December 3th, 2007
Yanmar Co.,Ltd.

Consolidated Interim Business Results of September 2007 and
Forecast of Consolidated Business Results for March 2008

1. Consolidated Interim Business Results, September 2007
Osaka, Japan - December 3, 2007 - The Japanese economy during the interim consolidated fiscal term has experienced higher raw material prices, including crude oil; however with increased equipment investment, corporate earnings and personal consumption the domestic economy has, for the most part, performed quite steadily. Overseas, conditions have continued favorably for exports to Europe and Asia, especially, while the important U.S. market has suffered a downturn due to a drop in housing starts and greater uncertainty about business prospects.
Against this background, the Yanmar group’s consolidated sales for the current interim term, increased by \20.2 billion, or 7.4% over the same term of the previous year, to \292.4 billion. This growth particularly reflected strong business performance in the fields of small industrial engines and construction machinery at home and abroad and growth of the large marine engine business, spurred by worldwide demand for strong marine transportation.
The interim term current earnings were \17.1 billion (3.6% growth or an increase by \0.6 billion over the same period of the previous year) and the profit to turnover ratio was 5.9%. The consolidated interim term current net earnings were \10.1 billion (1.7% growth or an increase by \0.2 billion over the same period of the previous year).
The share of overseas sales as a proportion of the Yanmar group’s overall consolidated sales reached 42% with a turnover of \123.9 billion. This reflected the achievements of the global growth and expansion strategy.

2. Forecast of Consolidated Business Results for the Fiscal Term ending in March, 2008
We expect the steady business performance to continue in Europe and Asia but some further tightening due to possible further economic downturn in the U.S. and sluggishness in the Japan domestic agricultural market.
We now forecast full term consolidated business results as follows:
Sales of \578.9 billion (an increase of \25.0 billion over the same term of the previous year); operating earnings of \25.8 billion (a decrease of \2.7 billion from the same term of the previous year); and current earnings of \24.8 billion (a decrease of \3.2 billion from the same term of the previous year.)
(Note):
The forecast for consolidated business results is based on information available now. It contains many uncertainties regarding demand, industrial trends, exchange rate fluctuations, etc. and may not correctly predict the actual business results.

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