FASF
March 1, 2007

Earnings Forecast and Dividends for Fiscal Year ending March 31, 2007

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 full-year consolidated and non-consolidated results for the fiscal year ending March 31, 2007.

1. Results forecast

The latest consolidated results forecast for the steel business projects higher income than the previous forecast of October 2006, thanks to further cost savings and a weaker yen exchange rate than originally anticipated, factors which have offset price increases in zinc and other nonferrous metals. The engineering business forecasts a decline in income. Net sales in this business will decline owing primarily to the rescheduling of construction projects, while failure of some projects to reach profitability will also have an impact. The urban development business forecasts a slight increase in income, and the LSI business anticipates a decrease resulting from lower-than-forecast shipping volumes to the LCD panels industry.

As a result, JFE Holdings forecasts consolidated net sales of 3,270 billion yen, ordinary income of 500 billion yen and net income of 295 billion yen, all of which represent increases over the previous forecast.

The non-consolidated forecast projects operating revenue of 298 billion yen, ordinary income of 290 billion yen and net income of 290 billion yen. These revenues will come from dividends to be paid by operating companies.

1) Consolidated results forecast (April 1, 2006 to March 31, 2007)

(Billions of yen)
  Net Sales Operating income Ordinary income Net Income
Current forecast 3,270 495 500 295
Previous forecast
(October 26, 2006)
3,240 495 490 290
Increase (decrease) 30 0 10 5
Note: FY ended
March 31, 2006
3,098.3 517.1 517.3 325.9

2) Non-consolidated results forecast (April 1, 2006 to March 31, 2007)

(Billions of yen)
  Operating revenue Operating income Ordinary income Net income
Current forecast 298 290 290 290
Previous forecast
(October 26, 2006)
228 220 220 220
Increase (decrease) 70 70 70 70
Note: FY ended
March 31, 2006
114.3 107.3 107.3 106.8

2. Dividends

Returning profit to shareholders is a top priority of the company’s Second Medium-Term Business Plan formulated in 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 will submit a proposal to the next General Meeting of Shareholders that dividends for the current fiscal year be increased by 20 yen per share over the previous year. These dividends combined with interim dividends already paid will result in a full-year dividend of 120 yen per share (year-end dividend of 70 yen per share).

The Board of Directors of JFE Holdings on November 10 decided to conduct a share buyback with a ceiling of 120 billion yen, and this was completed by February 14, 2007.

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