Kobe Steel, Ltd.
Tokyo Stock Exchange No. 5406

TOKYO (February 16, 2001) - Kobe Steel, Ltd. announces a revision to its earnings forecast previously announced on November 22, 2000.

1. Revised Parent Forecast for Fiscal 2000 (ending March 31, 2001)

	Sales	Ordinary Income	Net Income (Loss)
Previous Forecast (November 22, 2000)	820,000	15,000	(57,000)
Revised Forecast	820,000	15,000	(64,000)
Difference	-0-	-0-	(7,000)
Percent of change	0.0	0.0	--
Fiscal 1999 results	837,745	8,221	(15,198)

- Figures are in millions of yen.
- Ordinary income is also known as pretax profit.

2. Revised Consolidated Forecast for Fiscal 2000
(ending March 31, 2001)

	Sales	Ordinary Income	Net Income (Loss)
Previous Forecast (November 22, 2000)	1,370,000	50,000	14,000
Revised Forecast	1,370,000	50,000	7,000
Difference	-0-	-0-	(7,000)
Percent of change	0.0	0.0	(50%)
Fiscal 1999 results	1,252,515	13,731	(53,087)

- Figures are in millions of yen.
- Ordinary income is also known as pretax profit.

3. Reason for Revision
Kobe Steel and Micron Technology, Inc. signed an agreement earlier today for Kobe Steel to transfer all its equity interest held in the subsidiary KMT Semiconductor, Ltd. to Micron. As a result, Kobe Steel forecasts restructuring costs amounting to 11 billion yen to be taken as an extraordinary loss. This is anticipated to decrease aftertax net income by 7 billion yen in both parent and consolidated financial results for fiscal 2000, ending March 2001. Sales and pretax ordinary income remain unchanged from the previous forecast.

Media Contact: 
Gary Tsuchida Tokyo, Japan
Tel (03) 5739-6010

Investor Relations
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