Kobe Steel Limited announces that at its board of directors' meeting convened on February 3rd 2011 it had passed a resolution to effect an absorption type merger of its wholly owned subsidiary Kobelco Accounting Service Co Limited.

1. Purpose of the Merger
The principal activity of Kobelco Accounting Service Co Limited, a wholly owned subsidiary, is to undertake accounting work on behalf of Kobe Steel. Merging Kobelco Accounting Service into Kobe Steel will integrate operations by improving business efficiency, facilitating communication, and maintaining stable profits.

Profile of Kobelco Accounting Service as of March 31st 2010
Company name: Kobelco Accounting Service Co Ltd
Location: Kobe, Hyogo Prefecture
President: Kazuaki Kawahara
Capital: JPY 10 million
Sales: JPY 111 million (fiscal 2009)

2. Schedule for the Merger
Resolution at Board of Directors' meeting: February 3rd 2011
Signing of agreement: February 3rd 2011
Effective date (date of merger): April 1st 2011

3. Effect on Kobe Steel's Business Results
This merger will have no effect on the consolidated business results of Kobe Steel Limited as Kobe Steel will effect an absorption type merger of a wholly owned subsidiary.