KAJIMA Corporation (and Consolidated Subsidiaries)
For the years ended March 31

Medium-Term Business Plan and Core Strategies
In addition to the financial objectives already mentioned, our medium-term business plan aims to enhance Kajima's technological capabilities, cost-competitiveness, and organizational flexibility. Under the plan, we will build a robust corporate structure that positions the Kajima Group for sustainable growth and profitability for years to come. The strategies we discuss below are central to this effort.

In our core construction business, we are enhancing Kajima's competitiveness in Tokyo and the other major markets by developing innovative proposals to win new business and offering cutting-edge value engineering and other technical solutions to clients. As the Group continues to amass technological expertise, we are leveraging our leadership position by building a stronger and more focused sales organization. At the same time, we are enhancing the efficiency of the Company's construction systems,and expect visible payoffs in terms of more attractive pricing for clients. We are also stepping up efforts in the high-growth renovation and life-cycle management (LCM) sectors.

In the real estate development business, Kajima is pursuing strategically selected, large-scale projects in the heart of Tokyo and other commuter hubs. We continue to target the landmark development projects that Kajima is best known for, while striving to minimize and quickly recover our investment through the use of real estate securitization and special purpose companies (SPCs). We have flagship projects underway in Akihabara, Toranomon, Higashi Shinagawa, and Yaesu, and more in the pipeline. Further, plans are in place to strengthen our organizational capacity in the rapidly growing PFI sector.

We are also aggressively developing businesses in other growing fields in order to diversify sources of earnings. We have high expectations of Kajima's engineering business in key sectors such as the pharmaceuticals industry and expect growth in our environmental businesses such as recycling of construction waste, soil remediation, and water treatment. In addition, we are entering promising new business fields such as conversion of non-combustible organic waste into biogas (METAKLES) and wind power generation.

In the area of technological strategy, we have established the Kajima Technology Development Council to maximize the value of the technological advantages Kajima has over other firms. The Council is ensuring that all R&D projects are driven by business strategy and focused on themes directly linked to future profitability.

At our consolidated subsidiaries in Japan and overseas, we are increasing investment in businesses with the highest potential, while simultaneously scaling back or withdrawing from unprofitable operations. Our goal is to reach total recurring profit of 10 billion at consolidated subsidiaries in the financial year ending March 31, 2006.

Earning Trust
With intensive implementation of the business plan and strategies outlined above, we expect the financial year ending March 31, 2005 to be a good one for the Kajima Group. As always, the key to this will be our commitment to ensuring that all of our businesses contribute to the overall quality of human life, thus fulfilling our unique vision of corporate social responsibility. Whether delivering premium quality to clients, caring for the global environment, or pursuing rigorous safety management and quality control that exceed legal and regulatory standards, the Kajima Group will do its utmost to earn the continued trust of all its stakeholders. In all these efforts, your continued support is essential and appreciated.

Rokuro Ishikawa Chairman		Sadao Umeda President