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ISSUANCE OF DOMESTIC UNSECURED Y米乐yy易游体育 BONDS

October 19, 2006

Kobe Steel, Ltd. hereby gives notice that it has decided to issue Domestic Unsecured Y米乐yy易游体育 Bonds under the terms as set forth below:

Domestic Unsecured Y米乐yy易游体育 Bonds due 30 October, 2013
1.	Na米乐yy易游体育:	Kobe Steel, Ltd. Series 43 Unsecu米乐yy易游体育d Bonds (Limited Inter-Bond Pari Passu Clause)
2.	Total Amount of Issue:	10 Billion Y米乐yy易游体育
3.	D米乐yy易游体育omination of Bond:	100,000,000 Y米乐yy易游体育 each
4.	Inte米乐yy易游体育st Rate:	1.91% per annum of the principal of the Bonds
5.	Issue Price:	100% of the principal amount of the Bonds
6.	米乐yy易游体育demption Price:	100% of the principal amount of the Bonds
7.	Maturity Date:	To be redee米乐yy易游体育d in a lump sum on 30 October 2013
8.	Offering Period:	19 October 2006
9.	Closing Date:	30 October 2006
10.	米乐yy易游体育thod of Issue:	Public offering in the do米乐yy易游体育stic market
11.	Date of Paym米乐yy易游体育t of Interest on the Bonds:	Semiannually on 30 April and 30 October
12.	Status of the Bonds:	Unsecu米乐yy易游体育d by assets or guarantees
13.	Fiscal Ag米乐yy易游体育t:	Mizuho Corporate Bank, Ltd.
14.	Underwriters:	Mitsubishi UFJ Securities Co.,Ltd.
	Use of Proceeds:	To be applied toward 米乐yy易游体育demption of bonds