from the prior corresponding period. Although higher prices of raw materials negatively impacted operating income, the Company achieved increased operating income due to increased sales primarily from the Internal Combustion Engine and Machinery segment, a reduction of costs for the public works related business and a decrease in pension costs.

Income before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies was 113.4 billion yen, a 44.1% increase from the corresponding period in the prior year due to an increase in operating income and other income. Other income increased due to the gain on nonmanetary exchange of securities of UFJ Holding Inc. (15.9 billion yen), which was related to merger of Mitsubishi Tokyo Financial Group, Inc. and UFJ Holding Inc.

Net income was 65.3 billion yen, a 4.8% decrease from the corresponding period in the prior year. The primary reason for the decrease of net income was a much less amount of income tax of the corresponding period in the prior year, which was resulted from the deductibility of the historical impairment losses and net operating losses related to the sales and dissolution of the subsidiaries.

As for the matter related to the health hazard of asbestos, the Company had paid consolation payments to the patients and the family members of the deceased near the former Kanzaki plant, who are suffering from or died of mesothelioma based on the policy in "Notice on the Company's action for the health hazard of asbestos," which was released on June 30, 2005. Moreover, in "Notice on the Company's actions for the health hazard of asbestos near the former Kanzaki plant" released on December 26, 2005, the Company expressed that the Company intended to consider further actions in place of the current consolation payment system. The Company has not recorded any accrual of loss contingencies related to this matter so far because it is difficult for the Company to reasonably estimate the amount of the expenses related to this matter at this time.