JFE Holdings, Inc
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  September 4, 2003

  JFE Holdings Announces Earnings Forecast and Interim Dividend Policy
For Fiscal Year Ending March 31, 2004

TOKYO - JFE Holdings, Inc. announced today its forecast for first-half and full-year earnings (consolidated and non-consolidated) for the fiscal year ending March 31, 2004.

JFE Holdings forecasts consolidated net sales of ¥1,085.0 billion and ordinary income of ¥78.0 billion for the first half of the current fiscal year, both representing an increase over the previous forecast issued in May. Net income is expected to be ¥33.0 billion, with the inclusion of special losses on the amortization of transitional obligations for employees' retirement benefits.

During the first half of the current fiscal year the Japanese economy continued to face challenges including prolonging deflation and depressed public investment, despite a gradual increase in private-sector capital investment and other indications of nascent recovery. Under such circumstances, the JFE Group worked to increase earnings by faithfully implementing its First Medium-Term Business Plan.

For the first half of this fiscal year, the Group has revised its previous earnings forecast upward for its steel business. This is due to improved prices reflecting an increase in the ratio of high value-added products manufactured by the Group, as well as reduced production costs through effective integration of the technological expertise and assets. The interim forecast for the Group's engineering business in terms of net sales and operating income is essentially the same as the previous forecast. Net sales and income for both urban development and LSI businesses are expected to be higher than previously forecast.

Uncertain economic conditions are anticipated to prevail during the second half of this fiscal year as well. Nevertheless, we foresee greater profits from our steel business than the previous forecast as a result of improved steel prices as well as ongoing cost cutting efforts. In terms of consolidated performance for the entire fiscal year, we accordingly forecast net sales of ¥2,380.0 billion, ordinary income of ¥200.0 billion, and net income of ¥90.0 billion. These figures all exceed those previously forecast in May.

Please note that consolidated financial performance includes a ¥6.0 billion increase in machinery and equipment depreciation during the first half and a ¥12.0 billion increase over the entire fiscal year. This is due to the change from the straight-line to the declining-balance method in calculating machinery and equipment depreciation at the Keihin and Fukuyama facilities.


Payment of Interim Dividend

In a meeting held today, the board of directors of JFE Holdings resolved to pay no interim dividend.

Note: The forecasts in this document are based upon management assumptions and beliefs in the light of information available at the date of publication. Actual results may differ materially from these forecasts.

For further information, please contact:

Mr. Shinji Okutsu
Public Relations, General Administration and Legal Division
JFE Holdings, Inc.
Tel: +81-3-3217-4030
Fax: +81-3-3214-6111


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