Establishment of Japanese-Chinese Joint Venture in China for Hydraulic Components for Construction Machinery

We are pleased to inform you that along with our common investors, Mimura Tekko K.K and K.K Murakami Seisakusho, we recently established a Japanese-Chinese joint venture in China with Beijing JingCheng Heavy Industry Co.,Ltd. with a view to manufacturing and selling hydraulic components used for construction machinery, In this relation, the necessary business license has already been granted by the Chinese Authorities concerned on September 26, 2007.

1.Background

In China, we see an ever-increasing demand for construction machinery against a backdrop of the construction boom that remains unabated over the years particularily in the area of the preparation of the social infrastructure such as roads, bridges as well as of building construction in addition to many other projetcs currently in progress, focused on the 2008 Olympic Games in Beijing and the 2010 World Expo in Shanghai.

Given such business circumstances, in order to move ahead with the international operation expansion program that is one of our primary corporate strategies, in March of 2003, we set up BQ-TADANO (BEIJING) CRANE Co., Ltd. (hereinafter called BQ-TADANO), a joint company with Beijing JingCheng Heavy Industry Co., Ltd. (hereinafter called JingCheng Heavy Industry) to have it operated as a sales and production base of truck cranes in the country. Since then, we dispatched our own staff who manages the company as President to improve and strengthen its manufacturing, selling and servicing activities so that the name of BQ-TADANO as a high performane- and quality-product manufacturer can be established in the Chinese market.

Now, we organized a new Japanese-Chinese joint venture in China that makes and sells hydraulic components used for construction machinery with the aim of further improving the quality of cranes BQ-TADANO offers by means of higher-quality components as well as securing a future supply source of such components for the Tadano Group including Mimura and Murakami. The two firms are our main component supplieres who have excellent know-how in this line of business, and joined, for the first time, in our overseas project.

2.Outlines of Joint Venture

1	Corporate Name	JC-TADANO (BEIJING) HYDRAULIC Co., Ltd.
2	Date of Founding	September 20, 2007 (specified on the business license)
3	Location	Beijing Jing Cheng Heavy Industry manufacturing quarter, Kouzi town, taihu village, tongzhou district, BEIJIN, CHINA (20km away from Beijing City, 30km from Beijing Airport)
4	Capital	USD 2.5 million (Ratio of Capital Investment: Tadano 50%, Jing Cheng Heavy Industry 40%, Mimura 5%, Murakami 5%)
5	Items of Business	Manufacture & Sale of hydraulic components for construction machinery (valves, rotary joints, small-sized cylinders, pipings, hoses etc.) Initially suppliable principally to BQ-TADANO.
6	Directors	Chairman Su Jie (Chairman of JingCheng Heavy Industry) Vice Chairman Yukio Minami (Executive Officer of Tadano, Vice President at BQ-TADANO) President Yukio Minami (concurrently as Vice Chairman) Vice President Zhan Yingxuan (Branch Factory Manager at JingCheng Heavy Industry)
7	No. of Employees	Abt. 1,000 (expected at year-end 2007)
8	Outlook of Sales	RMB 31.7 million (abt. ¥500 million) for fiscal 2009 expected to go to the black for single year 2009, not cumulatively

Note: The Company is to take on lease a factory JingCheng Heavy Industry will newly build in April of 2008. (with a total floor space of 8,500 m² on a 13,000m² site)

(For your information as to the investors concerned)

1. Outlines of JingCheng Heavy Industry

1. Corporate Name: Beijing JingCheng Heavy Industry Co., Ltd.
   
2. Location: 17F, Huateng Building Sanhuan Road, 3rd district, Jinsong, Chaoyang District, Beijing, China
   
3. Items of Business: Manufacture and Sale of wheel cranes, street cleaning trucks, aerial work platforms, wreckers, garbage trucks, etc.
   
4. Representative: Chairman Su Jie 
   
5. No. of Employees: 715
   
6. Sales: RMB 250 (abt. ¥4 billion) expected for calender year 2007 (conversion Rate: 16 yen to the RMB)

2. Outlines of Tadano

1. Corporate Name: Tadano Ltd.
   
2. Location: Ko-34 Shinden-cho, Takamatsu, Kagawa
   
3. Items of Business: Manufacture and sale of construction cranes, truck loader cranes and aerial work platforms
   
4. Representative: Representative Director and President Koichi Tadano
   
5. No. of Employees: 1,131 (non-consolidated)
   
6. Sales: ¥144.7 billion (consolidated), ¥107.4 billion (non-consolidated) for fiscal 2007 ended at March 31.

3.Outlines of Mimura

1. Corporate Name: Mimura Tekko K.K
   
2. Location: 1571-1 Kasuga-cho, Takamatsu, Kagawa
   
3. Items of Business: Manufacture and sale of hydraulic cylinderes and equipment, Manufacture, installation and sale of industrial machinery
   
4. Representative: Representative Director and President Toshihiro Mimura
5. No. of Employees: 135
   
6. Sales: ¥4.3 billion for fiscal 2006 ended at October 31.

4.Outlines of Murakami

1. Corporate Name: K.K Murakami Seisakusho
   
2. Location: Ko 297-1, Shinden-cho, Takamatsu, Kagawa
   
3. Items of Business: Design, manufacture and installation of construction machinery- and machine tool-related equipment as well as of environment-related facilities including other equipment for general-industrial applications.
   
4. Representative: Representative Director and President Toshihiro Murakami
   
5. No. of Employees: 182
   
6. Sales: ¥6.15 billion for fiscal 2007 ended at March 31.

5. Outlines of BQ-TADANO

1. Corporate Name: BQ-TADANO (BEIJING) CRANE Co., Ltd.
   
2. Location: No.36 Linhe St., Linhe Industrial Development Zone, Shunyi District, Beijing
   
3. Items of Business: Manufacture, sale and service of construction machinery
   
4. Representative: Chairman Su Jie
   
5. No. of Employees: 294
   
6. Sales: RMB 270 million (abt. ¥4.32 billion) for calender year 2006