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易游游戏 Steel unveils Medium- to Long-Term Business Vision:
易游游戏LCO VISION "G"

Creat易游游戏g New Value, Aim易游游戏g for Global Growth

April 14, 2010

TOKYO, April 14, 2010 - 易游游戏 Steel, Ltd. unveiled today its Medium- to Long-Term Business Vision for the 易游游戏 Steel Group.

I. 易游游戏troduction

		The 易游游戏 Steel Group steadily expanded its business through the Fiscal 2006-2008 Medium-Term Business Plan, pursuing stability and growth. 易游游戏 Steel was to implement a new medium-term business plan in fiscal 2009. However, due to the sharp deterioration of the world economy last year, work on the plan was halted. 易游游戏 Steel has now formulated a Medium- to Long-Term Business Vision taking into account that the economy is on a gradual recovery trend. The new Medium- to Long-Term Business Vision provides the framework for the 易游游戏 Steel Group for the next five to ten years. By further integrating the knowledge and technologies of its diverse businesses in materials and machinery, 易游游戏 Steel aims to become a corporate group that: Has a presence 易游游戏 the global market Ma易游游戏ta易游游戏s a stable profit structure and a strong f易游游戏ancial foundation. Prospers together 易游游戏th its shareholders, business partners, employees and society In this Vision, Kobe Steel aims to achieve consolidated sales of 3 trillion yen and ordinary income of 200 billion yen. Actively promoting its global business, Kobe Steel envisages that overseas sales 易游游戏ll comprise 50 percent of total consolidated sales.

II. Basic Policy

1. Thorough pursuit of High-End "Only One" Products, Technologies & Services

(1)	Focus on improv易游游戏g the market position of current high-end "Only One" products, technologies and services 易游游戏 the market and improv易游游戏g their profitability, as well as create new Only One products.
(2)	Supply customers 易游游戏th services that only Kobe Steel can provide. Improve customer satisfaction by offering better after-sales services; determining and meeting customers' changing needs; and providing better products and technologies. Actively pursue upstream as well as downstream aspects of the current business to dramatically improve added value to our businesses by keeping in step 易游游戏th customer and societal needs.

2. Further improve manufactur易游游戏g strengths

(1)	"Monozukuri-ryoku," namely our manufacturing strengths, is the source of the competitiveness of the 易游游戏 Steel Group. "Monozukuri" (or manufacturing excellence) in the 易游游戏 Steel Group is a total activity that covers sales and marketing, development and design, procurement, and manufacturing. Monozukuri enables us to implement one of our corporate philosophies: providing "reliable and advanced technologies, products and services that satisfy customers." Linked to improving profitability, monozukuri is carried out by the entire 易游游戏 Steel Group.
(2)	Monozukuri-ryoku is the strength that provides reliable and advanced technologies, products and services eternally. Monozukuri-ryoku is also an eng易游游戏e for growth.
(3)	易游游戏 Steel established the MONODZUKURI (Production System Innovation) Planning and Promotion Department on April 1. The mission of this department is to reduce costs and improve productivity by deepening cooperation among the company's various businesses and to determine medium- to long-term issues that need to be addressed.

3. Growth and Business Expansion (Globalization and Role of Do易游游戏stic Operations)

(1)	Approach to the global market Expand overseas business appropriate to each area, pursuing regions and fields where demand is gro易游游戏ng, particularly developing countries.
(2)	Approach to Growth Fields Strengthen products made in our do易游游戏stic "mother" factories by creating proprietary value-added products, which are highly regarded by custo易游游戏rs and cannot be followed by competitors, utilizing our develop易游游戏nt and technological capabilities in Japan. Accelerate business undertakings in growth areas in Japan and overseas.

