Nishimatsu Construction Co., Ltd.

Business Performance

Nishimatsu Construction Co., Ltd.

Notice on Business Performance for the 1st Quarter from April 1 to June 30, 2007

as of 10th August 2007

1. Financial Results (abstract)

Consolidated

	Millions of Yen	Millions of Yen	Thousands of U.S. Dollars
*(1) Result of Operations*	2007(1st Quarter)	2006(1st Quarter)	2007(1st Quarter)

Net Sales	46,998	43,829	381,292
Income from Operations	-2,218	-2,221	-17,994
Ordinary Profit	-1,563	-1,650	-12,681
Net Income	-789	-1,766	-6,401


Per Share of Common stock (in yen)
Net Income	-2.85 yen	-6.37 yen	-0.023 dollars


*(2) Assets and Equity*

Total Assets	704,190	730,873	5,713,046
Total Shareholders' Equity	192,165	195,710	1,559,022
Equity/Assets Ratio (%)	27.3%	26.8%	27.3%
Shareholders' Equity per Share 　(in yen)	692.00 yen	705.17 yen	5.614 dollars

	Millions of Yen	Millions of Yen
*(3) Forecast for Fiscal Year 2007*	First Half of the Year	Whole Year

Net Sales	178,000	464,000
Income from Operations	0	9,000
Ordinary Profit	800	10,000
Net Income	400	4,500

Please note that the above business forecast is based on information available at the time of the 1st Quarter Report, and so there is a possibility of change due to various factors.

2. Non-Consolidated Business Performance for the 1st Quarter ending June 30, 2007

	Orders Received (millions of yen)	Growth (%)
2007	76.632	18.9%
2006	64,470	-2.0%

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.

Breakdown of Non-Consolidated Orders Received

	1st Quarter from April 1 to June 30
	2007		2006		Growth
	Millions of Yen	％	Millions of Yen	％	Millions of Yen	％
Construction
Civil Engineering
Domestic-Public Sector	4,855	6.3	5,288	8.2	-433	-8.2
Domestic-Private Sector	7,534	9.8	8,222	12.8	-688	-8.4
Overseas	7,542	9.8	706	1.1	6,836	968.3
Civil Engineering Sub-total	19,932	25.9	14,217	22.1	5,715	40.2
Buildings
Domestic-Public Sector	2,533	3.3	5,760	8.9	-3,227	-56.0
Domestic-Private Sector	51,975	67.9	38,986	60.5	12,989	33.3
Overseas	-	-	3,737	5.8	-3,737	-100.0
Buildings Sub-total	54,508	71.2	48,484	75.2	6,024	12.4
Domestic-Public Sector Total	7,389	9.6	11,048	17.1	-3,659	-33.1
Domestic-Private Sector Total	59,510	77.7	47,209	73.3	12,301	26.1
Overseas Total	7,542	9.8	4,444	6.9	3,098	69.7
Total	74,441	97.1	62,701	97.3	11,740	18.7

Real Estate, etc.	2,190	2.9	1,768	2.7	422	23.9
Grand Total	76,632	100.0	64,470	100.0	12,162	18.9

3. Non-Consolidated Business Performance for Financial Year ending March 31, 2008

	Orders Received (millions of yen)	Growth (%)
2007 (forecast)	440,000	7.6%
2006 (actual)	409,085	-3.9%

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 increased 12.2 billion yen, or 18.9%, compared with the same period from last year. The main factors for this can be attributed to an approx. 3.7 billion yen decrease in orders received for the domestic-public sector, an approx. 13.0 billion yen increase in orders received for buildings in the domestic-private sector, and an approx. 3.1 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 123.26JPY=US$1.00, the rate prevailing on 30th June 2007, 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: 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.