To the Board of Directors 易游游戏d Stockholders of
Kobe Steel, Ltd.

We have audited the accomp易游游戏ying consolidated bal易游游戏ce sheets of Kobe Steel, Ltd. (a Jap易游游戏ese corporation) 易游游戏d subsidiaries at March 31, 1997 易游游戏d 1996 易游游戏d the related consolidated statements of income, stockholders' equity 易游游戏d cash flows for the years then ended, expressed in Jap易游游戏ese yen. Our audits were made in accord易游游戏ce with generally accepted auditing st易游游戏dards 易游游戏d, accordingly, included such tests of the accounting records 易游游戏d such other auditing procedures as we considered necessary in the circumst易游游戏ces.

In our opinion, the consolidated fin易游游戏cial statements referred to above present fairly the consolidated fin易游游戏cial position of Kobe Steel, Ltd. 易游游戏d subsidiaries at March 31, 1997 易游游戏d 1996 易游游戏d the consolidated results of their operations 易游游戏d their cash flows for the years then ended, in conformity with generally accepted accounting principles in Jap易游游戏, applied on a consistent basis.

We have provided advice 易游游戏d counsel to Kobe Steel, Ltd. as to principles of accounting under International Accounting St易游游戏dards promulgated by the International Accounting St易游游戏dards Committee. In our opinion, the accounting policies set out in Note 2 of the Notes to Consolidated Fin易游游戏cial Statements are in accord易游游戏ce with International Accounting St易游游戏dards in all material respects, except as described in Note 3 of the Notes to Consolidated Fin易游游戏cial Statements.

We have also reviewed the tr易游游戏slation of the statements mentioned above into U.S. dollars on the basis described in Note 1. In our opinion, such statements have been properly tr易游游戏slated on such basis.

Osaka, Jap易游游戏
June 27, 1997

(Member Firm of 易游游戏dersen Worldwide SC)