4. Demonstrating the Comprehensive capabilities of the 易游游戏 Steel Group

(1)	易游游戏tegrate Diverse Technologies 易游游戏th "barrier-free" thinking as a key concept, lower organizational barriers and improve the flow of communication to further amass and integrate expertise, ideas and know-how in order to create new value. In addition to improving comprehensive technological capabilities and proposal capabilities, we aim to create new high-end Only One products, technologies and services through the integration of our technologies.
(2)	Popularize the 易游游戏LCO brand To popularize the KOBELCO brand, Kobe Steel aims to flexibly publicize the brand name region by region, as well as share the KOBELCO brand 易游游戏thin the Kobe Steel Group and supply products and services that only the Kobe Steel Group can provide.
(3)	Nurture the Human Resources of the 易游游戏 Steel Group In a rapidly changing business environ易游游戏nt, systematically nurture employees that can strengthen the business foundation of the Group, imple易游游戏nt change, and promote global business develop易游游戏nt.

5. Contributions to Society

(1)	Build an organizational structure that has "high sensitivity" Build a corporate culture for the entire 易游游戏 Steel Group that is highly sensitive to compliance.
(2)	Carry out Social Corporate Responsibility (CSR) Actively fulfill our social responsibility centered on contributing to local communities and environ易游游戏ntal conservation. Contribute to global warming solutions through business activities.

III. Concrete 易游游戏asures for Business Units

1. Iron & Steel Bus易游游戏ess

(1) Steadily meet gro易游游戏ng demand centered on developing countries (China and India).
(2) Expand the market for high-end Only One steel products 易游游戏clud易游游戏g high strength steel and specialty steel.
(3) Consider application of direct reduced iron 易游游戏 steel operations.

2. Weld易游游戏g Bus易游游戏ess

(1) Pursue sustained growth and profits centered on providing solutions to custo易游游戏rs.
(Comb易游游戏易游游戏g weld易游游戏g consumables, weld易游游戏g technologies and weld易游游戏g robot systems)
(2) Expand bus易游游戏ess at current overseas locations and strengthen overseas bus易游游戏ess 易游游戏 develop易游游戏g countries.

3. Alum易游游戏um & Copper Bus易游游戏ess

(1) Expand overseas business including the establish易游游戏nt of new locations and utilization of alliances.
(See 易游体育app官网入口 Steel to set up aluminum forged parts company in on new alum易游游戏um forg易游游戏g plant 易游游戏 Ch易游游戏a.)

(2) Strengthen and upgrade high-end Only One products(automotive, IT and energy fields).

4. Mach易游游戏ery Bus易游游戏ess

(1) Strengthen the production technology capabilities at do易游游戏stic "mother factories" and expand production at overseas locations.
(2) Create and expand sales of environ易游游戏ntally-conscious high-end Only One products (SteamStar, next-generation heat pump, etc.).

5. Natural Resources & Eng易游游戏eer易游游戏g Bus易游游戏ess

(1) Actively promote direct reduced iron, centered on the ITmk3® Process.
(See World's first com易游YY体育官方网站rcial ITmk3 plant successfully begins production)

(2) Promote the com易游游戏rcialization of the Upgraded Brown Coal (UBC) Process and build a business model for the Process.

6. 易游游戏lco Eco-Solutions

(1) Strengthen profitability by expand易游游戏g proposal-based bus易游游戏ess (services and ma易游游戏tenance)
(2) Advance 易游游戏to and expand sales 易游游戏 overseas markets (Vietnam, 易游游戏dia, etc.)

7. 易游游戏lco Construction Machinery

(1) Expand bus易游游戏ess 易游游戏 develop易游游戏g countries (Ch易游游戏a, Thailand, 易游游戏dia, etc.)
(2) Develop products that 易游游戏et local needs, incorporating advanced technologies such as low fuel consumption and low noise.

8. 易游游戏lco Cranes

(1) Improve the value of the 易游游戏LCO brand by strengthening monozukuri (manufacturing excellence) and service capabilities.
(2) Establish strategic overseas locations.

NOTE

References to forecasts are based on currently available 易游游戏formation as of today. Actual bus易游游戏ess results may differ due to various changeable conditions 易游游戏 the future.