KAJIMA ANNUAL REPORT 1999

/Construction Buisiness

Page 3 of 3

Overseas Operations

The total construction business contract awards of Kajima's overseas Group companies fell to US$811 million during fiscal 1999, the second consecutive year of decline in that figure. The principal factor underlying the downtrend was a persistent slump in the Japan-related projects of subsidiaries responsible for operations in North America, Europe, and Southeast Asia. Another factor was severe competition in overseas local markets and Kajima's high degree of selectivity with regard to such projects unlikely to generate more than a minimal level of profit. However, construction orders obtained from Kajima Group development companies overseas amounted to US$223 million, up 28%. Orders have been particularly strong from two North America-based companies--a distribution warehouse developer, Industrial Developments International, Inc. (IDI), and Kajima Urban Development, LLC. (KUD), which provides broad-based management services. The value of orders from IDI and KUD amounted to US$172 million and US$54 million, respectively, and partially countervailed the previously mentioned slump.

The parent company directly undertakes civil engineering projects and other projects in 23 countries, principally in Southeast Asia and Africa. Orders from these operations surged 27%, to US$237 million.
Major orders received during the period include those for the construction of the Giants' Stadium in San Francisco, the Cantonment Police Complex in Singapore, a subway train marshaling and depot yard in Bangkok, a bridge spanning the Suez Canal in Egypt, and a unit of the ASDA superstore in Wales.

With regard to strategies for future business expansion, Kajima views Indonesia, India, and central Asian countries as particularly promising sources of infrastructure- and energy-related orders. Taiwan and Singapore, which have created social capital on a par with previously industrialized countries, have begun considering major tunnel and bridge projects that will require more sophisticated technologies, and Kajima intends to make Companywide efforts to obtain orders. In the United Kingdom, which is the progenitor of the private finance initiative (PFI) schemes that have recently been attracting attention in Japan, Kajima believes it can effectively pursue PFI projects by drawing on its comprehensive capabilities for construction, design, and development.

Kajima's Overseas Group recorded total revenues of US$1,379 million during fiscal 1999. Major overseas projects completed during the year under review include the Long Beach Aquarium in California, the interior of the New York branch of the Sakura Bank, Ltd., the Taipei head office of Taiwan Cement Corp., the head office of URA Singapore, the rehabilitation of the Kumasi-Paga Road in Ghana, and construction of the Nippon Wilgamuwa Bridge in Sri Lanka.

Overseas Construction Business
New Contracts :

Pacific Bell Park
Stadium that will serve as the home of the San Francisco Giants baseball team--Site area: 52,000m²; Floor area: 110,000m²; Seating capacity: approx. 41,000 people

Cantonment Police Complex
Building housing Singapore's central police agency--RC structure; 25 floors above ground and 4 below; Floor area: 113,800m²

ASDA Superstore
Superstore in Swansea, Wales, with 760-car parking lot--Site area: 10,580m²; Floor area: 6,094m²

Suez Canal Bridge Project
Bridge spanning the Suez Canal in Egypt--Span length: 3,900m; Main beam section length: 730m; Central span section length: 404m; Main tower height: 156m

Metropolitan Rapid Transit Depot
Depot for the marshaling and maintenance of subway trains in Bangkok--Site area: 1,600,000m²

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