Strong Operation and Financial Performance

The macro-economic environment until September 2008 has facilitated growth across all sectors: mining, agribusiness, construction and forestry. This was reflected in the Company’s Komatsu volume growth of 46% as compared to third quarter last year. With current sales rate, by the end of this year the Construction Machinery business unit is expected to set new record in Komatsu sales volume and value throughout the Company’s history.

On the Mining Contracting business, operated through PT Pamapersada Nusantara (“Pama”), effective mine operation has resulted in 12% increase in coal production and 27% increase in overburden removal. In Mining business coal sales volume has achieved 2.9 million ton , or increased 12% year-on-year.

The Company’s consolidated revenue in this third quarter has increased 59% to an amount of Rp 21.1 trillion, compared to Rp 13.2 trillion in same period last year. Sales revenue from Contruction Machinery rose by 54%, from Mining Contracting up 48%, and from Mining jump 153%, due to improved coal sales price.

Better profit in small and medium machines in Construction Machinery and in Mining Contracting has pushed the Company’s gross profit to Rp 4.1 trillion, or 75% growth year-on-year. The combination of higher revenue and good management of expense has resulted in net income of Rp 2.1 trillion, a growth of 89% from last year’s third quarter.

On 15 September 2008, the Company has concluded the process of its Limited Public Offering III in the context of the issuance of a pre-emptive right (“Rights Issue III”). Proceeds obtained by the Company from this Rights Issue was Rp 3.6 trillion. In so far as Rp 2.8 trillion has been used for debt repayment, working capital, and capital expenditures.

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