Revision of Non-Consolidated and Consolidated Financial Results Forecast

1.Revision of Non-Consolidated Financial Results Forecast

Kajima Corporation ("The Company") hereby announces the revision of the non-consolidated financial results forecast for the year ending March 31, 2000 originally announced on November 16, 1999 as follows: For the financial year ending March 31, 2000, it was originally forecasted last November, when the financial results of the first half of this financial year was announced, that revenues would be 1,170 billion yen, recurring profit 28 billion yen and net income 13 billion yen. The reasons for revision this time are as follows: Valuation Loss of Securities The recovery of valuation loss on marketable securities based on LCM rule was estimated to be 4 billion yen, consisting of 1 billion yen non-operating profit and 3 billion yen extraordinary profit. It is now confirmed that valuation loss of marketable securities and recovery of it would be 4.3 billion yen non-operating loss and 1.6 billion yen extraordinary profit, respectively mainly due to downfall of the securities held by the Company in the stock market. Valuation loss was not forecasted originally with regard to the non-marketable securities. However, the Company recognizes it in the amount of 3.8 billion yen extraordinary loss after the analysis of financial conditions in those investments considering the purpose of Financial Instrument Accounting Standard. Profit from the sale of marketable securities was expected to be 8 billion yen, accounting for 7 billion yen in non-operating and 1 billion yen in extraordinary, respectively. However, the Company postponed sales of some securities whose market prices were not favorable to the Company, resulting in the profit of 5.4 billion yen, dividing into non-operating 4.8 billion yen and extraordinary 0.6 billion yen. Loss from Liquidation and Revaluation in Subsidiaries and Affiliates Loss from liquidation and revaluation of subsidiaries and affiliates was originally estimated to be 1.4 billion yen extraordinary loss. However, due to the restructuring and review of those operations, it is re-estimated to be 3.6 billion yen of extraordinary loss. Write-down of Real Estate and other The loss was originally estimated to be 4 billion yen extraordinary loss due to the sale of properties for rent and unutilized properties categorized as "Property and Equipment" in line with the financial structure reform in the "New three-year plan". The net loss is likely to be reduced to 1 billion yen by 3 billion yen after the account of 5.5 billion yen extraordinary profit although the fluctuation in the market price of our properties for sale whose valuation losses had been already accounted for resulted in the 6.5 million yen of extraordinary loss. In the last financial year, valuation loss of 130 billion yen was recorded in the real estate for sale whose market value was recorded to be under book value regarding the Company*s inventories. As a consequence, recurring profit is re-estimated to be 22 billion yen, a decrease of 6 billion yen and net income is to be 7.5 billion yen, a decrease of 5.5 billion yen, respectively from original forecast.

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