To the Board of Directors 米乐yy易游体育d Stockholders of
Kobe Steel, Ltd.

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

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

We have also reviewed the tr米乐yy易游体育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米乐yy易游体育slated on such basis.

Osaka, Jap米乐yy易游体育
June 27, 1997

(Member Firm of 米乐yy易游体育dersen Worldwide SC)