KOBE STEEL, LTD
ECOWAY
Non-Consolidated Interim Balance Sheets 
  At September 30, 1995 and 1994 (Unaudited)

                                                                 Thousands of   
                                                                  U.S.dollars   
                                        Millions of yen            (Note 1)     
                                   --------------------------   --------------  
Assets                                1995          1994             1995       
--------------------------------   --------------------------   --------------  
Current assets:                                                                 
  Cash and cash equivalents         ¥   18,845    ¥   42,017       $  190,161   
  Marketable securities(Note2)         118,505       187,306        1,195,812   
  Notes and accounts receivable:                                                
   Trade                               170,008       147,638        1,715,520   
   Subsidiaries and affiliates         110,694        79,904        1,116,993   
   Other                                28,792         9,039          290,534   
   Allowance for doubtful                                                       
    accounts                            (1,514)       (1,293)         (15,277)  
                                   ------------  ------------   --------------  
                                       307,980       235,288        3,107,770   
  Inventories:                                                                  
   Finished goods                       57,464        54,215          579,859   
   Work in process                     105,614       101,902        1,065,731   
   Raw materials and supplies           58,344        59,854          588,739   
                                   ------------  ------------   --------------  
                                       221,422       235,288        2,234,329   
   Other                                38,785        36,514          391,373   
                                   ------------  ------------   --------------  
                                                                                
       Total current assets            705,537       717,096        7,119,445   
                                   ------------  ------------   --------------  
                                                                                
Investment and other assets:                                                    
  Investments in securities(Note2)      24,436        28,847          246,579   
  Investments in and advances to                                                
   subsidiaries and affiliates         171,403       177,710        1,729,596   
  Other                                 53,495        57,229          539,808   
  Allowance for doubtful                                                        
   accounts                             (2,679)       (2,674)         (27,033)  
                                   ------------  ------------   --------------  
                                       246,655       261,112         2,488,950  
                                   ------------  ------------   --------------  
                                                                                
Plant and equipment:                                                            
  Land                                 120,779       121,264         1,218,759  
  Buildings and structures             431,686       442,786         4,356,065  
  Machinery and equipment            1,427,806     1,412,795        14,407,730  
  Construction in progress              35,757        34,639           360,817  
                                   ------------  ------------   --------------  
                                     2,016,028     2,011,466        20,343,371  
  Less accumulated depreciation      1,133,127     1,081,253        11,434,178  
                                   ------------  ------------   --------------  
                                       882,901       930,213         8,909,193  
                                   ------------  ------------   --------------  
                                                                                
Deferred assets:                                                                
  Research and development                                                      
   expenses                             16,937        21,541           170,908  
                                   ------------  ------------   --------------  
                                    ¥1,852,030    ¥1,929,962       $18,688,496  
                                   ============  ============   ==============  
                                                                                
                                                                 Thousands of   
                                                                  U.S.dollars   
                                        Millions of yen            (Note 1)     
                                   --------------------------   --------------  
Liabilities and                                                                 
Stockholders' Equity                  1995          1994             1995       
--------------------------------   --------------------------   --------------  
Current Liabilities:                                                            
  Short-term borrowings             ¥  292,974    ¥  294,090        $2,956,347  
  Current portion of                                                            
   long-term debt                       81,608        90,486           823,491  
  Notes and accounts payable:                                                   
   Trade                               196,050       140,673         1,978,305  
   Construction                         28,474        24,387           287,326  
   Subsidiaries and affiliates          99,633        89,904         1,005,378  
   Other                                 1,147         1,649            11,574  
                                   ------------  ------------   --------------  
                                       325,304       256,613         3,282,583  
                                                                                
  Advances from customers               37,774        39,608           381,171  
  Customers deposits                    25,907        25,601           261,423  
  Income and  enterprise taxes                                                  
   payable                                 512           357             5,166  
  Reserve for loss from                                                         
   natural disaster                      6,622        ------            66,821  
  Other                                 49,218        51,880           496,651  
                                   ------------  ------------   --------------  
      Total current liabilities        819,919       758,635         8,273,653  
                                   ------------  ------------   --------------  
                                                                                
Long-term liabilities:                                                          
  Long-term debt                       570,100       643,196         5,752,775  
  Employees' retirement benefits        74,165        77,322           748,385  
  Allowance for special repairs         38,864        38,225           392,170  
  Accrued income and enterprise                                                 
   taxes                                 1,579         1,215            15,933  
  Deferred income                        1,516         2,781            15,298  
  Other                                  1,831         1,388            18,476  
                                   ------------  ------------   --------------  
                                       688,055       764,127         6,943,037  
                                   ------------  ------------   --------------  
                                                                                
Contingent liabilities(Note 3)                                                  
                                                                                
Stockholders' equity:                                                           
  Common stock, ¥50 par value,                                                  
    Authorized−                                                                
      6,000,000,000 shares                                                      
    Issued−2,835,436,826 shares                                                
      in 1995 and 1994                 213,640       213,640         2,155,802  
  Additional paid-in capital           132,283       132,283         1,334,843  
  Legal reserve                         27,601        27,601           278,517  
  Retained earnings                                                             
    (Accumulated deficit):                                                      
      General reserve                   30,344        30,991           306,196  
      Unappropriated                   (59,812)        2,685          (603,552) 
                                   ------------  ------------   --------------  
                                       (29,468)       33,676          (297,356) 
                                   ------------  ------------   --------------  
        Total stockholders'equity      344,056       407,200         3,471,806  
                                   ------------  ------------   --------------  
                                    ¥1,852,030    ¥1,929,962       $18,688,496  
                                   ============  ============   ==============
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