Nishimatsu Construction Co., Ltd.

Business Performance

Nishimatsu Construction Co., Ltd.

Notice on Business Performance for the 1st Quarter from April 1 to June 30,2006

as of 8th August 2006

1. Financial Results (abstract)

Consolidated

	Millions of Yen	Millions of Yen	Thousands of U.S. Dollars
*(1) Result of Operations*	2006(1stQuarter)	2005(1stQuarter)	2006(1stQuarter)

Net Sales	43,829	-	380,334
Income from Operations	-2,221	-	-19,275
Net Income	-1,766	-	-15,331


Per Share of Common stock (In Yen)
Net Income	-6.37yen	-	-0.055


*(2) Assets and Equity*

Total Assets	730,873	-	6,342,183
Total Shareholders' Equity	195,710	-	1,698,288
Equity/ Assets Ratio (%)	26.8%	-	26.8%
Shareholders' Equity per Share 　(In Yen)	705.17yen	-	6.12

	Millions of Yen	Millions of Yen
*(3) Forecast for Fiscal Year 2006*	First Half of the Year	Whole Year

Net Sales	169,500	475,500
Ordinary Profit	500	11,000
Net Income	200	4,500

2. Non-Consolidated Business Performance for the 1st Quarter ending June 30,2006

	Orders Received (millions of yen)	Growth (%)
2006	64,470	-2.0%
2005	65,782	12.5%

Note: (a). Financial figures herein are simply rounded down to the nearest millions of yen.
(b). The percent figure shows the rate compared with the same period from last year.

Breakdown of Non-Consolidated Orders Received

	1st Quarter from April 1 to June 30
	2006		2005		Growth
	Millions of yen	％	Millions of yen	％	Millions of yen	％
Construction
Civil Engineering
Domestic-Public Sector	5,288	8.2	6,590	10.0	-1,302	-19.8
Domestic-Private Sector	8,222	12.8	6,153	9.4	2,069	33.6
Overseas	706	1.1	5	0.0	701	-
Civil Engineering Sub-total	14,217	22.1	12,749	19.4	1,468	11.5
Buildings
Domestic-Public Sector	5,760	8.9	2,771	4.2	2,989	107.9
Domestic-Private Sector	38,986	60.5	47,396	72.0	-8,410	-17.7
Overseas	3,737	5.8	1,502	2.3	2,235	148.8
Buildings Sub-total	48,484	75.2	51,670	78.5	-3,186	-6.2
Domestic-Public Sector Total	11,048	17.1	9,361	14.2	1,687	18.0
Domestic-Private Sector Total	47,209	73.3	53,549	81.4	-6,340	-11.8
Overseas Total	4,444	6.9	1,508	2.3	2,936	194.7
Total	62,701	97.3	64,420	97.9	-1,719	-2.7

Real Estate, etc.	1,768	2.7	1,362	2.1	406	29.8
Grand Total	64,470	100.0	65,782	100.0	-1,312	-2.0

3. Non-Consolidated Business Performance for Financial Year ending March 31,2007

	Orders Received (millions of yen)	Growth (%)
2006(forecast)	460,000	8.0%
2005(actual)	425,888	-6.0%

Note: (a). Financial figures herein are simply rounded down to the nearest millions of yen.
(b). The percent figure shows the rate compared with the same period from last year.

〔Qualitative information on Non-Consolidated orders received〕

Non-consolidated orders received for this quarter decreased 1.7 billion yen, or 2.7%, compared with the same period from last year. The main factors for this can be attributed to an approx. 8.4 billion yen decrease in orders received for buildings work in the domestic-private sector, an approx. 1.7 billion yen increase in orders received for the domestic-public sector, and an approx. 2.9 billion yen increase in orders received for overseas orders.

Note 1: Figures in US$ in this report are converted from yen at the rate of 115.24JPY=US$1.00, the rate prevailing on 30th June 2006, for the readers' convenience only.
Note 2: Net income per share of common stock is based upon the weighted average number of shares of common stock outstanding during each year.
Note 3: The accounting policy for the Net Sales from Contracts Completed has been changed from a completion basis to a percentage of completion basis for contracts that were awarded after 1st April 2006 with a construction period of exceeding 1year and a contract sum of more than 100 million Japanese Yen.
Note 4: There is a tendency for costs to be comparatively larger than sales for the 1st quarter due to the fact that the amount for sales depends on the progress of a project in comparison to fixed costs such as salaries for employees , etc which occur independently. The operating results for the 1st quarter are favorable in comparison to expected semiannual and annual results.