Name of company:		JFE Holdings, Inc.
Representative:		Fumio Sudo, President and CEO
Listings:		Tokyo, Osaka and Nagoya stock exchanges in Japan
Code number:		5411
Contact:		Shuichiro Hayashi, Manager, Public Relations Sec., General Administration Dept. Tel: +81-3-3217-4030, Fax: +81-3-3214-6111

TOKYO - JFE Holdings, Inc. today announced its most recent forecast for interim and full-year consolidated and non-consolidated results for the fiscal year ending March 31, 2007.

1. Interim results forecast

In the steel business, higher income than the previous forecast in April is expected because improvements in steel export prices are outpacing price increases in zinc and other nonferrous metals. Results for the engineering and urban development businesses remain unchanged from the previous forecast. For the LSI business, the company expects a fall in income due to greater-than-expected declines in shipping volume to the LCD panel segment.

As a result, JFE Holdings forecasts consolidated interim net sales of 1,490 billion yen, operating income of 200 billion yen, ordinary income of 200 billion yen and net income of 120 billion yen. All represent increases from the previous forecast.

The non-consolidated interim forecast projects operating revenue of 104 billion yen, ordinary income of 100 yen and net income of 100 yen. These revenues will come from dividends to be paid by operating companies.

1) Interim consolidated results forecast (April 1, 2006 to September 30, 2006)

2) Interim non-consolidated results forecast (April 1, 2006 to September 30, 2006)

2. Full-year results forecast

For the latter half, JFE Holdings maintains the previous forecast’s results for the steel and engineering businesses although there will be both positive and negative factors affecting these sectors' results. Income for the urban development business is expected to increase from the previous forecast, but will decrease for the LSI business due to the continuation of greater-than-expected declines in shipping volume to the LCD panel segment.

As a result, JFE Holdings now projects full-year consolidated net sales of 3,160 billion yen, operating income of 475 billion yen, ordinary income of 470 billion yen and net income of 280 billion yen, all up from the previous forecast.

1) Full-year consolidated results forecast (April 1, 2006 to March 31, 2007)

2) Full-year non-consolidated results forecast (April 1, 2006 to March 31, 2007)

3. Interim dividend

Returning profit to shareholders is a top priority in the company’s Second Medium-Term Business Plan (formulated March 2006). The company’s policy is to proactively distribute dividends while maintaining a sustainable, high-profit business structure for the group as a whole and making growth-oriented investments in line with improvements in its financial position.

In light of this policy and the plan’s progress, the company is pleased to announce its intention to pay an interim dividend of 50 yen per share.

Note:These forecasts are based upon management’s conclusions in light of information available at the date of publication. Actual results may differ materially from these forecasts.

Supplementary Information for Earnings Forecast for Fiscal Year ending March 31, 2007