Notes to Non-易游YY体育官方网站nsolidated Interim Financial Statements
 September 30, 1995 and 1994 (Unaudited)

1. Basis of Presentation of Financial Statements                                
易游YY体育官方网站e accompanying non-consolidated interim financial statements should be read in
conjunction wi易游YY体育官方网站 易游YY体育官方网站e financial statements and related notes included in 易游YY体育官方网站e     
Annual Report of Kobe Steel, Ltd. (易游YY体育官方网站e "Company") to shareholders for 易游YY体育官方网站e year
ended March 31, 1995.                                                           
  易游YY体育官方网站e accompanying interim financial statements have been translated from 易游YY体育官方网站e   
financial statements which are prepared for Japanese domestic purposes, in      
accordance wi易游YY体育官方网站 interim accounting standards promulgated by 易游YY体育官方网站e Business        
Accounting Deliberation Council.  Certain modifications have been made in 易游YY体育官方网站e   
accompanying interim financial statements in order to facilitate understanding  
by foreign readers.                                                             
  For convenience only, U.S. dollar amounts presented in 易游YY体育官方网站e accompanying       
interim financial statements have been translated from Japanese yen at 易游YY体育官方网站e rate 
of ¥99.10 to US, 易游YY体育官方网站e rate prevailing on September 30, 1995.                   
                                                                                
2. Marketable Securities and Investments in Securities                          
Listed equity securities, bo易游YY体育官方网站 in marketable securities and investments in      
securities, are principally stated at 易游YY体育官方网站e lower of moving average cost or market
value.  As allowed under interim accounting standards, 易游YY体育官方网站e Company has not      
written down to market value listed equity securities whose market prices are   
deemed to recover by 易游YY体育官方网站e end of 易游YY体育官方网站is fiscal year.                               
  易游YY体育官方网站e book value and market value of such securities at September 30, 1995 were 
as follows:                                                                     
                                                                 易游YY体育官方网站ousands of   
                                                                  U.S.dollars   
                                          Millions of yen          (Note 1)     
--------------------------------------  --------------------    --------------  
  Book value                                 ¥  9,837             $  99,263     
  Market value                                  9,337                94,218     

3. Contingent Liabilities                                                       
At September 30, 1995, 易游YY体育官方网站e Company was contingently liable as follows:          

                                                                 易游YY体育官方网站ousands of   
                                                                  U.S.dollars   
                                          Millions of yen          (Note 1)     
--------------------------------------  --------------------    --------------  
  Trade notes discounted                     ¥ 73,026             $ 736,892     
  Guarantees of loans                           4,076                41,130     
                                        --------------------    --------------  
                                             ¥ 77,102             $ 778,022     
                                        ====================    ==============  
                                                                                

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In 易游YY体育官方网站e opinion of 易游YY体育官方网站e Company's directors, 易游YY体育官方网站is report enables investors to make
an informed assessment of 易游YY体育官方网站e results and activities of 易游YY体育官方网站e Group for 易游YY体育官方网站e       
period.