To the Board of Directors and Stockholders of
Kobe Steel, Ltd.

We have audited the accompanying non-consolidated balance sheets of Kobe Steel,Ltd. (a Japanese corporation) at March 31, 1997 and 1996, and the related non-consolidated statements of income, stockholders' equity and cash flows for the years then ended, expressed in Japanese yen. Our audits were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the non-consolidated financial statements referred to above present fairly the non-consolidated financial position of Kobe Steel, Ltd. at March 31, 1997 and 1996 and the non-consolidated results of its operations and cash flows for the years then ended in conformity with generally accepted accounting principles in Japan, applied on a consistent basis.

We have also reviewed the translation of the statements mentioned above into U.S. dollars on the basis described in Note 1. In our opinion, such statements have been properly translated on such basis.

Osaka, Japan
June 27, 1997

(Member Firm of Andersen Worldwide SC)