Nishimatsu Construction Co., Ltd.

Business Performance

Nishimatsu Construction Co., Ltd.

Notice on Business Performance for the 1st Quarter from April 1 to June 30,2008

as of 7th August 2008

1. Financial Results (abstract)

Consolidated

	Millions of Yen	Millions of Yen	Thousands of U.S. Dollars
*(1) Result of Operations*	2008(1stQuarter)	2007(1stQuarter)	2008(1stQuarter)

Net Sales	77,514	46,998	728,358
Income from Operations	-1,880	-2,218	-17,675
Ordinary Profit	-65	-1,563	-614
Net Income	-103	-789	-969


Per Share of Common stock (In Yen)
Net Income	-0.37yen	-2.85yen	-0.003dollars


*(2) Assets and Equity*

Total Assets	642,253	704,190	6,035,086
Total Shareholders' Equity	169,470	192,165	1,592,470
Equity/ Assets Ratio (%)	26.3%	27.3%	26.3%
Shareholders' Equity per Share 　(In Yen)	609.24yen	692.00yen	5.725dollars

	Millions of Yen	Millions of Yen
*(3) Forecast for Fiscal Year 2008*	First Half of the Year	Whole Year

Net Sales	184,000	494,000
Income from Operations	0	10,000
Ordinary Profit	500	11,000
Net Income	100	5,000

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 30,2008

	Orders Received (millions of yen)	Growth (%)
2008	44,080	-42.5%
2007	76,632	18.9%

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.

Breakdown of Non-Consolidated Orders Received

	1st Quarter from April 1 to June 30
	2008		2007
	Millions of yen	％	Millions of yen	％
Construction
Civil Engineering
Domestic-Public Sector	2,737	6.2	4,855	6.3
Domestic-Private Sector	6,133	13.9	7,534	9.8
Overseas	176	0.4	7,542	9.8
Civil Engineering Sub-total	9,048	20.5	19,932	25.9
Buildings
Domestic-Public Sector	1,180	2.7	2,533	3.3
Domestic-Private Sector	31,915	72.4	51,975	67.9
Overseas	188	0.4	-	-
Buildings Sub-total	33,284	75.5	54,508	71.2
Domestic-Public Sector Total	3,918	8.9	7,389	9.6
Domestic-Private Sector Total	38,048	86.3	59,510	77.7
Overseas Total	365	0.8	7,542	9.8
Total	42,333	96.0	74,441	97.1

Real Estate, etc.	1,747	4.0	2,190	2.9
Grand Total	44,080	100.0	76,632	100.0

3. Non-Consolidated Business Performance for Financial Year ending March 31,2009

	Orders Received (millions of yen)	Growth (%)
2008(forecast)	434,000	7.8%
2007(actual)	402,477	-1.6%

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 32.6 billion yen, or 42.5%, compared with the same period from last year. The main factors for this can be attributed to an approx. 3.5 billion yen decrease in orders received for the domestic-public sector, an approx. 21.5 billion yen decrease in orders received for the buildings of domestic-private sector, and an approx. 7.2 billion yen decrease in orders received for overseas orders.

Note 1: Figures in US$ in this report are converted from yen at the rate of 106.42JPY=US$1.00, the rate prevailing on 30th June 2008, 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.