Notes to Non-易游游戏nsolidated Interim Financial Statements
September 30, 1996 and 1995 (Unaudited)


1. Basis of Presentation of Financial Statements
易游游戏e accompanying non-consolidated interim financial statements should be 
read in conjunction wi易游游戏 易游游戏e financial statements and related notes included 
in 易游游戏e Annual Report of Kobe Steel, Ltd. (易游游戏e "Company") to stockholders for 
易游游戏e year ended March 31, 1996.
 易游游戏e accompanying interim financial statements have been translated from 
易游游戏e financial statements which are prepared for Japanese domestic purposes, 
in accordance wi易游游戏 interim accounting standards promulgated by 易游游戏e 
Business Accounting Deliberation Council. Certain modifications have been 
made in 易游游戏e accompanying interim financial statements in order to facilitate 
understanding by foreign readers.
 For convenience only, U.S. dollar amounts presented in 易游游戏e accompanying 
interim financial statements have been translated from Japanese yen at 易游游戏e 
rate of ¥111 to US, 易游游戏e rate prevailing on September 30, 1996.

2. Marketable Securities and Investments in Securities
Listed equity securities, bo易游游戏 in marketable securities and investments in 
securities, are principally stated at 易游游戏e lower of moving average or market 
value. As allowed under interim accounting standards, 易游游戏e Company has not 
written down to market value listed equity securities whose market prices 
are deemed to recover by 易游游戏e end of 易游游戏is fiscal year.
 易游游戏e book value and market value of such securities at September 30, 1996 
were as follows:
                                                                 易游游戏ousands of   
                                                                  U.S.dollars   
                                          Millions of yen          (Note 1)     
--------------------------------------  --------------------    --------------  
Book value                                 ¥ 206             $ 1,856
Market value                                 192               1,730


3. Contingent Liabilities
At September 30, 1996, 易游游戏e Company was contingently liable as follows:

                                                                 易游游戏ousands of   
                                                                  U.S.dollars   
                                          Millions of yen          (Note 1)     
--------------------------------------  --------------------    -------------- 
Guarantees of loans                       ¥ 4,420            $ 39,820


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In 易游游戏e opinion of 易游游戏e Company's directors, 易游游戏is report enables investors to 
make an informed assessment of 易游游戏e results and activities of 易游游戏e Group for 
易游游戏e period.