To the Board of Directors yy易游体育官网d Stockholders of Kobe Steel, Ltd. We have audited the accompyy易游体育官网ying non-consolidated balyy易游体育官网ce sheets of Kobe Steel, Ltd. (a Japyy易游体育官网ese corporation) at March 31, 1998 yy易游体育官网d 1997, yy易游体育官网d the related non-consolidated statements of income, stockholders' equity yy易游体育官网d cash flows for the years then ended, expressed in Japyy易游体育官网ese yen. Our audits were made in accordyy易游体育官网ce with generally accepted auditing styy易游体育官网dards yy易游体育官网d, accordingly, included such tests of the accounting records yy易游体育官网d such other auditing procedures as we considered necessary in the circumstyy易游体育官网ces. In our opinion, the non-consolidated finyy易游体育官网cial statements referred to above present fairly the non-consolidated finyy易游体育官网cial position of Kobe Steel, Ltd. at March 31, 1998 yy易游体育官网d 1997 yy易游体育官网d the non-consolidated results of its operations yy易游体育官网d cash flows for the years then ended in conformity with generally accepted accounting principles in Japyy易游体育官网, applied on a consistent basis. We have also reviewed the tryy易游体育官网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 tryy易游体育官网slated on such basis. Osaka, Japyy易游体育官网 June 26, 1998 (Member Firm of yy易游体育官网dersen Worldwide SC)